It’s been said that age is nothing more than just a number; however, for people who are thinking about purchasing life insurance coverage, age is an important factor that should be taken into consideration.
The older you are when you purchase coverage, the higher your premiums will be. But, with that said, life insurance can still be a valuable investment, no matter how old you are. So, if you’re in your Golden Years – or you’re approaching them – you’re probably wondering, “Am I too old to buy life insurance?”
The answer to that question really depends your unique circumstances. So, if you’re older and you’re trying to decide if life insurance is a wise investment, take the following factors into consideration before you decide to purchase – or not to purchase – coverage.
Will you Leave Behind Dependents?
One of the main reasons people invest in life insurance is to ensure that their loved ones who are financially dependent on them will be taken care of when they pass away.
If you are the sole income provider, or if you are the primary breadwinner in your family, and you have a spouse and children, then investing in life insurance might be a wise decision, even later on in life.
Today, more and more people are having children later on in life. If that’s the case for you, there’s a chance that your children may be financially dependent on you when you’re well into your 60s or even your 70s. In this case, investing in a policy when you’re older can be beneficial.
If your significant other is several years your junior, buying life insurance at an older age can make sense, too.
In other words, if you have loved ones that rely on your income and could suffer financial turmoil when you pass away, then investing in life insurance when you’re older is a good idea.
Do You Have a Lot of Debt?
If you have a significant amount of debt, buying life insurance, even later in life, can be worth your while; and more important, worth your loved ones while.
For example, if you have a mortgage, have car loans, carry high balances on your credit cards, or have any other exorbitant debt, investing in life insurance is definitely a wise decision. This is particularly true if you don’t have a lot of money put away. Your spouse or children could become responsible for paying off those debts when you pass away, but if you have a life insurance policy, they’ll have the funds to cover your debt.
Do You have Savings?
If you have money set aside in a savings account, invested in a 401(k), in bonds, or anywhere else, and the total is a significant amount, buying life insurance later on in life probably won’t be advantageous. The reason? – If you have a large sum of money set aside and there’s enough to cover any debts that you may have, pay for your final expenses, and take care of your loved ones, then having life insurance really doesn’t make sense.
What’s the point of paying high premiums when you already have enough money to take care of financial matters when you pass away?
Can You Afford Coverage?
As mentioned, if you purchase life insurance at an older age, the premiums will be significantly higher. Before you invest in coverage, it’s important to determine if you can pay for those premiums. While purchasing a policy could certainly benefit your dependents, it won’t do you any good if you can’t afford the premiums. You don’t want to end up putting yourself in a financial predicament.
Is It Ever Too Late?
It’s never too late to purchase life insurance. While yes, most providers do charge higher premiums for people who are acquiring coverage later on in life, you can still get coverage at any age.
Also, don’t let the words “high premiums” scare you. Speak to a reputable insurance agent. You might be pleasantly surprised to learn how affordable life insurance actually is, even if you are in your Golden Years. If your health is generally good and you don’t smoke, coverage probably won’t be nearly as expensive as you might think.
If you don’t have a large amount of money put away, you have dependents, and you have debts, then investing in a life insurance policy, even later on in life, can certainly be advantageous for your loved ones; and it can offer you peace of mind, too, knowing that those you will leave behind when you pass away are financially protected.
Talk to an insurance agent today to find out what types of options are available to you so that you can get coverage as soon as possible! The sooner you purchase a policy, the better for all parties involved.