Life Insurance For Older People

We have good news. Statistics show that Americans are living longer and healthier lives than we did a decade ago. Because of those statistics, insurers are willing to extend affordable life insurance to older people. If you have outlived your term life insurance policy, but you did not outlive your need for affordable coverage, maybe it is time for you to find a policy to provide security in your middle age and retirement years.

Why Do Older People Need Life Insurance?

People Still Depend Upon Us – Many of us purchased term coverage when we were younger, our kids needed our support, and our house had a huge mortgage. Our thought was that we would have our lives covered for those years when we raised our kids and paid off our home We also thought that we would have big savings or investment accounts by the time that policy expired so we could cover ourselves without insurance.

That was a great plan, but did it always work out? Well, a lot of us skidded into middle age or our retirement years without having accomplished all of our goals. Some people lost their job and had to refinance their homes, take out a second mortgage, or buy another house. Sometimes our kids did not cooperate with our plans, and they did not finish their education exactly when we planned they would. I see more and more grandparents that have their kids still living with them, and of course, also their grandchildren!

Our Business May Depend Upon Us – But our need for life insurance does not always mean that things went wrong. Many people have run great businesses or been very important employees of their companies. If those people passed away, the entire business would suffer, and key man life insurance covers the business for that problem. These policies are purchased to protect a company in case an owner, partner, or important employee passes away and leaves the business without their services.

We Want to Transfer Wealth – Life insurance can also be a great way to pass on wealth to the next generation. Most of the time, the beneficiaries will get a tax free cash payment. Take a situation where one child will inherit a business. Other children can be bought out from the business with the cash from a life insurance policy.

How Do Older People Find Affordable Life Insurance

Now a person in their 70’s may not expect to find a 30 year term policy. But if that person is reasonably healthy for their age, they can certainly find a 10 year policy. Of course, good health habits will help. People who keep their weight within the guidelines on insurance company weight charts, and who do not smoke will get much better rates than people who have less healthy habits. If an older person has a serious health issue they may not be accepted by an insurer. But a reasonably healthy person should be able to find affordable coverage.

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