Life insurance is no longer a mystery but a necessity. It is an essential purchase that people above 50 years should consider, as a way of ensuring their loved ones are well-taken care off should the inevitable happen.
Unlike other types of life insurance, people buy life insurance to provide for other people, when they are not there. Therefore, for people above 50, it is essential to determine first the people or dependents that might need financial help when one is not there.
The industry has simplified the process of getting life insurance for people above 50 years. By following the simple steps, you should be able to make an informed decision on the best life insurance plan based on age.
Step 1: Ascertain Financial Dependents
The number of people that might need financial support, when one is not, there is one of the things one should consider while inquiring about life insurance. For people above 50, planning to take life insurance, financial dependents can be spouses, children, or even a sibling or a parent.
By listing down the financial dependents as well as their probable financial needs, a would-be life insurance holder would be able to ascertain the amount of financial help to leave behind. Likewise, upon taking a life insurance policy, one would be able to name multiple beneficiaries while designating a specific amount to each.
Step 2: How Much Life Insurance Coverage is Enough
Once financial dependents are ascertained, determining the ideal amount of life insurance to cater for all needs of the beneficiaries is essential.
According to Over50LifeInsure, it is important to start with life insurance that aligns well with one’s financial position. In this case, a life insurance policy should fit into one’s financial plan to achieve given goals and objectives.
Similarly, the amount of cover taken should take into consideration the number of beneficiaries to ensure there is sufficient distribution depending on underlying financial needs.
Step 3: Type of Life Insurance to Take
While there are various types of life insurance policies, only a few would match one’s financial position in addition to responding adequately to underlying needs. However, life insurance can be classified broadly into two term life and cash value life insurance.
Term Life insurance is a special type of life insurance that offers coverage for a given period of time. As long as one pays premiums, they remain covered. However, these types of life insurance plans don’t come with a cash value attached to the policy. Cash-value life insurance, on the other hand, sees a portion of the premiums covering the cost of insurance while the other portion goes towards savings.
For people above 50 years, term life insurance would be an ideal policy for covering short term needs such as covering kids’ college fees or paying off a mortgage. Once a mortgage is paid off, or a kid is off college, you can always terminate the policy.
Cash-value life insurance, such as whole life insurance or universal life insurance, would be ideal for covering permanent needs. The policy does not come with time limits, which essentially means you will be able to cover for beneficiaries’ needs whenever death occurs. Cash value insurance also provides a way of growing money tax-free, given the savings portion.
Get Some Help
An Agent can help you get some of the best life insurance policies customized to meet various needs of people above 50 years. Term Life Insurance has so far proved to be the best solution 9 times out of 10 for people above 50, given that it is one of the cheapest. You can acquire these policies for coverage over 10 15 20 or 30-year level term.