The longer you wait to purchase life insurance, the harder it is to find. If you can find it, the prices are usually a lot higher than they would be had you purchased coverage earlier in life. Truth be told, many people think they won’t need life insurance until they are at least 50 years of age or older. While this isn’t necessarily true, you may find yourself now seeking coverage and having a difficult time finding something affordable.
Why You Shouldn’t Wait to Purchase Life Insurance
Life insurance benefits are usually used to pay for funeral expenses or any fees associated with settling an estate or supporting a family after death. Most people are optimistic enough to believe they won’t pass away at an early age and, as such, don’t feel it is necessary to carry life insurance.
The truth is that if you have a family, especially with children, or are married with assets (like a home) you should carry life insurance from an early age. If you were to pass away suddenly your family would need money not only to cover your funeral expenses but to ensure continued payments on their home, to maintain a standard quality of living, and possibly even to send your children to college.
Most people wait until later in life, sometimes until they are ill, before planning their estates. If this is the case you may suddenly find yourself having a difficult time finding a company willing to write a policy for you, especially if you are over the age of 50.
Why Life Insurance for Over 50 Years of Age is Difficult to Find
Life insurance companies don’t want to offer brand new policies to people over the age of 50 for a simple reason. When you choose a life insurance policy you will pay a set monthly fee for a guaranteed rate of insurance. They know that you won’t pay as much in monthly premiums before you pass away and, as such, they stand to lose on their investment.
For example, a younger person who purchases life insurance policy valued at $500,000. He purchased the policy at the age of 25 and may pay $50 per month for 30 years before passing away. He’s paid, over time, more than $18,000 into his policy.
An older person, on the other hand, may purchase the same life insurance policy valued at $500,000 but not until he is 55 years of age. Because the policy was started late in life, the premium may be $150 per month. He may have that policy for only 2 years before passing away, meaning he paid only $3,600 for that full $500,000 of coverage.
Most insurance companies do have limitations. If you purchase a life insurance policy late in life you will only receive partial benefits if you pass away within the first two years of the policy period. After that full two years you’ll be eligible for full benefits.
This is, of course, a simple example with somewhat inflated numbers for illustrative purposes, but you can easily see why a life insurance company is hesitant to issue a policy to someone over the age of 50. You are, obviously, closer to the end of your life than a younger person and the odds of them having to pay out on your policy are much higher.
Where to Find Life Insurance for Over 50 Years of Age
There is hope for those who wait until later in life to purchase life insurance. Modern advances in medical science have significantly increased the life expectancy of the average person and, as such, life insurance companies are easing up on their restrictions for those who are younger seniors.
There are several online sources you can use to obtain quotes for life insurance. Many will give you comparisons of several companies, their benefits, and rates at the same time. Try a few of the following:
- AccuQuote offers free life insurance quotes for individuals of all ages. They represent top companies like Prudential, TransAmerica, ING, and many others.
- WholesaleInsurance.net offers quotes on a wide variety of different life insurance products, especially catering to seniors and those who are considered high risk.
- LifeInsure.com also offers online and phone quotes for a wide variety of life insurance products.
It may not be the simplest task you’ve ever encountered but it’s certainly not impossible to obtain life insurance if you are over the age of 50!