Bautis Financial

Secure your Castle, Achieve your Dreams.

The Importance of Life Insurance in Your 50s (And Up)

The Importance of Life Insurance in Your 50s

Whether or not someone in their 50s or older should have life insurance depends on their individual circumstances and life goals. Uncover six reasons why you may want to open a policy, and what type of policy is more appropriate.

When you reach your 50s, you have many things to look forward to. Your kids are most likely older, or already grown, and you are probably more financially secure than ever before. 

However, when it comes to financial planning for your 50s (and up), does life insurance have a place?

Why People 50 and Older Should Have Life Insurance

Many Americans have not taken critical steps toward protecting their family’s financial future if the unexpected happens. If someone relies on your income for their well-being, you need life insurance.

Here are some additional reasons you may need life insurance if you’re 50-years-old or older:

  • You have financially dependent children or grandchildren.
  • You are paying off debts, like a mortgage or credit card balance.
  • You are worried about covering your final expenses.
  • You want to protect your existing assets.
  • You want to supplement your retirement income with the cash value component of a permanent life insurance policy.
  • You want assistance with estate or legacy planning.

The Best Types of Life Insurance for People 50+

There are a few types of life insurance that may be beneficial for people who are 50 years or older. Here are some of the most common options:

Term life insurance is a good fit for people who are looking for coverage for a specified term, such as 10, 20 or 30 years. For example, you may feel that you need coverage until your kids are finished with school or until your mortgage is paid off.

Permanent life insurance is a good option for people who want the security of lifelong coverage (as long as payments are made). It can be helpful with final expenses and legacy planning, and the cash value component can be beneficial to retirees. Due to the cash value component and the coverage duration, permanent life insurance policies are more expensive than term. Therefore, it is essential to ensure the premiums are within your current and future budget.

Guaranteed-issue whole life insurance is a permanent life insurance product that is available to all applicants ages 65-85, without the need for a medical exam or answering health questions. This can be a good option for people who may have health conditions that would make it difficult to qualify for other types of life insurance. 

It’s important to note that the best type of life insurance for you will depend on your individual circumstances, such as your age, health, and financial goals. To determine which type of life insurance is right before you, fill out the questionnaire below.

Category: , Tag: , , ,