You may need less insurance than you did before because your children are grown and can take care of themselves financially.
Life Insurance Needs
Your life has probably changed dramatically during the last ten years or so, especially if you have recently retired. Young people generally purchase life insurance to provide enough money to repay their entire mortgage and care for their children if they should die before they are grown. Your mortgage may be paid off now and your children are probably able to support themselves, so you may need less life insurance now than you did in the past.
Think about what you want life insurance for. Do you want to leave a large inheritance for your children? Do you just want to pay your final expenses and not be a burden after you pass on? Ask yourself these questions before you purchase your policy, as they will guide the amount of coverage you choose.
The two main types of life insurance are permanent and term. Permanent insurance lasts for the rest of your life, while term insurance expires after a certain amount of time. Term life insurance is considerably less expensive than permanent life insurance.
It is recommended that you use term life insurance to cover your short-term needs and permanent life insurance to provide for needs that you will always have. If you are still working and won’t have a need for life insurance after you retire it is best to purchase term insurance for the length of time you expect to keep working. Permanent insurance is recommended for people who want to leave a sizable inheritance or pay for their funeral and other final expenses.
Most life insurance companies require you to meet a set of health standards before they will issue a policy to you. These companies will look over your health records and may ask you to take additional health exams at the doctor’s office. The health standards generally get stricter as the applicant ages. You would probably only have to answer a few questions and see a nurse if you were in your 20s, but people over age 65 may be required to submit a full physical exam as well as medical tests.
Your life insurance agent will closely examine your medical records, especially if you have a history of health issues. It’s best to get life insurance when you’re as young as possible because the standards keep getting stricter as you age and you may not qualify for a policy if you are in poor health.
No Medical Life Insurance Policies
If you are in poor health and don’t think you’ll qualify for a standard health insurance policy, no-medical life insurance may be an option. These policies may be more expensive than standard life insurance policies, but they don’t require any medical exams. There may also be a limit to the payout of a no-medical life insurance policy during the first couple of years. These policies are not for everyone, but they are a good option for people who have a history of medical issues and don’t qualify for regular life insurance coverage.