3 Benefits of Life Insurance for People Over 50
Is life insurance worth it if you're over 50? According to experts, reliable life insurance should be a component of everyone's estate plan, even those 50 or older. Although coverage is more expensive to obtain when you're older, insurance's indispensable benefits offset its higher costs. Not only can life insurance assure your family after you are gone, but many options also offer investment opportunities and other benefits you can take advantage of while you are living.
Here are three life insurance benefits you need to know about:
1. Supplements Retirement Funds
Whole life insurance policies allow you to withdraw money as needed and borrow against their cash value. For people without adequate retirement savings, a life insurance policy can supplement what they've managed to set aside and provide for a comfortable retirement.
2. Helps Care for a Disabled Spouse
If you're the primary caregiver for a disabled spouse, you may need a life insurance policy structured as a safety net to ensure your spouse's financial needs are met after you pass on. A policy can cover living expenses, including specialized in-home care needed by persons limited by disability.
3. Covers End-of-Life Medical & Funeral Costs
Even people who have health insurance may lack the resources to cover expenses associated with terminal illnesses. Funerals can also be quite expensive, especially if you've planned a traditional burial complete with a memorial service. Death benefits from a life insurance policy can be used to cover both, relieving grieving families of a great deal of stress.
So what kind of insurance do you need?
There are two main options: term life insurance and whole life insurance.
Term Life Insurance
A term policy, offered by Brenda Williams in Youngstown, Ohio allows you to buy life insurance for a fixed period of time, ranging from 1 to 30 years. Its purpose is to provide financial support to your family during the years they need it most. If your death falls within the coverage period, term life insurance will pay out a predetermined amount to the beneficiaries listed on your policy. The exact sum depends on the amount of coverage you buy, which is indicated by your policy's face amount. For example, a term policy with a face amount of $500,000 will give your heirs a $500,000 payout after you pass away.
One benefit of term life insurance is that it is far less costly than whole life insurance. A term policy is an adequate safeguard for specific financial commitments such as college tuition because you can set the term policy to expire after your child graduates.
For both term and whole life insurance, your monthly payments typically remain fixed for the entire time you have the policy in place.
Whole Life Insurance
The main advantage of whole life insurance, also known as permanent insurance, is that it doesn't expire. As the name implies, you have coverage for your whole life, as long as you pay the premiums. This is essential if you have financial commitments that will not go away after you die.
Another considerable advantage of whole life insurance is the savings feature. Part of the money you put into your whole life policy is invested and has the potential to grow over time. You can also borrow against its cash value while you're alive.
Because whole life policy coverage does not end, it costs significantly more per month (anywhere from 5 to 20 times as much as a term policy). Whole policies can also be more complex, so it's a good idea to work with a financial professional to buy the right policy and maintain it properly.
Making the right life insurance decisions is a must, no matter your age. If something unexpected happens to you, adequate life insurance will provide the certainty your family needs to keep their futures secure.
Life Insurance Questions?
If you have questions such as, "What life insurance do I need?" or "How much life insurance do I need?" you can get all the answers from Brenda Williams, a life insurance expert with over 13 years of experience. Brenda Williams Insurance Agency can help you put the right tools in place to protect your family in the event of premature death. Contact Brenda and her team for a consultation.