Reaching age 50 is a major milestone in your life. You likely no longer have young children depending upon you, your house may be close to paid off and you may have money set aside for the future. Even if you feel you and your loved ones are in a good financial position, all of the financial security your family enjoys could end in a moment if you suffer an untimely death. You need to protect your dependents from the financial hardship that could occur if you get sick or pass away. Purchasing life insurance is a smart way to ensure that financial devastation does not follow your death. Although it can be more difficult to find a life insurance policy after the age of 50, this does not mean you do not have options. It is important to understand the types of policies available and to find the right coverage to meet your needs.
Why Purchase Life Insurance Over 50
Although you may not have all of the expenses that you had when you were younger, you likely still have loved ones who depend upon your income. Your children may need funds to support them while they get an education and get started in their own careers, and your spouse or other dependent family members may count on your income to help continue paying off your home and planning for a secure retirement. A sudden and early death can leave your spouse without the income necessary to be comfortable as old age approaches and medical expenses rise. Your death could not only result in the loss of your income, but it could also bring costs to your family as they must pay funeral expenses. In some cases, those you love may also be left with your medical debt if you suffered a costly illness before passing away. Purchasing life insurance allows you to take care of the people you care about after you are gone. There are policies tailored to people over the age of 50 and you can find the coverage you need to feel confident and secure.
What are your Options for Life Insurance After 50?
For most people over the age of 50 who want to purchase a life insurance policy, there are two primary choices: funeral insurance and senior life insurance. There are significant differences between these two types of policies. Funeral insurance tends to be less costly but provides less coverage than senior life insurance. You should carefully research the different policy options, the costs of coverage, and the benefit provided upon your death to determine which of the two choices is the right one.
Funeral Insurance Over 50
Funeral insurance is limited coverage insurance that provides a lump sum benefit to pay for your funeral. Policies usually provide a maximum of $15,000 to $30,000 in coverage depending upon the option chosen for premiums (fixed premiums or graduated premiums that rise as you age). Funeral policies may guarantee that your loved ones will receive at least as much money in the insurance payout as you paid in premiums, so the policy pays for itself. Some funeral policies also allow for additional coverage for accidental serious injury. One major benefit of funeral insurance is that it is guaranteed issue coverage from most insurance providers, so your health status and age do no matter as long as you are 75 or younger when purchasing coverage.
Senior Life Insurance
Senior life insurance provides broader and more comprehensive coverage than funeral insurance. It may be possible to get a policy with a larger benefit so your beneficiaries can do more than just pay for the funeral with the insurance payouts. You can secure a death benefit with a sufficient amount of money to make it possible for your children to finish school and your spouse to pay off the home and put some money aside for the future.
What Does Senior Life Insurance Cover?
There are different types of policies available to people age 50 and older, so you will need to compare the different coverage options from insurance providers. Many seniors who purchase life insurance after age 50 will opt for life cover, which provides you with a lump sum payment after diagnosis of a terminal illness that gives you less than 12 months to live. This type of policy is usually available to anyone between the ages of 50 and 75, provided that a stepped up level premium structure is chosen. Life Cover Plus can also provide additional coverage including a lump sum payment to beneficiaries, as well as benefits for funeral expenses and money to pay for the cost of a financial planner to provide advice upon policy payout. It can take time for your application for senior life insurance cover to be approved so you may wish to consider purchasing a policy with interim accidental death coverage. This type of policy will provide you with accidental death coverage while your application is pending.
Is there help paying for senior life insurance cover?
There are no tax credits to provide help paying senior life insurance premiums like the credits available for the purchase of hospital health cover. However, many life insurers allow partial rollovers from super funds in order to fund the purchase of a senior life insurance policy.
Is There a Maximum Age for Buying Life Insurance Cover
It is possible to get most types of senior life insurance until age 75, but different insurers set different age limits. Once you have purchased coverage, you may be eligible for guaranteed insurability in the future. This would make it possible for you to make changes to your coverage without needing to provide new medical evidence of your fitness to the insurer.
Shopping for Senior Life Insurance
The longer you wait as you get older, the more restricted your options for purchasing a life insurance policy and the greater the potential costs associated with a policy purchase. Do not hesitate to get the coverage you need today to ensure your death won’t cause financial disaster for the people you love.
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