Tips For Life Insurance Over 50
Fewer people are retiring at 65, so over 50 insurance has become more important than ever. While people under 50 often don't have specific goals for life insurance, as people turn 50, their concerns for providing for their future retirement and the financial security of their spouse become more acute.
How is over 50 insurance different?
People under fifty are mostly concerned with providing for income replacement for the primary breadwinner. Usually, people first buy life insurance when they start a family. Once someone is over 50, they start thinking more about their health and longevity, and often think of life insurance over 50 as more of a part of their whole financial picture, rather than just an emergency package.
What can over 50 insurance do for you?
- provide financial security for your spouse and family
- supply income replacement
- allow you to maximize your pension
- give you debt and mortgage protection
- provide money to help your business continue
- help in estate liquidity
- allow your survivors to pay estate taxes
- pay for your final expenses
- provide for a special needs child
Is over 50 insurance Harder to Get?
It might be. As we age, we have more health issues and our insurance risks can increase. Here are some of the medical conditions which can increase the cost of over 50 life insurance:
- high blood sugar levels or diabetes
- heart problems
- high blood pressure
- high cholesterol
- cancer history
- history of chronic illness
- respiratory disease history
In addition, there are lifestyle choices which might raise the cost of over 50 insurance:
- dangerous job
- high-risk hobbies like motorcycle racing, or being a private pilot
- smoking cigarettes
- smoking cigars
- using smokeless tobacco
Can I Get over 50 insurance if I fall into these categories?
Yes, but you will probably need help. All insurance companies have different policies for underwriting high-risk insurance applicants. Only an independent agent who is experienced at working on over 50 insurance can determine which carrier offers the best underwriting for your individual situation.
How Can an Independent Insurance Agent Help?
- shop many companies for you
- knows the underwriting policies of different companies
- knows special programs at insurance companies that may get you better pricing
- can save you time by applying quickly to another company if you aren't accepted on your first insurance application (because they already have your exam and doctor records available)
Independent Insurance Agents Can Find the Best Rates
Not only can an independent agent find the best rates for you, they can also help you to find a way to fit your insurance rate into your budget if it seems too expensive by:
- changing to a lower face value on the amount
- moving to a shorter term insurance
- paying annually or semi-annually, rather than monthly
The Bottom Line
Independent insurance agents can save you money and find the best insurance for your situation. Online insurance calculators can give you a quote, but it might not be with an insurance company that will give you the best offer. In addition, online calculators can't actually offer you insurance. You can only get insurance if you go through the application process.
An experienced independent agent can help you choose the right type of policy for your financial and life situation. Because they are familiar with the underwriting guidelines of different companies, they can shop around to find the best policy which meets your needs, and gives you the best rate. Over 50 life insurance can be an important part of your financial planning, and an independent agent can help you find a policy that is right for you.