If you’ve just hit your half-century mark and are concerned that you need life insurance or have some but worry that you may need more, your primary concerns are probably figuring out how much you need and how much the coverage you want will cost. It can be confusing sorting out how to find affordable senior life insurance after 50, but we can help. Our advice is based on years of experience – and is free. Check out these tips for getting the best deal on life insurance for your age:#1 Figure Out If You Want Term or Permanent Life Insurance
If you’ve never had life insurance before (or never understood what you had) there are two main types of life insurance: term and whole life. The policy types are based on the period of coverage offered. What’s the difference?
- Term life – This covers you for a specific term (or period) of years. Common terms are 10, 20 or 30 years. If you want coverage until your children are grown and out of college and you’re 50 now and have kids in high school, a 10 year policy may be good. If you want to continue the coverage for spousal protection, a 20 year policy may be better. If you started your family late and they’re in elementary or middle school, a 20 year policy may be right for you.
- Universal life – These policies cover you for your lifetime, are very flexible and can be customized to fit your needs. The policy can be structured with no cash accumulations and with a consistent face and premium amount through the life of the policy (it acts like a term policy for life). This costs more than term life but less than a whole life policy. If you want guaranteed permanent coverage, a guaranteed premium universal life (GPUL) policy should fit you nicely. If you have a special needs child or ill spouse that need ongoing care or just want coverage no matter what, GPUL can offer blanket peace of mind.
- Whole life – This covers you for the entire years you have left on the earth (however few or many that may be). The policy runs for your “whole life” and is more expensive than other policies but may be preferable depending on your circumstances. Whole life policies accumulate cash value. This is why the premium is higher than a GPUL or term life policy. When you pass away, your beneficiary will get the face value of the policy, but not the accumulated cash value (many people are surprised to find this out).
Consider your needs carefully before deciding which type of policy will work best for you.
#2 Figure Out How Much Insurance You Need
This can be tricky because insurance isn’t for your benefit – it’s for the benefit of those you leave behind. So the question is “what are you trying to accomplish for them?” Here are some typical considerations.
- Mortgage – If you want your surviving spouse to have enough to pay off your home loan so they don’t have to make mortgage payments after you’re gone, you’ll want to factor in this amount.
- College Education – If you can afford college payments for your kids so long as you’re around to keep working, but not if you’re gone, you may want to factor in an amount to cover education.
- Living Expenses – If you have a spouse that doesn’t work and will need money to live on if something happens to you, you may want to create a buffer to give them a living allowance.
- Other Debts – If you have car loans or credit card debts you and your spouse both owe, you may want to have enough coverage to pay these off and give them a clean debt slate.
- Special Needs Child – If you have a child who will need care after you’re gone, you will want to factor this into your calculations of how much coverage you will need.
#3 Figure Out What You Can Afford
This is often the determining factor in how much life insurance coverage – and what type – you ultimately purchase. Sure we all want to leave our survivors millions of dollars, but that just may not be possible. Here are some cost concerns to consider:
- Cost vs. Benefit – You have to consider the cost versus the benefit to your survivors. If buying a higher policy makes your current budget unlivable, you may have to adjust your expectations.
- Budget Adjustments – If your current budget doesn’t allow you to purchase the coverage you want, there are always ways to cut back on luxuries to protect your family’s financial future.
- Debt Concerns – If your budget is stretched and you are using credit cards for expenses, you may want to purchase a more modest policy and devote extra cash to tackling your debt.
#4 Figure Out If You Need Help Deciding These Things
It may be overwhelming trying to figure out what type of coverage you need, what you can afford and what policy payout will best serve your family. Rather than trying to sort it out on your own, why not consult an expert. Here are the ways an Independent Insurance Agent can help you:
- Expertise – An independent agent will have dealt with many clients in circumstances like yours and will be able to make recommendations based on their years of experience.
- Industry Knowledge – A reputable agent will work with a number of insurance carriers and will know which ones will offer the best policy prices for your health profile and age.
- Underwriting Advantage – Health risks are an important component of cost. An independent agent with an in-house underwriter can leverage their knowledge to get you the best rate you can qualify for.
The Bottom Line
If you’re trying to figure out how to find affordable senior life insurance after 50, you don’t need to go it alone. It can be complicated to know what type of coverage you need, how much you need and how much coverage you can afford. Seeking advice from an experienced Independent Life Insurance Agent can get you the answers you need to get the best possible life insurance solution for you and your loved ones.