Over 50? Find Out Why You Still Need to Have Life Insurance
If your kids are all grown up and you have paid your mortgage off, you may begin to think that your need for life insurance has passed. However, when you think of life insurance, you don’t just think of yourself but your loved ones as well. Life insurance, contrary to whatever negative things other people may say, can play an important role in your overall financial plan, no matter what stage of life you're in.
Besides the above reason, 50 sees most people’s health often decline, lose the ability to drive safely, and the likelihood of death draws closer. These additional risks make premiums go higher making it challenging and difficult to find the right insurance coverage. However, that does not mean you don't need life insurance if you're over 50.
Meeting the Special Needs of People Over 50
You’re 50. By all means you have already experienced a lot in life – got married, raised your family, or even underwent divorce. At this time, most people are starting to enjoy their lives immensely, as empty nesters they now have more time and money than ever, and they can start planning in earnest for retirement. Although a good number still opt to stay in the work force past the usual age of retirement these days, life has a tendency to slow down and become more enjoyable once your responsibilities to your children are over. It’s time to just sit and enjoy a cool drink under the morning sun.
However, there is a rather negative side to this story. When in later years, and you become even older than now, you may soon begin to feel that you are losing your sense of perception, judgment and balance. In addition, eyesight often fails, response time lengthens and serious illness becomes more likely—all great factors for higher insurance rates.
Most people 65 and older get health care from the government to cover major medical expenses. But those ready to retire and lose their health insurance may be fearful that, once they qualify, health care won't be able to provide the extent of coverage that's needed.
A Good Reason to Get Insurance
If you're still working that would come as good news as it is your income that pays for the lifestyle you and your spouse enjoy. If you died today, your spouse could outlive you by 10, 20 or 30 years. The question then is, is your current financial plan enough for your loved one? Or would your spouse be left wondering how to manage financially after you're gone? Life insurance, on the other hand, can cover daily living expenses, pay the mortgage or simply ensure your mate will continue to maintain the standard of living you've worked so hard to achieve.
Supplement Retirement Income
If you're retired, life insurance can supplement your retirement income. If your life insurance is under a policy but no longer have anyone who is financially dependent on you, you can annuitize it so that it provides monthly payments.
Pay for your final expenses
Life insurance can even give you the funds to cover your final expenses. The average funeral costs about $6,000 these days. Aside from that, there may be medical bills, taxes and attorney fees brought about when you settle your estate. And if you leave outstanding debts to your spouse, you may be leaving an extra financial burden for them.
Allow you to give more
Having life insurance can enable you to pass more onto your children and grandchildren. There are certain types of insurance which are ideal for wealth transfer because the single payment gets multiplied as soon as you purchase the policy, this result in a death benefit that is much larger than the original payment. If you're in your 50s, for example, the benefit amount could be more than double.
Give you tax rebates
Another benefit you can get when you purchase life insurance when you are 50 is the tax advantages it can give you no other financial vehicles offer. The death benefit from a life insurance policy passes income tax-free under current tax law, so your family or beneficiaries get more than they would if your money were in a taxable vehicle like a credit default. It also let you avoid the costs and delays of probate, allowing your beneficiaries have one less thing to worry about at a stressful time in their lives.
Help pay your estate tax
If you've accumulated a large estate, life insurance can help pay the estate tax bill from the government, preserving the hard-built assets you accumulated for your family.
If you're someone who is supporting aging parents, life insurance can help you get the funds to provide for the quality healthcare they need. It also assures them of a place to live should something happen to you.
Life insurance isn't something you think about every day. But it's something most people need as part of their overall financial plan. A qualified agent can help you make the most of what you have for the people you love.