One common misconception is that there is a point in a person’s life that is too late to purchase life insurance. With so many types of life insurance, many of which are extremely flexible, that couldn’t be further from the truth! Keep reading to learn more about purchasing a life insurance policy later in life.
Let’s get the golden question out of the way: is it ever too late to purchase a life insurance policy? No! There are life insurance solutions for everyone with different types of policies ranging in length of time, adaptability, and cost.
However, that’s not to say that the process won’t be a little more difficult the longer you wait. As health deteriorates and your age ticks up, the risk factors you present begin to compound, making you more of a risk to insure. We’ve rounded up a few options to get the coverage you need regardless.
If you’re looking to purchase life insurance later than typically recommended, there are options that can fit your needs.
Whole or permanent life insurance plans can be attractive, but they may not be as easy to obtain for those purchasing later in life. What may be a couple of hundred dollars in your 20s can quickly transition to thousands of dollars a month in your 50s.
Rather than opting for a whole life policy, you can turn to term life insurance instead. Term life insurance is typically more affordable than whole, and that’s because there is no guaranteed payout. If your term life insurance policy expires in ten years and you pass away a week after the policy expiration, your beneficiaries will get nothing.
Yes, term life insurance presents more of a risk as it may not last until your death, but that helps to make it more affordable. The trick is to find a meeting point that intersects the term you think is right for you at the price you can afford.
Waiting to purchase life insurance until later in life means forfeiting some benefits. One of which is having the insurance amount you think you need. While you may desire to have a $300,000 death benefit, you may need to settle for a smaller benefit amount.
Not only will that boost the odds of approval by life insurance companies, but it can also help to make the plan more affordable for you. In many cases, coverage, even if less than your desired amount, will be more worthwhile than no coverage at all.
One way to hike up your life insurance costs is by saying no to a medical exam. A medical exam aims to determine your health so that a life insurance company can offer coverage (and pricing) based on that.
Oftentimes, people in poor health will waive a medical exam and pay higher premiums because they believe higher premiums without a medical exam will be more affordable than post-medical exam premiums. However, if you are still in good health without serious health complications, it can be worthwhile to consent to a medical exam to garner more affordable prices.
It is never too late to purchase a life insurance plan, though it may be a little more challenging as time goes on. By properly doing your research and implementing the tools available to you, you may be able to secure a plan that you love with the coverage you need, regardless of when.