It\’s interesting. There a direct correlation between the cost someone will pay for term life insurance (or almost any insurance for that matter) and the age at which time they purchase the actual coverage. Needless to say, the rates go up as we get older can really impact the cost quite a bit beyond a certain age (roughly age 45-55 depending on the carrier and length of term chosen). Based on this, if I were to ask you what age do you think the average term life insurance shopper is, what would you guess? Maybe 35 based on new families and new babies? That seems reasonable. Maybe 45 based on older children and the ever-increasing cost of college these days and into the future? Again, a good place to shop for life insurance coverage. You would be incorrect and even as a seasoned life insurance agent, I\’m still a little stunned when I see the average ages. It\’s very common to find people shopping for insurance in their 50\’s…even late 50\’s. Why is this and more importantly, what is the motivation to start the process then? Ultimately, I guess the question is…what are they buying the life insurance to protect against? Let\’s look at the some of the needs and wants that arise for older shoppers and we don\’t mean 50\’s is old…just older for purchasing term life.

Granted, there is a little bit of \”my house is burning, I need to get home insurance\” at play here. People are getting older and maybe they don\’t feel invincible anymore. Once that realization sets in, they may start to think, \”Well, I need to buy life insurance\” not realizing that the cost will go up quite a bit being older. So some shoppers are just shopping around to see what the rates are like. Term life does a good job at keeping the rates down but it can only do so much. Beyond this appeal, what else is driving the desire to shop in your 50\’s and later.

A big driver is the confluence of two separate issues coming together. On one hand, a person in their 50\’s is starting to be able to actually afford more since the financial responsibilities of early to mid adulthood (loosely translated as \”children\”) are starting to subside. So on the one hand, a person can start to afford the coverage. On the other hand, they see the very real need to provide financially for loved ones such as a spouse or children in case they pass away. Maybe it\’s a touch of maturity in understanding what insurance is really for and that the risks it is designed to mitigate are real. Many younger adults have little time, energy, or resources to think about passing away. They\’re just too busy with the day to day life which is somewhat of an irony in life. This is more of a change in mindset and/or world view but there are some specific needs for older purchasers of life insurance.

A person in their 50\’s may want to provide protection to finish off a mortgage or pay off set for loved ones. He or she may want to provide financial resources for older children or even view the life insurance as an inexpensive way to provide an \”instant estate\” for loved ones. This takes full advantage of the fact that term life insurance benefits are typically not taxable…a tremendous advantage that life insurance benefits have over other options. Not everyone has adequately provided for retirement and term life insurance may address this need in the event of the insured passing away.

Term life is the logical choice for older shoppers due to the cost structure of it compared with whole life but it also poses issues due to health underwriting. As we age, obviously, health can change and affect our pricing and ability to qualify. This is where we come in. Knowing the term life carriers and plans inside and out, we can help you navigate the market for the best possible outcome.

Author Bio: Dennis Jarvis is a licensed insurance agent concentrating on getting the best term life insurance quote. Shop, compare, and instantly quote multiple carriers with over 150 articles to help you understand the market.

Category: Finances
Keywords: term life insurance quote, term life quote, term life insurance, older shopper