A 75-year-old should consider life insurance if they have outstanding debts, want to cover funeral expenses ($7,000–$8,000+), provide for a surviving spouse, or leave an inheritance. While premiums are higher, policies like final expense or guaranteed issue whole life can be useful for financial security and estate planning, even if traditional income replacement is no longer necessary.
With that in mind, in my opinion, the only type of life insurance that makes sense is term, which is good for a specific period of time. The premium is based on your age, gender, health, the death benefit desired, and the term.
The truth is that people can need life insurance at any age -- including those who are over 50. Although your children may be grown and are no longer depending on your income for their living expenses and needs, there are numerous other reasons for having -- or for keeping -- this essential financial protection.
However, it may not be worth buying life insurance if: You don't have any dependents. You don't have any debt. You don't want to leave anyone an inheritance.
Life insurance is only supposed to do one thing: replace your income if you die. If it tries to do anything else (like invest your money), it's a total rip-off. That's why we only recommend term life insurance.
Suze Orman's view on annuities has evolved: she once largely warned against them but now sees certain types, like fixed indexed and immediate annuities, as useful for guaranteed lifetime income, especially for those fearing running out of money, but emphasizes avoiding high-fee, complex variable annuities and prioritizing core retirement plans like 401(k)s, focusing on PILL (Principal Protection, Income, Legacy, Long-Term Care) benefits while being wary of surrender charges and tax implications.
Dave Ramsey recommends Zander Insurance as his trusted partner for life insurance, emphasizing their commitment to principles, debt-free operations, and focus on affordable term life insurance over whole life policies, aligning with his strategy of protecting families without complex, expensive cash value plans.
For $9.95 a month, Colonial Penn buys you one "unit" of guaranteed acceptance whole life insurance, where the actual death benefit amount depends on your age and gender (or age only in Montana). The older you are, the less coverage you get per unit, but premiums never increase, and no medical exams are required for ages 50-85.
The "life insurance 7 year rule," or 7-Pay Test, is an IRS test for permanent life insurance (like Whole or Universal Life) to prevent overfunding; if you pay more than the maximum premium needed to fully fund the policy in seven years, it becomes a Modified Endowment Contract (MEC). MECs lose some tax benefits, making withdrawals and loans taxable as income (earnings first) and potentially subject to penalties, though they still provide a tax-free death benefit. The test resets if you make significant changes (like increasing the death benefit) to the policy, starting a new seven-year period.
Having both a savings account and life insurance in place is important. Insurance can protect the now, while your savings can cover the future. By setting you and your family up to be financially secure after your income-earning years, your policy will no longer be your single source of financial safety.
If you're on a budget and just want to provide coverage for your family, term life plans are often the most cost-effective option. On the other hand, if you're looking for lifelong protection with more investment potential, then whole life insurance may be a better choice.
Warren Buffett's 8+8+8 Rule — A Lesson for Every Professional This rule reminds us of the importance of balance in our daily lives: 8 hours for work, 8 hours for rest, and 8 hours for personal time. This principle highlights the value of employee well-being, productivity, and sustainable performance.
Suze believes that permanent life insurance such as whole life or indexed universal life (IUL) are bad investments, much like other financial entertainers such as Dave Ramsey. In her opinion, she feels you would be better off investing the money you save by buying cheaper term life, than by investing in life insurance.
Depreciation. Cars reportedly lose 20% of their value in the first year of ownership and retain just 40% of their original value after five years. Clearly, that is not a good investment. “Your goal should be to buy the least expensive car. Period,” said Orman. “That should steer you to a used car rather than a new car. ...
Full coverage isn't worth it when the annual cost of collision/comprehensive exceeds a significant portion (e.g., 10%) of your car's low market value, you have enough savings to replace or repair it out-of-pocket, or if you have a clear title and don't need it for work/family, while it's still required for leased/financed cars. Key factors include your car's depreciated value, your emergency fund, and your risk tolerance for paying for repairs/replacement yourself.
For $9.95 a month, Colonial Penn buys you one "unit" of guaranteed acceptance whole life insurance, where the actual death benefit amount depends on your age and gender (or age only in Montana). The older you are, the less coverage you get per unit, but premiums never increase, and no medical exams are required for ages 50-85.