When you think of life insurance, you may think of a family with young children and a big mortgage.
However, there are many instances in which getting life insurance later in life makes sense. In fact, many of the policies we set up for clients are for individuals in their 50s and 60s, so let's address this topic and discuss the pros/cons so you can assess whether this may be a need for yourself or loved ones.
Here are some common scenarios that may warrant obtaining life insurance in your 50s:
Wanting the remaining 5-10 years on your mortgage or line of credit to be paid off for your family should you pass away, without paying for the bank's insurance (which can be very costly)
Providing for some emergency money for your spouse should your income no longer be around - so they may use it towards the household expenses that are no longer split between two incomes
Ensuring your teenage children are taken care of should something happen to you, and wanting to keep that insurance until they are financially independent
One thing to consider as you age, is that the cost of insurance goes up. The medical questions at time of the application may also uncover more of a health history than if you had applied in your 20s. However, we find this isn't an issue for everyone. It's good to be prepared to potentially have to answer additional questions, provide blood samples, or have the insurance company order a physician statement from your doctor before they can approve your application. These extra requirements are paid for by the insurance company.
You may already have life insurance from 10-20 years ago that has renewed once or twice, but reviewing your needs today, and potentially re-applying while in good health, may save you lots of money - which in turn can be reallocated towards things you care about. If you have an insurance policy in place today, there may even be opportunities to change it to a permanent policy without answering medical questions.
When we review life insurance options for our clients, we assess your needs together, review quotes from insurance companies, and guide you through the application process. It is worth noting that Canada Life currently has a discount of up to 15% on term life insurance policies - which can make a big difference in cost over the next 10+ years. If this is something that's been on your to-do list to review, reach out and we will be happy to meet with you!