For many, the decision to buy life insurance was a decision and opportunity that was presented to them at an early age. They have had years to accumulate funds and pay their premiums. For others, life insurance is something that now, later in life, they are just starting to think about. If you are over 50 and without a life insurance policy, you may feel like it is too late to start a “long-term” investment, but it is not. Here are some of the things that you should know about investing in life insurance after age 50.
Purpose of Life Insurance
When you are considering buying life insurance later in life, you must ask yourself what life insurance will do for you. The purpose of life insurance is to provide for those who are financially dependent on you after you are gone. And so, questions to ask yourself when considering life insurance are, “Who is dependent on me financially?” and “How dependent on me are they?” or “How much is needed to provide for them?”
Financial dependents are defined as those who you provide for financially or who rely on you for financial stability. Those who life insurance could provide for are a spouse, children, parents, siblings, grandchildren, and others. Depending on what type of life insurance you purchase, you can have one policy cover multiple dependents, and you can still buy life insurance even if your children or grandchildren are grown; they would still receive whatever is in the policy, and that money would be like an annual inheritance to supplement their income.
Once you’ve determined who you want to provide for, you can now think about how much you want to provide for them. A good and obvious rule of thumb when thinking about how much you can spend, who you want to provide for, and thus, how much you will need to spend, is the bigger the policy, the more money you will be spending. Though it is easy for some to want to provide for everyone they care about, remember that your life insurance policy and the premiums that you will be paying must fit into your overall financial plan and means.
Who Can Get Insurance Over 50?
When you buy life insurance, one of the first steps is the underwriting process. Underwriting involves answering health questions and usually a physical exam to determine your health condition. Those with great health usually pay less than those who smoke and have health difficulties. Keep this in mind as you consider costs. If you are suffering from health issues, it may be time to take a serious look at the ways that you can improve it.
What Type of Insurance Do You Need?
Ultimately, speaking with a financial advisor is the best way to determine what kind of life insurance you should purchase. A financial advisor can help you determine how to get the most out of your financial investments now and how to best prepare for the future.
Naples Life Insurance & Annuity Advisors
We at Naples Life Insurance & Annuity Advisors would love to help you find the right life insurance for you. We offer term life insurance and permanent life insurance options. Both are great ways to ensure that those you love and care for are provided for even when you are gone. Learn more about term life insurance and permanent life insurance and contact us today to speak to our advisor! If you already have a life insurance policy, we can help you with that, too! Learn more about us and our founder, Chris T. Christensen on our About Page.