A life insurance policy is a must-have since it protects your interests and provides for your family if something were to happen to you. Most people who take out insurance are between the ages of 20 and 40. Over the age of 50, purchasing life insurance is relatively uncommon. There are, however, policies specifically for people over 50. Both of these plans have advantages and disadvantages. To find out more about life insurance for over 50s, read on.
Online vs Offline Term Insurance Plans
Savings may be at an all-time high; you may have a good job and comparatively fewer liabilities. So why would you need a life insurance policy after 50? The following are some reasons why you should opt for an over-50s life insurance policy.
- Having a secure future for loved ones: You may have decent savings, and you and your family might be healthy, but have you ever wondered how things will be after you pass away? You might find it difficult to support your dependents, especially if you are the sole breadwinner. The over-50s life insurance can play a huge role in securing the future of your loved ones after your death.
- Following the death, the burial expenses include the plot, headstone, flowers, services, transportation, and a casket. The death benefit can help pay for this.
- In case you are a government employee, the government may stop the pension for your spouse or your children after you die. A life insurance policy for over 50s can thus be an excellent means of providing a regular income to your family after you pass away.
- Several tax benefits can be obtained with life insurance. Both the death benefit and the premiums are exempt from taxation under the Income Act, 1961. It is for this reason that over-50s should consider life insurance. In addition to providing you with a life insurance policy, it will also save you money.
Disclaimer - Tax laws are subject to change from time to time. For information regarding the policy's tax benefits, please consult your personal tax advisor.
When buying a life insurance policy, what challenges do people over the age of 50 face?
It is easy to purchase a life insurance policy. Within minutes, you can get insured. This is only for the young, hale and hearty. Getting insurance is comparatively difficult for those over the age of 50. People over 50 face a few challenges when buying a life insurance policy.
- Age: Life insurance policies become increasingly expensive as you get older. It is a challenge to find a good deal on life insurance in your 50s. Therefore, take the time to shop around before buying an over 50 insurance policy.
- Health: as you age, your health problems and chances of getting infected with chronic diseases also increase. This makes it difficult to obtain a life insurance policy, as the insurance company considers you to be more at risk than others.
- Higher premiums: insurance is cheaper with lower premiums when you are in your 20s and 30s. Monthly and annual premiums are quite affordable. However, after 50, premiums tend to be very high. Also, with most people at this age retired from their jobs, they can't afford it.
What are the best life insurance options for people over 50?
The following plans are some of the best life coverage options for people over 50.
- Term life insurance: Term life insurance offers protection for a fixed period of time. Term life coverage for over 50 comes with a term of 10 to 30 years with pure death benefits.
- Permanent life insurance: This insurance does not expire and provides life coverage until your death. This type of life insurance policy is expensive compared to others.
- Life Insurance with No Medical Exam: This is a good option for people who have been denied insurance for health reasons. The premium may be higher and the duration of coverage may be relatively short.
Although it can be difficult to get, life insurance coverage over 50 has its benefits. However, it can be expensive and have certain terms and conditions. Remember to weigh the pros and cons of the policy against your requirements before purchasing over 50 life coverage.