As you set your financial goals for the year, don’t forget about life insurance. Although it might seem like a gloomy topic since it’s something you won’t directly benefit from, it’s crucial for ensuring your family’s financial security if something happens to you. Finding term life insurance for people over 80 can be tough, so it’s smart to plan ahead.
Here are four simple steps to help you secure life insurance this year:
1. Health Factors: Many Gen Xers and Boomers nearing retirement feel unprepared for their financial future, according to a recent survey. They understand the importance of health and financial well-being and want to improve both. While some life insurance companies don’t require health checks, it’s usually better to choose one that does. This can lead to lower premiums and better benefits down the line. If you’re not in the best health, try to make improvements to access more affordable policies. For example, losing weight or managing medication could help reduce premiums. Some options, like John Hancock’s Vitality life insurance, offer rewards for maintaining a healthy lifestyle, helping you save on premiums.
2. Rethink as a Safety Net: View life insurance as a safety measure, not an investment. For younger adults, term life insurance is often a more practical choice than whole life insurance because it’s cheaper and provides sufficient coverage.
3. Assess Your Coverage Needs: Consider what your family will need financially if you’re not there. Think about current expenses, funeral costs, and the future financial needs of your spouse and children. Even if you expect a long life and feel healthy now, it’s wise to be prepared with suitable term life insurance. If you don’t have dependents, no funeral costs, or your employer offers adequate coverage, extra life insurance might be unnecessary.
4. Budget for Insurance: The easiest way to afford life insurance is through work benefits, where it can be deducted from your paycheck. Term life insurance is generally affordable, though some people hesitate to spend $200-400 a year on it. Breaking it down, saving about $20 a month should cover the cost of most plans.
Although it may feel unnecessary to spend on insurance when there’s no immediate need, like with car or health insurance, you’ll be thankful for it in case of unforeseen events. That’s why having term life insurance is important, especially if you have dependents.
Have you thought about life insurance, and does your coverage adequately protect your family?