| By :
Marilyn Katz
Middle aged and retired people can still find some affordable term life policies, The cheapest way to buy a large policy is to choose a shorter term. Look at some of the reasons why older people may want to consider ten year term. When a younger person shops for a life policy, they may be thinking about some long term responsibilities they need to protect. Many families in their thirties will still be concerned about supporting kids or paying off a large mortgage! Those younger people are probably looking for longer policy lengths, and they may shop for twenty or thirty year terms. Younger people can usually find cheap rates. This works out ok for them. But older people may be in a different situation. As we get older, rates will go up. However, it is clear that if we can purchase a ten year policy for much less than we can purchase a thirty year policy for? Why is this true. Insurance companies know that a ten year contract is less risky for them. So they can charge less for the policy. You will also find that the price difference becomes a lot more signifigant for older people than it was for younger people. So it may be much easier for a 30 or 40 year old to decide to take a longer policy term than it is for an older person. This may work out fine for you though. Consider your needs now that you are older. Your kids may already be educated, or at least they may be much further along. So you may not need to be concerned with their security for that much longer. In addition, hopefully, you are a lot closer off to paying off your home mortgage. These are just some typical cases. You may have other reasons to consider. You may be concerned about the future though. It is impossible to predict what your situation will be ten years from now. It is not, however, impossible to predict that any life insurance we want will be even more expensive. So you are taking the cheaper rates now in exchange for the risk of having to pay more in the future. You may also be risking your ability to qualify for some types of policies at all. If you should be less healthy in the future, you could be declined for a policy. There is one alternative to consider. Many term policies are also convertible to permanent life insurance in the future. This way you can insure your ability to purchase permanent coverage later. This gives you lower premiums today, but also the option to leave the door open later! There is not one right length or type of life insurance for everybody. However, if you want to save some money on a larger death benefit, a ten year term policy may be something to consider.
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