Life Insurance for Over 50: Everything you need to know

Life insurance is a must-have as it protects your interests and takes care of your family in case something happens to you. Insurance finds most takers in the age range of 20 to 40. Purchasing a life insurance cover above the age of 50 is relatively unheard of. However, there are policies specifically for those above 50 years of age. These plans have their advantages and drawbacks as well. Read on to know more about over 50s life insurance.

Your savings may be at an all-time high; you may have a stable job and comparatively lesser liabilities; so why would you need a life cover after 50? We give you a few reasons why you should opt for an over 50s life cover.

1. The security of loved ones: You may have decent savings, and you and your family might be healthy, but have you ever wondered how things will be after your death? Things might be difficult for your dependents, especially if you are the sole breadwinner. Over 50s life insurance can play a massive role in securing the future of your loved ones after your death.
2. To meet burial expenses: After the death, the expenses for last rites include the burial expenses for the plot, headstone, flowers, services, transportation, and a casket. A part of the death benefit can help pay for this.
3. The best alternative for pension income: In case you are a government employee, the government may stop the pension for your spouse or your children after your death. The death benefit from an over 50s life cover can thus be an excellent replacement for a regular income for your family after you.
4. Great way to save taxes: With life insurance, you can avail several tax benefits. The death benefit, as well as the premiums, are eligible for tax exemptions as per provisions prescribed under Income Tax Act, 1961. This is one more reason why you should opt for life insurance if you are over 50 years of age. It will save you money, in addition to providing you with a life cover.

Disclaimer:Tax laws are subject to change from time to time. Kindly consult your personal tax advisor on applicable tax benefits under the policy.

Purchasing a life insurance policy is easy. You can get insured within minutes. However, this is for those who are young, hale and hearty. It is comparatively difficult for those beyond 50 to get insured. Here are a few challenges faced by people over the age of 50 when buying a life cover.

1. Age: Life insurance policies become increasingly expensive as you age. It is challenging to find a good deal on life insurance in your 50s. Hence, take time to shop around and compare, before you purchase an over-50 insurance policy.
2. Health: As you age, your health issues and the chances of you getting infected with chronic illnesses also increase. This makes it difficult to get a life insurance policy as you are considered more at risk than the others by the insurance company.
3. Higher premiums: Insurance is cheaper with lesser premiums when you are in your 20s and 30s. The monthly and yearly instalments are quite affordable. However, after 50, the premiums tend to be very high. Also, with most of the people at this age retired from their jobs, cannot afford this.

Even though it might be difficult to get, a life insurance cover above the 50s has its benefits. However, it can be costly and come with certain terms and conditions. Remember to weigh the pros and cons of the policy against your requirements before you purchase an over 50s life cover.