As we get closer to the retirement years, we often hear about the struggles and challenges that retirees now face. With each article we read, we wonder if the image of the twilight years we conjured in our heads is still attainable. So many Americans are stretching at the seams just to have enough for the necessities. So many older individuals are running out of a lifetime’s worth of savings trying to cover the care services and cost of living today. And here we are checking all the boxes in our retirement checklists—long term care for elderly individuals, 401(k) plans, a hefty savings account. But we now wonder, is it all enough? Is buying life insurance for Baby Boomers over 50 a wise decision now?
First, let us find out more about life insurance and how it helps Baby Boomers in today’s world.
Life insurance needs of Baby Boomers over 50 are quite different from the ones of those belonging to the younger generations. Situations and circumstances may be different. Baby Boomers may no longer be supporting their children, and their mortgages may be paid off already, or they could be caring for ailing loved ones and living on limited financial resources.
Nowadays, research shows that three in five individuals have some type of life insurance, and another 34% are looking into buying within the coming year.
Baby Boomers looking into life insurance must be critical of the policies they encounter. They weigh out all the pros and cons before signing the contracts. If you are one of the Baby Boomers looking into purchasing life insurance, then here are a few measures to take before sealing the deal:
Shopping is a must if you want to secure the best plan there is. This will show you the different variety of policies that can cater to your needs. Comparing rates from different companies can help you narrow down your choices.
Shopping around does not necessarily mean that you need to go from company to company. In fact, it can be as convenient as surfing the Internet. However, if you are part of the 51% of consumers who prefer to meet with someone before purchasing, then you can work with an agent.
Life insurance can be acquired privately or through the conventional way of applying on your own. Meanwhile, if you are an employee, this insurance policy may be part of your benefits already, and you can take advantage of that. Your employer will either completely shoulder your premiums or share the tab with you. Either way, it is still advantageous if you want to minimize the amount you will spend in premiums.
However, bear in mind that group plans are typically based on your wage alone as opposed to an individual plan that can be based on other factors outside of your paycheck.
One decision you need to make before purchasing life insurance is whether to go for a permanent or term policy. Permanent plans provide coverage for as long as you live. Meanwhile, a term policy will only pay off benefits within a certain period. Choosing between the two is highly dependent on a lot of factors such as your needs and your capability to fulfill your premiums.
A secured future does not stop at life insurance. Individuals in their 50s must take great interest in long term care coverage, as well.
It is true that some life insurance policies provide the means to cover long term care services. However, bear in mind that this type of insurance was not designed to address this specific type of issue. And with the way the long term care costs keep rising, Baby Boomers would benefit immensely in having a reliable and comprehensive policy that directly targets this issue.
The percentage of people who can confidently say that they have enough for retirement is only at 21%. We must all work together to change this. We must all encourage each other to be more proactive about planning and securing our future.