Should I Still Buy Life Insurance After Age 50?

Choosing a Policy Based on Financial Dependents

Dependents may include children, a spouse, parents, or any other family member that relies on you financially. How would their financial situation change if you passed? Even if you don’t have people depending on you, you may still elect to purchase life insurance to provide for them after your passing.

Choosing the Best Life Policy for 50+

When it comes to life insurance policies, you’re looking at two main categories: term life insurance or cash value life insurance.

1. Term Life Insurance

A term policy works much like other forms of insurance: you keep it until you reach a certain age and have a premium payment annually, quarterly, or monthly. There is no cash value to it, but in the event of your death, the coverage will pay out the face amount of your policy to your beneficiaries. Term life insurance gives you strong value for your money, and helps your beneficiaries with funeral expenses, ongoing living expenses, medical costs, unpaid debts, or works to replace lost income.

2. Cash Value Life Insurance

Cash value life insurance, on the other hand, comes in many forms such as universal life, whole life insurance, and variable universal life. Generally, a portion of the premium you pay covers the cost of insurance and the remainder goes toward an accumulated cash value. One key feature of this type of policy is that it doesn’t expire, so long as you pay the premiums.

Determine How Much Life Insurance Coverage You Need After 50

Analyze your immediate, ongoing, and future expenses and how long your family would need to recoup your lost income if you passed. You can use our coverage calculator to help break down those costs.