Informative guide: term life insurance explained
When it comes to life insurance, it can be easy to get overwhelmed, with all the details to think about. This guide is meant to help explain how term coverage may work for older adults. Then you can decide if it’s right for you.
What is term life insurance?
Term life insurance provides financial protection for a specific period of time, also known as a term. Your beneficiaries can receive a benefit if you pass away while your coverage is active. The benefit can be used to help pay for various types of expenses.
| Feature | What it means for you |
|---|---|
| Coverage amount flexibility | Choose benefits based on your goals and budget |
| Premiums by age | Rates may be arranged in age bands and increase as you move into a new band. |
| Protection to age 80 | Coverage can continue through age 80 if premiums are paid on time and your health is not misrepresented on your application. |
| Term benefits | Your benefit amount never decreases, even if your health changes. |
| Simple application | Some providers approve term applicants based on health information—no medical exam needed. |
Why consider term life insurance over 50?
You might ask, “Should someone over 50 get term life insurance?” That depends on your needs. Many older adults still have financial obligations like credit card balances, a car loan, a mortgage, etc. With coverage in place, you can have added peace of mind because you’re helping your family avoid financial stress after you’re gone.
Examples of term insurance for age 50+
The following scenarios of term coverage for age 50+ highlight how flexible the coverage amounts can be while you are insured.
- Lauren, 55: Selects $50,000 in coverage to ensure her husband will have help paying off their debts and covering household bills if something happens to her.
- James, 62: Chooses $100,000 in coverage so his son can have money to help with college and living expenses.
- Carol, 70: Buys $25,000 in coverage to help cover funeral costs and provide a small gift for her grandkids.
Please note: Information is based on hypothetical situations. Any resemblance to real persons or situations is purely coincidental.
How long should you keep coverage?
You can keep your term life insurance active until age 80. It’s good to maintain coverage through the years when your loved ones may rely on your support the most, whether that’s to cover living costs, debts, or final arrangements.
Is there anything else to know?
Once you have your term life insurance, you have options to help make the most of it. You can apply to add a rider to expand your protection. You can also exchange to permanent life. These next steps typically depend on where you are in your life.
For those over 50, term life insurance can be a simple way to protect the people you love. With flexible options and steady benefits, it can bring added peace of mind knowing your family will have help when they need it most.
This article is provided by New York Life for informational purposes only. Neither New York Life, AARP, nor its affiliates provide tax, legal, financial, or accounting advice. Please consult your own professional for advice specific to your circumstances.
