One of the most common financial questions people have when they turn 50 is this: Is it worth getting life insurance? Yet, even though everyone's situation is different and premiums may be higher than if you had taken out a policy in your thirties or forties, life insurance at any age can still provide affordable protection for your assets, business, and your family.
What We'll Cover
- How Purchasing Life Insurance at 50 Years Old Can Benefit Your Future
- Specific Factors That Can Affect Your Life Insurance Rate
- Choosing the Life Insurance Policy that Meets Your Needs
- Haven Life
- Sproutt Life Insurance
- AIG Life Insurance
- New York Life
- SelectQuote Life Insurance
- Mutual of Omaha
- Average Life Insurance Rates for 50-yr-old People by State
- Choose From the Best Cheap Life Insurance Providers for 50-Year-Olds to Meet Your Needs
To provide you with some clarity regarding life insurance in your 50s, we have prepared the following post. In it, we will go over everything you need to know about buying life insurance as a 50-year-old and some of the best cheap life insurance providers when you're at age 50.
How Purchasing Life Insurance at 50 Years Old Can Benefit Your Future
Purchasing life insurance at any age is an integral part of your financial planning. But once you turn 50, you may discover that your life insurance needs are completely different from when you were younger. For example, you likely have already paid off significant debts, and your children are probably old enough that they do not need constant support from you.
That is why, when you are reviewing your life insurance needs at this age, you may find that your current policy is not cutting it. Alternatively, you may want to explore a policy that is better suited for your specific needs, which may include:
- Family Protection: Life insurance can help protect your family and/or those who depend on you financially from losing their home, cover your child's future college expenses, and allow your spouse to take time from work to take care of themselves and your family after you pass away.
- Business Protection: If you own a business or are a partner in one, having life insurance can ensure that the business is taken care of and that there is enough money to buy the deceased owner's interests. It can also protect the business against losses related to expertise, skills, and services when someone dies.
- Final Expenses: There are life insurance policies that are specifically there to cover funeral and burial costs — and nothing more. They are often more affordable than other policies and often do not ask you any health questions or require a medical exam. With these final expense policies, your family can get the assistance they need to deal with the financial burdens of death-related costs. But it is also important to add that this life insurance will not help replace income for your financial dependents.
- Estate Planning: Obtaining the right life insurance can help you plan for the orderly transfer of property after your death, which can help minimize taxes and provide for your heirs in a way that ensures your desires are met.
- Saving for Retirement: A permanent life insurance policy can build cash value and provide you with numerous tax advantages, allowing you to plan for retirement. For those that are close to retirement, adding permanent life insurance can also supplement their retirement in a way that can help diversify their portfolio.
- Pension Assistance: If your pension stops when you die, getting life insurance can help your significant other with their ongoing financial needs.
Specific Factors That Can Affect Your Life Insurance Rate
Unfortunately, the older you get, the more expensive life insurance premiums will become. That is reason why it is recommended purchasing life insurance when you are younger to secure more affordable rates. However, this does not mean that in your 50s, you will not be able to secure decent coverage. Rather, you may just need to dig a little deeper to find the ideal coverage for your circumstances at the best price and focus on finding cheap life insurance providers for 50-year-olds.
Generally, the principal factors that will contribute to these policy costs include:
- Age: A person's life expectancy significantly impacts how much they will pay for life insurance and why premiums tend to go up for those over 50 years old. This is due to the higher risk of payouts that insurance companies have at this age than when their applicants are younger. Even permanent life insurance policies, which have a guaranteed payout, tend to cost less at a younger age because these individuals have a longer time to pay into their policy.
- Policy Length: Since Term Life Insurance provides coverage just for a specific amount of time, generally are cheaper than lifetime policies. In addition, the shorter the term the less expensive the policy will be. But once you’re over the age of 50, a 10-year term policy will often cost less than a 30-year term life insurance policy.
- Health: It is assumed that younger individuals tend to be healthier than those who are older. As a result, a life insurance company has a higher risk of paying out on a person's policy over the age of 50. Plus, if these individuals smoke or take part in other risky behaviors, this can also impact their life insurance costs.
Choosing the Life Insurance Policy that Meets Your Needs
If you are 50 years old and looking for a good life insurance policy, the best way to get the rates you want is to click here and check out different life insurance prices. However, to provide you with some examples of life insurance providers and the costs you may have to pay, we have prepared the below list of the top cheap life insurance providers for 50-year-olds.
Haven Life provides term life insurance at affordable prices. But these policies are purchased online. If you are looking for an agent to discuss your life insurance needs with or want a whole life policy instead of a term one, the company may not be the right fit for you.
In terms of options, Haven Life offers various types of coverage, with costs varying depending on the type of policy you choose and your age. For instance, Haven’s term life insurance policy offers all U.S. citizens between the ages of 18 and 64 up to $3 million in life insurance with a 10- to 30-year term. However, for a 15-year, $250,000 Haven term policy, a 50-year old that is in excellent health can expect to pay around $45 per month.
Sproutt Life Insurance
Sproutt Life Insurance is a different type of life insurance that focuses on lower rates, longer lives, and a better business. Sproutt's primary goal is to provide healthy individuals with an opportunity to secure affordable life insurance options using unique tools to help them get the coverage they need. They do this by asking individuals specific questions about their life to figure out the best plan for their individual situation, budget, and lifestyle.
For example, a 50-year-old man in good health can expect to pay $91 per month for a $500,000, 20-year term policy, while a woman in good health will pay around $69.
AIG Life Insurance
One of the great things about AIG life insurance is that it offers several types of life insurance policies that are an excellent fit for those over the age of 50, including permanent plans, term life insurance, and guaranteed issue whole life policies. However, the prices for these plans will depend on a few factors, including gender and health. For example, AIG's average monthly premiums for a 20-year, $250,000 term policy generally break down to $69 for a non-smoking 50-year-old male and $52 for a non-smoking 50-year-old female.
New York Life
New York Life Insurance Company is the largest mutual life insurance company in the U.S. and the third-largest provider in the USA. On the Fortune 500 list 2021, It is ranked Nº67 by total revenue. In addition, the company is highly regarded by policyholders, earning a well-below average complaint index score from the National Association of Insurance Commissioners (NAIC).
However, when it comes to its life insurance costs, because the plan is endorsed by AARP, it provides exclusive pricing and policy features to AARP members. That is why, for specific quotes, it is best to reach out to the company.
SelectQuote Life Insurance
SelectQuote is an insurance sales agency that aids consumers in finding the best prices when it comes to life insurance policies. In fact, with SelectQuote, you will be able to find quotes for term life policies (as well as whole life policies) and purchase up to $5 million in coverage.
However, the cost of this life insurance will often depend on the type of policy you choose, the length of your term life policy, your age at the time of the purchase, the number of benefits you choose, your health, and your gender. As a result, for a 10-year, $250,000 policy, a 50-year-old man can expect to pay around $40, while a 50-year-old woman will pay approximately $29.
If you are only considering life insurance to pay death benefits to cover end-of-life expenses, then Transamerica is often a great fit since it offers final expense policies. Yet, for those looking for other life insurance coverage, the company also offers whole life, universal life, and term life insurance policies.
In terms of pricing, if you want a 10-year term, $500,000 policy from Transamerica, a 50-year-old man can expect to pay around $52, while a 50-year-old woman will pay around $42.
Mutual of Omaha
If you are thinking about purchasing life insurance but want something more unique than your standard term life insurance policy, then Mutual of Omaha is a great option, especially for those over the age of 50. In terms of life insurance, Mutual of Omaha offers a range of products, including universal life, whole life, term life, and even accidental death policies.
Best of all, when you work with Mutual of Omaha, those aged 45- 85 years old can get coverage between $2,000 and $25,00, with no medical exams and premiums that will never increase. However, because pricing takes into account current age, gender, and death benefit amounts, it is recommended that you contact the company for further pricing information.
Average Life Insurance Rates for 50-yr-old People by State
California: The average annual life insurance premium in California for 50-yr-olds is around $668, or about $55 a month.
Texas: The average annual life insurance premium for a 50-yr-old in Texas is $633 or around $53 per month.
Florida: The average cost of life insurance for a 50-years-old in Florida is about $627 per year or around $52 a month.
New York: The price of life insurance in New York averages around $675 a year or $56 a month for 50-yr-olds.
Pennsylvania: The average annual life insurance premium in Pennsylvania for 50-years-olds comes out to $658 or $55 per month.
Kentucky: The average life insurance rate in Kentucky comes out to $599 a year or $50 per month for 50-year-olds.
Ohio: The average rate of a life insurance policy for a 50-year-old in Ohio is around $599 per year or $50 per month.
Choose From the Best Cheap Life Insurance Providers for 50-Year-Olds to Meet Your Needs
Although life insurance options tend to become more scarce and more expensive as you get older, it does not mean you cannot get the best cheap life insurance to meet your needs. The best way to find the life insurance that checks all of your boxes is to shop around from these cheap life insurance providers for 50-year-olds and find exactly what you are looking for.