When to buy insurance can sometimes prove a tricky question to answer. Small businesses have different considerations at different stages of their lifecycle. But it’s true that similar questions are common with personal insurance too. Obviously, there are many good reasons to buy life insurance at any age. The reasons that are valid for younger people can indeed be different from the reasons of older adults. For instance, it’s a common assumption that taking life insurance in the later years won’t be of much use or will be more trouble than it’s worth. That needn’t necessarily be true!
Common Reasons to Believe – It’s too late to take life insurance
Life Insurance is for the young is a widespread perception. Many older adults tend to believe they do not need life insurance if there are no health issues yet. The primary purpose of a life insurance policy is to provide financial assistance to the dependents in case of pre-mature/untimely death of the policyholder. With good health and lifestyle, people usually think the likelihood of such a scenario is low and it would not be beneficial to invest in a life insurance policy.
Another common reason is the absence of any ongoing loans that need to be provided for. Many older people clear off all their debts later in life. With the home paid in full and no other debts, the idea of life insurance may seem unnecessary. Receiving social security may also make taking up life insurance seem insurance.
Reasons to take up Life Insurance
It is always good to have proper cover to effectively address unexpected scenarios for you and your family.
It is great to clear all your debt at the time of retirement. It is also good to plan for the future with sufficient investment set aside for yourself and those you care about. However, attention must be paid to the many unforeseen expenses that life insurance can cover.
For instance, the family may be over-reliant on the contributions of one person in the house. These may include the household chores as well as handling the care and medication of an invalid or sick member of the family. Life insurance can cover the cost of assistive living should the eventuality arise. It could help cover essentials like in-home care if a person can no longer manage without assistance.
Cost of Burial
This is one of the significant expenses that come along with the passing away of any individual. For instance, by some estimates, a funeral in the state of New Jersey could cost anywhere between $ 4500 – $ 13500. Life insurance policies can cover the cost of burial and reduce the load on the surviving family members.
Epidemics and Pandemics
Newer forms of health complications are emerging with the changes in lifestyle, climate change, elevated pollution levels, and overall imbalance of living and working conditions. One of the recent examples is the outbreak of the Covid-19 pandemic. Well over 4 million people have lost their lives to Covid-19 across the globe and the pandemic is nowhere towards its end yet.
Several people were infected by the deadly coronavirus without any prior health conditions. Clearly, one cannot predict such scenarios or other health complications that may emerge all of a sudden. It’s important to lead a healthy lifestyle and while that can contribute to a longer life, it’s clear that there are many unknowns out there too. Life insurance policies can provide the required coverage and assistance for the family members in such circumstances.
Varied Options for the Beneficiaries
The beneficiaries may wish to utilize the money from the life insurance policies in different forms. Life goals are not the same for every individual. These may also change in different phases of life. One can contribute towards the life goals of their children or partner even after death. They may use the money for studies or set up a business venture. Some may prefer investing the money to buy a new home or to improve the living conditions. They may also wish to use the insurance money to perpetuate the legacy of the individual who has passed by supporting a cause that the individual was passionate about.
The money received from the life insurance policy can assist the beneficiaries in achieving these life goals.
To Sum it Up
Life insurance has always been subject to numerous misconceptions. Some believe that taking life insurance only adds to the ongoing expenses. That’s one reason for the notion that investing in a life insurance policy is only beneficial when one is young. However, life insurance is essential for every individual irrespective of their age. It is a medium through which one can provide for and assist those to survive to cope with unexpected circumstances that life may throw. One can never predict the future and can only plan for a better one. That’s why life insurance is also for older adults.