When you reach a certain age, finding the best rates on life insurance can be difficult. This is because many insurance companies believe that people over 50 years of age are not as healthy as those who are younger. However, this does not have to be the case! There are many term life and whole life policies available for people in this age group, and it is important to shop around to find the right one for you. In this blog post, we will discuss the different types of life insurance policies available for those over 50 years of age, and how to get the best rates possible!
How Much Does Term Life Cost For Someone Over 50?
Buying life insurance over 50 years old has never been easier thanks to the many innovations in the life insurance industry. It may be harder to get the best term life insurance rates than when you were younger, but know that there are still plenty of options available.
And the good news is you can still qualify for 30 year term life insurance up to age 58. So if you are looking to lock into life insurance for a long time, that will still be possible.
Further, you can always consider another type of life insurance, such as whole life or universal life, to make sure you have coverage the rest of your life.
Rates for the average 50 year old on term are as follows:
- $500,000 for a 30-year policy – $84 per month
- $250,000 for a 20-year policy – $63 per month
- $100,000 for a 15-year policy – $48 per month
As you can see from the rates above, term life insurance is still affordable for those over 50 years of age. And, if you are healthy and qualify for a no exam life insurance policy, you could get even better rates!
How Much Does Whole Life Cost For Someone Over 50?
Whole life insurance is another option available for those over 50 years of age. This type of policy provides coverage for your entire life, as long as you continue to pay the premiums.
Rates for the average 50 year old on whole life are as follows:
$500,000 policy – $166 per month
$250,000 policy – $105 per month
$100,000 policy – $57 per month
As you can see, whole life insurance rates are more expensive than term life insurance rates. However, this type of policy does provide coverage for your entire life, which is something to consider if you are over 50 years of age.
How To Get The Best Rates On Life Insurance For Those Over 50 Years Of Age
There are a few things you can do to make sure you are getting the best rates on life insurance for those over 50 years of age. First, it is important to shop around and compare rates from different companies. Second, if you are healthy and qualify for a no exam life insurance policy, you could get even better rates! And finally, consider another type of life insurance, such as whole life or universal life, to make sure you have coverage the rest of your life.
Final Expense Insurance
Not everyone age 50 and older can qualify for ordinary life insurance. For those with health issues, final expense life insurance is a great option.
Final expense insurance, also known as burial insurance for seniors, is whole life insurance coverage that provides fixed premiums, fixed death benefit and guaranteed cash value growth.
About Final Expense Insurance
Final expense insurance is usually cash value whole life. The policy’s premium payment is fixed for your lifetime. Further, the death benefit is locked in and never changes.
And since it is whole life, the policy builds cash value. This can be used to borrow against, pay premiums for a time, or use to buy paid-up life insurance.
Do People Over 50 Need Insurance?
There are many reason life insurance when you are older still makes sense.
Income Replacement:
Life insurance in your 50s might simply be needed because you are planning on working until age 65 or 70 so you want coverage in place that will protect your income if you were to die prematurely. In that case, a 10 or 15 year term life insurance policy makes a lot of sense.
Estate Planning:
Life insurance is a tax favored vehicle. The death benefit is paid to your beneficiary income tax free. So life insurance over 50 makes a lot of sense if you are looking to provide liquidity for your estate or want to make sure you leave your kids with a legacy.
Business Succession:
Life insurance is great at providing liquidity for a business. This is so that the family inheriting the business has time to pay down any existing debts, and wait for a proper buyer to come along.
Alternatively, the family might be interested in continuing the business, so life insurance provides liquidity while the new owners take time to transition into their new role.
Burial and Final Expenses:
Sometimes all you need is to make sure your burial and final expenses are paid so you don’t leave debt and the financial burden of a funeral to your loved ones.
I hope you enjoyed our blog.