Note: The following is a guest post on life insurance.Image Courtesy of ambro/FreeDigitalPhotos.Net
People ask this question at different times of their life. It is something that can occur to people in their 40s, 50s, 60s and 70s; the answer is not completely straightforward.
Obviously it is best if you can obtain a life insurance policy at a younger age as it is more likely you will be in good health and your premiums will be at a lower level. Young people often think of life insurance as being something they do not need to think about; this is not the case. If you do suddenly find yourself at an advanced age and you do not have insurance provision there are things that you will need to consider.
Make sure your advisor is an expert
If you are in your sixties or over there is a possibility that you will be faced by higher premiums should you wish to secure an insurance policy, especially if you are suffering from certain illnesses that tend to afflict people as they age such as heart disease and signs of dementia. This does not mean that you will not get a policy, there are firms who specialize in provision of high risk policies, but it will mean that you need to consider whether you can afford the premiums.
Using an advisor who has knowledge of acquiring life insurance for older people will help to ensure that you get the best possible deal. Such advisors will also know the benefit of providing details of your exercise, activities, and hobbies to insurance firms. They will take note of this information but it is not usually included in application forms and needs to be submitted in a separate covering letter.
What type of insurance is best?
There are different types of insurance you should consider if you are older.
- Small whole life policy
These policies are very popular with people who are over 70 years of age. They are really designed to settle any final small payments which are due on death and are usually for insured amounts in the range $10,000 – $25,000. The premiums for these policies remain at a set rate until death. This policy is often a more expensive way of covering expenses on death. But it does have the advantage that the policyholder is not required to undergo a medical on application.
- Guaranteed universal life insurance policy
If you are of an advanced age but are in good health this policy is probably going to be the cheapest available permanent life insurance for you. The premiums are again guaranteed so you know exactly what you have to pay for the rest of your life. You do have to undergo a medical to qualify for this policy which is why you need to be in good health.
- Term Life Insurance Policy
You do not necessarily have to opt for a permanent life insurance policy. If you are older, and only require insurance for a few years, you have the option of applying for term life insurance. This will be your cheapest option in relation to the payment of premiums, but you do have to undergo a medical to be accepted for the policy.
Editor’s note: Do you have life insurance? Why or why not? If you do, when did you get it?