Term Life Insurance Article
Buying Life Insurance after 50One of the few certainties in life is that none of us will get out of it alive. This means that at some point in time, all of our families are going to be left with some pretty hefty final expenses to handle our burial and paying off any debts we may have at the time of our demise. Life insurance is a type of protection that is designed to assure our families that they will be provided for after we are gone. Unfortunately, as we get older, it becomes increasingly difficult to find life insurance that provides adequate coverage. Traditionally, insurers have shied away from providing coverage for people over 50. This is because the older we are, the greater the chance that the insurance company will have to pay out on a claim. There are, however, some companies who have recognized the value of the over 50 market for insurance. Therefore, there is coverage available. It is just different from what one had when younger.
One of the largest differences is the introduction of whole life coverage instead of a set term. Whole life policies offer older individuals a lower premium each month for a policy that pays out a limited amount for the first one to two years, usually limited to the premiums that have been paid in. These policies have the added benefit of gaining in cash value over time. Some life insurance policies offered for people over fifty require a medical examination to determine if one is healthy before they will be put in place. Most of the insurance products offered for older people, however, do not. This fact can be a benefit for those individuals who suffer from a chronic or degenerative disease that would limit their ability to acquire insurance.
Many of the life insurance products offered for the over 50 group are set up to have a point in time when the policy is paid in full and premiums do not have to be paid any longer. This usually happens at or near the age of 85. There is a very good chance that if one lives this long, the benefit paid out by the policy will be less than the amount of the premiums the person has paid in over time.
It may be of value to note that the benefits paid out in a lump sum from life insurance policies are generally considered to be a part of one?s estate, and as such are subject to inheritance tax being levied on the beneficiary named on the policy. It might be wise to consider this when deciding on the amount of coverage needed and plan for enough to cover the taxes as well as final expenses and leaving something for the family to live on.
Buying insurance when one gets older is not nearly as easy as it was when young. This is because the insurance companies know that their is a greater chance that they will have to pay out on life insurance claims on older individuals than their was when younger. Many main stream insurers will not even cover people over 50. Fortunately others have recognized the value of this niche and offer affordable insurance products for older people.