At this stage in life, you may find yourself asking whether there is still a benefit to having life insurance. Let’s look at some of the benefits life insurance will give you - even at later stages in your life - as well as problems you may encounter if you do not have life insurance.
It is common these days for people to delay having children well into their thirties. This means that at the ages of 50-55 it is likely to still have dependent children who may need support to complete their education. Even at the age of 60,one may reasonably have a dependent child completing tertiary studies. Therefore, the classic function of life insurance to provide for your dependents upon your death may likely remain a concern at these ages. Aside from dependent children, you may have a partner who is financially dependent on you. Life insurance allows you to provide for them in your absence.
Between the ages of 50 and 60 you may still have an outstanding mortgage or other debt. Rather than risk having to sell assets to cover outstanding debt in your estate, you can provide for them with life insurance. Even if you have a substantial estate to leave to your heirs or dependents, the estate process can take up to several years to complete before assets can be distributed, so life insurance is a useful tool to provide liquidity for your estate and provide for any dependents while the estate process is underway.
As you move towards the later years of your life you also need to consider the costs associated with your eventual passing. Funeral costs are significant, even at their most basic, and providing for these can remove the financial burden which would otherwise be placed on your loved ones during an already difficult time. A standard life insurance claim may sometimes take some time to be paid out - so it is worth considering the addition of an accelerated funeral benefit to your policy which pays out valid claims within 48 hours of receiving the requisite information.
You will need to ask many of the same questions as anyone else deciding on life insurance. Are you looking to provide for your dependents? Do you need to account for outstanding mortgages or car payments? Do you need to provide liquidity for your estate to prevent liquidation of assets such as your family home?
Additionally, do you need your cover to include income protection, disability insurance, or disease cover? These questions will inform the type of insurance product you require and well as the amount for which you are insured.
Life insurance still has a lot of value as you head towards your later years. While it is generally true that life insurance becomes more expensive the older you are, it is also true that the right type and amount of cover can still provide an affordable means to provide for your family and protect your assets. So - no matter your age - if you are not yet insured you should really consider life cover to provide for loved ones should anything happen to you.
Posted in Insurance 101 on 05 Sep, 2023