Purchasing life insurance at a young age is often easier to do and less expensive. However, just because you are turning 50 doesn't mean that you cannot purchase this type of coverage. In fact, in many cases, it still makes solid financial sense to purchase life insurance at the age of 50. Should you consider it? And if so, what should you think about when buying this type of insurance?
You Can Still Choose the Type
It’s a common misconception that at the age of 50, you no longer can choose term life insurance. There are insurance carriers that will still provide you with this coverage at this time in your life. Term policies are more affordable than whole life insurance policies. They are also more accessible to those who are older. You may wish to consider this type of policy if you still have a mortgage in place or if you have dependents living at home that rely on your income.
On the other hand, whole life insurance may still be available. The sooner you select it, the longer the premiums will be. However, purchasing a whole life policy with fixed payments is still an option, though it may cost more now than it did 10 years ago. Whole life insurance may offer some opportunity to borrow against it as well. Choose this option if you want to keep a policy in place no matter when you die. In that case, it can help to fund your estate plan and pay for your end of life costs, no matter when that comes. Use it if you want to leave behind funds for loved ones to inherit or to use to pay your final costs.
Take the Time to Compare
No matter what type of life insurance you buy, do not wait. On the other hand, realize you do not have to choose just any provider either. Compare your options to find both the most affordable and best fitting policy for your unique situation. At the age of 50, you have plenty more life to live. And, with that comes the realization that you also need some support in place for your loved ones if you cannot be there.