Have you outgrown your need for a life insurance policy after your old term life policy expired? Did you have group life at work, but that ended because you retired or changed jobs?
Many of us purchased term when we were younger. Or we signed up for a group life insurance plan at work. We were worried about covering our home mortgages, kid's education, etc. in case we passed away. And yes, younger people may need good coverage. But does that mean older people do not need coverage?
Now we find ourselves in our fifties, sixties, and seventies, and we lack coverage. A group policy may have ended when we retired or changed jobs. A term contract may have ended. Or maybe we just let our policy lapse when we thought we did not need it any more. Either way, at a time when we are more likely to plan for the future, we lack a life insurance policy!
So in middle age or retirement years, we find that we may still have obligations. Many of us are still working at jobs, running a business, or responsible for other people.
The kids did not always grow up and get on their own like we thought they would. Nowadays, many grown children are returning to live with parents, and sometimes they bring their own kids! You may actually have more people who depend upon you than you did before.
The house loan may not have gotten paid off. Some people move, and others have to take out a second loan or delay payments because of financial reasons.I am certain that your situation is not the same as you thought it would be when you were 35 years old. Who will make that payment without us?
And sometimes we take on added duties as we age. Many people start a small business in middle age or even older. If the business loses us, what will happen to it? Key man or business owners policies can keep it running. Business policies can also be used to guarantee financing and settle estates.
And these policies are available. Since people are living longer and healthier lives, major insurers are willing to issue coverage. It may be tough to find a 30 year term policy at age 70, but many people can qualify for 10 year term. And whole life policies get issued to seventy year olds, and sometimes, even up to age 85!
What type of life insurance should older people consider?
You need to consider your own situation. This would include your financial goals, what you need to protect, and your general health status. The cheapest term policies may require an applicant to be in reasonably good health for their age. Some whole life policies will ask few, or no, health questions though.
Whole life policies will cost more per dollar of coverage, but they can also be considered assets with possible cash or life settlement values. Term life usually costs less, but of course, it will expire, and cannot usually be considered any sort of an asset.
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