What you need to know about Life Insurance over 50
A life insurance plan is something you purchase to provide for someone else when you are gone. If you are over 50 and planning to get a life insurance policy, you need to first determine who is financially dependent on you. After that, you need to determine the amount of money that would be sufficient enough to replace what you are currently providing for them.
Who are financial dependents?
Your financial dependents typically include your spouse, parents, siblings, or children. Determine how much support you are providing for them financially. What would happen to them when you are gone?
You may think of purchasing a policy and name multiple beneficiaries. That way, you will be able to provide a specific amount to several people without buying multiple life insurance policies.
Purchasing a life insurance policy over 50
To purchase a policy, you must go through the life insurance underwriting process. The underwriting process typically includes answering a set of health questions and may also require the nurse to do a medical examination (there are also non-medical life insurance options available where you do not have to go through a medical examination, but the coverage is less with high premiums in comparison to a standard Term Life Insurance policy).
If you are in shape and in great health at 50, going through the underwriting process should not be a problem. But if you have health issues and a smoker over 50, you will have to pay more for the policy in comparison to a healthier, younger, non-smoker individual.
How much coverage do you really need?
Determining the right amount of coverage is very important. And this amount is heavily dependent on your lifestyle, the number of financial dependents, your liabilities, and your income.
You must remember that life insurance should fit seamlessly into your financial plan and should be created in such a way that it can help to accomplish your objectives and goals, as well as providing for your loved ones in your absence.
An experienced life insurance advisor can help you determine the right coverage amount considering several factors based on your needs, age, liabilities, and budget giving you the best value for your money. Consider getting in touch – the consultation is free with zero obligations!
What are the types of life insurance policies you should consider after 50?
Even over 50, you have plenty of life insurance options. But the two main categories include term life insurance and permanent life insurance (policies that last your whole life along with cash values).
Term life insurance functions like a regular insurance policy. It is temporary (lasting up to a certain term), and you have to pay annual premium for the coverage. There is also no cash value attached to this type of policy.
With permanent policies, there is a cash value attached to them. A portion of your premium amount goes to cover the insurance cost and another portion goes to a savings account. Permanent insurance policies come in many forms such as Universal life or Whole Life Insurance policies.
Each type will have individual guidelines to the amount of cash value you can invest in, and when and how you can access the same.
Term life insurance is usually good to cover for temporary needs like paying off a mortgage. Once that need is done, you do not need that policy anymore.
Permanent life insurance is good for permanent needs, building a cash value on the way. No matter how long you live, you would be at peace knowing you have a policy in place that will pay out at your death.
Thinking of buying a life insurance policy after 50? Get in touch with us
At Trust Life, we have over 30 years of collective experience providing insurance and investment advice to businesses and individuals. If you are planning to know more about the right life insurance policies for you after 50, get in touch with us. The consultation is free and without any obligations!