There Are Good Reasons For Over 50's Life Insurance!
Your mortgage may have been repaid, you may be receiving a regular, guaranteed pension and your children may be grown up and have left home. However, that does not necessarily mean that you do not have a need for life insurance.
Many people assume that if they have no mortgage to repay that they do not have a need for any life insurance. However, this attitude could leave your friends and family with a significant financial headache in the event of your death. Here are three compelling reasons why, even if you are over 50, you should still consider making sure you have sufficient life cover.
Funeral costs: One of the main reasons why over 50s should consider having some life insurance in place is so their friends and families do not have to foot the bill for their funeral.
A 2010 survey by the Post Office found that almost three quarters of adult in the UK 74 per cent have no funeral provision in place. The research also found that over 60 per cent of individuals aged 55 and above do not have similar provision. This is despite the costs of funerals rocketing in recent years. The Guardian reported in 2010 that the fees funeral directors charge for a typical funeral now average GBP 1,515 and this is in addition to other costs such as church or crematorium hire.
Duncan Caesar Gordon, head of insurance at the Post Office, said: "It would appear people are giving more thought on what sort of funeral they would like to have, but It is a concern that so few have financial arrangements in place to pay for it. This means that should the worst happen, family and friends will be the ones left to pay the bill."
Debts: Even if you are over 50, it may still be the case that you have debts that you wish to repay in the event of your death. Research from the Lincoln Financial Group in 2006 found that the average age that UK homeowners repay their mortgage is 561/2. The survey also found that 1.6 million Brits do not expect to clear their mortgage debt until they are aged 65, whilst 309,000 will still be making mortgage payments at the age of 70.
With more and more peoples mortgages stretching into their retirement, it is vitally important that you have enough life insurance to repay your debt when you die. If you do not, you will find that your surviving spouse/partner has to take on your debts after your death, meaning there is a strong likelihood that the property will have to be sold to clear the mortgage.
Even if you have repaid your mortgage, you may have other debts as you approach your retirement. You may have loans on cars or holiday homes, a mortgage on a second property or credit card bills. Make sure your debts can be repaid in the event of your death.
A nest egg for your family: Even if you have no debts and have savings put aside for your funeral costs, you may still want to provide a nest egg for your family. Perhaps you want to leave a sum sufficient for your grandchildrens university fees, or to help them get on the housing ladder? Whatever the reason, leaving a financial nest egg to your loved ones may well be important to you.
A simple life insurance policy can ensure that you leave a fixed sum to your children, grandchildren or other beneficiaries. It may not cost you a huge amount in terms of your monthly premiums, but it will ensure that there is a sum of money left to your loved ones in the event of your death.
About the Author:
Debi writes for JustLifeInsurance.com the leading website in the UK dedicated to providing over 50's life insurance, and life insurance advice.
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