What Do I Need to Know About Life Insurance for Older People?
A recent article in USA today states that older workers may still need life insurance. This is true. Here is what you need to know:
- If your spouse is still dependent on your income, you will need life insurance for income replacement.
- If you have incurred debts, such as a second mortgage, you will need life insurance so your spouse can pay those off.
- If your pension distribution will terminate upon your demise, you will need life insurance so your spouse will not suffer the loss of that income.
- Term insurance may be appropriate, but many times it is not. If you buy 10-year term insurance at age 70, how much higher do you think the price will be if you have to buy more insurance at age 80? Permanent insurance would avoid that problem
- Remember that if you have insurance in force, but it is not needed by a family member, you can use it as a charitable bequest. Your favorite group that does good deeds would remember you as a hero.
- These days, life insurance carriers specialize and even sub-specialize in population niches. Premiums can be very reasonable.
- Specific needs for life insurance, such as estate preservation, might call for a joint policy with your spouse. Pricing here can be very economical.
Be sure to consult with a planner, and a broker who specializes in policies for older ages.