Why Middle Age Should Come with Life Insurance?

Elderly Person with a PuppyWhen you’ve reached the middle years, it becomes a time when you start thinking more about your future. One task that you should perform is getting proper life insurance so that if the worst happens, your family will not be facing a financial crisis.

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Considering that employer-based insurance plans are not nearly enough and the average funeral cost is over $9,000, having a separate life insurance policy to cover such contingencies makes sound financial sense.

Most Favorable Terms

When you consider that life insurance only gets more expensive the older you get, purchasing a policy now makes lots of sense. If you are between 50 and 60, this represents your peak years of earning as well, which means that it is far easier to pay for a life insurance policy, especially if you are healthy.

Debt Protection

Right now, your kids are probably starting on their own with the world in front of them. If you do not have sufficient coverage, you may saddle them with some serious debt. This is not just with the funeral costs, but also the cost of your mortgage and other financial commitments that they may have to pay.

Term Over Permanent Life Insurance

Unless you are well-off and have considerable financial assets to protect, it is best if you get a term policy. Term policies have a finite time limit but are considerably less expensive for the same amount of premiums.

If you are well into your 50s and have an average income, then the term coverage is preferable. However, if you have a larger income, have yet to reach your 50s, and need the tax advantages that it can bring, then you might consider permanent life insurance.

Buy a Few Smaller Policies

You’ll want to consider having several smaller term policies as opposed to purchasing a single, large one because your financial needs will change over the years. When you have paid off the mortgage and children’s college tuition, your financial responsibilities will be considerably less, so you will not be stuck with a policy that no longer fits your needs.

The worst thing that you can do is put the decision off about purchasing life insurance. While your life may be going great right now, things can change quickly, and you cannot always see it coming. Plus, the older you get, the more expensive life insurance will be, especially if you suffer from a significant medical condition.

The question you should be asking right now is what would happen to your family if something happened to you? Beyond the grief they will experience, you should consider the financial condition that you are leaving them in which includes outstanding mortgages, loans, and paying for your funeral expenses.

Plus, if you have not saved up sufficiently for retirement, that will affect your spouse and children as they will have to shoulder more of the burden.

Final thoughts…

Go over your life situation and then purchase the right policy or perhaps series of policies that work best for your financial needs while fitting your budget.