Staying Healthy As You Age: Why Life Insurance Matters



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It’s a truth many of us have recently been considering. No longer a nagging, lurking concern, rather, a tumultuous, turbulent few years has brought life’s impermanence to the forefront of our thinking.

Sometimes, however, it can be hard to consider life’s more existential ideas when the question of who’s taking the bins out and what’s for dinner next Thursday are dominating our thoughts. But it is certainly important to consider these ideas, and often, it really is a case of the earlier, the better.

So, why does life insurance matter?

You Have Dependants

Most people take out a life insurance policy mainly because they don’t want to leave their loved ones in a state of financial upheaval when they pass away. So, it goes without saying (although, wait, we are saying it) that a life insurance policy like this is incredibly useful if you still have people depending on you.

With such a policy, usually termed a family life insurance plan, and provided you keep paying the premiums without default, you can rest assured that your dependants will be secured financially. With 2024 scheduling increasing uncertainty for just about everyone, the lump-sum payout provides a safety net and sense of security should the unthinkable happen.

Every family has different individual circumstances. For some, they may only have one child, so less cover may be needed. Whereas larger families will likely need more cover to ensure all dependents are taken care of.

To determine how much cover you need, consider factors such as your outstanding debts, mortgage payments, living expenses, and any other financial obligations. It’s also important to factor in inflation and potential future expenses when deciding on cover.

Giving Your Loved Ones Security

You may not fulfil that promise of taking your family to the moon or, failing that, a trip-of-a-lifetime to Disney World. But if you can guarantee them financial freedom long after you’re gone, we’re sure you’ll be forgiven.

More so, in these uncertain times, it’s critical to secure your loved ones’ financial future; nobody knows what tomorrow holds.

Ensure An Appropriate Send-Off

Some people think it’s a bad omen to plan for their send-off ahead of time. Others, however, are more pragmatic.

Tragedies come unannounced, and funerals can be a heavy cross to bear without adequate financial preparedness. The good news is, you can relieve your dependents of that financial distress by investing in life assurance for seniors, enabling the funeral to be a true ‘celebration of life’, rather than a more morose affair. Unless, of course, you prefer the latter, which is absolutely fine, too.

Instead of digging into the family savings account or organising a fundraiser, loved ones can use a part of this policy’s proceeds to cover funeral expenses.

Photo by Alena Darmel:

Life Expectancy Has Risen In Recent years

The advancement in health care provision occasioned by fast-paced technological progress has had a favourable impact on life expectancy. Right now, life expectancy in the UK stands at around 81.92 years old, rising from 77 years old in 2010. 

This is a significant upgrade from the 1950s where men and women were expected to live only for 66 and 71 years, respectively, although it should be noted that in the previous decade, and particularly in the last few years, life expectancy has plateaued following years of harsh austerity.

That said, and conscious of the larger trend, insurance providers no longer have a problem accepting seniors’ applications as they’re living longer. On top of that, insurers are increasingly coming up with new offers to accommodate elderly insurees who may have previously been locked out of standard policies due to factors like pre-existing medical conditions.

In a world where, at a cost, increasingly modern treatments for serious illness are available, life insurance can help facilitate a longer, more comfortable life.

Have You Paid Off All Of Your Debt?

You may be a retiree or you may be something of a whipper snapper. but the point remains the same; but past debts like mortgages, car loans, credit cards, and student loans may still be impacting your savings. Though it seems callous, it should be noted that if you pass away, the burden befalls your left-behind family squarely.

Thankfully, life insurance comes in handy to clear any outstanding debts and lift the cross from your family’s shoulders should the unimaginable happen.

You Want To Leave A Legacy

When purchasing life insurance, one of the policy requirements is that you have to choose a beneficiary to receive your proceeds and estate. The beneficiary could be an individual or an organisation. 

Here’s where the legacy bit comes in; if you write your policy’s proceeds in your grandchildren’s name and they use the funds to finance their studies, you shall have left an indelible mark on their lives. Likewise, if you direct the proceeds to a charity organisation, your legacy will live on long after you’re gone.

When Should I Buy Life Insurance?

The question of when to invest in life insurance is one that merits careful consideration. Conventional wisdom suggests that the earlier one secures a life insurance policy, the better. This is not merely a platitude but is grounded in the practicalities of insurance economics and the unpredictability of life.

For young families in the UK, the decision to take out life insurance can seem premature, but it is a strategic financial move. When you are younger, the risk to insurers is lower, which translates to more favourable premium rates. In essence, the younger and healthier you are, the less you are likely to pay for a comprehensive life insurance policy. This is because insurers assess risk based on a range of factors, including age, health, lifestyle, and medical history. Younger policyholders are statistically less likely to claim in the immediate future, which is reflected in lower premiums.

Moreover, securing life insurance at a younger age can provide long-term financial stability. For instance, if you develop a health condition later in life, having a policy already in place ensures that you remain covered. Acquiring life insurance after a diagnosis can be significantly more challenging and expensive. Therefore, taking out a policy while you are in good health can save you from potential future difficulties.

Another critical factor to consider is life’s milestones. Events such as purchasing a home, getting married, or having children are pivotal moments when the need for life insurance becomes more pronounced. A life insurance policy can help ensure that your mortgage is paid, your spouse is supported, and your children’s future is secure in the event of your untimely passing.

It’s also worth noting that life insurance can be a versatile tool for financial planning. Beyond the basic premise of providing for your dependents, some life insurance policies offer investment components that can grow over time. These can serve as an additional resource for retirement planning or educational expenses for your children.

In the context of the UK, where the state pension and benefits may not suffice to cover all the financial needs of your dependents, having a life insurance policy ensures that your loved ones are not left in a precarious financial position. It’s a safety net that can cover everything from daily living expenses to future educational costs.

The bottom line is that life insurance is not just about mitigating risk; it’s about planning for the future with foresight and prudence. While it’s never too late to consider life insurance, the earlier you start, the more you stand to benefit. It’s a step towards ensuring that, regardless of life’s uncertainties, your family’s financial health is preserved. So, whether you’re in your twenties just starting out in your career, or in your forties with a growing family, now is the time to consider how life insurance fits into your long-term financial strategy.

The Bottom Line

The future feels a little uncertain to say the least. Peace of mind has never felt more valuable, but it can come at a cost. For that reason, as you age, life insurance matters.

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