Calculations Gone Wrong?
Life is not a math. While looking back at it, you may find the picture different than you planned it to look like. It so may happen in your financial horizon, too. Oftentimes, the financial planning fails for circumstances that you did not foresee. As a result, now at 50s, you may need what you never thought of. Life insurance for over 50 is such an issue. You may have disregarded life insurance in your early years, but you may find it necessary now.
Now, you are mid-way thorough your life. You children are also halfway through their education. In all likelihood, you have not been able to secure their future and that worries you. As a result, you are thinking about life insurance.
There is no problem with your wanting to purchase a policy. At least, age does not stand in the way of your signing up on an insurance policy.
On a negative note, it can really be a rough journey if not a tough one.
There are 2 very hard obstacles standing on your way. One is, you may have already become ineligible for a regular policy. And the other is that your costs or life insurance premiums have become way costlier than it would have been during your 20s or 30s.
You may be ineligible or uninsurable for a policy for practical reasons now. This is one of the most vulnerable phases of life and is often associated with different physical and mental conditions that life insurers hate. If you carry any of the symptoms that life insurers mark red, your chances of getting insured will be off the horizon. So, seeking a term life insurance for 20 years or 30 years is unlikely to bear fruit for you. The prospects are not bright like before.
If you are healthy enough with no medical conditions you will get enrolled. Remember, insurers will double-check your profile to make sure you are not habituated to smoking or alcoholism. (Life insurance for smokers can be highly expensive or an issue of disapproval too.) Also, they will make sure that you do not carry negative driving records.
In fact, the insurer will be looking for loopholes in your application so as not to enroll you on a regular policy. They will want to make sure that you will survive and sustain for the term you are seeking insurance for. The slimmer your prospects, the slimmer your chances.
On the other hand, even if you are mentally and physically alright, purchasing a regular insurance will not be a happy experience for you. Age will have its impacts on you no matter how stable you are. As life insurance rates work according to age-band principles, your cost will grow along with your age. Surely, best health will be a little in your favor, average or below average will take away chunks of money from your pocket.
As a side note…
We would like to inform you that regular life insurance for over 50 people will not usually come through no medical exam channel. That is it is hard for you to buy a no exam life insurance policy.
Besides, you cannot buy so huge a coverage you could buy earlier.
Thus, life insurance for over 50 people may really put buyers to a real challenge.
Comparison of Life Insurance Costs between 21 and 51 Years Old Persons
Let’s see how life insurance rates vary between people in their 21st year and 51st year, (the first years of the 20s and 50s). This life insurance rates comparison table is prepared for a 20 years term insurance for coverage amount of $100,000. The applicant is male.
21st Year 51st Year
|Rate (Yearly)||Company||Rate (Yearly)|
|New York||$132.00||New York||$520. 60|
Comparison between the end years in the 20s and 50s
This life insurance rate comparison table shows comparison of rates between two: 29th and 59th years old (the end years of the 20s and 50s). The coverage amount was $100,000 for 20-year term. The applicant is male again.
29th Year 59th Year
|Company||Rate (Yearly)||Company||Rate (Yearly)|
|New York||$170.20||New York||$1032.50|
So, What Are Your Choices?
As you see, your choices are narrow when it comes to life insurance for over 50, you should now be looking for the alternative ways to find insurance.
If you fail to purchase a regular life insurance, the choice for you is to consider final expense life insurance. This insurance is designed to meet the expenses that your last rites will involve. Unfortunately, you cannot buy a big death benefit on this product. Typically, the death benefit peaks at $25,000. So, if you want to secure your family’s future, you are going to feel let-down.
Of course, you can buy more than the $25,000 coverage, But, qualifying for a huge amount can be really tough. You will require to undergo medical tests.
Your situation may ask you to buy this policy. For example, if you do not want your family members to undergo financial stress that burial will involve at your death, you may consider this. If you buy the typical maximum amount, your family members will surely find some relief because burial usually takes one third of the benefit. They can use the rest of the money to pay off other bills that you might have left due.
As a choice for life insurance for over 50, you will have some advantages when you want to buy final expense insurance. The biggest advantage is that you do not need to medically qualify to purchase this policy. You can choose to buy your policy by either answering some medial questions or without answering any medical queries. Of course, the easier the approach, the costlier the policy will be. And, the third big advantage is that you are protected for the entire of your life. Also, the cost of this policy will not change over time.
But, we know, many of you, who are seeking life insurance for over 50, are seeking some life insurance product that will provide safety to your family. If you have knocked at one or two doors of insurers and been refused for no strong medical condition, you should not give up. Unless you have some critical illness, it is most likely that you can buy a regular policy and protect your dear ones.
So, keep on searching.
Yes, your search for protection should not stop because not all insurance companies work the same way. And, when it comes to medial underwriting, each company has their own views. While one company may refuse your application for one medical condition, another will welcome you.
Remember, many will speak as if final expense life insurance was the only choice for you. The fact is, it should be the final and optional choice for you. If you are ready (and you should be) to accept a comparatively high cost insurance for the sake of your beloved ones, you may be able to ensure their security.
Quotes By: Term4sale