After 50 Life Insurance Policies
Article by Shannon Bean
It may surprise you that there is a big market for life insurance over 50!As we enter the middle years and beyond, it may seem like our lives will get easier so we do not have to have a life insurance policy. In theory, children should have grown up, mortgages should be paid off, and we should have the savings to cover our needs. Well, is this your life? A financial downturn or job loss mean that savings do not accumulate the way we hoped they would. 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!You may have a real need for life insurance when you are older!Of course, many people had a policy previously. But now, just as we are older and harder to find insurance for, we find that our policies are not in force any longer. So can people over 50 find affordable coverage? Of course, your own unique choices will depend upon the individual’s location, general health, budget, and some other factors. 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. Guaranteed or Simplified Issue LifeSimplified issue senior life policies ask few health questions, and older people can qualify. They usually offer an immediate death benefit once the policy is in force too. Guaranteed issue policies will take all applicants under the age limit (usually 80), but have a couple of disadvantages. The premiums will be higher than simplified policies, and they also may not have an immediate death benefit. 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. 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 life state, whole life policies may be better choices. Of course, an older person may have to accept a lower face amount to keep the premium rates affordable, but almost every middle aged or older person should be able to find coverage. 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.
About the Author
Shannon Bean writes regularly about finance related topics. I hope you enjoy this article.