Guide to Getting Life Insurance Quotes in Your 50s
Can you still get affordable life insurance quotes over 50? That depends on your health.
Life insurance is a key component of most financial planning. This important tool is often purchased by those who have spouses and young families to protect. But it is oftentimes overlooked by those who are older – with the thought that once children and dependents have moved on, there is no reason to maintain the coverage.
That, however, it not the case at all. There are, in fact, numerous reasons why someone who is in their 50s should have good, solid life insurance coverage. And getting this coverage is not as expensive as you may believe, especially for someone who has good health.
There are, however, many health-related changes that can take place when people reach their 50s – and this can make obtaining life insurance even more important. Bones tend to become less dense – therefore becoming weaker, and more likely to break. The amount of muscle tissue, and muscle strength, also continue to decrease, which in turn, results in eventual muscle loss. Changes in vision and hearing occur, and blood pressure tends to increase. And, the cells in the immune system act more slowly. Overall, it can become more difficult to qualify for life insurance as you age. So, if there is a need for life insurance in your 50s, then it is a good idea to apply for coverage as soon as possible.
Do You Need Life Insurance Over 50?
While you may be able to think of numerous reasons why someone who is young and has small children needs the protection of life insurance, you could be asking yourself if life insurance for 50 and older individuals is really necessary.
The answer is a definite yes – and for a number of very good reasons. These can include the following:
- Replacement of Income – One key reason why someone who is over 50 may need life insurance is to replace income that is lost when a spouse or significant other passes away. This is because oftentimes, a pension or other retirement income source may end or be reduced at a person’s death – leaving a partner without some or all of an income that they regularly count on.
- Payment of Debt – Today, many people who are in their 50s are still buying houses and cars, and are still regularly using credit. This means that there is a high likelihood of leaving debt behind for loved ones upon death. Life insurance can help to ensure that those you care about won’t have to be responsible for this.
- Payment of Final Expenses – Funeral and other final expenses, such as a burial plot, headstone, and memorial service can truly add up. Today, these costs average about $10,000. Having a life insurance policy to make sure that final expenses are quickly paid can relieve loved ones and survivors of one more thing to worry about – at an already difficult time in their lives.
- Charitable Donation – If you are in your 50s, you may have a certain charity that you would like to make a donation to upon your passing. Leaving life insurance to a charity can provide you with an ample amount of income-tax-free funds in which to do so.
- Payment of Estate Taxes – If you are subject to estate taxation, these taxes can eat more than half of your estate – leaving little left for your heirs. Having life insurance to pay these taxes, however, can keep your estate assets in-tact and can ensure that they go to whom they are intended for.
- Keeping of Promises – Life insurance can ensure that your promises are kept in terms of providing for children and grandchildren, too. For example, proceeds can be there for sending kids to college, paying for a wedding, or providing other financial support – even if you are not there.
Life Insurance for Business Owners in Their 50s
For those who are in their 50s and are business owners, life insurance can provide a number of benefits as well. For example, this financial tool can allow business owners a way to ensure business continuation.
As a business owner, it is likely that you have spent many long days and nights working to build your company. It may also be likely that many people now depend on the company for financial support.
Life insurance can help to ensure that a business owner in their 50s protects the business and those who depend on it. For example, by having ample coverage on yourself as the business owner, should the unexpected occur, you can be sure that the company will continue – even if you are not there. The funds from the policy can provide capital to carry the company through until a replacement can be found, or until the business can be sold. In addition, funds could also be used to provide for a business owner’s family who may also have benefited from income from the company.
Best Type of Life Insurance Polices for Those Who are 50 and Over
There are many available types of life insurance for people over 50. These include both term insurance and permanent coverage. Either of these can be acceptable forms of protection, depending on your specific needs.
With term life insurance, you will get pure death benefit protection only. There is no cash value with a term insurance policy – which tends to keep the premium price lower than that of a comparable permanent policy.
Term life insurance is offered for certain periods of time, or terms, for example, of 10 years, 15 years, 20 years, or even 30 years. Typically, the premium and the coverage will remain level throughout the time period. Once the time has elapsed, though, the insured will need to either re-qualify for a new policy, or pay a higher premium that is based on their then-current age.
Many life insurance carriers will also offer a 1-year renewable term policy option where the coverage is renewed, and the premium will increase each year. In some cases, term life insurance can be “converted” over into a permanent form of coverage.
Permanent life insurance provides death benefit protection, along with cash value. The cash value that is in the policy is allowed to grow over time on a tax-deferred basis. This means that there is no tax that is due on the growth unless or until the time that you withdraw any funds from the policy. This can allow you to accumulate a nice sum of funds, provided that you continue to let the money grow.
In determining the best life insurance quotes over 50, it is a good idea to know exactly what your coverage needs will be – and for how long. For example, if choosing term, it will be important to ensure that the need you are covering is just “temporary.” In this case, many people who purchase term life insurance do so for covering needs that are not indefinite, such as a 15- or 30-year mortgage, or the college funding needs of a child or grandchild – knowing that the child will be attending school within a certain time period.
Alternatively, when choosing whole life insurance, you will likely have more permanent needs such as estate planning, debt payoff, and / or donation to a charitable organization. Whole life insurance will provide you with a guaranteed death benefit, along with a premium that is locked in for life – regardless of increasing age, or even if you obtain an adverse health condition (provided that you continue making your premium payments).
You can also either borrow or withdraw your cash from the policy at any time, and for any reason, such as supplementing retirement income, paying off debt, paying for a child or a grandchild’s college education, or even taking a vacation. It is important to note, however, that if you pass away with an unpaid cash balance, the amount of that unpaid balance will go against the amount of the death benefit that is paid out to your named beneficiary.
You may also have other uses for your policy as well. This is because permanent life insurance can be used for purposes other than just the death benefit. Therefore, as you decide upon the type of permanent policy you are purchasing, you should also ask yourself certain questions, such as:
- Do you want to grow cash value for retirement?
- Will you use the permanent life insurance policy for “living benefits,” such as paying for future long-term care expenses or other medical costs?
- Do you plan to keep the insurance coverage throughout the remainder of your lifetime?
- Do you want to ensure that you will have premiums that are locked in and don’t increase – regardless of your age or your health condition?
Finding Affordable Life Insurance Over 50 Years Old
The cost of over 50 life insurance can still be fairly affordable, depending on your health and health history at the time you apply for coverage. There are other variables that will also play a role in how much your life insurance will cost.
These include the type and the amount of life insurance you are purchasing. For example, in most cases, term insurance will not cost as much as permanent protection. And, a higher amount of coverage will command a higher premium price.
Actual age and gender will also factor in, as will the carrier that you purchase from. While many people may not realize it, life insurance companies have differences in the way that they price their products. This means that you could apply for a policy with one company and obtain a certain price, while applying for the very same coverage with another company and obtain a different premium quote. This is why it is important to shop around and obtain more than just one life insurance quote prior to making your final coverage decision.
Your health and health history can also have an impact on your rate class. So, provided that you are in good health, it is possible to get inexpensive life insurance over 50. This is especially the case if you are active, maintain a healthy diet, and are a non-smoker.
Take a look below at a real quote we ran for a 50 year old male, at each rate class with Pacific Life. You can see if you can medically qualify and meet the underwriting guidelines for the preferred plus rate then you will pay significantly less than someone who can only meet the underwriting guidelines of the standard rate.
For example, a $500,000 20-year term life insurance policy on a 50-year old male would cost:
- Age 50
- 20-year term Policy
- Age 50
- 20-year term Policy
- Age 50
- 20-year term Policy
- Age 50
- 20-year term Policy
What If You Don’t Qualify for Coverage?
While many who are in their 50s are still in tip-top shape, others may be experiencing various health issues. Because of that, it could be difficult to qualify for what is referred to as “medically underwritten,” or traditional, life insurance coverage.
Yet, while there can be certain underwriting obstacles as you get over age 50 – and not everyone will be able to qualify for traditional, medically underwritten, life insurance coverage, the good news is that you still may have some options.
One alternative that you could go with a guaranteed issue life insurance policy for up to 25,000 in coverage. With this type of policy, there is no medical exam required in order to qualify for coverage and no health questions. Because of this, you are also not required to submit a blood and urine sample. Therefore, you may have a much better chance of qualifying for the coverage that you need – even if you have various health conditions.
It is important to note that, because of the additional risk that the life insurance company is taking on, the premium on a no medical exam life insurance policy will be higher than that of a medically underwritten plan. But, it can be a way to get you the protection that you need.
Get life insurance quotes over 50. Taking the Next Step
Finding life insurance for individuals 50 and over isn’t difficult. But, finding the right policy sometimes can be. There are a lot of variables to consider – and the premiums can differ a great deal from one carrier to the next, even if you’re comparing policies with the very same features and coverage.
You also want to be sure that you don’t over- or under-insure yourself. Having too much coverage can result in you paying too much in premium. However, not having enough can result in your loved ones paying an even bigger price.
We can help you to find the best life insurance policy if you are in your 50s. We work with more than 40 different life insurance carriers, so we have the ability to help you directly compare the policies, the benefits, and the premium quotes of multiple insurers, and from there to make the determination of which one will work the best for you and your specific needs – even if you have been turned down in the past.
We can provide you with immediate life insurance policy quotes directly from our website. Throughout the years, we have helped thousands of individuals and families to obtain the life insurance protection that they need – and we are happy to work with you.
So, whether you are just beginning to search for a plan, or you are reviewing a life insurance policy that needs to be updated, please feel free to call us, and we will provide you with all of the details that you need.