One way to offer your family peace of mind in the event of death is by purchasing life insurance. Unfortunately, people in their 40s often overlook life insurance, as they believe they simply do not need it at this point in their lives.
There are various reasons this happens, but the most common is probably the monthly budget. To some adding another bill is simply out of the question. As many already know, this can be a devastating mistake.
The fact is that getting insurance in your 40s will actually save you money because as you get older, rates begin to increase. The premiums may be a bit higher than those in their 30s and younger, but rates are still much more affordable now than waiting until your 50s or 60s to secure cover.
Why Should You Purchase Over 40s Life Insurance?
As we briefly mentioned above, the sooner you purchase life insurance, the cheaper your premiums will be. As you get older, premiums begin to increase, drastically after the age of 50. Securing a policy today enables you to have coverage and offer peace of mind to your family that depends on your income. Surviving members could literally be left out in the cold were something unexpected to happen to you and that income lost.
When a life cover policy is secured, your loved ones will be taken care of in the event of your death. Ideally, you would have a policy that would cover finances for monthly bills, mortgage, and daily living expenses for multiple years.
It may also be wise to consider educational costs for your spouse if they are currently staying at home to take care of the children. This will give them the opportunity to be able to live comfortably while learning a skill set that would later enable them to support the family.
Over 40s Life Insurance Special Features
Most carriers of life insurance will offer some type of guaranteed acceptance for an over 40s life insurance policy. This means there are no medical underwriting requirements and you are covered the moment you pick and pay for your policy. In many cases, these policies will also offer guaranteed coverage through your 70s, and possibly even into your 80s, without the need for a medical exam.
A whole life policy can put pressure on the monthly budget, but that is not the case with an over 40s term life insurance policy. These policies are far less expensive than whole life policies while still offering significant benefits. In fact, some policies will even offer coverage without a paid premium once you hit a certain age. For anyone expecting to be on fixed income during this stage of his or her life, it is a significant benefit.
Know the Terms of Your Over 40s Life Insurance Before Signing
Every policy will have its benefits and drawbacks, and you need to know them all before signing. For instance, some over 40s life insurance policies will have an automatic “no claims” period once the policy is secured. This means that there is a waiting period of a specified time frame where no claim can be made.
There may be exceptions to this rule such as an accidental death, but you should clarify all of this with your agent before securing the policy.
A person’s health is something else to consider. Because people are living longer, getting life insurance at an earlier age is something that needs to be done carefully. With people living well into their 80s and beyond, a person could end up paying more in premiums than the actual benefits payout if they do not select the proper policy.
You may want to look at your family’s health history as well as your own health and discuss this with one of our insurance experts to narrow down your policy selection.
You will also want to find out if beneficiaries are responsible for inheritance tax on the payout. If this is the case, the amount of cover should take this into account. Otherwise, the beneficiaries could find themselves well short on their monthly budget and the insurance would not have provided for them as planned.
Coverage and Premium Details
An over 40s or 45 life insurance policy will have the same premiums and cover for the duration of the policy. The established premium will take into account you current status concerning age and smoking habits, as well as other factors. As the coverage desired increases, so does the premium. This type of policy has no cash value until the policyholder’s death.
One factor to consider concerning coverage is the cost of inflation. If you secure a policy today for £250,000 pounds, which may provide financial relief for your family for five years, what happens when the policy is not cashed for 20 years? You should account for this when establishing the initial policy to ensure that there is enough coverage over the expected span of the policy, not just for today.
Some things to consider when determining your coverage are costs of education, additional health care costs, funeral costs, mortgage, loans, and household expenses. For instance, while your spouse is currently able to live on their own, will that be the case when they are 80 and living alone? Will they need some type of assisted care? These are factors to consider as well as figuring the costs of these needs in the future.
When you use Claybrooke you know you are getting the most cost-effective insurance quote for over 40s life insurance. Our team will work with you from day one to figure out the best policy for your needs and budget. We look forward to hearing from you soon so you can finally have the insurance you want and need for you and your family.