Term Life Insurance Article

Is Life Insurance Available after Age 50?

Most of us have kept life insurance on ourselves, either though work or through a private insurer since we became adults. There are a variety of reasons. Most have to do with paying off mortgages and covering final expenses that would create a burden for our families if we were to die today. Young people have absolutely no problem getting life insurance, but is life insurance available after age 50? In actuality, the answer is yes. This is a very good thing because more and more people are falling into the age group of over 50 each year. There are two different types of life insurance available to people over 50. The first type, known as term life insurance, is the same as the insurance most of us have carried most of our lives. The payable benefits for term life insurance are the same from the first to the last day of the term so long as the premiums are paid in a timely manner. This means that if a person takes out a ?250,000 term life policy with a term of 30 years and died two weeks after the policy was issued, the beneficiary would still collect the full ?250,000. Of course there are usually limits and rules concerning the cause of death for the first year or two of the term before the policy will pay anything.

There is also a new type of term policy that decreases in value as the term progresses. The premiums also decrease, making it a fair trade off. This type of term policy is useful for someone who is looking simply at paying off a mortgage when he/she dies to avoid leaving the family in debt.

The most common type of life insurance offered to people over 50 is whole life insurance. Unlike term policies, whole life policies have a limited amount that will be paid out over the first one to five years of the policy. As premiums are paid, the payable amount goes up until it reaches the value of the policy. In some cases, there is a limit on how much can be collected in premiums before the policy is considered paid for in full.

Many whole life policies are offered to people over 50 without them even having to take a physical examination. This is one of the more attractive features for some individuals who suffer from certain chronic illnesses.

Another major difference between term and whole life policies is the fact that almost all whole life policies actually accumulate cash value. This means that it is possible to put up a whole life insurance policy as collateral for a mortgage. Of course, doing so would mean that the bank became the beneficiary of the policy and would collect in the event of the policy owner?s death.

Even though one would probably have to settle for a shorter term and higher premiums, it is possible to receive term life insurance past age 50. If this option does not look favourable, a person can take out a whole life policy with much cheaper premiums and a limited benefit for the first while that the policy is in force.

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