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I’m Going To Talk About Life Insurance At 40 And Older: What To Do?
You may wonder if it’s a good idea to buy life insurance at 40. You might ask yourself: am I eligible? We’re here to let you know that you absolutely can be. What kind of options for life insurance coverage are available?
Let’s get into describing what those options, and we hope to empower you with the information necessary to make a knowledgeable decision on what kind of insurance is best for your needs and goals.
Here’s An Overview Of Today’s Topics:
- Personal Circumstances For Buying Life Insurance At 40 And Over
- The Most Common Reasons For Buying Life Insurance
- What Types Of Life Insurance Coverage Are Available?
- How To Get The Best Deal And Coverage
- Factors That Can Affect Your Insurability
- Burial Insurance Rates, Age 40 To 90*
Personal circumstances for buying life insurance at 40 and over
There are many different situations that people 40 years and over find themselves in hat prompt them to seriously consider and eventually buy a life insurance plan.
Here are several example reasons as to why people purchase a life insurance plan:
1st The individual is single
There are many people in their forties that are single, either through divorce or from never marrying. Oftentimes, these people have children who require care and financial support. Those who purchase life insurance as someone single in their forties recognize that upon their passing, and there are no savings left to support their children, it can become intensely difficult for them to continue living at the same level of comfort as before, and to pursue endeavors like attending college.
Life insurance leaves money behind for the children to use as financial protection.
You can provide for your kids so that if you were to pass away, you can secure their futures in regards to things like university, as well as eliminate any debts that may befall them.
2nd The individual is married
If you’re married or recently married, there’s always a great opportunity to purchase a life insurance policy, even if you’re 40 or older. Many people in America purchase a plan right after marriage because there are two people who need to earn a living or take care of matters that if one were to pass away. The survivor would find themselves in a precarious situation, financially speaking.
Life insurance leaves extra money behind to replace your or your spouse’s income to make life as easy as possible.
3rd The individual is in the middle of their career
Many purchase supplementary life insurance because their income has increased through promotions at work and now they’re either indebted or financially obligated more than they had been because of their income being higher.
There’s a great need to insure against the potential of losing income if you were to pass away, as it would cause a dramatic change in the lifestyle of your loved ones.
Adding supplemental life insurance is good for somebody who’s 40 or older to abate such a situation.
The most common reasons for buying life insurance
Let’s discuss the most common reasons why a person 40 years or older would want to buy a life insurance policy. There are six, and we’ll go through each of them in detail.
This will help clarify why it is so vital to buy life insurance, and it will help you become confident in making your purchase.
This is the primary reason why someone would purchase life insurance. If your income were to disappear, it would have dramatic and immediate impacts on your family’s lifestyle. They may have to downsize from their home. They may have to sell off assets like cars or boats, and other things, both essential and not. They may have to move, leaving behind loved ones, school districts, and their community.
Insurance can be designed to replace your income so that when you pass away, a lump sum of your annual income (often multiplied) is paid to the beneficiary of your choice.
In return, the beneficiary can sit on the money, draw interest off of it to pay for obligations and expenses, or use the full sum to pay off debts like mortgages to reduce the overall load of expenses.
Many people in their early forties realize that retirement is closer than they may think and realize it’s important to begin saving. This will allow them to retire comfortably and have the freedom to do the things they’ve always wanted to do. What would happen to your retirement plans if you pass earlier than expected? While mourning their loss, family and loved ones will still want to retire and live a good, comfortable life on life insurance.
You can secure that your retirement plan is sustained even upon your passing so that your loved ones can continue and have a reasonable level of comfort later in life.
This is geared more towards those who are well above their forties, already retired, or disabled. It’s called final expense protection. Burial and cremation costs are on the rise with some markets asking for $10-15,000 for a burial and $6,000 for cremations. This is costly to somebody who is on a fixed income or has little to no savings. Life insurance removes the financial burden of final expenses.
Upon your passing, a lump sum is paid to a beneficiary, which can be used for final expenses or to cover a mortgage.
As mentioned earlier, you might have a mortgage you want to pay off to secure your home for your loved ones. A life insurance plan can be designed to cover part or all of a mortgage–it can free your family of that particular financial burden.
There are also reasons revolving around business, especially if you are a small business owner or an entrepreneur.
Cover key people
It’s important to cover key people in your business, those who are an integral art of your company. If they were to pass away, life insurance money can literally buy time to replace the person and keep the business alive. A policy can be purchased specifically for the key person.
The life insurance is payable to the corporation and provides a continuity plan to secure against the fallout of losing that key person.
Cover a business partner
Are you in partnership with a business owner? If that partner dies, their family will need a new means of survival. The remaining family members will become equal owners of the company and may have different ideas regarding the direction of the business.
This can have a direct impact on how you earn a living.
Cover business loans
You can also buy life insurance to cover business loans. Many banks require it.
If you were to pass away, they want to make sure that the principal is protected in a business loan.
It can cover a short term or long term obligation easily.
What types of life insurance coverage are available?
Let’s discuss the most common types of life insurance available if you are 40 years or older:
Term Life Insurance
This is a very typical choice. If your goal is to replace income, protect retirement, or to recover a mortgage, this is the best option.
Term insurance is the cheapest per dollar amount of coverage you can purchase relative to other available types. The downside is that it typically cancels at 10, 20, or 30 year increments. Knowing this, it’s used for temporary reasons.
Hopefully, you don’t need to replace your income at retirement because ideally, you’ve been able to save for your needs and debts. But if you haven’t been able to do that, term life insurance can help you.
See below for term rates available at different ages for 40 and older
Term Life Insurance Coverage – 10 Year Term – $100,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $250,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $500,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $1,000,000 in Coverage
Whole Life Insurance
Whole life insurance is designed to be permanent protection that doesn’t cancel due to changes in health and age.
Whole life insurance is not commonly purchased, and the policies are often smaller amounts to cover matters such as final expenses or business continuity. Plans for permanent protection is critical. This type of policy lasts your whole life and are often very well designed.
See below for rates for different types of whole life coverage available.
Rates For $10,000 In Burial Insurance
Rates For $25,000 In Burial Insurance
$150,000 Whole Life Insurance, Life Pay
Universal Life Insurance
This is a hybrid between term and whole life insurance. It can act as permanent coverage with flexible premiums to give a varied level of convenience to the client.
Generally, it is advised to work with universal life plans only on a guaranteed premium basis where the parent coverage is permanent and doesn’t cancel due to age or health as long as the premium is continually paid in a timely manner.
These plans can be useful for final expenses, a death payout protection. Usually, these plans are better and pay out larger amounts relative to their whole lifetimes plans.
$50 a Month – Guaranteed Universal Life Insurance
$100 a Month – Guaranteed Universal Life Insurance
$150 a Month – Guaranteed Universal Life Insurance
Accidental Life Insurance
As as the name implies, this policy only pays out an accidental death. It’s a good option to consider for people who are in higher risk professions that feel like supplementary coverage is important.
See below for rates, strategies, and getting the best package deal.
How to get the best deal and coverage
We here at Buy Life Insurance for Burial work with a variety of life insurance companies, as our goal is to get you the best price for the best coverage based upon your health and your qualifications.
The three steps below define the process we follow and what we recommend other agents to do to to make sure you are getting the best treatment and service.
Work with a broker
Buy Life Insurance for Burial doesn’t work with only one company.
We work with several. This gives us the power to shop your case, to see who will provide the best case design to give you the best deal overall.
This is the ideal situation. When you use agents that work with only one company, you work with limited options at potentially higher prices than you’d otherwise pay. Skip that completely and work with a broker who can shop around and find the best plan to cover your specific needs.
Clearly define your goals
It’s important to take time and painstakingly define what you’re trying to cover. It’s important to understand and identify the major reasons you need and want life insurance.
Clarify in your own mind why life insurance is important. You’ll then have more confidence in the type of life insurance product you buy.
Lay out the budget
Unlike other agents, we here at Buy Life Insurance for Burial are sensitive to your budget.
We want to help you purchase a policy that’s affordable and easy to manage.
Clients often drop already purchased life insurance after a year because the budget was outside of their range. We can design plans from as low as $25 a month. There is flexibility, and it depends on your goals.
Factors that can affect your insurability
Let’s review the most common factors, as well as questions people have while applying for life insurance.
Individuals forty and older will be asked to take one exam.
There is one for smoking and non smoking. Smoking doesn’t disqualify you from life insurance, but it does cause a rate increase in most circumstances.
If you smoke cigarettes, expect to pay 25 to 50 percent more for your premiums.
However, if you smoke cigars, cigarillos, pipes, or chew tobacco, you may be eligible, in some circumstances, for non cigarette rates. This can save you a substantial amount of money. Carriers charge a flat tobacco fee for any use of the substance.
Height & weight
Your ratio of your height to weight has an impact on what price you’ll pay.
In cases of extreme obesity case or alarmingly low weight, you may be declined.
But it’s more often than not that in non extreme cases, you may experience a higher rate the heavier you are relative to your height.
This is the benefit of working with a broker because some companies are more stringent on weight issues than others. We want you to get the best price, and we’re able to look at different companies and get you the best package.
Profession & hobbies
Believe it or not, your profession or hobbies may have an effect on what you’d pay. For example, if you engage in high risk jobs such as commercial fishing, mixed martial arts, or mining, you may find that you pay a higher price for your coverage to offset the inherent risk of your profession. The same goes for hobbies.
If you do things like skydiving or scuba diving, you may find a higher price associated with your life insurance coverage.
But in many cases, these higher risk professions are insurable. Pricing tends to offset risk, and you may expect to pay more.
We here at Buy Life Insurance for Burial believe it’s a good idea to take an exam.
If you’re in good shape overall, and we can help you determine this. Exam based life insurance applications tend to deliver a better overall price for your life insurance coverage.
There are circumstances where a no-exam life insurance policy works just as well. Those usually are coverage amounts under the $500,000 mark. This is a great choice for those who are looking smaller amounts of cover, say, for matters like final expanses. Also, if you don’t like needles or the sight of blood, a non-medical exam is convenient and helpful.
Many companies have lowered their rates for non-medical exam policies that become competitive with medical exam-based policies. That can be helpful to get a good price if you have to skip up on the exam.