If you’re over 50 and don’t have life insurance, you may want to start planning for end-of-life expenses now to ensure everything is in order. It’s also important to establish financial protection for the people in your life who are financially dependent on you, like your spouse, children, and grandchildren. A recent study from Lincoln Financial Group found that the effects of COVID-19 have motivated more Americans to get and continue funding for life insurance, and many ranked life insurance as one of the most essential financial assets. If you’re on the hunt for life insurance quotes over 50, here are five tips to help you get started with a new policy.
Compare life insurance companies
Don’t settle on the first life insurance company you come across. You can easily compare companies with a simple online search. It’s wise to choose one that has a reputation for excellent customer service, provides a wide range of features, and is financially secure. You’ll also want to select a life insurance company with an easy application process. Filling out tons of paperwork and going through hoops to apply for a new policy can be more complicated and time-consuming.
Figure out your coverage needs
Everyone’s life insurance needs are different, so it’s essential to determine what kind of coverage you want and how much. Consider what financial obligations you might leave behind when you pass away. Do you have any debt that needs to be paid off or loans that must be closed out, like a mortgage or car loan? If you have a spouse, children, or grandchildren, you may want to leave cash for them to cover college tuition or to maintain household expenses when you’re gone. Knowing your coverage needs will help you narrow down the type of life insurance you should purchase.
Choose a policy type
There are many different types of life insurance to be aware of when getting a new policy. Here are two common types you can consider:
Term life insurance
Term life insurance is an affordable short-term life insurance policy. Depending on your specific preferences, you can choose a term length from 10 to 30 years. Some life insurance companies also allow you to convert your term life policy into permanent life insurance if you want more coverage.
Whole life insurance
A whole life insurance policy is a long-term option that provides you with lifelong coverage until you pass away. Your beneficiaries will receive the death benefit as long you pay your monthly premiums. Whole life insurance also offers a cash value growth component that increases over time, and you may have the option to borrow from it once you’ve built up enough.
Considering how much you’re paying for life insurance is a significant factor because you still have other bills to keep in mind along with your monthly premium. Be sure to factor in the cost of life insurance when making your decision. With an online search or the help of a licensed insurance agent, you can look at what each policy includes and how much it is to settle on a price that works for your household budget.
Be honest on your application
If you have any medical conditions or lifestyle habits your insurer should know about, list them when you apply. If you’re not truthful on your application, your insurance company may find out when verifying your information either during your policy or after you pass away. Your honesty also helps the insurer give you the most accurate quote, since premiums are based on your age and health factors. So, if you lie about how old you are or list that you don’t smoke when you do, you risk being denied coverage.
Misinformation on your application can also forfeit your beneficiaries from receiving the death benefit when you’re gone. This means they won’t receive funds to cover necessary expenses related to your death.
The bottom line
If you’re over 50, a life insurance policy is a key asset that can ensure the ones you care about most are taken care of when you’re gone. Make sure you compare companies, policies, and costs when getting a new life insurance policy. It’s also essential to determine how much coverage you need to help get an accurate quote.