Life insurance is generally thought of for those in their 20s through their 40s because they have yet to build up the financial assets needed to cover their families in case they pass away unexpectedly. However, there are good reasons in having life insurance for people over 50 as well. The seniors over 50 still need a suitable life policy for their own benefits and future security. Let’s find out some more interesting facts that you would love to know being over 50 (and of-course if you need a life insurance).
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Benefits of Having a Life Insurance Over 50:
There are many reasons why life insurance for over 50 makes perfect sense, especially for those who are still putting back for their retirement. With your children leaving the home and graduating from college, there is now more of an effort to put your money into retirement accounts.
It may seem at this point that life insurance for over 50 years old would be a detriment to your finances, but the truth is that it is the type of insurance needed for many at this point in their lives. This is because if something should happen to you, the financial ramifications are such that it will not only affect your immediate family in the short term, but in the long term as well.
Your income is vital towards securing a retirement that allows you and your spouse to live comfortably for the rest of your lives. Without that income, your spouse will be facing a much harder time in earning the money needed so that he or she can live at the same level that both of you enjoy now.
Plus, at this stage in your lives, an unexpected event such as you no longer being around to support your family will be much harder from a financial standpoint for them to overcome. Life insurance for over 50 makes perfect sense as it covers the financial loss and may even add a legacy to help your beneficiary get back into good standing.
Life insurance for parents over 50 is also available and an excellent way for helping children or grandchildren financially. Wouldn’t it a great thing to leave some money for your grandchild’s education?
What Factors Affect the Life Insurance Premium?
The basic factors that affect the premiums for life insurance for people over 50 are three-fold;
Based on the benefit that you desire, the older or less healthy you are, the more expensive the premiums will be. The seniors are supposed to have weak health which can cause them a pricey premium. The life insurance for seniors over 50 can often be costlier because of the health issue only. But there is nothing to be worried a lot. Depending on your financial needs, you may choose a benefit that only covers funeral expenses and any immediate debt that you might owe. However, a larger benefit will help cover retirement for your beneficiary.
You will need to weigh all the options before choosing the right type of life insurance over 50 to meet the needs of your immediate family.
Types of Life Insurance for People Over 50:
For those who have discovered a need for life insurance, the next question to ask is which type works best for your situation. In essence, there are two types of affordable life insurance over 50, whole and term. Each type has its own unique advantages and it is important to find the one that best works for your needs while fitting into your budget as well.
Whole Life Policy: This type of life insurance is one that actually generates additional value the longer you keep paying on the policy. Plus, there is no end or termination date for the insurance as well which means that it will not have an arbitrary end date.
However, whole life insurance is generally more expensive and it is subject to a number of conditions as well. For those over 50 years old, obtaining this type of life insurance at this stage in life may not be worth the added expense because there isn’t enough time to build up the expected benefits. Learn more here about this type of insurance.
Term Life Policy: Term life insurance over 50 does have a pre-set ending date which generally ranges from 10 to 30 years depending on the policy. There is no additional generation of benefits over time like whole life insurance.
However, term life insurance is generally much less expensive and does pay out a substantial benefit to family members which can cover funeral expenses, pay off existing debt and even leave a legacy behind that allows the beneficiaries to become more secure in their lives.
Term life insurance for over 50 years old is the perfect solution to cover this period in your life. For those who are interested in finding out how to obtain such a policy, it is recommended that you shop around by finding reputable companies that offer free quotes. You can get life insurance quotes over 50 for free of cost from us and we feature some of the most reliable life insurance companies in the USA.
No exam life insurance is another alternative for those with health issues. You don’t need to sit for any medical exam to get this type of policy. So those who fear of needles would be glad to have such an option available for them.
If you are short of funds, then go for funeral insurance which is very affordable and can cover whole funeral ceremony. A policy of $15k coverage amount should be enough for small arrangement. You can buy coverage up to $50k by local insurance companies in the USA.
How Much does Term Life Insurance Cost?
There are three basic factors for how much term life insurance for people over 50 will cost which includes your actual age, health and size of the benefit. It should be no surprise that the younger and healthier you are, the lower the monthly premiums will be.
While no example will fit everyone, a healthy 50 year old man who purchases a 20 year term policy with a $500,000 benefit will pay on average $1,000 per year. While that is noticeably more expensive than what a 40 year old man would pay, it is on average about a 1/3rd of what a 60 year old man will pay. Remember, these figures are not exact and will depend on your overall health and financial needs. Obviously, if you only need a $100,000 benefit, then the premium will be considerably lower. You should check out our free quotes for exact premium offered by insurance companies.
Tips to Shop for Term Life Insurance Over 50:
A free quote can be obtained by filling out a short form which does not include any direct personal information, just the general parameters of where you are currently at in your life. From that information, a free quote for the term life insurance that you desire plus the monthly premiums will be sent to you.
This is an excellent way to choose from amongst many different companies to see which one has the best policy that fits your needs as well as your budget. In fact, you can even get a free quote by clicking on this link, a great way to get started as this company provides outstanding free quotes which set the benchmark for many other life insurance groups.
Getting life insurance for people over 50 is now easier than ever. You will need to take advantage of the lower rates while you can to ensure that your family is covered in case the unexpected should happen.