If you are among those who believe you don’t need life insurance in your 50s, you are certainly wrong. Even though your life insurance needs changes when you pass 50, it is still a smart decision to renew or buy a new life insurance policy. And if you are still not convinced, we have outlined some reasons why you should get life insurance in your 50s.
1. Change of circumstance
Life does not always go according to plan. Market forces or government regulations could bring about inflation that might adversely affect your finances. You might even lose your job or get divorced. Whatever the circumstances, your life insurance policy will ensure that your standard of living will not be altered.
2. Equalization of estate
If you are worried about how to split your assets equally between your children, then you should have a life insurance policy. For instance, let’s assume you have two kids and a business worth $1million. If you want one of your children to inherit the business, you could simply buy a life insurance plan that is worth $1million for the other child. Doing this will prevent your kids from fighting for your assets when you die.
3. Possibility of claim
After age 50, mortality rates increase rapidly. Diseases like cancer, high blood pressure and stroke are more likely to afflict those in their 50s than other age groups. Therefore, getting a life insurance means that your family will not be burdened in the event that you fall sick or die. And this is because your life insurance company will bear the cost of your family’s needs.
Apart from the mortgage on your home, there may still be other debts that you are servicing. And if you are unable to pay your debts any longer, your family could lose their assets. Therefore, with the proceeds from your life insurance policy, your loved ones will still be able to repay your debts even if you die suddenly.