Life insurance is important at any age when you have a mortgage, a partner or a family to care for. But there are other reasons you may want to take out life insurance for over 60s such as if you have money invested in stocks, own a small or large business and if you’ve built up a steady wealth. Here, we’ll talk you through the reasons for having life insurance in your 60s.
To Protect Your Investments
Most investments carry some degree of risk, and there’s always the chance that your assets will decrease in value over time. If you’re young, it’s easy to wait out any dips in the market, but as you get older it isn’t always easy to recover! By taking out life insurance when you’re over 60 you can protect your investments in the stock markets or real estate for any time the markets fall. Shop around for a policy that’s large enough to cover the market value of your assets as they are today and you can insure against the risk of losses in the market during the remainder of your policy. When you die, you can be sure your legacy will remain intact for your family.
To Pass on Your Wealth or Provide Financial Help
If you’ve started building up your financial wealth that will continue to grow through your working years, then if you don’t have the proper life insurance, this can be disposed of at market value meaning your assets won’t be worth the amount they are at currently. With life insurance for over 60s, you can insure the potential tax liability and the additional estate related expenses like the cost of your funeral, probate and legal fees. You can even plan to pass on some of your wealth to a charity after you die. If you do this, you get some key advantages with your insurers such as leaving a donation that avoids administrative expenses and potential disputes. Also, your estate will gain tax benefits from your gift with the premiums paid!
If You Own a Business
Life Insurance when you’re over 60 should be a serious consideration, and even more so if you own a business. Life insurance will help protect the value of the enterprise you’ve worked hard for. Life insurance can help co-owners buy out the interests of any other co-owner or colleague that dies and proceeds from a policy can help finance the purchase and provide for family members and loved ones of the deceased. Small companies can use life insurance to support the business with the financial support it needs to make it through the term. It can also be used to recruit a replacement.
Takeaway
There are many reasons to take out life insurance when you’re over 60, but more importantly if you have assets, businesses or family members to protect. When shopping around for life insurance, make sure to take into account your age, medical conditions and beneficiaries and always be honest, as if you don’t declare something, your insurance may not be valid after you die.
