Life Insurance – What’s The Best Age To Lock In Long Term Life Insurance?

Tim: Now that makes me think something not really related to Divorce per se you’ve had mentioned you’re getting out the workforce in maybe in time.

What about folks kind of later in life 50, 60’s or 70’s retirement age retired? And I’m talking about my folks, specifically.

Jon: Okay.

Tim: My dad work for Union. He had some pensions with Union. Thank God! But he died of cancer.

My mom never worked. And is that a scenario where life insurance would have been beneficial or at that age is it more difficult to get that those types of insurance policies?

Or they cost prohibitive because it caught up my mom in a bad position because she has Social Security and a small pension.

Thankfully, there was at least that small pension that passed on to her. But —

Jon: Had there been insurance?

Tim: But had there been insurance policy to boot?

Jon: Right.

Tim: You know that’s something would get older to help protect their spouses. Is that–

Jon: At that point, it’s great if you can do it. And that’s what people at that age intended by life insurance for it for a State planning issues and all the cost associated with the State taxes.

And that’s other conversation for different expert here.

Tim: Sure.

Jon: So that’s what where we tend to see it. It is difficult for somebody as you start to get passed 55 or 60 it does starts to get fairly expensive because you can’t pay just $30 or $40 a month for a policy.

And they expect a million dollar path because when you’re that old, you’re getting closer to or like where the life companies expect you to not make anymore.

So it’s great if you can do it like maybe around 45 or so. And do something like maybe a 30 year policy.

Tim: Okay.

Jon: Then that way that will take you out into retirement. Then you can make the choice.

So let’s say now you’re 60 or 65 and when you look at your retirement fund and you look at your pension and you say, ‘If I did go is there enough?’

Because then you could stop. You don’t have to continue paying the life policy. But it gives you that choice.

And having that choice when you hit retirement is important because once you hit retirement you don’t really have a choice anymore.

So that’s how we tell people to get it and then we can re-evaluate. If you don’t need it anymore we either reduce it or pull it off.

It depends on the situation.

Tim: That’s good. Now kind of around 45 and try to lock in—

Jon: We should talk the terms.

Tim: Yes, I know we haven’t talked yet. I’ll just tell him I need a little weight to get the premium down a little bit.

Jon: There you go!

Tim: That’s my goal. And I can gain all the way back. That’s the plan. No!

Jon: I didn’t hear that.