Looking back, getting life insurance coverage made so much sense. You were the sole breadwinner of a young family and had recently acquired a home that came with a sizeable amount of mortgage. Now, the burden has reduced significantly, kids are all grown up and working, you have accumulated a considerable amount of retirement savings and your earning years are at the peak.
All these things going for you may leave you wondering if you actually need life insurance in your 50s. Well, you sure do and we’ll tell you why:
There Are Still People Depending On You
The primary purpose of taking out life insurance is to ensure that your loved ones remain financially stable upon your demise. The decision to purchase this cover may not be as straightforward as it was during our parent’s generation. With the shifting economy and hard economic times, you may have people still depending on you financially even at this age.
Statistics show that over 50% of children aged 25 and above still live with their parents. This is majorly because of the high living cost and the rising real estate prices, which makes it difficult for them to move out of their homes. It is also likely that your parents are still alive and rely on you financially.
Purchasing a life insurance policy can help soften the financial blow caused by your demise by protecting your loved ones.
People Are Living Longer
Over the past century, life expectancy has increased quite significantly due to the low infant mortality rate and better medical care. Today, a person aged 60 years and above can expect to live another 20 years or more on average. Compare that to the 1950s, when people aged 60 years were only expected to live another ten years on average.
As a result, numerous insurance companies are now accepting senior citizens applications for life insurance as they are assured that they have many more years to live. Special covers are also being created by various insurance companies to meet the needs of the elderly who do not meet the requirements for mainstream life policies.
You Have Debts To Pay Off
Accumulating debt can be relatively easy. Outstanding debts which include mortgage payments, student loans, medical expenses and car loans can deplete your savings in just a second. If these debts are not cleared at the time of your demise, your dependents will be forced to inherit them.
Having a life insurance policy can help ease the strain caused by your debts. Your loved ones can use the lump sum payouts to clear them should you pass on.
You Don’t Want To Burden The People With Funeral Expenses
Planning a funeral comes with numerous costs such as catering for service fees, purchasing a casket and burial plot and medical expenses. These costs can cause a big strain to your family’s finances especially if the death was sudden
Having a life insurance policy in place can help ease the burden of unbudgeted funeral expenses with the payout received from your policy taking care of the process.
You Want To Leave A Legacy
Ask anyone today if they’d love to be remembered well when they’re gone. Most people will say yes. Now ask them if they have any plan towards that and most will answer with, “I have no idea.”
A life insurance policy offers a simple solution to this dilemma. By taking out one, you can change the lives of your loved ones or even impact your community. For starters, the death benefit granted can serve as a form of legacy that you leave to your beneficiaries. And if you are a philanthropist, you could name a charity organisation as your beneficiary.
Having More Wealth to Leave Behind
With the shifting economy, job security is very valuable to any average worker. The recent events have shown us that the economy can quickly take a turn in the opposite direction. The closure of business and loss of jobs due to the current global pandemic is a good example.
A life insurance policy is one way of ensuring that your dependents are financially secure after you are long gone. The lump sum payout allows you to leave a significant amount of wealth behind as a gift to them.
Regardless of your age, life insurance coverage should be a crucial part of your financial toolkit. It helps you build a safety net for your dependents even after your demise. Would you like to know life cover options available for over 50s? Let us know in the comments below and we’ll list them for you.