Fifty is no bar for life insurance
There are many who still need life insurance even after they’ve reached an advanced age. The most common reason is that, people who have taken Term life insurance policies will be rendered without coverage after the completion of the term by which time they will obviously be above fifty years of age. Term policies are taken under the assumption that by the time the term finishes, the beneficiaries of the policy would be capable of taking care of themselves and that there would be enough savings left to cover for the funeral and other expenses of the person in case of death. More often than not, the low/middle income group individual who issued the policy would still be left with people clinging for their support and there would just not be enough savings for those who are left behind, sometimes not even covering funeral expenditure.
But people are growing healthier by the day! It is not considered unusual anymore to see a 70 year old with no health issues whatsoever. This is exactly why insurance companies now extend whole and even term life insurance for people over fifty at great life insurance rates. There are a few problems with term life insurance though. While renewing one’s existing term life insurance could come with several stipulations that one might not have foreseen while buying the policy years ago, taking a new term insurance for people above fifty years of age will cost a lot more than it does for a younger person. Also, higher the term period, more is the cost of premiums. But, how would you know whether you would be alive or dead in ten or twenty years? And more importantly, how is one going to assume that after the term period finishes, one wouldn’t have any financial obligations towards one’s family. Supposing the mortgage of your house is not paid back as planned due to a setback in your finances or if one of your children still need assistance…it would be like coming back a whole circle.
There are other options like guaranteed universal life insurance policies that provide life insurance for people above fifty years of age more conveniently. They are no exam – whole life insurance packages and come with a no-questions-asked tag. Meaning you do not have to take a medical test or answer a lengthy questionnaire about your family’s medical history as such. These policies have secured financial benefits unlike term policies. And the insured can relax because he would be covered for however long he might live. However, these policies only cover up to $25,000 but the other option of getting a whole life insurance policy of the underwritten type might not be available for those of an advanced age than 80 and even if it does, there is every chance that it would be more costlier than the both the options, discussed above.
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