Our reasons for buying life insurance changes throughout our lives. When we’re young we may want cover for a period of time while our children get older or to cover the mortgage should the unthinkable happen. But what happens once you hit the 60 plus mark? Do you really need life insurance in your 60s or 70s?
The purpose of this blog isn’t to tell you what life cover you need; hopefully you are sitting pretty in the knowledge that the mortgage is already protected or better still, ‘paid off’.
No, the purpose of this blog is just to make you ponder over the reasons why over 60 somethings may need life insurance, just to ensure you have all the boxes ticked.
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It’s all about life’s trigger points?
Our need for life insurance tends to be triggered by certain ‘life events’ such as birth, marriage, and death that affects our finances and our need to protect those we ultimately could leave behind.
Life insurance for over 60s is no different. You just need to ask yourself what impact you no longer being around will have on the people you care about. For example:
• Could your husband / wife / partner cope financially?
• Would the mortgage be fully covered?
• Would your children or grandchildren benefit from a financial boost, perhaps for education fees?
• Would you leave any outstanding debts that would impact the family?
• Where would the money come from to cover funeral costs?
• Is there a forthcoming event such as a child’s marriage that could severely impact your savings?
• Will the tax man make a dent in your estate when it comes to inheritance tax?
At the end of the day, it all boils down to the impact on our families and three questions:
1. Could they cope financially?
2. Would their lives have to change?
3. Do you need or want to put plans in place to address the first two points?
Doing something vs doing nothing
Over 60 life insurance isn’t cheap, so if you don’t need it don’t feel obliged to buy it. On the flip side the older we get, the more expensive it becomes, so if any of the above points ring any bells, it may be worth looking at your options.
On the subject of options, as well as age, the state of your health also plays a part in the choices of life insurance on offer to you; another reason for not leaving it too long if you think you are in need of cover.
So what are the options
If you are in good health and happy to complete a longer application process that includes health and lifestyle questions, then a regular whole of life plan could be suitable. There is a chance you could be declined but if you are accepted, the cash sums available are at least 40% higher when compare to the guaranteed options that are widely advertised, available to anyone over 50 years of age.
Which leads me nicely on to Over 50 life insurance plans, a no medical life insurance version of the above. You’re acceptance is guaranteed, regardless of the state of your health, so if you are declined for the regular whole of life cover, this may be another option you could look at.
If you are looking for a life insurance plan to cover funeral costs, you could also consider a prepaid funeral plan that gives you the opportunity to pay for your services at today’s prices, therefore avoiding the impact of inflation.
And finally if you are thinking about funeral costs, take a look at this illustration “Which is the best Funeral Prepayment Option” which explains the differences between the plans in an easy to read format.
So now you have the information, you can ponder away and see if you do indeed have all those boxes ticked. You can then decide for yourself whether you do need to take action and get some form of life cover, or sit back with a big self satisfied and most importantly reassured look on your face that everything is as they say all too frequently in Eastenders – sorted!