Be Smart: Determine the Best Value for You
As you age, your requirements change when it comes to life insurance. Your kids have likely grown up and are living lives of their own, and they don’t depend on you to financially support them. What’s more, you may have already paid off your mortgage and other debt. That’s why so many people over 50 look at life insurance differently than they did in their 20s and 30s.
If you’re thinking about getting a life insurance policy at your age, you’ll need to think carefully about what you want from your policy. Do you want to leave a cash windfall to your loved ones, or ensure that you pay for your final expenses so they don’t have to?
Deciding what sort of policy you need, how much coverage you should have, how long you need it for, and how much you can afford will help ensure that you select the right policy for you and your family if something happens to you.
Benefits
People with new families often use life insurance to provide for them when they no longer can. They want to make sure their spouse and children can continue to live the life they’ve become accustomed to.
But once you reach 50, things change.
Even so, it still makes sense to provide for your beneficiaries in some areas. For instance, families feel an array of strong emotions dealing with the passing of a loved one, and the high costs of funerals can exasperate them. That’s why so many people who don’t feel the need to provide a large cash payout to beneficiaries do arrange for a life insurance policy to pay their funeral expenses.
And if you incurred medical bills, it’s a good idea to leave your beneficiaries enough money to pay them off. The same is true for outstanding bills like utilities, car payments, and other normal living expenses.
Financial Dependents
If others still rely on you financially, you should consider them when thinking about life insurance. For example, your spouse, children, or siblings may rely on you for financial support. When you purchase a life insurance policy, you can designate beneficiaries and ensure that they’re taken care of even after you pass.
How Much Do You Need?
Determining how much life insurance is necessary is different for everyone. For instance, if your goal in getting a policy is to ensure that your final expenses get paid, you can buy a policy with benefits as little as $10,000.
On the other hand, if you want to provide for someone financially for any significant length of time, you will need to buy a policy for much more. To determine how much, figure out how much that person needs to live and base your decision on that.
