Life Insurance Over 50
Persons over fifty purchase life insurance policies for many reasons, possibly to allow a spouse to pay off a mortgage on a home, to cover funeral expenses or to provide some extra money at to their children upon their death.
The internet is a good way to obtain multiple quotes from different insurance companies and to familiarize yourself with the different types of policies their benefits, costs and the eligibility requirements.
Always research, and ask questions so that you can make an informed choice as to the best life insurance policy for your individual needs. Make sure to read the fine print and understand the limitations, benefits and costs of a policy before you sign any documents.
Most insurance companies have limitations if you purchase a level life insurance policy later in life. Many policies, for example will provide that you receive partial benefits if you pass away within the first two years after you acquire the policy. After two years you’ll be eligible for full benefits.
Life Insurance for Persons Over 50 Years of Age
Term Insurance guarantees a payout if you die within a specified time, often twenty years. No benefit will be paid if you survive beyond the end of the policy term.
Term insurance is the most affordable form of life insurance. Life insurance for men tends to be more expensive than for women due to age expectancy and factors such as smoking will increase premiums.
There are several types of term insurance:
- Level Term Insurance provides a specified payout will be paid on death if you die before the end of the policy’s term. If you outlive the term the policy simply expires and has no value.
- Increasing Term Insurance usually has payouts that increase by 5% a year or with inflation. This type of policy helps to offset rising prices.
- Decreasing Term Insurance payouts are reduced each year until the policy reaches zero. This type of insurance is often used to assure the repayment of loans (i.e. mortgage).
- Convertible Term Insurance allows you to convert a term insurance policy into a whole life policy without a medical exam however the premiums are considerably higher than straight term policies.
- Renewable Term Insurance can be renewed at its expiration much like convertible term insurance.
Whole life Insurance is another popular option. Whole life insurance policies provide the policyholder with insurance for their entire life, rather than a fixed term. The policy is paid in the event of the policy holder’s death with the beneficiaries receiving a lump sum payment.
Some whole life insurance policies require policyholders to make ongoing contributions for the life of the policy or ongoing payments may no longer be required once the policyholder reaches a certain age or contribution limit. Typically, contributions fluctuate depending on the performance of the insurance company’s investments and often these policies have review dates when the insurer will adjust the payments based on actual performance of the investments.
Some of the insurance companies we quote: