Over The Hill?
Posted by Lenny Robbins on Tue, Aug 16, 2011 @ 04:17 AM
It used to be that if you were over 50, you were over the hill. Not so anymore. I think 50 is the new 30, 60 the new 40 and so on! If you're over 50 life insurance should still be a part of your financial planning.
Why Do You Need Insurance?
Over 50, life insurance purposes are somewhat different that when you are younger.
- Income replacement.
- Pension maximization.
- Final expenses.
- Debt/Mortgage protection.
- Estate liquidity and/or taxes.
- Key person and/or business continuation.
- Providing for a special needs child.
Why Should I Use an Independent Agent?
- As we age we generally have more health issues. An independent agent will know which insurer will look most favorable at your issues (health history, family history, medications, lifestyle issues).
- They will have a long list of companies available to compare pricing and options.
- If you don't get the rating you hoped for, an independent agent should have the exam and additional requirements (i.e. doctor records) available to apply to another company. This will shave weeks off of the underwriting process.
- They will be aware of special programs where a permanent policy may cost less than a term policy!
What if it's Too Expensive?
- You may be able to lower either the face amount or term period to lower the price.
- Paying annually versus monthly, quarterly or semi-annually will be less expensive.
- If you have a term policy that has a conversion option available, you may be able to convert it to a permanent policy for less money.
Key Points
The need(s) for life insurance do not disappear once you reach age 50. In fact, over 50 life insurance is probably more important now than ever before (as less people are retiring at age 65).
Talk with an independent agent that understands your needs and can assist you in getting the coverage you desire.
Photo credit: akunamatata