Now that you have decided to purchase your senior life insurance policy, it’s time to take the next step. Finding the right insurance provider can be more challenging than you might think. With so many insurance companies from which to choose, how can you be sure you selected the right one? When you stop to consider the reason why you are buying life insurance, it becomes even more critical to make the right choice.
You Are Still Able to Buy Senior Life Insurance
Far too many people are under the mistaken idea that once you reach your 50s and 60s, you are no longer able to purchase senior life insurance. This is, in reality, a complete myth. The truth is that the older you are before you buy a life insurance policy, the higher your premiums are likely to be. Keep in mind; life insurance companies are in business to satisfy their shareholders while at the same time managing their risks. They know their chances of paying out on a 30-year old are far less than those of paying out on a 60-year old. The other side of this is that the longer you have to pay on your policy before collecting on it, the more money the insurance company has to invest. As you age, the less time they have to invest your money. This explains why the premiums increase the older you are when the policy is initiated.
Should You Invest in Life Insurance?
Another critical question is whether buying life insurance is worthwhile once you reach middle age. Unfortunately, there aren’t any simple answers to this question. No matter what your age, you need weigh the cost of the policy and any available options the particular policy you are considering has to offer. One thing to consider is that the older you get and the worse your health becomes, the more your premiums are likely to cost. At some point, the cost may reach a point at which buying senior life insurance may no longer make good financial sense.
Of course, doing without life insurance does represent a significant financial risk. But, before you decide to go without proper coverage, it is imperative that you take the time to look at your current and future financial needs. Keep in mind that buying life insurance may not be your best decision if:
- If your monthly premiums are too high in comparison to the expected payout.
- If your children/spouse are self-sufficient and do not need you to support them.
- If you have already made your last mortgage payment and have no outstanding debt your spouse could end up being responsible for once you die.
For many people, buying a senior life insurance policy is a way of leaving behind a legacy rather than out of necessity. Many seniors continue paying into their policy to help their children or even grandchildren once they are gone. Keep in mind that the death benefits of a life insurance policy are non-taxable, which makes this a great way to leverage your money and at the same time take care of those you love.
There is so much to think about before buying a senior life insurance policy. Most of all, you must decide not only if the policy you choose offers the coverages and benefits you need at a price that is within your budget.