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Life insurance quotes for older people

In many ways, common sense says buying insurance for your life is for young people. That way, you have many years to pay into a fund that will grow in size. Better still, inflation will slowly make an expensive premium payment feel less painful as salaries and pay checks increase. Perhaps more importantly, it makes sure a young family is protected when any loss of earning capacity would be most damaging. There is nothing more destructive than taking on that first mortgage on a home and then filling it with two children only to find one spouse disappears. The tax-free lump sum that pays off the mortgage and keeps the home together while the children grow up will not make the grief of loss any less, but it will make life easier for those who remain.

The truth of this never changes, but it is equally true that older people may also have legitimate concerns. Let us take some scenarios to see why insurance might be considered. First, suppose an aging parent has concerns about the adult children's financial status. The good life they had hoped for has not been possible. They are struggling. There was a small life policy taken out when they were young but that is not going to significantly improve their lot. Or suppose the main asset is the family home and, because the housing bubble burst, it is no longer a good asset. Maybe it has just lost value. Perhaps it is underwater because a mortgage has yet to be paid off. Now there will not be enough to divide fairly between the adult children. When we get to grandchildren, particularly those who are born with a disability, there are many long-tern problems with the funding of Social Security. It may not be possible for the federal or state government to continue paying the same level of benefits. In all these cases, it makes sense for an older parent to take out insurance.

Not all the older people interested in buying insurance will find it possible. Many will be turned down because of medical conditions that now affect them. Even when there are no current health concerns, the premium payments may be unaffordable. But the more practical situations do provide encouragement. Medical science has been making progress in keeping people alive. Conditions that would have killed you quickly thirty or forty years ago are now treatable. There may be enough years for insurers to collect premiums and build up reasonable cash values if you have a life expectancy of at least fifteen years. This is a judgement call for the actuaries who drive the medical underwriting side of the business.

So, when you are considering your options as a healthy fiftysomething, get life insurance quotes from as wide a range of insurers licensed to sell policies in your state. Every company will have a slightly different approach to risk management in this part of the business and, until you ask, you cannot know how they will respond. Should you get a policy, the positive additional benefit is a new tax law that allows you to convert the death benefits into a tax-free sum to pay for your long-term care. This could prove to be cheap life insurance with fringe benefits.

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