Whole Life Insurance in Your 50’s
Once you reach your 50’s, it’s easy to believe that it’s too late to purchase a whole life insurance policy.
While it may be more difficult, due to your age and potential health concerns, it is anything but impossible. In fact, with the right approach you can still find and purchase a policy from a reputable company with a high rating.
Life in Your 50’s
As you know, life in your 50’s is nothing like it was in your 20’s, 30’s and 40’s. Not only are you closing in on retirement age, but your family is changing around you. For example, your children may be reaching college age.
From a financial perspective, your 50’s are typically when you reach your peak earnings. Furthermore, this gives you the opportunity to save more money than you have in the past.
Note: depending on when you had children, they may be past college age and fully supporting themselves. In this case, you are in an even better position to save money.
With retirement closing in, your 50’s are a good time to review all of the debt you have accumulated. With the right approach, you may be able to rid yourself of some or all of your debt before you hang up your work boots for good.
Here you have a few financial tips to consider in your 50’s. One of the tips according to Forbes is to:
Consider converting term policies to permanent life insurance policies
In addition, converting your life insurance policy can help you pay for funeral expenses. Also, it can help pay off debts that you don’t want to pass on to your heirs. If you need help contacting you to find out if your current insurance is convertible, just leave us a comment.
Your Financial Situation
As you review your financial situation in your 50’s, there are a few key questions to answer:
How much debt do you have?
How much money have you saved for retirement?
Have you set a target date for your retirement?
Have you purchased a life insurance policy?
Your answers will not be exactly the same as the next person, so it’s important that you take a personal approach to your finances. It’s important that you address each of these questions in a timely and accurate manner with the idea that you’ll take immediate action.
Your Life Insurance Needs
While it’s a common belief that term life insurance is best in your 50’s – such as a policy that protects you through retirement age – don’t overlook the ability to purchase a whole life policy.
If you plan on doing this, here are some tips to follow:
- Shop around for the best deal. Since you are older, since your health may have declined to a certain degree, you need to receive quotes from multiple companies. This is the best way to ensure that you get the lowest possible price.
- Think long and hard about the death benefit. Obviously, this is based largely on what you can afford. The higher the death benefit the more you will pay each month. However, make sure you get enough coverage to cover any debt and expenses you could potentially leave behind.
- Add to your current coverage. If you were financially responsible in the past, you may have purchased some type of policy in your 30’s or 40’s. This could include either term or whole life insurance, or a combination of both. Since you may now realize that you need more coverage, you can purchase a policy in your 50’s that will give you greater peace of mind.
Don’t Wait to Tackle Life Insurance Planning
If you’ve put off life insurance planning to this point, you don’t have any more time to waste. You’re now in your 50’s, meaning that you are closing in on retirement age and your financial situation will begin to change as you transition out of the workforce.
It’s important to purchase a whole life insurance policy that will put your mind at ease, while also providing your loved ones with financial protection when you pass on.