We were all told to buy term life insurance because it was cheaper. The logic was that we could buy a pure type of protection for a set amount of time and pay less. By the end of the term of the policy, our kids would be educated and on their own, our mortgage would be paid off, and we would have plenty of money in the bank to self insure ourselves. The only thing is, that plan did not play out for many of us.
Maybe a breadwinner went through a period of unemployment and had to take out a second mortgage or home equity loan. Maybe the kids did not complete college on schedule and found themselves back in their old bedrooms. Many baby boomers are not only still caring for their kids, but they now have grandkids and a spouse in the home. Many others are finding that their retirement plans were cut back because the company they worked at found itself in financial difficulty.
But older people know their family may face expenses when they pass away. Funeral costs alone can cost tens of thousands of dollars in burial and transportation. And if not all debts are paid off, those will have to be settled too. Unanticipated medical costs can plague a family for years after a loved one dies.
Of course, it is much cheaper and easier to buy life insurance when you are young and healthy. Older people, and people who have developed some health problems will have a harder time qualifying for some of the life insurance policies that are promoted to 35 year olds. But many life insurance companies recognize that they have a huge market in the baby boomers, and they are eager to serve it. So they have developed life insurance which is easier to apply for, and which does not have such strict underwriting requirements.
It may not be realistic to look for life insurance with a huge face value for an older or less healthy person. However, if you anticipate that a ten to twenty-five thousand dollars would come in handy in case you died, you can certainly find a life insurance company that is willing to work with you!