Should You Purchase Term Insurance In Your 50s?

Life insurance is a must-have as it protects your interests and takes care of your family in case something happens to you. Insurance finds most takers in the age range of 20 to 40. Purchasing a life insurance cover above the age of 50 is relatively unheard of. However, there are policies specifically for those above 50 years of age. These plans have their advantages and drawbacks as well. 

Reasons To Have A Term Insurance At The Age Of 50

Your savings may be at an all-time high; you may have a stable job and comparatively lesser liabilities; so why would you need a life cover after 50? Here are a few reasons to it:

• The Security Of Loved Ones

You may have decent savings, and you and your family might be healthy, but have you ever wondered how things will be after your death? Things might be difficult for your dependents, especially if you are the sole breadwinner. Over 50s life insurance can play a massive role in securing the future of your loved ones after your death.

• To Meet Burial Expenses

After the death, the expenses for last rites include the burial expenses for the plot, headstone, flowers, services, transportation and a casket. A part of the death benefit can help pay for this.

• The Best Alternative For Pension Income

In case you are a government employee, the government may stop the pension for your spouse or your children after your death. The death benefit from an over 50s life cover can thus be an excellent replacement for a regular income for your family after you.

• Great Way To Save Taxes

With life insurance, you can avail several tax benefits. The death benefit, as well as the premiums, are eligible for tax exemptions as per provisions prescribed under Income Act, 1961. This is one more reason why you should opt for life insurance for over 50 years of age. It will save you money, in addition to providing you with a life cover.

What Are The Challenges That People Over The Age Of 50 Face When Buying A Life Cover?​

Purchasing a life insurance policy is easy. You can get insured within minutes. However, this is for those who are young, hale and hearty. It is comparatively difficult for those beyond 50 to get insured. Here are a few challenges faced by people over the age of 50 when buying a life cover.

• Age​

Life insurance policies become increasingly expensive as you age. It is challenging to find a good deal on life insurance in your 50s. Hence, take time to shop around and compare, before you purchase an over-50 insurance policy.

• Health​

As you age, your health issues and the chances of you getting infected with chronic illnesses also increase. This makes it difficult to get a life insurance policy as you are considered more at risk than the others by the insurance company.

• Higher Premiums

Insurance is cheaper with lesser premiums when you are in your 20s and 30s. The monthly and yearly instalments are quite affordable. However, after 50, the premiums tend to be very high. Also, with most of the people at this age retired from their jobs, cannot afford this.

What Are The Best Life Insurance Options For People Over 50?

The following plans are some of the best life cover options for people over 50.

• Term Life Insurance​

The term life insurance offers protection for a fixed term. The over 50s term life cover comes with a term of 10 to 30 years with pure death benefits.

• Permanent Life Insurance

This insurance does not expire and provides life coverage until your death. These types of life insurance policies are costly compared to others.

• Life Insurance with No Medical Exam

It is for those with poor health. This is a good option for the people who have been denied insurance on health grounds. The premium can be higher, and the duration of cover might be relatively short.

Conclusion​

Even though it might be difficult to get, a life insurance cover above the 50s has its benefits. However, it can be costly and come with certain terms and conditions. Remember to weigh the pros and cons of the policy against your requirements before you purchase an over 50s life cover.

Also read: 

Is LIC Term Insurance Worth Investing In?

How Long My Term Insurance Cover Should Be ?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.