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Life Insurance For Retirement - Choosing A Good Plan At Midlife And Beyond
By admin | February 10, 2008
Many people have life insurance through their workplace, or else they purchased a term life insurance plan that expired when they were middle aged. So now we find people at 50, 65, or even in their 80s, looking for an affordable life insurance plan! Perhaps these people are looking for a good life insurance plan for retirement because their company life insurance will not cover them.
However our need for good coverage does not always go away just because we get older. Sometimes, when we hit midlife, we find that we still have outstanding debts, planned funeral expenses, or people we would like to leave a legacy too. The children, who we had planned on being self supporting by now, may still live at home. Or we may have a business, that we would like to leave to only one of our children. So we know we need to leave our other children, and our spouse, with a legacy to replace the business.
Look at the types of life insurance policies to see how they fit into a retirement plan. Term life insurance is purchased for a span of time, or a term. While it is still widely available in our 50s, the older we get, the harder it is to get a company to issue a term plan. I have seen companies that will issue ten year term policies up to age 70, but the applicant must be fairly healthy. By the time many people are in their fifties, they can only look at a twenty year term plan, which means it would still expire when the people are in their seventies. As more people live well past 70, those consumers would be left uncovered.
Whole life insurance, that is intended to cover a person for their entire life, is easier to find as we age, and as we develop some health problems. Even though it may be easier to get permanent insurance issued, we find that it is more expensive than the cheap term rates we were used to paying. That is because, of course, whole life insurance means that the insurance company will assume a larger risk. Also whole life insurance builds a cash value which term life insurance does not. So even though whole life insurance costs more, it also lets us build up an asset that could be cashed in or borrowed against if we pass away.
Some life insurance companies will issue whole life insurance policies up to age 85, though they usually will only issue smaller face amounts. These are usually intended to pay for burials and other final expenses. While these policies can be purchased up to age 85, they are much more affordable between age 50 to 60, and so a person would be wise to consider buying them long before any thoughts of funerals come up! Many can even be purchased to be paid off over a span of ten or twenty years, and so they can provide security for the retirement years!
Universal life insurance is another type of life insurance that is purchased to cover a person for the rest of their life. Besides being insurance, many people also consider these plans to be a type of savings and investment vehicle. They can build up cash value, of flexible premiums, and the face value of the policy can even be adjusted. Again, a person would probably want to look at purchasing a universal life insurance plan while they are still young enough to find more affordable rates, though the tax advantages of life insurance can make Universal life insurance attractive at higher premiums.
You can find life insurance for retirement, but the premiums will depend upon your age, how much coverage you want, and if you have developed any serious health conditions. Even people with serious health issues can purchase life insurance, but should probably expect to be satisfied with a lower face value as premiums will be higher.
Learn more about Life Insurance for Retirement and Over 50 Life Insurance.
http://www.247quoteus.com/over50s-life-insurance.html
Tags: affordable life insurance, life insurance over 50, term life
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