While it may feel like retirement is still a long time away, time will pass quicker than you think. If you recently turned 50 and haven’t already done so, now is the time to start planning for your life after you retire as well as considering how well your current life insurance cover meets your immediate and future needs.

Who is/will be Financially Dependent on me?

When considering your current financial situation, as well as planning for your post-retirement needs, it’s important to consider who relies on you for financial support currently and how this may change in the future. Right now your financial dependents could include a spouse, children, parent(s) or even a sibling. The most important question to consider when reviewing your life insurance cover is who would be impacted most if you were no longer around to provide financial support and how much they would need to cover their most important needs. However, it’s also important to consider how your needs may change as you move closer to retirement as, for example, your children may no longer rely on you for financial support by then.

Even if your children or spouse are no longer financially dependent on you, you may still wish to have life insurance in place to provide a lump sum pay-out for someone in the event of your death. Some parents will opt to maintain their life insurance beyond retirement, either at the current level of protection or a reduced level in line with their current needs, to ensure that a set about will be paid to their children when they die.

Is it too late to buy life insurance?

For many of us life insurance is something we can be guilty of ignoring and you may feel that it’s too late to purchase cover if you’ve passed 50. The good news, however, is that there’s still plenty time to purchase a life insurance policy if you haven’t previously done so. With AA Life you can get an online Quick Quote in just 2 minutes or request a callback on a day and time that suits you if you have any questions you want to discuss.

If you’re fit and healthy then arranging cover will be a quick and easy process, although if you’re a smoker you may pay more for your life insurance. If you have a pre-existing condition it’s important to declare this in your application to ensure your policy meets your needs, as failure to disclose such a condition could result in your insurance provider refusing to pay any claim made on the policy.

Should I review my cover if I already have life insurance?

As you go through life it’s important to periodically review your cover to ensure all your needs are met and that you’re not paying more than you need to. After 50 the number of people who are financially dependent on you may have changed in comparison to when you first took out your policy as, for example, your children may have moved out and started their own lives. If this is the case you may wish to contact your insurance provider and discuss how your policy could be tailored to ensure it best suits your current needs.

Separately, if there have been any changes in your lifestyle since you first took out your life insurance policy it may be worth updating your provider to ensure you’re not paying more than you need to. This is particularly true for ex-smokers who have kicked the habit between now and when they first purchased cover. If you have been tobacco free for at least 2 years you’re life insurer will re-classify you as a non-smoker meaning you’ll save on your monthly or annual premiums.

How much cover do I need?

If you haven’t already taken out life insurance it can be tough to know how much cover you’ll need. The answer to this question will largely depend on who is still financially dependent on you currently, and who is likely to still be reliant on you in the future. When purchasing cover it’s important to consider the current and future needs of those who rely on you, how much money they would need to meet those needs, and what sources of income they would still have access to if you were no longer around.

Whether you already have cover in place or you’re purchasing your first policy it’s important that life insurance fits into your current financial situation and your post-retirement plans. Whatever level of cover you purchase should help you accomplish your goals, such as providing for a spouse or children, while not affecting your current standard of living.