Why Buying Term Insurance In 50s Is Not Late?
Published On Sep 15, 2021 11:00 AM By InsuranceDekho
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Overall, it’s a time to bask in the financial security you’ve been working to create over the years and ensure you’re on the right path for retirement. When it comes to smart financial planning in your 50s, does life insurance have a rightful place in the mix?
If you buy life insurance in your 50s, it does cost significantly more – there’s no way around it. If you no longer have financial dependents and have enough savings to cover debts or final expenses, a term life insurance policy might be an unnecessary expense.
But, if you find yourself in your 50s with people who rely on your income to survive, then buying more life insurance coverage might be the right move for you.
When Life Insurance In Your 50s Makes Sense?
Life insurance options for people in their 50s:
- Building a safety net for your family at any life stage
- When life insurance in your 50s makes sense, real life does not happen on a set schedule.
- Not everyone starts a family in their 20s and is approaching empty nest status by age 50. Not everyone has sufficient money saved for the unexpected or retirement.
- The average age of first-time mothers has been increasing steadily since the 1970s. These trends indicate that there are more and more people in their 50s with young, financially dependent children. And, many of them don’t have enough money to financially support their families during an unexpected illness, layoff or the loss of a partner.
Must read: What Does A Rider Mean In Term Insurance?
- If any of the scenarios above resonate with you, then buying life insurance may be a smart decision that could provide you with much-needed peace of mind.
- A life insurance policy is a contract between you and a life insurance company that helps financially protect your loved ones if you pass away. You pay a monthly or yearly premium and if you die while the contract is in place, the insurer pays a death benefit (policy payout) to your beneficiary. Your beneficiary (or beneficiaries) can use the policy’s death benefit to help cover funeral expenses, meet day-to-day living expenses, plan for the future or use the money for whatever they need.
- Even if you don’t have children (or financially dependent children), life may have taken unexpected turns – it has a habit of doing that, after all. Perhaps it is taking longer to pay off the mortgage, or a financially dependent spouse needs a safety net until he or she makes it to retirement age. Regardless of what it is, it’s important that you figure out your life insurance needs.
When you’re older, a new life insurance policy costs more. That’s just the way policies work. So if you’re searching for the kind of peace of mind life insurance can provide, it’s important to consider your coverage needs carefully, making sure you’re getting the policy that’s just right for your family and that you’re also not overpaying for coverage.
Also read: How Much Term Insurance Cover Should One Buy?
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.