Life Insurance Considerations for the Over 50 Crowd

January 30, 2012
/ Insurance
/ By Jacob A Irwin

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The following is a guest post. Enjoy!

Life Insurance Considerations for the Over 50 Crowd

Once people begin to enter the advanced stages of their life, mortality comes into view and various decisions have to be made that will impact not just the rest of their own life but also the lives of those left behind.

Many individuals, particularly those with spouses, children, and loved ones, need to think about a world in which they are gone and how their dependents will cope without them. This can put a huge strain on the last few years of an individual’s life. The best way to ensure peace of mind in your last few years is to invest in over 50s life insurance – a policy which will provide a pay-out once you have passed away so as to ensure your loved ones are okay.

What is Different about Life Insurance for People Over 50 Years Old?

For those who are not well-versed in the intricacies of over 50s life insurance, the whole process can seem rather puzzling. However, the whole process is rather simple once a few areas have been studied.

The first thing that should be known about over 50s life insurance is that anybody can apply for it regardless of their current health; no test is required. Another aspect of note is that over 50s life insurance is usually purchased not in one lump sum but in smaller increments spread out over the year; this duration often lasts from fifty through to the age of ninety. Once ninety has been reached and payments have stopped, coverage continues. The end of payments does not necessitate the end of coverage.

If individuals would like to top up their policy upon hitting ninety, they are able to do so although this will usually mean paying much larger increments. Between the ages of fifty and ninety, a policy may ask an individual to make payments of £10 per month with the aim of accumulating £100,000 by the end of the accumulation period. If, however, the individual decided that they would like to make a payment for one month of £50 rather than their scheduled £10, they would be able to do this.

Remember to Read the Fine Print of Your Policy

Another point of note is that it is worth checking the specifics of every individual policy.

So, for example, an individual may find that some contracts he is offered will only pay out in the event of his or her death if it is as a result of natural causes whereas other insurance packages may have policies that will only pay out if a death is caused through accidental means. This means much diligence and due care should be taken in selecting a policy which can be taken to fit a set amount of requirements.

Finding a Policy that Best Fits Your Needs

There are a couple of ways to find a package which best fits your needs. The first of these involves utilizing an insurance professional, such as a broker, to conduct research on your behalf. The second is to use online resources to customise searches which allow you to add or remove requirements. Whichever of these two you use, it is essential to remember to do your homework in selecting the proper policy. Once you hit 50, insurance will allow you to have great peace of mind.

How about you all? Do you currently have life insurance? If so, what type of policy do you have? Term or whole?

At what point in your life did you decide to take out the policy? Do you think it is wise to wait until you’re over 50 to purchase insurance, or should you get it earlier?

Share your experiences by commenting below!

Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.

Interesting post here!
Since I decided that life insurance wasn’t needed for my current personal situation, I don’t have a ton of experience in this area. As such, it’s always good to bring this topic to the forefront of the discussion.
When someone hits 50 years of age, I would not imagine that their life insurance needs and/or considerations would change all that drastically.

For example, you would still follow the same advice for purchasing a term life insurance policy, avoiding whole life insurance policies since they are generally not worth the money.
In addition, you would pay premiums on a policy that would be enough to cover your funeral expenses and to support your family for the lost income.
If you don’t have anyone that relies on your income, you would still want a small term life policy and/or use your investments to cover funeral expenses once you pass on.

In fact, I would probably argue that most people should have their life insurance policy plans figured out before turning 50, since by then, most people are either married or have had children and hence, have people that depend on their income.

pre-existing medical conditions you have, which could increase after the age of 50.

In reading the post above, one thing I was not aware of was that some policies have restrictions for paying out, depending on whether or not your death was caused by an “accident” or “natural causes.” I would imagine that you would want to make sure that the policy you decide on provides coverage for both of these possible outcomes.

***Photo courtesy of http://farm3.static.flickr.com/2610/4117033888_c1d5a23fac.jpg

About the Author Jacob A Irwin

Hi folks! My name is Jacob. I am the owner and operator of My Personal Finance Journey. I started this blog in January of 2010 and have enjoyed the journey ever since. Since finishing up graduate school in Virginia in 2014, I have been working in biopharmaceutical development in Colorado. You can read more about me and this site here. Please contact me if you have any questions!

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