AARP Live Discusses Estate Planning and How to Protect the Things You Love the Most at 10 p.m. ET. Watch Here
by Jonathan Pond, September 21, 2010|Comments: 0
Q: My husband and I are both self-employed and don't have life insurance to cover the mortgage and other expenses in case one of us dies. What’s the best thing to do to cover each other on a limited income? We're in our late 50s.
— Hilarie, 58, Charleston, S.C.
A: It's not too late to get life insurance coverage. You and your husband should focus on obtaining term policies that will cover a specific period of time. In general, the premiums on term life insurance are more affordable than the premiums on permanent life insurance.
Before you can select a term policy, you’ll need to estimate how much insurance you and your husband need. Would enough coverage to pay off the mortgage enable the surviving spouse to live off his or her income? Or would additional coverage for living expenses be necessary? You’ll also need to decide how long both of you will need life insurance protection.
The cost of coverage may not be as much as you fear. A large life insurance company I checked with indicated that the annual premium on a 10-year, $100,000 level term policy for a 58-year-old in good health is around $350. The premium on a level term insurance policy stays the same each year over the policy period (10 years in this example). Coverage is also available for longer than a decade, but at greater cost.
All the information presented on AARP.org is for educational and resource purposes only. We suggest that you consult with your financial or tax adviser regarding your individual situation. Use of the information contained in this website is at the sole choice and risk of the reader.
Please leave your comment below.
You must be logged in to leave a comment.
Enter address, city, state, or ZIP code.
Driver Safety (0)
Tax Aide (0)
Entertainment & Dining (0)
Healthcare & Insurance (0)
Financial Services & Insurance (0)
Member Local Offers (0)
Visit the AARP state page for information about events, news and resources near you.
Exclusive savings and benefits with the AARP Auto Insurance Program from The Hartford.
Members earn points on select Walgreens brand health and wellness products.
Members save $65-$200 on round-trip tickets purchased online.
AARP members receive exclusive member benefits & affect social change.
You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits.
Your email address is now confirmed.
Manage your email preferences and tell us which topics interest you so that we can prioritize the information you receive.
Explore all that AARP has to offer.
In the next 24 hours, you will receive an email to confirm your subscription to receive emails
related to AARP volunteering. Once you confirm that subscription, you will regularly
receive communications related to AARP volunteering. In the meantime, please feel free
to search for ways to make a difference in your community at