Wondering if you should still buy life insurance now that you are 50 or older?
To answer this question, you must ask yourself if someone still depends on you for financial support. You must also determine how much money you are presently providing that you would need to replace.
Unlike auto insurance or home insurance which you purchase in case you will need it, life insurance is meant for someone you care about in case something should happen to you.
Even if nobody depends on you financially, there are people who buy life insurance in order to ensure financial security for someone. Parents may want to set aside something for their children upon their death. A spouse may want to make sure that a partner is secure financially if they die.
Find out more about getting life insurance for 50 year old individuals and older with a free life insurance quote from one of our partner brokers.
To obtain life insurance, you need to undergo underwriting. This process requires health questionnaires and usually a medical exam. If you are still healthy, obtaining insurance at 50 and above is not a problem.
If you are over 50, a smoker, and have certain health problems, you can still get life insurance but at higher costs than a healthy individual or non-smoker.
Life insurance is a financial product that is designed for protecting family and loved ones who depend on you for support. Your insurance policy pays a death benefit to beneficiaries that can be used for their own purpose.
In recent years, life insurance has diversified to offer more options to individuals for tax free investments or accumulating savings.
Is life insurance only for individuals who have families to provide for? Below are situations when it is ideal to have life insurance. These examples can help you to decide if you need to buy life insurance.
Even if you have no dependents, you would still need to prepare for at least your final expenses. There are also other reasons to have life insurance.
Below are reasons people in their 50s need life insurance:
You are still earning an income and you want your spouse or children to receive a death benefit.
You might need insurance to settle estate taxes or add liquidity to your estate or business holdings.
You may want to leave something to your family. Insurance has tax advantages and is an efficient way to plan inheritance.
If you have a business, you may want to ensure business obligations don’t become a burden to family members.
If you already have insurance, your life insurance needs will have changed. With your children older and independent, and your mortgage paid up, you need less cover.
You have the option to reduce your term life insurance amount to save on insurance costs.
Life insurance comes in different forms but they are generally grouped in 2 categories: permanent life insurance or term life insurance.
Term life insurance is a lot like auto insurance and home insurance. You pay monthly or annual premiums and get protection if something should happen. But there is no cash value or benefits if nothing does. With a term life insurance policy, you get insurance for a specific term such as 10, 20, or 30 years, but beneficiaries receive only death benefits at your passing within the covered term.
For permanent life insurance, you are covered for a lifetime. Beneficiaries will receive death benefits regardless of what age the insured dies. A portion of the premiums paid also go towards a savings account which accumulates a cash value that can be borrowed against by the insured.
Permanent life insurance is more expensive than term life insurance. For individuals 50 and above, most financial experts recommend term life insurance.
Some people do purchase life insurance on parents. It may look inappropriate or even morbid but it is a good investment because of its guaranteed benefits. There are insurance companies that insure even people in their 70s. While premiums would be more expensive, it can be regarded as an investment that will surely pay off.
If you were to purchase $500,000 term life insurance and pay $5,000 a year and suddenly die 5 years later, your insurance policy would have earned more than 300% rate of return.
Life insurance policies, whether term or permanent, become more expensive when you reach your 50s. If you hit your 60s and want life insurance, you’ll need to buy expensive whole life insurance since major insurers don’t generally offer term life beyond a certain age.
It is better to have locked-in rates for 20 year term life when you are in your 50s. Depending on your situation, you can also explore the benefits of permanent life insurance for lifetime cover.
Below are sample premiums for men and women from 50 to 59 for term life insurance for $25,000. You will also find premiums for smokers and non-smokers.
|Age||Male Non-Smoker||Male Smoker||Female Non-Smoker||Female Smoker|
** Rates vary from one insurance company to another
You can choose from $50,000 to $ 1 Million in coverage for you or your spouse. These figures are for every $25,000 unit of coverage. Find the rate that applies to you based on age and whether you are a smoker or non-smoker. You can multiply this rate by number of units of your desired amount of cover.
If you have reached your 50s without any life insurance, can you still find affordable policies?
If you are in good health and live a healthy lifestyle, you definitely can.
When looking for life insurance, use online tools to get educated about the basics of life insurance, find insurance brokers, and the right insurance products.
You can obtain a free life insurance quote from one of our partners (they are all insurers and insurance brokers) for term life insurance or permanent life insurance to help you make your choice.
Don’t delay – lock in lower premiums today before it is too late.
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