Older people sometimes wonder if it is useful, and even possible or economical, to take out life insurance at their age. Given the decline in retirement income, it is often associated with over-indebtedness. At the time of death, debts and the decrease in the wealth to be bequeathed to the family can be a concern. This is where life insurance for people over 50 comes into play.
Why take out life insurance as a senior?
From the age of 50, it becomes essential to quickly consider taking out good life insurance. Otherwise, getting coverage at a reasonable price can be difficult as you age, especially if you develop health problems. In addition, the younger you are, the more advantageous insurance conditions you benefit from. However, no matter how old you are, life insurance can prevent many problems in the future. It aims to protect the family when you die. Thus, it guarantees your peace of mind at the idea that those around you will be able to support themselves when you are no longer there to help. This will prevent your family from going into debt or cutting into their savings.
Does your partner rely on your income to pay for daily expenses and debts? If so, senior life insurance could help him continue his lifestyle after you leave with the money from the life insurance. You may help your children or grandchildren pay for their education. This money could also be used to maintain financial support.
If there are any outstanding debts at the time of your death, your family may have to pay them off. This can have significant financial implications, but they could be eliminated quickly with the death benefit from life insurance. A death can be very expensive for the person left behind. Offer those around you the opportunity to pay the related costs with the money from the insurance. However, depending on your current income and wealth, your family may be able to support themselves without the need for life insurance. That’s why it’s essential to talk to an advisor to see what your options are.
While it is true that seniors may have a harder time being covered than younger people and the older you get, the higher the insurance rate, options do exist, but in most cases, they may be minimal. Indeed, some companies offer good rates for life insurance adapted to 50 years and over, but it has to be a careful choice since there are many variables to consider. Let’s look at some of the options and what they entail.
Term life insurance
Term life insurance is available for seniors. It allows you to be insured over a fixed period (10, 15, 20, 25, 30 or 100 years). You can then renew the policy at the end of each term, until age 85. However, monthly premiums increase depending on your age and health status during renewals. The older you get, the shorter the terms available. Insurers make these changes to offer you a product and a duration that is more adapted to your reality.
Permanent life insurance
It is also possible to apply for permanent life insurance even if you are older. You will then be covered for the rest of your life. Premiums for this type of coverage are normally higher than usual, but you know you’ll never have to pay more than expected, despite aging and even if your health deteriorates.
Insurance without medical examination
Life insurance without a medical exam is designed for people who have difficulty getting coverage due to a health condition. As the name suggests, no medical test is required when applying. On the other hand, it is associated with higher premiums than insurance where you have to do a medical examination. In addition, the price may increase from year to year.
The older you get, the more difficult eligibility can be. Indeed, some insurers are afraid to cover seniors, since the more they advance in age, the more risk of death there is. In addition, you can no longer take out life insurance when you reach age 85. Finally, the amount of premiums increases with age.
State of health
Health conditions can also affect the eligibility and the cost for life insurance for seniors. Some companies are more reluctant to insure, or offer it at more expensive costs. Generally, the older the age, the greater the risk of deterioration in health. So, the sooner you apply for life insurance, the better. You will then be able to subscribe to a longer policy that will not change, even if your health deteriorates.
Regardless of age, insurers ask questions about smoking habits. Smoking can affect the accessibility of insurance products as it is linked to health problems and deaths. If you smoke or have smoked for a long period, your policy can be quite costly.
Life insurance can be beneficial in protecting your family and preventing them from going into debt when you die, regardless of your age. However, it is better to take a policy when you are younger rather than when you get older. We have already discussed some of the reasons why. Contact an insurance agent to assess your situation. Life insurance can be a costly mistake. An agent will help to determine what is appropriate and economical for you.
Produced in association with Craig Lebrau