Retirement Planning

Reasons to Buy Term Life Insurance After Age 50

This article discusses reasons why buying term life insurance after age 50 could be a good idea; for instance paying for final expenses, leaving a legacy, and protection for your spouse.

Buying Term Life Insurance

Often insurance needs change as people grow older. While buying term life insurance is often associated with younger adults, today people may work longer and live longer. This alters the equation of how much coverage may be needed to meet coverage needs. Whether you seek to cover final expenses or desire to create an estate for your family, there are many options to consider when exploring life insurance. This article highlights a few ways term life insurance might be an option for helping you achieve your goals. 

The need for life insurance shouldn't be about your age, but about your individual needs and peace of mind. Buying a term life insurance policy after age 50 can help fund many later-in-life expenses that you may not have considered and can help preserve the retirement assets you've worked so hard for over the years.

1. Final expenses

Today, the average American traditional funeral costs between $7,000 and $10,000 - conservatively. For many, this means having to dip into retirement savings in order to cover costs. You should (at the very least) have enough life insurance to cover final expenses. Be sure to include both funeral costs and potential final medical bills.

2. Leaving a legacy

For some, leaving a legacy means helping their children with a college fund or a down payment on a first home. For others, it might be supporting a charitable fund long after they pass away. A small term life policy can be an affordable way to leave a legacy for people and organizations near and dear to your heart.

3. Protection for your spouse

According to a recent survey, 36 percent of Americans aren't saving enough for retirement.¹ And while the numbers look a bit more promising as people get older, 14 percent of people over the age of 65 still don't have enough saved. The reality is that people are living and having to work longer for a comfortable retirement savings. So even though you may be of retirement age, your spouse may still need additional financial security to live on going into retirement after you die.

Yes, after 50 your needs are likely to change. And, yes, buying life insurance later in life means you'll probably be paying more for coverage based on your age and insurability. But consider that you might not need as much life insurance as you would have earlier in life - that means you could buy less coverage (with a shorter term) and still obtain the coverage you need. For this reason, buying term life insurance may be a great asset-protection vehicle going into your golden years.

For more information on types of life insurance - including term life, visit our learning center.

 

1 http://www.bankrate.com/finance/consumer-index/survey-36-percent-not-saving-for-retirement.aspx

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All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

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