Life insurance: Does my age matter?

Life insurance, one of the great gambles in life is whether or not to have it. When you think about the needs for life insurance at different stages of your life, it is easy to see why some would want to go without it, or be afraid they cannot get a policy.

Life insurance policies are based on many factors the biggest is age. Age plays a role in getting life insurance and there comes a time when you can no longer get an insurance policy.

Most insurance companies cut off policy’s at between 75 and 80 years of age. After age 50 it is still possible to buy a policy but the premiums are usually higher. The older we get, the more our bodies fail us, as a result many insurance companies ask for physicals or medical history. Insurers are in the business of insuring healthy people. They don’t want to risk having to pay out a $1,000,000.00 policy on a man or woman who could die at any time soon. That is the reason your premiums are so high after 50. The insurance company wants max out their profit on you and hope you don’t die before the policy term is up.

As to the other end of the generational spectrum the young should be insured from day one. Life insurance policies are based on age the younger you are, the cheaper the policy. Experts suggest that one should purchase a policy before 35 years of age and warn that waiting too long could have harsh economic ramifications. The average funeral costs between $7 and $10 thousand dollars and if you don’t have insurance, the Social Security Administration will give you $250 to help with funeral expenses (obviously that has not moved with inflation). Most 0-35 policies are relatively in expensive and most go without it due to several factors such as debt or being in good health.

It is still possible to get life insurance after age 70 but it will require a lot of work and the help of a skilled agent. Some of the options for people in the 70+ community are as follows.

Guaranteed Universal Life Insurance

Guaranteed United Life Insurance policies are a combo of term life and permanent life insurance. In essence this is insurance that lasts for as long as you live and even offers a death benefit. If you want to avoid a medical checkup, you can still buy such policies but the death benefits get capped in return.

Term life policies

Term life is a great idea for those who have no family and no outstanding debts it is a cost effective option for the elderly as it helps avoid unwanted or unneeded coverage.

Whole life policies

Whole life policies are a good option to purchase at a young age. If you feel you no longer need it when you get to your early 60’s you can always cash it in for a lump sum payment to help with your retirement.

Life insurance is possible to purchase at any age, but the price and paperwork increases as one ages. It is of little regard as to what age you purchase the insurance because it does not stop the premiums from climbing. When it comes to buying life insurance age should not be the only factor involved. One needs to think about the reasons they want insurance and assess the profitability of the money invested in the policy. Remember unless you are very lucky and have a whole life insurance policy you will never see a penny of what you paid into the policy if an emergency should arise.

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