Whether you're nearing retirement, or already enjoying your golden years, it is never too late to consider purchasing term life insurance, or expanding your existing coverage.
A common misconception for adults over 50 is that life insurance can be either too expensive, or impossible to obtain. However, purchasing affordable life insurance if you're over 50, over 60, or even later in life might be easier than you think. No matter your age, the most important thing is finding the best options for your financial situation and stage of life.
If you are over 50 and don't have any coverage at all, or need to increase your coverage for a period of time, take a look at term life insurance policies first. Term coverage offers traditional life insurance benefits with customizable policy options. Your monthly premiums remain locked in place at a predetermined rate for the entire length of the term you purchase. Term policies are typically sold for fixed periods of time between 10 and 30 years in length. This can be helpful for those with continued obligations, such as a mortgage or college costs, but looking for an affordable monthly payment that they can budget for.
Another life insurance coverage option that may appeal to people over 50 is to convert an existing term policy to permanent. If you elect to purchase a convertible policy, you may be able to convert to a permanent policy with no medical exam or need to prove insurability. This type of flexibility could be helpful as your needs change over time. It is important to note that your premium may increase when and if you do elect to convert your policy to permanent coverage. If you purchase a convertible policy, be sure to find out how long of a window you have in which to convert the policy to a permanent one after purchase. Convertibility is possible only during the time agreed to by you and your insurer in your contract.
Are you concerned that your loved ones might be burdened with the costs of your medical bills and other living expenses if you become seriously ill? If so, you may want to consider a type of life insurance coverage called Quality of Life Insurance. Offered by American General Life Insurance Company, QoL offers innovative "living benefits" that (in some cases) can provide you with paid policy benefits while you are still alive. It is important to understand how living benefits work before choosing this type of policy. But for adults over 50, this life insurance can provide additional peace of mind.
Sometimes, financial situations can change rapidly for people over 60. Unexpected medical bills, cost of living expenses, and changes in business ownership are only a few reasons. Because of this, some people who start out with a term life policy decide to change their coverage to a Universal Life Insurance policy. With a universal life policy, you may be able to decrease or increase your death benefit to help meet your needs as they change. Universal Life also has the added benefit of interest earning cash value. This means that your policy increases in value over time. Even better: your universal life policy taxes are deferred. This means that in many cases you won't pay annual taxes on your policy. It also means that your beneficiary typically will not have to pay income tax on the income they receive from your policy.
Some older adults over 60, 70 or even 80 years of age, are looking for a smaller coverage amount, enough to cover final expenses such as burial costs or to pay off bills. If so, Guaranteed Issue Whole Life insurance coverage may be the best fit for you. Sometimes known as "senior life insurance" or "final expense insurance" these policies typically range in coverage amounts from $5,000-$25,000. GIWL coverage was designed specifically to meet the needs of adults ages 50-85. With guaranteed acceptance, no medical exam, and up to $25,000 in coverage, a GIWL policy offers seniors a guaranteed way to help protect their legacy. Guaranteed Issue Whole Life benefits can help your loved ones pay for medical bills and final expenses. This can alleviate stress on your family helping to enable them to resolve your outstanding financial matters in your absence.
No matter your age or needs, purchasing a policy as young as possible can help provide security for your family. And remember, with many types of policies, typically the younger you are when you purchase, the less your costs will be.