Getting life insurance coverage when you’re over 50.
There are so many things to look forward to in your 50s. From checking things off your bucket list with your spouse to enjoying the fruits of your labor from the first half of your life, you may be preoccupied with your daily activities. Overall, it’s a time to bask in the financial security you’ve been working to create over the years and ensuring you’re on the right path for retirement. But where does life insurance fit in? Do you need it once you’re over 50?
When Buying Life Insurance in Your 50s Makes Sense
Life is unpredictable. Not everyone starts a family in their 20s and faces an empty nest by age 50. Similarly, not everyone has sufficient money saved for the unexpected or retirement. If you have children that rely on your income and finances, life insurance is a must. Life insurance can help to replace the income when you are no longer able to. This ensures that your family keeps the same quality of life and do not have to sacrifice assets to get by.
Even if you don’t have children (or financially dependent children), life may have taken unexpected turns. Perhaps it is taking longer than you thought to pay off the mortgage, or a financially-dependent spouse needs a safety net until he or she makes it to retirement age. If any of these scenarios apply to you, then buying life insurance could provide you with much-needed peace of mind.
It can also provide you with a stream of income or a loan as you get older, and can no longer supplement your social security with additional income. Whole life policies can protect you in ways you never imagined, while being there for your loved ones after you have passed.
When You May Not Need Coverage
If your mortgage is paid off, your kids are out of college, and you and your spouse have a financial nest egg for retirement and emergencies, then you may not need life insurance. Generally, you should have the resources to replace 5 to 10 times your annual income – and that shouldn’t clear out your assets. If your partner doesn’t work, you’d want to make sure they could comfortably retire and more without your income.
The right life insurance will protect your family in the event of your passing, whatever your age. To learn more about the policies you should have, contact Lou Aggetta Insurance Services in Pleasant Hill.