Life Insurance – Can Those Over 50 Still Get Life Insurance?
BY MELANIE WALTERS

Life Insurance companies have had to extend their arsenal of policies to accommodate the increasing life spans of today's society. As such, it is now possible to obtain life insurance if over fifty years of age. During the 1950's and 1960's it would not have been deemed profitable to offer the product to those over 50, as the probability of them passing away during the term of the policy would have been to great. During that era, prospects would have been directed to purchase a type of life insurance known as "permanent life".

Permanent life insurance is a type of policy that does not expire, and generally combines a death benefit with a savings plan. The policy holder can borrow against the cash value of his or her policy, or withdraw funds to finance personal or family needs. This form of life insurance protects the insurer against having to pay out the total death benefit upon the untimely death of the holder, as the cash value of such policies is generally less than the true value, depending on the time of the holder's death.

Today's Greater Availability of Term Life Insurance to Those Over 50

Life insurance agents in our time would still be happy to encourage anyone over 50 to buy a permanent life policy, but the fact is that today, "term" life policies are more available that age group. Term life is a policy that expires after a specific time period or term, hence the name. If the policy holder dies after that term is over, the insurance company does not have to make a payment. Living to the age of 80 in these times however is not so unlikely; therefore a term life policy of 30 years or so can still be quite easily obtained by those of middle age.

Term life insurance generally offers a better deal for the policy holder, as permanent life policies offered to those over 50 usually have little cash value. This defeats the purpose of even purchasing permanent life, as the cash value is the reason for paying the higher premiums (monthly payments) of this type of life insurance. The premiums for term life policies are much more affordable, and though they have no cash value, there is greater financial security for your family. A term life policy will also allow you to free up your hard earned cash for other investments such as pension plans or savings accounts.

Many companies guarantee acceptance for those aged between 50 and 80 years of age, and some premiums can be as low as $10 or $15 per month, depending on the cash value of the policy you choose. Of course the greater the value of your over 50 life insurance policy, the higher the premiums will be, but you can choose a plan that will simply cover your funeral expenses, or leave your family a lump sum of up to $25,000. If you're in good health you have a distinct advantage, as once you are diagnosed with an illness, though you may still be able to get coverage, the premiums of your life insurance policy will be much higher.