None of us wants to think about getting old, but while a few things improve as we age, life insurance premiums are not one of them. As you get older, life insurance companies consider you a greater risk because there’s more likelihood that they’ll have to pay out on a policy than if you were 30 years old. Let’s look at a few facts below about life insurance for over 50s.
5 Facts on Life insurance for over 50’s
1. Life insurance for those over 50 is generally offered as a whole-life policy. It will insure you until you pass away, as opposed to term coverage which will only cover you if you pass away within the period that the policy is in force. See: Term vs. Whole Life
2. According to the statistics, life expectancies have increased, Americans in general live longer than they did ten years ago. As a result of the greater life spans, many leading insurers are lowering their rates. They offer insurance policies to older folks too. Where we may relate term insurance with young adults, it is not difficult for a pretty healthy 50-year-old individual to get a 10, 20, or even 30-year term insurance policy!
3. Because people are living longer, insurance providers are more than happy to extend insurance coverage. While a 50-year-old individual may have some difficulty finding a 30-year policy, they can certainly find 10 – 15-year term coverage. They can also look for permanent coverage like a whole-life policy. This can be a significant part of your financial strategy. There are other purposes of policies for older individuals as well, such as Estate Planning, tax planning, etc.
4. Buying insurance coverage for individuals over 50 has been made simpler by online services in America. It is now easy to get quotes from top insurance agencies in the United States. The quotes cost nothing and they can be seen within a few moments. In the past, getting insurance was complex and time-consuming. The whole process of attempting to search through rates and details from different firms was daunting and complex. Websites have made this process simpler. By answering a couple of questions, you are able to get free quotes from legitimate insurance providers.
5. One benefit of whole life insurance for over 50s is that they have predetermined (fixed) premiums, so you don’t need to worry about the policy getting more costly as you get older. But this implies that policy benefit payment will not rise in accordance with inflation either, thus it could leave your loved ones with less purchasing power than you had anticipated.
In closing and as a general rule never go with your first life insurance quotes, always compare insurance company benefits and their life insurance premium before you make a decision in getting life insurance.
Photo Credits: © Jorge Royan / http://www.royan.com.ar / CC-BY-SA-3.0
See Also:
- High-Performance Savings Accounts
- The Wealthy Buy Assets, the Poor Buy Liabilities, and the Middle-Class Buy Liabilities Believing They Are Assets
- Term vs. Whole Life insurance
- Preparing for a Life Insurance Medical Exam
- The Life Insurance Safety Net
- Term or Whole Life Insurance- Whats The Right Option for You?
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