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Life Insurance Comparison: What you Need to do at 50+

Posted: Friday, November 13, 2009

by Ruth Berg

With regards to looking for the best insurance policy for those over 50 years of age , you must not neglect an important process: comparison shopping . Regardless of age or type insurance, comparison shopping is a must to ensure the best policy for your needs at the lowest cost.

In spite of the economic times, the cost of life insurance continues to decline reflecting declining mortality rates. We have seen policy premiums decline an average of 4% annually since 2002. And, in response to the financial hardship many of us face, carriers are providing new products at lower costs.

There are various reasons why many have found themselves currently uninsured. Loss of a job is a primary reason, where many were insured through their employer. Letting a Term life insurance policy lapse, now that the children are grown. Or simply not being able to continue the premium payments on a Whole Life or Universal Life policy.

Given the current climate, does it make sense to remain uninsured, or under-insured? If you’ve been putting off the decision because you felt that at your age it would not be cost effective, you may want to do some comparison shopping first to confirm this. It is especially important if you are still in good health to lock in a policy now before your health makes you uninsurable.

Here are some additional reasons for getting life insurance (beyond becoming uninsurable)…

To cover existing debt (mortgage, car loan, personal loans, credit cards, etc.)
To establish a retirement fund (you have 10-20 years still)
To cover burial and other incidental expenses due to death
To leave funds for the family (wife, children, grandchildren)

In preparation for comparison shopping, you will want to answer the following…

What you can afford (use 5% of earnings as a guideline)
How much insurance you need
The type of insurance you should be considering (Term vs. Whole Life or Universal)

To cover debt, expenses, or funds for the family, Term life insurance is an obvious choice, since it provides the most insurance for the dollar. To establish a retirement fund, then a Whole Life or Universal Life policy should be considered.

Next, when you begin your search it would be advisable to look at broker websites. That is, websites in which a broker represents multiple carriers. There are two benefits for doing this: First, you are more likely to compare comparable policies (apples-to–apples) since the broker will be making the selections. And second, you will be provided with excellent support in identifying the proper policies for your situation. Keep in mind, there are thousands of carriers with tens of thousands of plans to consider. This is a formidable task to confront solo; it’s far better to have professional help.

So, even as a baby boomer facing the over 50 years, it would be prudent to consider life insurance while you still remain insurable.

The author has an MBA in Finance and extensive experience with financial institutions. You can also check out his latest website on Cheap Life Insurance which provides information about obtaining affordable life insurance, or Life Insurance Comparison to better understand how to shop for cheap life insurance.

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