Source: p 336, Personal Finance For Canadians For Dummies (4 ed, 2006; but a 5 ed (2010) exists) by T. Martin, E. Tyson
[Insurance Agent alleges:] “You won’t be able to afford term insurance when you’re older.”
[1.] As you get older, the cost of term insurance increases because the risk of dying rises.
[2.] But life insurance is not something you need all your life!
[3.] It’s typically bought in a person’s younger years when financial commitments and obligations outweigh financial assets. Twenty or thirty years later, the reverse should be true.
[4.] When you retire years from now, you won’t need life insurance to protect your employment income, because there won’t be any to protect! You may need life insurance when you’re raising a family and/or you have a substantial mortgage to pay off,
[5.] but by the time you retire, the kids should be out on their own (you hope!), and the mortgage should be paid down.
I abbreviate a working senior citizen (someone of age 60-80) to WSC. Suppose that:
assumptions 3-5 above fail for a WSC with dependents with an inferior life;
1 remains true and that insurance companies refuse Term Life Insurance to people of age ≥ 70.
contrary to 3, 4, 5 respectively:
- the WSC's financial commitments are LESS than financial assets
- she still has employment income (≤ $35,000 CDN) that must be protected.
- the WSC's kids still depend on this WSC and the mortgage has not been paid totally.
My Question: Then what should WSCs do about Life Insurance? 9 appears to invalidate and rebut 1's suggestion of Term Life Insurance.