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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.