Life Insurance Needs After 50 Years Old
Finding Life Insurance You Can Afford After Age 50
Why do people over 50 need life insurance?
As we enter middle age and retirement years, it may seem like our lives should be simplified so we do not require life insurance. In theory, kids should be grown, mortgages should be paid off, and we should have the savings to cover our needs. Does this sound like your life?
Of course, things do not always work out the way financial planners tells us they will when we are younger. Job losses and other financial setbacks mean that savings do not accumulate the way we hoped they would. Many people have kids later in life, so they still need support when parents are in middle age. Beyond that, with financial troubles, many older kids are returning home, sometimes with their own kids! And that mortgage that should have been paid off in 15 or 30 years may still be outstanding because of a refinance or move!
Many of us would benefit from life insurance over 50, 60, or 70!
Of course, a lot of us did have coverage before. We may have had term life insurance policies that expired, or we may have had some group coverage at a job where we no longer work. But now, just as we are older and more expensive to cover, we find that our policies are not in force any longer.
So can we still find coverage over 50, 60, or 70?
Older people, after age 50, and even well into retirement years, can still find a policy. Of course, the choices will depend upon the individual's location, general health, budget, and some other factors.
In general, a fairly healthy 70 year old should still be able to find a 10 year term policy, but could not expect to find a 30 year term. At this age, a better choice may be a whole life insurance policy. You understand that older people may have to choose a smaller coverage amount to keep affordable rates, but most older people should be able to qualify for some policies.
Senior life insurance policies, sometimes called final expense, are smaller face value whole life policies that have been designed to provide affordable coverage for older people. Simplified issue senior life policies ask few health questions, and older people can qualify.
These type of guaranteed issue life insurance policies will take everybody within the age range, but be careful. The premiums will be higher than simplified policies, and they also may not have an immediate death benefit. Since they do not use health questions to qualify an applicant, they use a waiting period. It is common to see a 2 - 3 year waiting period until the whole amount of the policy will be in force. Before that, they may pay out a percentage of the total death benefit, or they may return the premiums with some specified interest rate. Despite this, a guaranteed issue policy may be a good option for some seniors and their families.
Who Buys Senior Life Insurance?
Some older people purchase a policy themselves. Sometimes, other family members like grown kids, will purchase a policy for their parents. They do this as a way to plan for the future when their parent is not around.
Do you need life insurance even though you are over 50? You can find the best coverage from top quality life insurers!