The Post-WW2 demographic explosion gave rise to a new generation of Americans, commonly known as baby boomers. A stable and raising economy was the main reasons for the high birth rate during 1946-1964 period. The baby boomers generation was regarded as one of the most prosperous generations in the history of the United States, benefiting from high income, good living standards, high education and many employment opportunities. But things have changed.
During the last years, the United States suffered from an economic downfall that jeopardized the chances of many college students and young people of getting a well-paid and stable job. This economic background forced and it still forces many young adults to live with their parents and to depend financially on them. There are many cases, in which, the baby boomers are responsible of the financial safety of the new generation.
In this environment of unstable economy, expensive real estate market and high unemployment rates, the insurance business may be the best way to get some financial security. Life insurance is usually advertised to people who are in their late 30s and are looking forward to starting a family. The benefit is meant to protect the family in case of an unexpected death (usually that of the bread-winner). However, the insurance market is extending to other age groups, like seniors. It is becoming more and more common to see seniors purchasing life insurance.
Life insurance over 50 is still a new concept for many consumers, but it is becoming more and more of a necessity. There are many discussions whether seniors really need life insurance or it is a waste of money. The toughest myth to bust when it comes to life annuities for seniors is the price. Many believe that they will have to pay very high premiums for a low benefit, or that they are not eligible for a policy.
This shows a misunderstanding of how premiums are calculated. It is true that age matters, but there are other issues as well, some more important than age, like health. Premiums are calculated based on the risk an applicant poses for the agency. There are many things that are taken into account: age, sex, health, weight, and others. FACT: A healthy non-smoker 50 years old can get a life insurance policy for a very good price.
Not even that it is cheaper for a senior to be eligible for a plan, but some agencies offer policies that do not require a medical examination! This opens a lot of doors to people who suffered or are suffering from serious medical conditions. Although the premiums are more expensive, these policies can still offer a series of advantages for your family and loved ones. Purchasing a final expense policy to cover your funeral (which usually costs around $10,000) can be a great financial relief for your children and relatives!
Should baby boomers extend their life insurance policies after retirement? There is not a simple answer to this question. It all depends on the family situation. If your children depend financially on you, life coverage can provide great financial security. As unemployment grows, your children may have a harder time managing on their own. College education is also a lot more expensive and it is a growing concern as more and more graduates are piling up debt. People also marry when they are older and they can afford to buy houses much later in life.
In conclusion, children are more and more financially dependent on their parents. The baby boomer generation benefited from better economic stability and now it seems that their wealth will have to be spent supporting the new generations. In this unstable environment, life insurance for over 50 year can provide some financial safety for your children.