Too Old For Life Insurance?

How Old Should We Be Before We Do Not Need Life Insurance?

I have actually have people tell me that they thought they were too old for life insurance. I am not talking about 100 year olds, but people in their fifties or sixties. Many of them regretted the lack of coverage.

They did understand the importance of life coverage. Most of them had been covered in the past. But they lost their policies because term policies had expired, they quite a job with group benefits, or simply let their policy lapse when a budget was tight.

Do People Over 50 Need Life Insurance?

Earlier in their lives, many people had planned to outgrow the need for life insurance. They figured by middle age or retirement years they would have plenty of savings to cover their obligations. They also planned to have mortgages paid off, kids out of their hair, and income for their spouses.

However, economic problems in recent years have really thrown a wrench into these well laid plans. Market accounts lost money and many people lost their jobs. In addition, housing problems reduced home values. While home prices fell, many mortgages rose. And to add insult to injury, the interest rates on savings accounts or bank CDs dropped to almost nothing. At the same time, credit card companies keep jacking up our interest rates and finding new and creative ways to charge us penalties and fees.

I only list these problems to assure you that many people are in worse financial shape than they thought they would be. And so older people plan to work longer, and with that need for income comes some responsibility. What would their families do if their income was gone.

Older People Buy Life Insurance For The Same Reasons Younger People Do

So this brings us to to a prime use for a policy. It protects your family, or other beneficiaries, in case you pass away. Many purchase coverage in order to make sure a home can get paid off, loved ones have some income, hand other obligations can be settled. In this case, the insurance actually protects loved ones from financial ruin.

Other people just want to make sure that their family has cash for a specific need. Final expense policies, meant to cover burials and funeral costs, are commonly sold to people in their retirement years. Funerals, and associated costs, can run up bills of thousands of dollars. People buy these so nobody has to worry about where the policy comes from.

Some people are in better shape, but they find other good uses for a policy. These people may have lots of assets, but just want to take some of their money and turn it into a larger estate to pass on. Beneficiaries usually get the death benefit without having to pay any taxes on it. This can be a good way to pass on money to heirs.

Business Uses of Life Policies

And finally, look at business uses. Partners can buy policies on each other, with the other partner's family as the beneficiaries. If either partner dies, the other can pay off the family so they can keep the business. In other cases, a business may have financial problems if one of the important employees pass away. In this case, key man insurance can protect the company while they groom or train another worker. And finally, a business owner may buy a policy in order to pass the enterprise on to one family member while reimbursing the others with cash from the death benefit.

Is It Hard For Older People To Buy Life Insurance?

Most active and reasonably healthy older people can find a policy. Even people with health problems can buy senior life policies, though they probably will not have large death benefits. To save time, you should try comparing quotes with a convenient online form. You can type in your basic information and request, and then sit back as top insurers compete for your business!

Are you converned about finding a policy for an older person?

Let us help you buy life insurance over 50. Our fast, safe and free online insurance quote forms can help you compare policies and prices, so you can save time and money.

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