The decision to purchase life insurance over 50 is one of the best decisions that you can make for you and your family. The fact is that no one lives forever, and each of our times will come at one time or another. You just have to stop and pause what your family’s life would be like if you or your spouse were to die tomorrow. There is no doubt that pain and mourning will reign in your home for weeks and months.
On the other hand, from a practical point of view, your family would also be left in a serious financial situation. After all, there are bills to pay, life events such as college and weddings that will consume funds and, yes, also a funeral service. These are all the things you can think about if you buy life insurance, but there are a few things you have not fully considered yet:
Inflation is very important in our lives and will continue to affect family budgets everywhere. Just think about what your food bill was several years ago compared to now to see what inflation would do to that lump sum money your family gets from your policy in the event of your death. Unluckily, the inflation rate is constantly changing and there are all kinds of global events that affect the cost of things.
Consider how the price of gas fluctuates over the course of a few weeks. The fact is that you do not have a crystal ball, and you can go crazy trying to project how the world will look in a few years. On the other hand, you will want to estimate high coverage to make sure that your family is not in the flow when you have left due to inflation.
When you are in the market to purchase life insurance, take a moment to add all your debts. Just consider student loans, car loans, credit cards, the mortgage and anything else you are paying. If you do it ahead of time, your spouse will keep all that debt to pay everything for themselves.
While you are certainly considering the monthly payments of those debts in your necessary coverage calculations, consider leaving enough cash in for your spouse to pay for the house and the car. A widow, and especially one who stays to raise children alone, has a lot to face. Additional planning on your part will make your life much easier for them when you are gone. Learn more.
3. Universal Coverage
You may have been considering the choice between universal or term when you shop around to buy life insurance over 50. Each has its advantages, and at one time universal coverage was very popular. But, the term has reappeared in recent years. Have their place, as well as you should know the benefits for both.
The term is more affordable, but it runs out over time. Universal is more expensive, but it has the possibility to grow in value and it will not expire if you keep paying to pay. If you want to buy life insurance over 50, keep in mind these things that you have not considered yet.