Last Updated: November 2020
Many 50-year-olds that are interested in buying life insurance carry the misconception that rates for life insurance increase substantially as soon as you get to your 50s. Yes, life insurance in your 50s is going to be more expensive than it was when you were 30, but it’s not astronomical.
If you take a second to compare the rates of a 50-year-old person to life insurance at 55 years old you’ll see a few years really do not make all that much of a difference.
Do you need life insurance? Can you afford life insurance in your 50s? Which company should you choose? This article is going to answer those questions and more.
- Why Do I Need Life Insurance at Age 50?
- Is it Hard to Qualify for Life Insurance Over 50?
- Sample Term Life Insurance Rates for 50-Year-Olds
- Whole Life Insurance for 50-Year-Olds
- The Best Life Insurance Companies for Age 50
- Choosing the Best Type of Life Insurance Policy at Age 50
- Tips for Finding the Lowest Rates for 50-Year-Olds
- Life Insurance for 50-Year-Olds: Takeaways
Why Do I Need Life Insurance at Age 50?
Life insurance is a wise investment to take care of your family. Let’s look at the most common reasons people need to hold life insurance.
Replacement of Retirement Income
While life insurance is frequently purchased to replace lost income for a breadwinner in the case of unexpected death during his or her earning years, it can also be obtained for the replacement of lost retirement income for a spouse or significant other when you are over age 50.
In many cases, the income that is received through a pension or other retirement income source will be reduced – or will even completely stop – upon the death of the recipient. Do you have a backup plan if any of that income were to stop flowing in?
In this case, the proceeds of a life insurance policy could be used to replace those funds so the individual would not have to drastically reduce their lifestyle or spend down their savings in order to survive.
Paying Off Debts
When you turn 50 – or even older – it doesn’t mean that your debts will automatically disappear. Therefore, if the unexpected should occur, you won’t want to leave your loved ones responsible for paying them off.
Many years ago, most retirees and older individuals would have their homes, cars, and other large obligations paid off. Today, however, with people living much longer life spans, it is not uncommon to take on more debt as we go through life.
Because of this, it makes good financial sense to ensure these obligations would be covered so that loved ones would not have to be responsible for making the regular payments for years to come.
For pennies on the dollar, life insurance can be purchased which could wipe away a tremendous amount of debt easily – allowing your loved ones to move on, at an already difficult time for them.
Regardless of your debt or income situation, most people will have at least some amount of final expenses when they die. These include the cost of a funeral and other related expenses such as a burial plot, headstone, flowers, transportation, and a memorial service. On average, funerals cost $10,000 or more today – an amount that would be difficult for many families to come up with on short notice. But, by having life insurance, the funds could be easily attainable so these costs could be paid off quickly.
In addition to the funeral-related expenses, many individuals may also have a large amount of uninsured medical or end-of-life hospice costs that loved ones are also responsible for paying. Life insurance proceeds could also help in paying off these expenses.
While not everyone will be responsible for estate taxes on their assets, those who are could see more than half of their total estate value go to the government – leaving much less going to the ones they love. But a life insurance policy could provide a way to pay the taxes that are due, thus allowing family and loved ones to rightfully inherit what is theirs.
Those who are age 50 and over may also have a favorite charity – and by making that charity the beneficiary of a life insurance policy, the organization can receive a nice tax-free benefit to use for their works.
Keeping Your Promises
In addition to the many other reasons for owning life insurance over age 50, one of the biggest purposes to having this coverage is to keep your promises. This means that this financial tool can allow you to ensure a child or grandchild can still attend the college of their choosing and /, or a loved one can still pay for the wedding of their dreams – even if you are not there. By having the proceeds of life insurance available, you can ultimately keep the promises made to those you care about.
Is it Hard to Qualify for Life Insurance Over 50?
Yes and No. Let me explain.
As everyone gets older, the chance of developing health issues increases. The only reason life insurance in your 50’s would be harder to qualify for is if you developed any health issues.
In fact, it may be easier to qualify for life insurance in your 50s in some instances.
For example, those who develop diabetes in their 50’s receive better life insurance health classifications than those who were diagnosed in their 30s or 40s. Also, if you’ve had a health issue for a while and have demonstrated control over a long period of time, you may receive a better health classification than when you were first diagnosed.
If you’re concerned about any health issues, the best thing to do it call us or fill out our quote form and we’ll show you the company which will give you the best life insurance rates based on your health situation.
We can help just about any health issue as long as you demonstrate control and compliance to your doctor’s orders.
Sample Term Life Insurance Rates for 50-Year-Olds
Before you begin searching for quotes though, have a look at these sample rates we have prepared for you. Your rates could be different depending on your health, so it is always a good idea to use our quote tool or give us a call to find the best life insurance policy for you.
These rates are for non-smokers only. If you do smoke while seeking life insurance coverage, we can help you find the cheapest policy.
Rates for Males
Below are sample monthly rates for a 50-year-old male with good (“preferred”) health:
The next set of monthly rates are for a 50-year-old male with average (“standard”) health:
Rates for Females
Here are sample monthly rates for a 50-year-old female with good (“preferred”) health:
Next are the monthly rates are for a 50-year-old female with average (“standard”) health:
Whole Life Insurance for 50-Year-Olds
What if you don’t want a plan that will expire? If you’re one of those people who wants a permanent plan, you may consider buying a whole life insurance policy.
Every insurance company has a maximum age limit they cover, most are around 90. Your plan is active until this point. Some companies have even higher age limits, to 100 years or more.
As you can probably guess, the longer the protection, the more you’re going to pay for your plan. As an older applicant, your premiums are going to be triple or more what a term plan will cost.
The Best Life Insurance Companies for Age 50
It’s best to compare as many of the top-rated carriers as possible. However, these 3 companies often have the best life insurance rates for 50-year olds.
- Lincoln Financial has great rates for term life insurance for people in their 50’s. If you need higher coverage amounts they often have the best term policies in the industry.
- Northwestern Mutual often has the best whole life insurance policies for age 50. Their policies have a strong dividend performance for this age as well.
- Prudential has a lot of underwriting advantages for people with high-risk conditions, making them a top carrier for high-risk life insurance at 50 years old.
Choosing the Best Type of Life Insurance Policy at Age 50
There are plenty of life insurance options out there. It’s a great thing to have choices, but it can also make the decision difficult.
Before you buy a plan, you need to think about why you’re purchasing the plan. Are you buying a plan to cover your mortgage loan? To help your kids pay for college? Replace your income? Whatever the reason, it’s going to change the plan you buy.
Next, determine how long you want life insurance. Many people take out life insurance policies until they retire, while some want their life insurance policies to extend until the day they pass.
An example of this would be someone at 50 years old buys a 15-year policy which protects them till the age of 65, the year they expect to retire. They will also have a burial insurance policy in place to cover those expenses when the term coverage runs out. That burial policy will be very inexpensive since it was bought so early.
Tips for Finding the Lowest Rates for 50-Year-Olds
Cost is the determining factor in whether or not people actually take out a life insurance policy. Below are some tips on how you can save money.
Work with an Independent Agent
We have found the best way to get a cheap life insurance policy is to work with an independent agency.
Independent agents call up to 60 life insurance companies for you. This saves you time and ensures you get the best rates.
If you haven’t been diagnosed with any health problems, then you should start by using our free quote tool. This will give you a life insurance quote in under a minute.
Another way to save money is to be as healthy as possible.
The first step is to see your doctor. Schedule an appointment and they can give you some ideas on where your health is, and ways you can improve it.
Maybe you have high cholesterol or blood pressure. These can usually be fixed with a diet change. Maybe you are a little overweight, going for a walk or a jog several times a week could help.
One guaranteed way to save money is to not use any tobacco. As we mentioned in the quotes above, smokers pay a lot more for life insurance. But it’s not only cigarette smokers. With most companies, people who chew tobacco or use e-cigs are going to get those higher rates as well.
How High-Risk Applicants can get Low Rates
If you have a health problem, you might be labeled as a high-risk applicant. This means it is even more important to compare all the top companies.
Staying healthy, as we described above, is step 1. Then you must make sure to find the right company for your situation. Some companies, for example, will view diabetes more favorably than others. Finding the right company can save you thousands over the life of the policy.
Life Insurance for 50-Year-Olds: Takeaways
As a 50-year-old looking for the right life insurance policy, the next best step would be to decide what kind of coverage you need and compare companies and rates as soon as possible. Life insurance rates only increase as you get older, so the best time to buy is now!
Use our quote tool to compare life insurance quotes for 50-year-olds from all the top-rated companies.