Term Life Insurance Article
Everyone Needs Life Insurance - even after age 50It is a simple fact of life that everyone needs some form of life insurance to cover final expenses and provide for the remaining family members in the event of our death. The simple truth is that most of us are deep in debt and that, along with the cost of a funeral, could bankrupt our spouse or children if we do not make some provision for taking care of them. The older we are, the more we need to have some sort of life coverage to keep from being a burden on our families after we are gone.
Even those rare individuals who are debt free should carry a low cost life insurance policy to provide for their final expenses in order to avoid leaving their family in need of a mortgage to see them buried properly. It is a sad truth that we all must die sometime. We just don?t know when.
Another major reason to keep a life insurance policy is the rising cost of medical care. Once a person passes age 50, there is a sharp increase in the chance of contracting a chronic illness that can linger for quite some time and require a lot of medical care. This care is not free, and it could prove to be a major burden for our families if we die, leaving behind huge medical bills. Life insurance benefits can often help to mitigate these bills and keep our families out of the poor house.
Not everyone needs the same amount of life insurance coverage. Those who are independently wealthy and have a good sized estate can function with less coverage because their families will not be at risk of bankruptcy in the event of their death. On the other hand, for those who are barely making it, a higher coverage is needed to provide for the family until the spouse is able to get back into the workforce and begin to make on his/her own. Many insurers recommend an amount equal to ten times one?s annual wage.
Insurance policies that are available for those over 50 are somewhat different from the ones we were able to get when we were younger. When a person is eighteen and just entering the workforce, it is possible to get life insurance with a thirty year term at a very low premium. This is because the odds are good that we will live longer than the insurance policy will cover. When we reach fifty, the odds change and there is a greater chance that we will pass on, and the insurance company will have to pay off on our policy. For this reason, the coverage available to older people costs more per unit of coverage. There is also normally a period of time when only limited benefits, usually limited to the amount of premiums we have paid in, will be paid upon our deaths. This is a move by insurers to limit their losses when paying out on claims.
Most policies available to older people are of the whole life variety. These cost a little more and have that period of limited benefits, but they gain cash value over time and become an asset that can be used as collateral for a mortgage or even cashed in before our death.