Your 50s can come with increasing financial freedom and the allure of life as an empty nester. So what benefits would life insurance bring? The answer depends on your situation and comfort with risk. Here’s why many people keep life insurance cover going in their 50s:
Serious illness is more likely.
As we age, the more likely we are to be susceptible to health problems. So the older you get, the greater your chance of experiencing a serious medical condition. A type of life insurance called trauma cover, pays a lump sum if you’re diagnosed with one of about 40 serious conditions defined in the policy documents. They typically include things like heart attack, cancer, loss of sight, Parkinson’s, Alzheimer’s and multiple sclerosis. For some conditions cover starts 3 months after you’ve taken out the cover.
You may still have debts to pay
Many New Zealanders in their 50s still have a mortgage or some other type of debt. If you’re still paying off a mortgage or another kind of loan, having some sort of life insurance could be a good move. If you die or aren’t able to work for an extended period, due to sickness or injury, a life insurance pay out could help you or your family through what may be a tricky financial time. Depending on how much cover you have, it could help to cover loan repayments or repay debt entirely. It could also help with ongoing day-to-day expenses.
Your savings are for retirement
Maybe you’ve built up a financial nest egg for the future or to leave to your kids. What would happen to that money if you were off work for an extended period due to sickness or injury? Will you use these savings to get you by? Income protection cover can pay a percentage of your salary in monthly instalments for a set period of time when you can’t work for an extended period.
Loved ones may still depend on you
Your partner may count on your continued financial support, and so may your children or elderly parents. Having life cover can help to protect the financial future of your nearest and dearest if you were to die.
You have goals to complete
You’ve probably worked hard to pay off your mortgage and now you might be saving for your retirement of other things. Maybe you want to travel the world, help your kids buy their first homes, pay for a wedding or build an education fund for grandkids. So you don't have to dip into your savings and risk those life goals some types of life insurance can help protect your grand plans if sickness or injury disrupts your income for an extended time.