Importance of Life Insurance
As mentioned above, when you get older, your needs change. The most common reasons a young person purchases a life insurance are normally because they want to protect their children’s life until they reach adulthood, or protect their partner until they get retirement.
That death benefit could work to pay a shared debt or even the mortgage of your home. Nevertheless, once you are over 50, life insurances have a different function on your life; at that point, your partner has already reached retirement, your children are grown up, and your house has been paid off. You might want this life insurance to protect your state or cover your final expenses.
So, you might be wondering why it is so difficult for people who reach their 50s to geg life insurance. It is due to a couple of reasons.
Health issues are most likely to appear in an advanced age. This can be a concern for most insurance companies. Health conditions can result in a higher premium payment or a coverage denial.
Besides, once you turn 50, you represent a higher risk for the insurance company each year to come. In the U.S., 78.6 years is the average life expectancy. When you get closer to that number, it is hard for companies to offer you coverage taking into account the risk it could represent. Because of this, most insurance companies have age limits for certain policies and even if you are able to acquire a policy, the price will be hard to afford.
Companies for People over 50
We have looked around for the 6 best life insurance companies for those persons that have reached their 50. These companies have been chosen based on flexibility on policies, experience, number and variety of products, among others.
● Mutual of Omaha.
This company is the best overall provider for those over 50. Mutual of Omaha offers a wide range of products including term life, whole life, universal life and accidental death policies.
This policy is available for ages 18 to 80, with a length between 10 and 30 years and a starting coverage around 100,000$. A whole life policy is available for ages from 45 to 85 with a coverage between $2,000 and $25,000. This company offers a term renewal in one-year increments, not exceeding 95 years.
Mutual of Omaha has been offering their services for more than a century and it is available in all 50 states including the District of Columbia.