Turning 50 years old is an important milestone for many people. However, the chilling reality of old age starts to creep in. Most people’s health starts deteriorating when they turn 50, thus needing a good life insurance coverage.
Unfortunately, life insurance coverage premiums tend to be higher for old folks. This is mainly because older people are statistically more likely to fall ill and need medical care than their younger counterparts. On the bright side, you still have insurance options that provide life insurance for seniors over 50 years old.
Everything you need to know when picking a life insurance coverage
Although getting life insurance when you are above 50 years old might seem like an expensive endeavor, it does not necessarily have to be. There are insurance companies that provide health insurance coverage for as little as $15 to individuals over 50 for a coverage worth $100,000. Life insurance policy worth $400,000 can be less than $100 even for individuals above 50 years old. This means that it can be quite affordable.
Nevertheless, some factors may hike your life insurance premiums. For example, if you have a health condition such as diabetes, heart disease, and cancer, among others, then you will likely have to pay more because the underlying illness classifies you as a higher risk. Similarly, insurance companies will charge higher life insurance policy premiums if you are a smoker.
Why do you need life insurance when you are over 50 years old
The notion that older adults do not need life insurance is rather flawed. There are many reasons you should consider getting life insurance coverage even when you are 50 years old and older. Here are some of those reasons.
- Replacement for pension or retirement income- retirement income or pension is important because it provides financial support. However, when one dies, the pension usually reduces, or the taps run completely dry. In this case, the family of the deceased may end up struggling financially. However, your life insurance coverage might save the day because the payout would replace the lost income.
- Buffer for estate taxes- In case of death, your life insurance may provide the cash that your family needs to cover estate taxes. In some cases, estate taxes may grow so high that they eat up half of the estate. The family of the deceased can instead use the life insurance payout to cover the cost of the estate so that they can retain the entirety of the estate.
- The payout from life insurance can also be used to cover funeral costs. This will offload some, if not all, of the burial costs.
- Facilitating the business succession process- A business owner may use a life insurance policy to provide capital that will keep the business running even after their death. This approach makes sense in a situation where the business has to look for a successor to keep things going.
Choosing the type of life insurance coverage that best suits you
Life insurance coverage has two main categories that you can choose from.
- Term – This is the type of life insurance coverage where the insured aims to provide death benefits to his/her family. However, this cover is provided for a specific duration of time. For example, if your term life insurance is for 30 years, your family will be paid if you die during those 30 years. If not, then there will not be a payout.
- Permanent life insurance – this does not have a predetermined timeframe. In other words, it does not expire. It can thus be used to provide death benefits or to provide financial support if the insured decides to terminate their coverage.
The cost of life insurance coverage
Life insurance coverage differs from one individual to another due to various factors such as age, health conditions, and others. However, insurance providers such as Over50lifeinsure.com provide a section where you can compare their offerings.
Having life insurance coverage is a great idea, especially for individuals over 50 years old. One can take out a life insurance coverage to ensure that their family has a soft financial landing in case of their demise if the insured was a sole provider. In some cases, it can protect their estate and businesses. The good thing is that life insurance policies for individuals over 50 years old are relatively affordable.