Affordable life insurance for seniors over 50 | Best Choice
Affordable life insurance for seniors over 50 | Best Choice
Once you’ve entered your 50s, purchasing life insurance can get a little complicated and may require special guidance from a seasoned insurance agent. The general life insurance advice you find online or hear from friends and family may no longer apply to you since a lot of information available is tailored to a perfectly healthy 35-year-old (or similar).
If you’re 50 or older and looking for life insurance, here are a few specific things you’ll need to take into consideration:
- The type of life insurance you actually need
- The length of time you’ll need insurance for—longer terms like 25-30 years will become limited
- Any preexisting health concerns that could affect your approval
Quick Article Guide:
- Understanding the Challenges that Come with Purchasing Life Insurance in Your 50s
- Finding the Right Life Insurance When You’re Aged 50-59
- What a 50 to 59-Year-Old Should Expect to Pay for Life Insurance
- Special Circumstances to Consider When Buying Life Insurance in Your 50s
Understanding the Challenges that Come with Purchasing Life Insurance in Your 50s
Because we have so much experience in working with clients aged 50-59, our agents know what challenges to expect when looking for life insurance at that age. It’s a unique age range that comes with special considerations that will affect the type and cost of coverage available to you.
For younger clients, health rarely gets in the way of finding affordable life insurance. However, when our clients are in their 50s, their health begins to deteriorate and this can become an issue. These potential issues can be easily overcome if you’re using an experienced, independent agent to help you find your life insurance coverage.
You see, every life insurance company weighs health concerns differently; some are more lenient with illnesses or conditions than others.
Because Life Exchange Insurance Services agents are wholly independent, we can shop around for the company that will be best for your particular health concerns.
So whether you’re a healthy non-smoker, or have a pre-existing medical condition like diabetes, obesity, or heart problems, we can help you find the most affordable coverage with a top-rated insurance company.
Limited Life Insurance Options
Many life insurance companies have maximum age limits for every term policy they sell. For example, for most companies, the maximum age you can purchase a 30-year term is 55 years old (although we do have access to at least one company that will sell a 30-year term up to age 57). If you’re still in your early 50s, you can still get a 30-year term, but if you’re 58, for instance, it’s no longer an option.
There are ways around this issue, though. You can use a similar life insurance product called a guaranteed universal life insurance policy to make sure you are insured and covered to age 90 or later. With GUL policies, pricing is very competitive and often less than half the price of traditional whole life policies so they still remain a practical and affordable option.
Before you decide on the type of policy you need, you really need to anticipate how long you’ll need coverage for. It’s better to purchase a longer term and be covered for that length of time, than purchase a short-term policy (for 10 or 15 years), have it expire, and then try to purchase another policy when you’re in your 60s or 70s. At that age, life insurance becomes substantially more expensive and options are extremely limited (assuming you can even still qualify).
If you just want life insurance to replace any lost income, you may not need long-term coverage because a term that gets you to retirement age will do the trick—and cost less.
Help Ensure your legacy with Life Insurance for Seniors today!Get Quote
Finding the Right Life Insurance When You’re Aged 50-59
In order to find the best quotes for life insurance at 50, you need to have an understanding of all the different types of policies available to you.
In deciding what type of life insurance policy to purchase, there are a few things that may affect your decision. Ask yourself:
- Do I want to replace lost income?
- What debts will my family face should I die suddenly?
- Do I want to leave a legacy for my spouse, children and/or grandchildren?
- Do I want my family covered until social security kicks in?
- Will I need to cover my mortgage?
Term Life Insurance| Best term life insurance for over 50
If you’re just looking at buying life insurance as some form of income replacement, have very few (relatively small) outstanding debts, or just to get yourself covered for the short term, then your most affordable option would be to purchase a term life insurance policy.
Term life insurance is without a doubt the most convenient and affordable type of policy to buy. It offers guaranteed level premiums and death benefits for a set period of time such as 10, 20, or 30 years.
After the initial term expires you do have the option to renew (without needing proof of insurability, which can be greatly beneficial if you’re older and have amassed any health problems), however, the renewal rate can be anywhere from 10-20 times the amount of the original premiums. So it’s important to lock in your insurance rates with a term that will cover you for as long as you think you’ll need coverage.
With term life insurance, it’s easy to get approved for a policy if you’re a non-smoker and in relatively good health. Even if your health isn’t the best or you are a smoker, our agents will still be able to find you the most affordable rates available.
So if you only need the insurance for say 10, 15, or 20 years, then term life insurance is the way to go. You can figure out the amount you need and the length of period you will need coverage for and go from there. Here are some sample rates for a 10-year term.
10-Year Level Term Life Insurance Quotes for Healthy Male, Age 50-59 Years Old
|50 Year-Old Male||$14.15||$25.43||$28.56||$37.75|
|51 Year-Old Male||$15.06||$27.19||$31.43||$40.92|
|52 Year-Old Male||$16.05||$29.30||$34.57||$44.79|
|53 Year-Old Male||$17.13||$31.59||$38.00||$49.37|
|54 Year-Old Male||$18.31||$34.41||$41.75||$55.65|
|55 Year-Old Male||$19.60||$38.63||$45.83||$60.28|
|56 Year-Old Male||$21.01||$40.74||$49.94||$65.91|
|57 Year-Old Male||$22.54||$44.44||$54.40||$71.90|
|58 Year-Old Male||$24.20||$48.66||$59.23||$78.98|
|59 Year-Old Male||$26.28||$52.56||$65.29||$87.06|
*10 Year Level Term Life Insurance Quotes – premiums for male, non-smoker preferred plus rates valid as of 3/13/2017 are subject to change.
Guaranteed Universal Life Insurance
Some 50-year-olds need a more permanent option for their life insurance. There are several reasons you’d need to be covered for more than 30 years, even if you’re already in your 50s.
For instance, we would recommend purchasing a longer-term policy in your 50s if:
- you are not retiring anytime in the foreseeable future
- you want coverage after you retire (even if you don’t need it)
- you plan on receiving a pension or social security that does not have survivor benefits (and your spouse would be dependent on that income)
- you want to leave an inheritance to your spouse or children
- your goal is to create an estate with an excellent ROI
- you want to leave your family money to pay for estate taxes (something to consider if you have a sizeable estate)
- to cover a long-term debt like a 30 year mortgage
In all these examples, we would recommend purchasing a guaranteed universal life insurance policy, which will cover you for your whole life (at least until age 120). It’s very similar to a term life policy—you’ll get the lowest cost without any cash value build-up.
What a 50 to 59-Year-Old Should Expect to Pay for Life Insurance
Getting approved for the best health rating is the key to finding the lowest rate for your life insurance. In working with an independent agency like Term Life Advice, we can peruse dozens of companies to find the one that will approve you at the best rate…and save you money!
With that being said, here are examples of insurance rates to give you an idea of what you could end up paying.
Life Insurance Quotes Healthy for Male, Non-smoker, Age 50
|10 Year Term||$14.15||$23.80||$41.73||$74.82|
|15 Year Term||$18.99||$33.19||$60.28||$110.20|
|20 Year Term||$22.89||$42.58||$77.99||$145.95|
* The quotes above are monthly and assume preferred plus rates for a non-smoking male age 50, as of 3/13/2017 and are subject to change.
If the insured is a woman and all else is equal, the premium would be about 35% to 40% less expensive.
Most life insurance companies will overlook minor health issues and medications for well-controlled blood pressure, cholesterol, or mild anxiety the quote may be more expensive.
Other high-risk medical issues that could drop the applicant to a lower rate class could be:
- Type 2 Diabetes
- History of heart disorders (replaced valve, coronary artery disease, stents or bypasses, etc.)
- Some Cancers
How Much Can a 50 to 59 Year Old Expect to Pay for Life Insurance?
Remember that life insurance in your fifties isn’t as easy as pulling a quick quote and seeing who offers the best “quoted rate.”
… you still have to qualify.
That’s why you want to work with an independent agency like Huntley Wealth… because we know which company will approve you at the best health rating, and that is the key to the lowest rate.
Having said that, it’s good to see ballpark rates.
Here are some sample life insurance rates for a healthy male age 50, who is also a non-smoker for 10, 20 and 30 year term life insurance with $100,000 to $1 Million in coverage.
|10 Year Term||$14.15||$23.80||$41.73||$74.82|
|15 Year Term||$18.99||$33.19||$60.28||$ 110.20|
|20 Year Term||$22.89||$42.58||$77.99||$ 145.95|
The quotes above are monthly and assume preferred plus rates for a non-smoking male age 50, as of 3/13/2017 and are subject to change. If the insured is a woman and all else is equal, the premium would be a bit less expensive.
If the man age 50 takes some medication for well-controlled blood pressure, cholesterol or mild anxiety the quote may be more expensive. For a 50 year old, standard non-smoker seeking term life insurance.
Some common high-risk medical issues that could drop the applicant even further down in terms of ratings could be type 2 diabetes, obesity, a history of heart disorders such as replaced valve, coronary artery disease or the need for a pacemaker.
Please be aware that life insurance for cigarette smokers is also more expensive.
Special Circumstances to Consider When Buying Life Insurance in Your 50s
If you’re in your early fifties, specifically between ages 51 and 54 years, there are some special considerations for you to navigate.
- You’re only about 10 years away from being able to take out social security
- Purchasing life insurance now may be your “last chance” to lock in a long term
- Insurance costs will increase the older you get, regardless of the type of policy you plan to purchase
- As your children get older, their independence grows, and they may be less reliant on your income or financial help
You Might Need Less Coverage than You First Anticipated…
When you’re in your 50s, you’ve probably built up some equity in your home (and may even be close to paying off your mortgage). You’ve probably paid down substantial debts like student loans. Your children have grown up and might be in the process of completing their education or are already off on their own supporting themselves. All this means you may not need as much life insurance as you think.
Companies Will Limit Your Coverage Based on Your Income
Life insurance companies understand that if you’re in your 50s, you’ll be close to retirement and won’t be sustaining the same amount of income as when you first applied for coverage. Having said that, most insurance companies actually limit how much life insurance you can buy based on your income. You can use an income multiplier to determine the maximum face value a life insurance company will offer you. (A non-working spouse is generally limited to 50% of the working spouse’s coverage, up to a maximum of $1 million.)
The Cost of Insurance Will Sharply Increase in Your Early 50s
It’s no secret that putting off purchasing life insurance can end up costing you thousands of dollars. That’s why we recommend you buying your life insurance now.
Insurance prices begin to spike once you turn 50 years old. The price goes up about 4-6% in your 30s and 40s, but then increases about 10% every year you wait in your 50s. And if you’re in your late 50s, say 58 or 59, you can expect to pay 12% extra every year you put off buying life insurance. So if you do need long-term coverage, we recommend buying it now while you can still get the best rate available today.
Want to Buy Term Life Insurance – What’s My Next Step?
If you would like an accurate quote based on your unique health profile, please call us at: 904-203-1763. With a few questions about your health and lifestyle, one of our experienced agents will be able to compare rates and options from dozens of top-rated life insurance companies.