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Life Insurance for over 50s
If you are 50 years of age or older, buying life insurance may be a bit different than when you were 30.
Part of it is, at around age 50, the price for life insurance seams to really spike up. At the same time, your needs have changed from when you were younger, and chances are that you may need a different kind of life insurance policy at age 50.
When you were younger, you probably had a large mortgage, you had children that were dependent on you, and you need a lot of life insurance to cover those needs, should you have been taken out of the picture early.
Now that you have passed the 50 mark, chances are that your kids are grown up, or close to at least. Your mortgage has been paid down somewhat, you have less people depending on you and your salary, so the need for that large life insurance policy has gone away.
Now I realize that this may not be true for all you baby boomers over 50 out there, because there is another phenomenon going on here, and that is that 50 is the new 40. Yes I see it all the time, a lot of people are doing stuff in their fifties, that several decades ago was really 40s stuff. So people are getting married older, or re-married, they are buying larger homes, or cottages, they are re-financing their old mortgages, so very often the need for a large life insurance policy is still there even at age 50.
So what’s a fifty year old to do? Your 10 or 20 year old term insurance is about to renew, and the renewal premium that is starring you in the face is giving you high blood pressure just thinking about having to pay that much. Well , the fact that you are reading this article is good news, because the fact is that buying life insurance today is cheaper than when you have bought it a bunch of years ago (adjusted for age). So chances are that you can buy the same size term insurance policy like you used to have , extend it for another 10 or 20 years, for about the same premium as you have been paying.
The reason for this, that life insurance companies have been lowering their premiums on term insurance every year in the last 20 years. I won’t go into the reasons why here, except the two main reasons are more competition (through websites like this, which let you compare companies and premiums), and the fact that people live longer than they used to.
So take advantage of this perfect storm, and buy as much life insurance as you need or can afford, and for as long of a term that you can afford.
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