Who says you’re too old to buy Life Insurance?

The older you are, the costlier life insurance becomes. There is a reason for this. Life insurance companies need to limit their risks: the chances of paying out for a life insurance policy bought by a 65-year-old is greater than one taken out by a 35-year-old. The cost is a major factor that seniors need to consider when deciding on buying a life insurance policy, but it is not the only one.

Do seniors need life insurance?

You have had life insurance for most of your adult life. You bought the coverage so that those who depended on you financially would not suffer if you should die. Now you’re into your retirement years, your children are settled and independent and you have paid off your mortgage. In effect, you have no financial liabilities to worry about.

In such circumstances, do you need life insurance? As in many aspects of life, there is no clear-cut answer for this. What is clear is that deciding to forego life insurance is a major decision, at any age, and you need to consider carefully the ramifications before making a decision.

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Reasons for not having life insurance

These are rather simple:

• No one is financially dependent on you.
• Age and possibly health issues have made the premiums too high.
• You have no debts that your family will be burdened with in the eventuality of your death.
• You have adequate savings to meet your foreseeable needs.
• You have all the other insurance coverage you still need like auto, homeowner’s, long-term care and so on.
• The estate you leave behind will give your family the financial support they may need.
• The cost of the policy is totally beyond your means.

If all these conditions apply to you, then you may not need life insurance.

Reasons for having life insurance

These are not so simple:

• Perhaps, not all the reasons given above (for not having life insurance) apply to you. You may need life insurance.
• You want to leave a legacy that will continue after you are gone. Life insurance is a great way to ensure this. The legacy may not be for your family, it could be for a cause you care deeply about.
• If you already have a permanent life insurance policy (as opposed to term insurance, which is for a fixed period), cash value will have built up and continuing with the policy makes sense.
• Paying the premiums does not impose any stress on your finances.
• Life insurance will give your family money, which they do not need, but will help improve the quality of their lives.

Making the right decision

Life insurance is an area you need to be sure about before you take any decision. You should be able to weigh the pros and cons in a balanced and unbiased manner. This is not easy, because of the financial, practical and emotional issues involved. An expert insurance professional is the right person to help you make the right life insurance decision.