The older that you get, the more that you’re going to pay for life insurance. A lot of people that reach the age of 50 assume that they no longer need life insurance.
Every person is different, and every family will have different life insurance needs. Regardless of how old you are, you might still need life insurance.
If something tragic were to happen to you, and you didn’t have life insurance, your family would be responsible for all of your debts and other final expenses. Those debts could leave your family with financial strain as well as emotional pain.
Before you purchase life insurance, it’s essential that you pick the perfect type of life insurance for your family. There are several types of plans that you should consider before you purchase a plan.
Our agents at Over50LifeInsure.com have years of experience helping all types of clients over the age of 50.
Whole Life Insurance
The two main types of life insurance are term life insurance and whole life insurance. Each of them has different advantages and disadvantages that you will need to consider to ensure that you’re getting the best life insurance policy available.
With a term insurance plan, these plans are going to only be valid for a certain amount of time.
Term life insurance is the most affordable coverage you can buy and most of the time term life is going to be the best plan to meet your needs. Of course there are some exceptions to that.
One reason why you would definitely want to consider buying a whole life plans instead of term life is if the reason you are purchasing the policy is to cover final expenses including burial costs.
We have seen so many people that have bought term life plans to cover final expenses. Here’s why we believe that’s a bad idea.
Let’s say you are 65 years old and you want have life insurance in place to cover your future final expenses. If you buy a 20 year term plan the coverage is going to end when you are 85 years old.
The good news is that you are still living and hopefully happy hand healthy. The bad news is the life insurance policy you have been paying on for the last 20 years is no longer in force. All the money that you have paid for your final expense plan is now wasted.
If you try to apply for life insurance at age 85 it is available but the cost is going to very high. At age 85 many people find that buying a new policy is no longer affordable.
If you are buying life insurance to cover future final expenses and burial costs we highly recommend buying a policy that you will be there no matter how long you live.
You see with a final expense whole life plan the plan will stay in force until the day you die as long you continue to pay the premium. The premium that you are required to pay will not change and the death benefit will not change for the life of the policy.
This is why if you speak to us we will always ask you why you are wanting to purchase coverage. Knowing why you need the coverage will help to determine what type of plan you need.
Most often a term policy will be the best option, but if you need to have coverage in place when you pass away then a permanent life insurance policy would be the best option.
Every insurance company is different, and all of them are going to have different age limits limits on their whole life insurance plans. Some companies will sell whole life insurance plans for applicants up to age 85.
Remember, there are some pros and cons of whole life insurance that you should take note of before you purchase one of these plans. The distinct advantage is that you will never lose life insurance protection.
With a term insurance plan, it is going to expire, which means that you’re going to have to reapply for coverage assuming you still need coverage when the level term period comes to an end.
Another benefit of these plans is that you’re going to also build cash value inside of the plan. The longer that you hold the policy, the more value that’s inside of the plan.
Depending on how much value is inside of your whole life policy, you can use that money to pay the monthly premiums or to secure a loan against the value.
On the other hand, there are going to be some drawbacks to these plans as well. Whole life policies are going to be more expensive than a term plan.
The permanent coverage is going to come at a higher premium cost. If you want to get the most affordable type of life insurance or if your need for life insurance is temporary, then you’ll probably want to go with a term insurance plan instead.
How Much Coverage do you need Over 50?
Regardless of which type of plan that you buy, term or whole, it’s more important that you purchase enough life insurance for your loved ones. Not having enough life insurance is going to leave your family with additional bills and expenses that they wouldn’t have the money to cover.
As an applicant over the age of 50, your life insurance needs are going to look very different than they would for a younger applicant.
There are a couple of different categories that you’ll need to account for to ensure that your family has the coverage that they need if something were to happen to you.
The first number that you should add into the equation is your debts and final expenses. The primary goal of your life insurance policy is to give your family the money that they need to pay off your large bills, like your mortgage or business loans.
Make sure that your family will be able to pay off any of those major expenses without draining your loved ones’ savings.
The next number to add into the calculations is your annual income. If you have several people that are dependent on your income, then they would struggle financially if you passed away.
That’s where your life insurance comes in. It will give them the money that they need to replace your paycheck.
Often times we have found that when only one spouse works that the other spouse presumes they would just go back to work if need be. Keep in mind that if one has been out of the work force for a number of years it can be more difficult to find a good job.
Also, it can be extremely difficult dealing with the loss of a loved one while at the same time trying to find a job. The increase financial burden can be a very difficult thing to have to deal with.
You will also want to determine how much will be needed to cover any final expenses including burial costs. When people pass away it’s always a difficult time for a family emotionally.
However, by having the proper life insurance in place you can at least make sure that financially your family is taken care of.
Getting Life Insurance After Age 50
One reason that a lot of older applicants don’t have life insurance is that they think that these plans are going to be too expensive because of their age. Regardless of your age, it’s possible to get quality and affordable insurance protection for your loved ones.
Every insurance company is different, and all of them are going to look at your age differently, which means that you could get drastically different rates depending on the company that you contact.
There are hundreds of companies that you can choose from, instead of wasting your precious time, let one of our independent agents do the dirty work for you.
Unlike a traditional agent, independent brokers work with dozens of highly rated companies. We can bring a personalized set of quotes directly to you.
We can save you both time and money on your life insurance search. Since this is what we all day and we have been doing so for years, we are very familiar with which companies are going to offer the best quality for the best price.
If you have any questions about getting life insurance at an older age, contact one of our agents today. We would love to answer those questions and ensure that you’re getting the best life insurance plan available. We have years of experience working with all types of clients across the country.