They say that age is nothing but a number, but for those looking to purchase life insurance, age can become a determining factor in their decision to obtain coverage. Premiums become higher as we age, however is there an age where you are essentially too old for life insurance?
The answer depends on whether or not life insurance is a valid investment for you and your loved ones, and whether or not you will be leaving people behind who are dependent on your income.
When determining whether or not life insurance is appropriate for you and your family as you move into your twilight years keep these factors in mind, as they will help you determine whether or not you are too old for life insurance:
Do you have dependents?
One of the biggest influences on your decision to buy life insurance at any age should be directly related to how many people depend on you financially. If you are working and your spouse or other members of your family depend on your income, then it might make sense to buy a policy even at a later age. With families having children later in life, adults are now finding themselves financially responsible for dependents well into their 60’s and beyond.
Do you own your assets outright?
If you own your home, car, and other investments outright and don’t have a large number of dependents, then life insurance might not be a smart investment for you later in life. Many times ones equity and savings can be enough to cover the costs of funerals, and provide financial security for your spouse or partner. If you don’t own your home, however, and have large car payments or other debt, a life insurance policy can help assure that your loved ones aren’t burdened by large payments in the future.
Can you cover your funeral expenses?
One of the main reasons that individuals over 60 purchase life insurance is due to funeral and memorial expenses. Many seniors don’t want to leave a burden on their loved ones, and taking out a small life insurance policy to help cover funeral and memorial services can be a safety net to assure your family isn’t paying out of pocket for the associated expenses.
Are you able to purchase term life insurance?
There are two types of life insurance policies to choose from: term, which covers you for a specific amount of time with lower premiums, and permanent life insurance, which has higher premium but covers you for life, as long as you pay your premiums. Age will be a determining factor in which insurance is available to you as many companies don’t offer term insurance to those over age 75.
While age does factor into premiums and the types of coverage available to you, the questions become less about whether or not you’re too old for life insurance, but whether or not purchasing life insurance makes sense in regard to your financial obligations.
We hope this guide helps give you some clarity when it comes to choosing whether or not life insurance would be beneficial to you as a senior. For any further questions please contact us. You can also use our convenient tool to get a term life insurance quote online.
About Richard Reich
In my 20+ years as an independent life and disability insurance broker, I have personally assisted thousands of clients with their life and disability insurance needs. As a national broker, I am licensed to write life and disability insurance in all 50 states and the District of Columbia.
Article source: http://www.lifeinsure.com/can-old-life-insurance/