It is a fact of life that as you get older things such as health insurance get more expensive and likewise life insurance.

However like mortgage rates there are options, you can get a fixed or floating option. A little bit different to mortgages you do need to have a longer game plan when it comes to fixing with usually the shortest fixing period being 10 years.

The gap between fixed and floating life insurance is quite substantial and depending on the term of the insurance it can be between 2 – 3 times more a month than what you would pay if you remained on the floating rate.

We often recommend to clients to have a combination of both – for example if you had $400,000 of life insurance, put $200,000 of it fixed until age 80 and the other $200,000 on floating. As you get older the floating premium will become more expensive than the fixed rate and eventually as the need decreases or the premiums get too expensive you will cancel the fixed portion.
It all depends on what your game plan is, how long do you need to keep the insurance for. If you need to carry your life insurance through until your sixties or later then you seriously need to look at it.

However it does cost more so you need to plan ahead and think about how much you will need in your later years as fixing insurance is expensive initially and you may not need to do all the insurance you currently have.

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