For young and healthy people, shopping for life insurance is often easy and stress-free. In most cases, young people just need to decide how much coverage they want and apply for a free quote online. Some companies that market term life insurance even let qualified applicants begin their contracts without a medical exam.
Once you reach the age of 50, your life insurance options may no longer be as robust. You may need to buy lower coverage to get a monthly premium that you can afford. It is more likely that you will need to undergo a medical examination and a closer look at your life insurance application.
Fortunately, you can get life insurance in your 50s and even in your 60s. All you have to do is adjust your expectations and be willing to shop around to make sure you are getting the best coverage possible at a price you can afford.
Unique challenges for people over 50 buying life insurance
When you take out life insurance, you are likely to notice a number of factors that speak against you. These factors are not your fault, but they will affect your ability to qualify for life insurance protection or affordable monthly premiums.
- Your age: Where life insurance can be extremely cheap at a young and healthy age, policies only become more expensive with increasing age. Once you have passed the age of 50, the price you pay for meaningful cover can increase slightly. Because of this, spending time shopping and comparing life insurance quotes is more important than ever.
- Your Health: The older you are, the more likely you are to have a chronic health condition that can make getting life insurance a challenge. You need to answer health questions when applying for life insurance. The answers you give can set off life insurance alarm bells or discourage you from buying a policy.
- Insurance period: Another problem when you are older is the length of coverage for which you can qualify and which you can acquire. A 30-year term is likely to be quite expensive if, for example, you are 55 years old, while a 10-year term that only provides coverage for a decade is likely to be cheaper. Many older people choose permanent coverage that will last a lifetime. However, permanent coverage like whole life or universal life can also be incredibly expensive.
How and where to find life insurance if you are over 50 years old
Regardless of the challenges you face when purchasing life insurance over 50, you can still get this vital coverage. With that said, you will never know which insurance company is the best unless you compare the best life insurance companies like Banner Life Rates.
If you only work with one insurer, you are only bound by the insurance company’s underwriting requirements – as well as that insurer’s prices. And while it may sound strange, not all life insurance coverage is the same or the same in price.
For example, an applicant applying to an insurance company may be accepted as a “standard” policyholder and charge an average premium rate, while he or she may only be accepted as an “inferior” policyholder with another carrier and charge a higher rate of premium – even though they submitted the same answers to the questions about the application for coverage.
For this reason, it is important to work with an insurance expert who can share your information with numerous insurance carriers. Just like shopping for any other important item, it is always best to compare them before making your final decision.
This is where we come in. When purchasing insurance, we can help you compare dozens of plans and companies in minutes. This allows you to compare prices and amounts covered without having to apply to each individual insurer.
Regardless of your age or health, it is important that you get the coverage your family needs. You can compare quotes from the best life insurance companies by clicking on your state below.
No matter where exactly you are in your 50s, we can definitely get a policy to suit your needs. We know planning your death isn’t a fun task, but it is one of the most important things you can do. You don’t want your family to have trouble making final expenses when they are about to grieve and celebrate your life.
Do people over 50 still need life insurance?
You may be wondering if people still need life insurance coverage in their fifties. Finally, life insurance coverage is aimed at people who need income replacement during their working years, as well as people with children and other dependents at home. By the age of 50, you should end your working years and it is possible that your children have moved out to begin their adult lives. Why do you need life insurance at this point?
The thing is that consumers of any age can easily need life insurance, and that includes those over 50 years old. While your children may have grown up and no longer dependent on your income for their living costs and needs, there are numerous other reasons for having or keeping this essential financial protection.
Some of the most important reasons can be:
- Funeral Insurance: Regardless of your age, you may need funeral insurance to cover your final expenses. Today, the average cost of a funeral can easily exceed $ 10,000 when items such as the funeral, grave, headstone, transportation, flowers, and a coffin or urn are included. If there are final medical and hospice costs, it can add significantly to the total.
- Estate taxes: Estate taxes are another potential problem for those over the age of 50. For those who must pay estate tax on death, this liability can undermine up to 50% or more of a deceased’s property. If there isn’t a plan, such as life insurance proceeds, to pay those taxes, survivors could sell other assets like retirement investments or even valuable family heirlooms to make the money. And unfortunately, when such assets are sold in this way, it often happens well below market value.
- Replacement of pension or retirement income: If a pensioner dies, his / her spouse’s pension cannot continue. By purchasing life insurance, you can ensure that your spouse has some income to keep up with the cost of living and enjoy life when you are away.
- Company succession: Life insurance can help business owners over the age of 50 to use it as a follow-up vehicle. The proceeds from a life insurance policy could be used to keep a business going while a replacement owner or partner is in place, or a suitable buyer is found for the business.
These are just some of the reasons people over 50 might want to get life insurance, but there are many others. Remember, no matter what age you are, it is only natural to leave something behind. Life insurance can help you do just that. That is why consumers in almost every age group acquire this important protection every year.
What type of life insurance is best if you are over 50?
If you have life insurance at any age, it is easy to be overwhelmed by all the options that you can find online. Before committing to purchasing life insurance, you should know and understand how each type of coverage works.
Term life insurance
Term life insurance is sold for a specific period of time, or “term”. This means that the policy only covers you for a certain period of time before it expires. Most term policies are sold for 10 years, 15 years, 20 years, or 30 years. With term life insurance, you acquire basic insurance with no frills. This means that you get pure death benefit insurance with no cash value or savings component.
Although the coverage for cheap term life insurance expires after a certain period of time, these policies can be beneficial in certain situations. For example, term policies are often considered for “temporary” needs, e.g. B. Providing protection over the life of a 15 or 30 year mortgage balance. In other words, if a person wants to make sure that the balance of their mortgage is paid back for their survivors in the event of their death, they can get term life insurance for the same amount of time that they will have a remaining mortgage balance.
If a term life policyholder wishes to continue his insurance cover after the policy has expired, he must reapply for his current age and state of health. This usually means that the premium amount for the new cover is higher. This also applies if the nominal amount of the policy remains the same. For many people, this is not a problem as the premiums on term policies are much lower than the alternative options.
Related: How Much Does A Million Dollar Term Life Insurance Cost?
Permanent life insurance
If you don’t like the idea of your life insurance expiring, get life insurance. Permanent life insurance policies never expire, but they are more expensive.
The money that accrues in the present value component of a permanent life insurance policy can usually be borrowed or withdrawn by the policyholder for any need he or she deems appropriate. This can provide the policyholder with additional funds to pay for a home down payment, buy a car, repay a debt, or even for that extra retirement income in the future.
Although the premiums for permanent life insurance can be more expensive than the premiums for term insurance, the premium for permanent insurance is usually fixed for life. This means that the policyholder no longer has to worry about their premiums rising in the future – even if they get sick or suffer from a chronic health condition.
In addition to all of the other uses of life insurance for people over 50, permanent life insurance can also be used for the simple purpose of supplementing savings.
For example, life insurance can help you build up cash on a latent basis that you can draw on in a number of ways in the future. Unlike money invested in unpredictable stock markets, funds that are within the present value of an entire life insurance policy receive a guaranteed rate of growth. In addition, because of their tax-deferred nature, funds may compound over time with no tax payable on profits until they are withdrawn in the future.
This can not only provide security, but also the certainty that the client is protected, regardless of what is happening in the market and in the economy as a whole. In addition, the death benefit for these life insurance plans is tax-free for the named beneficiary (or beneficiaries). This means that survivors’ money can be used for their financial needs without having to hand any part over to Uncle Sam.
While whole life is the most popular type of permanent life insurance, you can also look into universal life insurance, variable life insurance, or even variable universal life insurance. These niche policies tend to work better for consumers with a specific financial goal. However, they can be well suited to your needs depending on your situation.
Life insurance without a medical examination
Many who have serious health problems may need to consider the option of life insurance without a medical exam. This is often the only option for those who have been turned down for life insurance in the past.
Every time a person applies for life insurance cover, the underlying insurer essentially runs a risk of whether or not they are required to pay a claim. If the insurer believes that the risk is too great, it will either charge the insured a higher premium rate or refuse the applicant cover altogether.
The good news is that people over 50 still have many options in the life insurance market – you just need to know where to look. You can assume that you will not get affordable insurance coverage. For this reason, we encourage you to consider a no medical examination plan from Haven Life to get your life insurance coverage.
A healthy man who is 50 years old can pay less than $ 15 a month for $ 100,000 life insurance coverage, while a healthy 59 year old can only pay $ 27 a month for the same policy. Even by the age of 59, a $ 400,000 policy can cost less than $ 100 a month. Note that these are non-smoking prices for a 10 year term.
If you have health problems like cancer, heart disease or diabetes in search of life insurance, you can expect higher rates. Smoking also increases life insurance prices for people aged 50 to 59.
The bottom line
At the end of the day, you never know how much you might have to pay for life insurance unless you buy one. And that is really the most important piece of advice I want to give to people aged 50 and over.
Buying life insurance can be more difficult when you are older