Reasons Why Your Life Insurance Needs Change

Chances are that when you were younger, you focused on protection for your family as well as a return on your investment. Now that you are older, your focus may be more on your final expenses or on benefits you can use now. Here are some examples of how your life insurance needs could have changed.

You No Longer Have Large Debts

You may have purchased a policy in the past that covered all your major debts such as loans and your mortgage. Now that you no longer have these debts, or you have a lot less debt, you don't need as big of benefit as you did before.

You Have Enough Money Saved for Funeral Expenses

One reason why many people buy insurance is that they would like to have enough to cover their funeral costs when they die. That way, their family does not have to shoulder the burden. If you already have savings, or you have brokered coverage with a funeral home for your final expenses, then you may not need a policy with a big benefit.

You Don't Have Dependents

If you don't have anyone who would suffer financially if you died, then you may not need a large death benefit. You may wish to opt for an insurance that has cash value or offers a living benefit instead.

Ways Certain Policies Are Different For Seniors

If you currently don't have any insurance, then you may want to carefully consider the main types of insurance policies. Some policies are made with younger people in mind. Here are examples of the three main policy categories and their pros and cons for older adults.

Whole Life

Whole life is insurance that covers you for life as long as you pay your premiums. You build cash value that you can borrow from. However, if you are older, you may not have time to build enough cash value to make this type of insurance truly beneficial to you. While whole life still offers a death benefit no matter when you die, your beneficiaries are unlikely to receive the full cash value.

Universal Life

Universal life insurance is a type of policy that has a death benefits as well. Some policies pay you a living benefit or cash value. Certain policies build cash value based on the performance of your investment choices rather than on the number of years you invested. You could build cash value quickly if you make the right choices. This is important if you are older and don't have 20 or 30 years to build up your benefits.

Term Life

Term life insurance refers to insurance with a limited time frame, such as 10 years. These policies usually have no cash benefit, but could have a living benefit. When you are close to paying off all of your major debt, you may want to choose an annual or semi-annual term rather than a long-term policy. However, each time you buy a new policy, you risk a higher premium payment.

Some policies have an upper age limit for new purchasers or drop policies when people reach a certain age. Therefore, when you look for a new policy, think about the costs versus how long you pay into the system and see if it is the right choice for you.

People of all ages can find a policy that meets their current needs and accommodate any changes. American Quality Assurance Group can discuss different policies and terms with you so that you can find the right policy for you. Call us or visit our website for a quick and free insurance quote.