Most people agree that young parents need life insurance as they provide financially for their family. What about older adults and grandparents? In certain cases, life insurance is a good investment for you at any age.
Do you Have Dependents?
Did you wait until your 40s to have kids? Are you raising grandchildren? Do you care for aging parents? Your dependents need your income, and that fact makes life insurance a wise investment. The policy will provide your dependents with cash to pay bills, cover living expenses and receive the care they need.
Can you Afford a Funeral?
The National Funeral Directors Association reports that the average funeral cost $7,045 in 2012. You might have enough money saved to cover that cost, but consider purchasing life insurance. It pays for your funeral expenses, leaving your assets to provide for your survivors.
How Many Assets do you Own?
Your home, vehicle and investments count as assets. If you own them outright and they add up to a significant value, your estate executor can use those assets to cover taxes, medical bills, funeral costs and other expenses you may incur at the end of your life. However, if you don’t own adequate assets, life insurance covers the gap and ensures your final expenses are paid, which lessens the financial burden for your survivors.
Can you Afford to Pay Higher Premiums?
Life insurance premium costs typically depend on the amount of coverage, type of policy and age or health of the insured. That means you will probably pay more for a policy if you’re over 50. Numerous options are available for every budget, though, so talk to your insurance agent and choose a policy with affordable premiums.
Life insurance policies do cover dependent care and funeral costs, but they’re also useful for other purposes. They can pay for your grandchild’s education, support a charity or help your children retire early. Consider these factors as you talk with an insurance agent about purchasing life insurance as an older adult.