Retirement is a time to relax and enjoy the benefits of your decades’ worth of hard work. Relaxing, traveling, and other fun activities with your family would be the only things to worry about, except when your loved ones depend on you for their upkeep. Life insurance is one way to provide for their needs even after you are gone. However, do you need to carry this policy when you’re 50 and older? Keep reading to learn more.
Why People Need Life Insurance at 50 and Older
The uncertainties of everyday living make life insurance a significant financial asset for people aged 50 and above. However, it’s the twists and turns of life that make most Americans worried about the economic conditions that their family members might face after they pass away.
There are several reasons why you may be approaching retirement without adequate life insurance in place. These include:
- Maybe you had a term life policy that expired earlier
- Your employer-sponsored life insurance expired after you left your job or retired
- Perhaps you’ve never had any insurance
Having life insurance in your 50s can give you peace of mind by eliminating concerns over your dependents’ financial situation when you’re gone. It’s an essential consideration if:
- You have financially dependent family members, including children or grandchildren
- You have unpaid debts, such as a car loan or mortgage
- You think your funeral expenses would be too much of a burden for your surviving family members
- You want to leverage the cash value component of life insurance
- You don’t want to lose your assets, including retirement savings
However, not everyone needs life insurance at 50 or older. This policy may not be necessary for you if:
You’re well off: You own an investment property, a business, stocks, retirement savings, or other financial assets. As a result, you’re financially secure, and after passing away, you’d leave enough money to cover your funeral expenses and take care of your family for a long time.
You don’t have financial dependents: Your children and other relatives that would generally depend on you are now financially independent adults.
You don’t have unpaid debts: You’ve repaid all significant debts and expenses, such as a mortgage, credit card debt, and children’s college expenses. As such, your assets can’t be seized to pay off any outstanding loans. They’re safe and available for your family’s use when you’re gone.
Choosing the Right Life Insurance for People Aged 50 or Older
The right life insurance for federal employees or other workers depends on an individual’s budget and financial needs. When you reach 50, your primary coverage options are:
Term life insurance: This policy is ideal for people who need protection for only a specific duration of time. You can get this policy for a term of 10-30 years, depending on your goals. For example, you may need a financial safety net for your children’s schooling years or until you’ve paid off your home loan.
Permanent life insurance: Consider this option if you need lifelong protection. It is also a good idea to include it in your legacy planning. This policy consists of a cash value component that accrues interest and can be leveraged in various ways. For example, you may take out a loan against your policy’s cash value account.
Life insurance can be a worthy investment when you’re 50 and older and have a family that depends on you financially. At Premier Protection, we can help you select an appropriate life insurance policy based on your financial circumstances and coverage needs. Contact us today to get started!
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