Life Insurance Covers For People above 50’s

As you get older over 50 years of age you have your children grown up, moved their homes and settled so why do one need insurance at that stage.

Some of the reasons for having life insurance above age of 50 are:

• There may be some mortgages or loans which might be outstanding which you could have taken for any reason. In case of death of the individual what would one do, if no financial back is there? So to protect the financial losses life insurance is needed. If one has insurance then insurance companies would pay the outstanding dues in case of death.

• In case of death, funeral expenses will be covered and paid out by life insurance policy provider.
• Often the children buy out insurance policy for their parents. This is because they plan out a way for future in absence of their parents.
• In recent times due to financial troubles around the world, younger kids are returning back home or are not able to support ones parents which makes it all the more necessary to have life insurance.
• Generally, life Insurance payments are not taxed, so it is a way to leave some cash behind for successors which would be used to clear the debts in case of individual’s sudden death.

Along with that benefits there are also some limitations associated with over 50’s life insurance.

Some of which are mentioned below:

• Taking out insurance at age of 50, may be expensive, but the expense may be worth if compared to prospect of one’s partner being landed in debts in case of one’s sudden death.
• Health questions would go back for perhaps 10 years or more and questions from immediate family health issues may arise.
• Smokers would be penalized & one would have to submit blood & various other samples for higher insurance amounts.

After one has decided that whether to buy over 50’s Life Insurance you would like to know what options available for are over 50’s life insurance:

At the age of 50, the insurance companies would not insure for more than 20 years. So it would make sense only to buy term insurance which has lower costs with less time period.

The various options available for 50’s insurance are:

• Life Insurance of over 50’s policies are called as senior policies or final expense. These policies have smaller values which are specifically designed for older people to provide them affordable cover & which will not expire as long as the policy is kept in force.
• Simplified issue life insurance policies are those policies where there are less health related questions asked by insurer and older people and they can qualify a little easier.
• Guaranteed life insurance issue means that insurer will waive of health questions. These policies use a waiting period of up to three years before the policy is in full force and in the meantime, if the insured pass away, the receipt of it will only receive refunded premiums plus interest or a percentage of the whole face value. Also, the premiums will be higher than simplified policies.

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