Short Term Disability Insurance - Short term disability insurance is a type of insurance plan designed to compensate for the lost income due to a disability
Buy a term plan and secure your family
First and foremost, term insurance is for your family and not you! It is a corpus for your dependents to fall back on in case of your demise. However, when it comes to smart financial planning in your fifties, does a term insurance policy fit the mix? Most of the time, no! However, there are a few extreme scenarios that leave you with a limited choice and these make buying a term insurance policy worth your while. If you find yourself in such a situation and decide to move forward to buy a term insurance policy in your 50s, you should remember it does cost you significantly more and there is nothing you can do about that.
This thread mentions a few of any such broad life scenarios that will land you in a place where buying a term policy can prove to be very beneficial.
If you currently have dependents such as any kids that might not be settled or financially independent yet, and you fear that your savings might not be sufficient for them to sustain their current lifestyle, then you should get a term insurance policy even at the age of 50. In today’s age, it is not uncommon to face scenarios of owing to late marriages and having kids at quite a late age. Therefore, it is possible to be at a place in your 50s life where your kids may be still completing their studies, so it is ideal to hold term insurance, even if it comes at a higher premium cost.
The ideal scenario, however, remains to get a term insurance policy as early in age as possible, as this will end up saving you a lot of premium charges, thereby, relieving your pocket from the financial burden involved otherwise.
If you are someone who is in their ripe age but still has to work hard continuously because you owe it to any ongoing financial responsibility, then you should definitely consider opting for a term insurance policy. It is important for you to hold a term plan in order to protect your dependents, the ones for whom you are working so hard.
Even if you have managed to save somewhat throughout your life in order to contribute towards your post-retirement financial needs, but this corpus might not be enough. None of us wants our partner to be dependent on someone else to fulfill their lifestyle needs or to lead a thrifty life. Which is what makes a term policy a good investment for you. You should take stock of your savings and then in a wise manner evaluate and come to a final decision.
Generally, a bank loan extends till about you hit the age of 60, and that is planned by most of us on our ends. But have you considered any unplanned liabilities that you may have taken up? For instance, you may have taken a personal loan from your relatives or friends during financially stressful times and you may have not planned for it. In any such situation, your family will be left with the financial burden of the outstanding dues on their shoulders in case something unfortunate happens to you. This is when a term insurance policy comes into the picture and can be your saviour.
The Bottom Line
These are a few of the situations that you might face in your life where you will want to consider a term insurance policy as an investment option to protect your loved ones, even if it comes at a higher premium cost. However, in most cases, you are more or less financially sorted by the time you hit your 50s – with a well-built post-retirement corpus along with your kids on the path towards their financial freedom. If you find yourself at such a point in your life, you might want to consider investing in a health insurance policy instead.
The premium charged on a term plan is significantly high once you hit the 50-year benchmark, which is why it is suggested to buy a term cover at a rather early age so that you can save on these costs. However, you can still opt for such a cover if it is unavoidable and extremely necessary.