Quite often when individuals reach the age of 50, they begin to become concerned. They begin to become more concerned about their health. They worry about a loss of life. About how this would affect their loved ones financially. They may not have purchased life insurance in the past. Now they are having some regrets. It used to be that when one reaches the age of 50 that there was not much hope of getting life insurance. Insurance companies want to take on as many clients as possible. To do this, they have to be somewhat flexible in their products. It means that they have to find ways that they can offer life insurance to those over 50 but still keep their risks down.
Why Does Being Over 50 Matter for Life Insurance?
Insurance companies will use all the data they can. To help them determine what they should charge for insurance. They will use medical data and statistics as well as their data. When it comes to life insurance. Some of the medical data indicate that there are significant changes. Taking place after the age of 50. Some of the changes can lead to medical problems. Some are serious others are not. In any event, any health problem raises the risk for the insurance company. Some of the risks of disease that take place after fifty are:
- Alzheimer’s disease
- Heart disease
While there are several others, these are the ones that can create an increased risk of death as a result of them. Looking at it this way it is easy to see why the insurance companies would have concerns.
Is Life Insurance More Expensive After the Age of 50?
Many life insurance companies are going to be willing to give life insurance after the age of 50. But, it is going to come with some stipulations. It will be more expensive to buy life insurance at this age. Partly because of the increased risk. Also, the insurance companies are not about to make as much money off the policy. Some take a life insurance policy out in their 20s. They carry it through their life. Then the insurance company has made a good profit even when it’s time to pay out. So to compensate for their profit margins they are going to charge more. How much more is going to depend on the individual.
Many people get confused thinking that all life insurance is going to be the same. But it comes down to life insurance is a personalized product. There are employees in the insurance companies that focus on setting the premiums. As they pertain to each applicant. They do this by following the mandate the company has set in place. Meaning that they will collect a detailed amount of information. From the insurance shopper. They will then analyze this information and use metrics to go with it. They will go through a specific process. Once completed they will know how much to charge. Two individuals can buy the same life insurance policy. From the same insurance company. But each will have different premiums.
Can I Get Turned Down for Life Insurance Because I Am Over age fifty?
Being over the age of fifty doesn’t automatically disqualify you for life insurance.
There are several different reasons why anybody can get turned down. For this type of insurance. No matter what their age is. One of the most common reasons has to do with health. There are a lot of insurance companies now that are saying that there is no medical involved. Or there are limited medical requirements. While this may be true, there are going to be certain restrictions that come with it.
At the very least you will be asked to fill out a questionnaire. Most likely on this questionnaire, there will be specific medical questions. The answers have to be honest. Otherwise, there could be problems with the payout of the insurance when the time comes. The answers to these questions may be a serious health condition. Then insurance could be denied.
No Medical Exams – No Questions Asked
Then there are some insurance companies that say no medical exam and no questions asked. For this type of insurance, there may be limits for the payout. Unless one wants to pay huge prices for more coverage. If that were even allowed. Also, it will often come with specific clauses. One of those clauses may be that they will not do a payout in the first two years. This way they have a little bit more confidence. In knowing that the health issue in question may not cause loss of life in the immediate future. It will at least allow the insurance company to collect enough on premiums. To cover the cost of the low pay out the insurance covers. In this case for the insured, it’s basically like putting money in the bank. Saving it so it can be used after one’s death.
Activities and High Risk
Not every 50-year-old is retired. Which many are not. The insurance company is going to look at the type of activities that the over 50 is involved in. If they are involved in high-risk activities, this is going to be a big factor in the insurance. This particular high risk combined with the age could be enough to disqualify them.
Which Life Insurance Should I Choose for Those Over Fifty?
The next challenge to be faced is choosing what type of life insurance is best for you. What is available is going to depend on the particular insurance company. That you are dealing with. It is wise to shop carefully for life insurance. There can be some big differences among the different companies. You may want to take a look at term or Whole Life insurance. Also, give some consideration to Universal life insurance.
To make the decision you have to look at the intent of why you are buying this product. If you are looking for security for loved ones that is one of the major reasons. Another reason is that you may want to build some investment for your later retirement years. To make the right choice, you need to know what your purposes are and this will help to narrow down your choices.