Life Insurance for Seniors Over 50 Years Old

No matter what someone’s age, it is essential to have the proper amount of life insurance coverage. In fact, having financial protection for those you love has much less to do with age, but rather it has to do with the amount of debt you would leave behind, as well as how much your survivors may struggle financially if they no longer had the support of your income.

With that in mind, people who are over age 50 have numerous reasons to have the protection of a good solid life insurance plan. Just some of the reasons may include:

  • Debt Payoff – There are many people over age 50 who may still have a mortgage. Should they pass away unexpectedly, it could mean financial struggle for a spouse and children. Using the proceeds from a life insurance plan, however, could easily alleviate this issue by allowing survivors to quickly pay off this debt. Likewise, life insurance could also be used to eliminate other debts, too, such as auto loans, credit card balances, and other personal financial obligations.
  • Future Expenses – In addition to paying off current debt and expenses, life insurance could also be used for funding future expenses, too. There are many people who are over the age of 50 who have children and / or grandchildren who plan to attend college. If a parent or grandparent is setting aside funds to help a child pay for their future education, life insurance can be a great way to ensure that these expenses can still be paid – even if the unexpected should occur.
  • Income Replacement – Life insurance can also be used for income replacement. Today, there are many people over age 50 who work full time jobs, or who run businesses of their own. Should something happen and their income suddenly stops, they may leave survivors without a way to meet their day to day living expenses. But the proceeds from a life insurance policy can be used to help survivors go on, without the need to drastically alter their current lifestyle.
  • Charitable Contribution – As people get older, they also may wish to donate more funds to a charitable organization that is close to their heart. Life insurance can offer the perfect way to do so. For literally pennies on the dollar, an individual can contribute a great deal more by naming a charity as the beneficiary of their life insurance policy.
  • Funeral and Burial – Certainly, another common use for life insurance is for payment of final expenses. Today, the average cost of a funeral is $10,000. Many families simply do not have this amount of money readily available to pay such expenses. But funds from a life insurance policy can provide these funds. This can offer loved ones financial peace of mind in an already stressful time.

Finding the Best Life Insurance for People Over 50

When shopping for life insurance for people over 50, there are many options to choose from. There are two primary types of life insurance that are available in the marketplace today. These include term and permanent.

Term life insurance can be purchased for a set number of years such as 5, 10, 20, or even 30. These types of policies provide pure life insurance coverage, without any type of cash value or savings component. This is why term life is known for being very affordable – especially for those who are in good health.

Those who own term life insurance, however, will need to re-qualify for coverage when their policies expire at the end of the time period, or “term.” At that time, the insured’s premium will typically increase due to their older age, as well as any possible adverse health conditions.

Permanent life insurance provides death benefit protection, as well as the opportunity for the insured to build up savings through a cash value component within the policy. Cash is allowed to grow on a tax deferred basis. This means that no tax is due on the gain until the time that funds are withdrawn.

Because the policy holder is putting money towards both the death benefit and the savings component, the premiums on permanent life insurance are typically higher than those of a comparable term insurance policy. These premiums, however, do not generally increase at all throughout the entire life of the policy. Therefore, once an insured locks in, he or she could essentially pay the same premium amount for life.

Comparing Premiums

The premiums that are charged on life insurance for people over 50 can vary greatly. Just some of the reasons for the variance in premium will include:

  • Type of policy
  • Health condition
  • Amount of coverage
  • Length of coverage (for term life insurance)
  • Company

For those who are ready to purchase a term or permanent life insurance policy and are over age 50, it is always a good idea to run a comparison of several policy premiums. This is because the cost can vary widely from one insurer to another.

At work with many of the most highly rated insurance companies in the industry, and can help you to find the best policy and the best premium for your life insurance coverage needs. Simply <Click Here> to get the process started.

In addition, if you have any questions about which type of life insurance may be best for people over 50, or about how to compare life insurance premium quotes, we are here to help. Feel free to contact us directly, toll-free, at <XXX-XXX-XXXX> and we will quickly address any of the questions or concerns that you may have.