Why do older people need to cover their lives?
People in their 50’s, 60’s, and even 70s are looking for affordable policies these days. You may think that people that age have outgrown their need for coverage, or that insurers will never offer them an affordable policy. But none of this is true at all. In fact, many older people do need coverage, and of course, have reached a point in their lives where they realize it.
Term life insurance policies may have expired by now. The large face value policies that people bought to cover their mortgages and families may have had 20 or 30 year terms, and they have expired. However the insured people found that they did not outgrow their need to provide security for their families in case they die.
Retirement or a job change may have caused a group policy to end. People may have thought that the group insurance they got from work was adequate, but now they lack coverage because they retired or changed jobs.
A business can cause a need for life insurance. In fact, a business causes a lot of needs for life insurance. If an individual owns a business, or if they are an important employee in that business,their loss would be a signifigant loss for the business. Life insurance can help the business survive. Ifthe insured person dies, the money can help replace their skills or expertise. This is called key man life insurance.
Family business needs life insurance. One child may inherit the family business, so a policy can transfer wealth to other family survivors so the business can stay intact. One family member may inherit the family business so other family members can inherit cash to compensate them. It can also help provide for survivors who still depend upon the income from that business. A policy is a good way to make everything fair, and to keep survivors satisfied, if everybody is not in line to run the family business.
Older people realize that their survivors will need to spend quite a bit of cash when they die. Funerals, alone, can cost several thousand dollars. Beyond the funeral, some family members may need to travel or lose time at work. Their may be some debts to settle, including medical bills. A cash payment from a life insurance policy can really help a family during a stressful time when somebody dies.
We have good news too! Statistics show that Americans are living longer and more productive lives than every before. Rates are lower than they were, even a decade ago. It is very possible to find affordable coverage, especially for reasonably healthy people, in middle age and retirement years!
A 70 year old, who has healthy habits and the good luck to be healthy, should be able to find a hundred thousand to a few hundred thousand worth of coverage at surprisingly low rates! That will probably be for a 10 year policy, and not a 30 year policy though.
Whole life insurance, which will remain in force as long as the individual pays the premium, will be another option. When buying whole life, a smaller face value may have to be accepted to keep premiums affordable. But as we age, the advantages of whole life may outweigh the lower rates of term lfie.