Posted on: Thursday, December 22nd, 2011

Around the age of 50, many people start to see their term life insurance policy come to an end.  This is a great time to sit time and take a serious look at what kind of policy you should get in this new stage of your life.  Do you renew your term life insurance policy, start a permanent policy such as whole life insurance, or do you skip life insurance altogether and focus of saving?

The answer to these questions will depend greatly on your unique circumstance and what you desire for your financial future.  “Life Insurance After 50” by Kimberly Lankford on Kiplinger.com talks about some things people over 50 should consider when shopping around for life insurance.  With the life expectancy of the average person being greater and people carrying more bills than ever, it may make sense to keep your life insurance policy as long as you qualify.

Another term life insurance policy is definitely an option, but you need to qualify for an affordable premium by being healthy and finding the right insurer.  Plus, you will likely come to the end of this term as well leaving you to make this decision again.  Many people will do best with traditional whole life which has fixed premiums and lasts a lifetime.  The savings are backed by insurance company’s high-grade bonds and mortgages and accumulate interest and often have dividends.  Whole life is among some of the few long term fixed income investments that keep up with increasing interest rates.  It can be more expensive though so you have to look at your particular budget and see if it works.  Meet with a financial advisor to truly determine what the right choice for you and your family may be.

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