Here is everything you need to know about taking out a life insurance policy after age 50.
Consider Your Financial Dependents
If you are still financially responsible for someone, it makes sense to have life insurance. Otherwise, how would they take care of themselves if you were to die? These days, it’s not uncommon for people in their 50s to still have young, financially dependent children.
However, if you don’t have anyone who is financially dependent on you, life insurance is not a necessity. You may still want a policy so that a dependent will receive money when you die, but you can also put that money into other savings tools.
Be Aware You Have to Go Through Underwriting
To get life insurance after 50, you’ll have to go through underwriting. This process involves answering questions and completing a health exam. As long as you’re in good health, underwriting shouldn’t be a problem.
But, if you’re a smoker or have health troubles, expect to pay more than someone who is healthy. Some of the most common reasons why people are denied life insurance are because of obesity, diabetes, mental health problems and line of work.
Choose a Shorter Term Policy
You don’t want to overpay for coverage, so it’s important to weigh your options and determine how much life insurance you need. There are benefits to both whole life insurance and term life insurance, but we generally recommend term policies for those over age 50.
A term policy is meant to protect your family. If you were to die during the length of your policy, your family would receive the coverage amount. A whole life insurance policy lasts a lifetime, but it’s expensive and you might not have enough time to build a cash value.
Compare Life Insurance Quotes in NJ
Lastly, talk to an insurance agent who can run a few insurance quotes for you. This way, you can pick the right policy and term length for your needs. Leonard Financial Solutions is transparent in everything we do. We can help you find the best rates for life insurance, whether you want a term or permanent policy.
If we think that your money could be better invested somewhere else, we’ll let you know. Once you’re older, life insurance is not always a necessity. Schedule a free consultation with our life insurance brokers in NJ to discuss your options for life insurance after 50.