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When many people think about purchasing life insurance, they think about how the death benefits would be used to financially support their loved ones when they pass away. Death benefits can supplement lost income, pay off existing debts and more. When you are in your 20s, 30s and 40s, there is an increased need for most people to have access to the death benefits for this purpose.
By the time you reach your 50s, however, your children may be grown, and your debts may be mostly paid off. More than that, you may have enough assets and residual income in place to provide for your spouse financially even without income from your job. With this in mind, many do not believe that life insurance for people over 50 is needed. However, there are many reasons to purchase life insurance, and with a closer look at these reasons, you may be ready to shop for affordable life insurance quotes.
There are many reasons to get life insurance quotes over 50, and with a closer look at what these reasons are, you may be ready to start shopping for coverage today. One reason is that you may not be as financially secure as you may have planned you would be at this stage in your life. You may still have a mortgage, and you may have had kids later in life who are still dependent on you. Perhaps you are raising your grandchildren. Some may need life insurance over 50 years old to provide financial support to dependents.
Affordable Life Insurance over 50
You may also need to purchase affordable life insurance over 50 to pay for final expenses. One option is to use burial insurance for seniors. This is a type of coverage that is designed to have a quick payout of the death benefits when you pass away, and the death benefits can be used to pay for everything from a casket and a headstone to flowers, funeral transportation, the memorial service and other related expenses.
Keep in mind that the average cost of a funeral or memorial service in the United States is approximately $10,000, and it can be difficult for your loved ones to come up with that amount of money within the few days after your passing. This can create financial hardship for them at a time when they are mourning your loss. With final expense insurance, the death benefits will negate the need for them to sell assets, take on credit card debt or go to other extreme measures to pay for a funeral.
In addition, life insurance can also be used to pay off outstanding debts, such as a car loan, a mortgage or credit card debt. These debts can become financially burdensome to your survivors, and this is particularly true if they do not have access to your income or some of your assets. For example, some pensions do not transfer to spouses, and this income may no longer be available to your spouse after your passing.
A senior life insurance policy also can be used to help you plan your estate. For example, many heirs will need to pay estate taxes on their inheritance, and estate taxes can be as much as half of the value of the estate. Life insurance over 50 years old can be used to pay for the taxes on the estate, and this can preserve the value of the estate. Life insurance death benefits can also be used to make a charitable donation after death. Some people will gift their assets, such as a vehicle or cash, to a charitable organization that supports a cause that is important to them.
However, with life insurance for people over 50, the insured simply pays a small monthly premium payment, and the organization that is named as a beneficiary in the policy will receive the full amount of the death benefits. This essentially will enable you to make a larger donation to the organization than you may otherwise be able to afford to make.
Affordable life insurance over 50 is often also used by business owners as part of a succession plan. The death benefits can be used to pay for a temporary manager or executive who will run the business until it is sold or until a replacement for you is located. The funds can also be used to pay for additional overhead that may be incurred due to your passing.
The Benefit of a Cash Value Policy
A senior life insurance policy can provide you with death benefits that can be used for many purposes, but it also can provide you with other benefits. A term policy may only provide the beneficiaries with death benefits, and this can give you peace of mind in many ways. However, a whole life or cash value policy can accumulate value over time. With each payment you make into this type of life insurance policy, a portion of the payment will be applied to the cash value. This value will accumulate with additional premium payments as well as with interest charges.
This type of life insurance policy does have death benefits that can be used for all of the same purposes as the death benefits from a term life police. However, because the policy can accumulate cash value, the policy is considered to be a financial asset. The funds in the policy can be borrowed or withdrawn completely, and the money can be used for a wide range of things. For example, some will use this money to make improvements to their home or to purchase another home or an investment property. Some will use the funds to purchase additional investments, such as an annuity. The money can also be used for retirement planning purposes, and individuals who have this type of policy may plan to use the cash value in retirement.
Determining Your Coverage Needs Over 50
While some people may think that life insurance over 50 is simply not needed, you can see that there are many reasons why coverage can be very beneficial. From a simple final expense insurance policy to pay for funeral expenses to using the accumulated value in a life insurance policy for retirement planning and more, there are many benefits associated with purchasing and maintaining a policy during the second half of your life.
When you are preparing to purchase affordable life insurance over 50, you should carefully consider all of the different ways that cash value and death benefits can be used. Some people only have one specific need for coverage, but most can use coverage for multiple purposes. In order to determine which type of policy is best for your needs as well as how much coverage to purchase, you should identify your specific needs as a first step.
How to Shop for the Best Senior Life Insurance Policy
When you are preparing to shop for senior life insurance, you want to identify your needs for coverage as well as your budget available for purchasing the coverage. Keep in mind that premium rates are generally higher in your older years, and this means that it is more expensive for most people to purchase life insurance over 50 years old than it would be to purchase it in your 20s or 30s. Nonetheless, it may be better to purchase it now rather than to wait until you are older. Your health status is also considered when you get life insurance quotes over 50, and most people are healthier in the 50s than they will be in the 60s or even later in life. Because of this, now is a great time to purchase the coverage you need, and you may consider getting a quote for the policy or policies that will benefit you for the rest of your life.
Life insurance quotes are based on your health status and history as well as your age. They will also be based on:
- Height and weight,
- Smoking status,
- Foreign travel habits,
- And other factors that may increase the risk that the insurance company faces by insuring you.
It is common for life insurance companies to require you to take a medical exam, and this may include the collection of urine and blood samples. If you are determined to be in good health through the exam, the final rate on your policy may be as quoted. If you are in excellent health, you may receive a better rate than what was quoted. In the event your health is lower than what was expected, you may have a higher premium. In some cases, your request for coverage may be declined. Not all policies have this medical exam requirement. For example, guaranteed life insurance has a higher rate, but it does not have a medical exam requirement.
By understanding the options available to you for coverage as well as by identifying your need for coverage over 50 years old, you can make a more informed decision about your insurance policy needs. You can work with an insurance broker to request quotes and to more easily find an affordable policy or policies that are right for your needs.