One thing about life is that it neither comes with a manual nor a schedule. Whereas some people get lucky to start a family in their 20s and accumulate enough savings to take care of their financial needs, that isn’t always the case everywhere. In fact, it’s not uncommon to wait until you’re 50 years (or over) to think about protecting your loved ones’ financially using life insurance.
Luckily, when it comes to life insurance, there’s something for everyone, young or old alike. If you’re above 50 years, a policy like the over 50s life insurance can be a perfect option for securing your family’s future. But why would you consider taking out life insurance in your mid-life? We explain some of the possible reasons in this post.
What you need to know about life insurance if you’re over 50
There are people still depending on you
Times have changed drastically over the years. In the past, having children in their 20s or 30s still living under your roof was considered unusual. Today, that’s pretty much normal.
The two main reasons for this are the soaring real estate prices and the growing cost of living. This makes it more difficult for the younger generation to get out of their parents’ homes early to become independent. If this sounds like a situation you’re dealing with, you may still consider taking out life insurance in your 50s to protect your family.
Additionally, as a gesture of goodwill, you may want to help your children start their family by helping them purchase their first home or household items. This may prompt you to take on extra debt that needs to get insured for should you pass away without having cleared it.
In addition to your children, you may still have elderly parents who count on you for financial support. Or, maybe there’s an ex-spouse who you still support.
Life insurance can provide the much-needed financial safety net for those around you and give you more peace of mind.
The economy is more unpredictable
Who would have predicted that the pandemic we’re battling now would come and rip the world’s economy apart as it has done. That’s just a single example of how the economy can take a turn for the worse even without a warning.
The worst that can happen in the midst of all this is to lose a job if you’re 50 years or older. To begin with, you lose your steady income flow. And if your life insurance plan is employer-sponsored, you can suddenly be exposed with no coverage.
Not to mention that getting a new job at such an advanced age to reinstate your benefits would take lots of effort and luck.
So, is life insurance the answer? You bet! Having an individual policy can supplement your employer-provided coverage and offer you sufficient protection in these uncertain times. You also don’t want to rely solely on the employer’s group plan as you have no control over it. For instance, they may decide to cancel the policy one day if the claims become too many. Also, if your job position changes (due to dismissal or transfer), you could lose your cover too.
Keeping more wealth to pass on
Taking out life insurance in your 50s can be a wise decision if you’re looking to leave your dependents a gift or inheritance. This also applies if you plan to pass on your wealth to a charity upon your demise.
But there’s the catch. When you pass away, your estate may be subject to taxation which can be a burden to your family if they don’t have the funds to cover the expenses. This is where proceeds from your life plan comes in.
Your dependents can use the policy’s benefits to pay off the taxes without having to liquidate your assets. What’s more, the payout can help to cover additional estate-related expenses like legal fees, probate, and funeral costs. This helps preserve your estate and saves your family additional distress besides the pain of your loss.
Contributing to the charity via life insurance also comes with several upsides. For starters, since the donation goes directly to your preferred charity, it can avoid the administrative costs plus potential disputes that are usually associated with the settling of estates.
Whereas you may have completely different priorities or needs in your mid-life, the fact remains that life insurance will always be a vital part of your financial toolkit. A policy like the over 50s life insurance can help protect your loved ones in the event of your passing away.
Have any feedback or questions to ask concerning this type of life policy? Let us know in the comments below.