What Is Too Late to Get Life Insurance?
Younger people often overlook life insurance, as death seems so far off. People increasingly think of it as they age, and may wonder whether they are too old to obtain life insurance.
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Life Insurance
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Life insurance pays benefits upon an individual's death. This "death benefit" will amount to the sum of the life insurance policy bought. For instance, a $100,000 policy will pay survivors that entire amount. In some instances, faced with a terminal illness, individuals may receive the money before death.
Types
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There are two broad categories of life insurance: term life and whole life. Each differs considerably in details and age limit to purchase in general.
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Term Life
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Plan for your future and your loved ones' at any age. Term life is quite simple--it is purchased for a specific period of time--20 years, for example--and if the individual dies during that period, a death benefit is paid to the survivors. If the individual does not die, the payments made on the policy are simply gone, without benefit.
Whole Life
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Whole life, on the other hand, while more costly than term, lasts from the moment purchased until death (assuming premiums are paid). Additionally, the premiums paid are considered a cash value and may earn money for the policy holder.
Age Limits
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The age limit varies by type of insurance and company provider. Generally, new or continuing coverage ceases at around 65 years old, or retirement age, with term life insurance. Whole life insurance, however, can often be purchased until at least 80 years old, and continues until death or 100 years old.
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- Photo Credit casket image by enens from Fotolia.com family image by Mat Hayward from Fotolia.com
