Having life insurance means that your loved ones and survivors won’t have to endure the financial hardship that may otherwise come if they are left with large amounts of debt, unaffordable living expenses, or even the cost of your funeral and other final expenses.
Regardless of your current age, this protection can be an essential part of your overall financial planning. And, while many people think that life insurance is expensive, the reality is that you can still find very affordable life insurance after age 50.
Why Have Life Insurance When You’re Over Age 50?
Even though you might not still have young children who are depending on you financially when you are over age 50, there can still be a number of good reasons why you should keep – or even add more – life insurance coverage.
One of the biggest needs for life insurance when you’re over the age of 50 is to ensure that your loved ones will have a way of paying for funeral costs and other related final expenses.
Today, final expenses can be more than $10,000 – especially when factoring in the many related elements, including a headstone and a burial plot, the memorial service itself, transportation’s, flowers, and the printing of funeral notices.
While many people – regardless of their age – do not want to think about how it will be when they are gone, providing a way for those you love and care about to pay for these high costs can be one of the very bests gifts that you can give.
There are other reasons, too, for having life insurance protection when you are age 50 or older. These may include:
- The payoff of a large mortgage balance
- A donation to a charitable organization
- Keeping the promise of paying for a child’s or a grandchild’s college education, wedding, and / or down payment on a first home
- Supplementing or replacing lost retirement income for a spouse or partner
- Allowing business partners liquidity to keep your business afloat while a suitable replacement is found, or ensuring that the company can continue its operations while seeking a potential buyer
What Type of Life Insurance is Available for Over Age 50 Applicants?
Life insurance can be affordable after age 50 – depending on the type and the amount of the coverage that you purchase.
There are two main categories of life insurance coverage that are available in the marketplace today. These are term and permanent life insurance.
Term life insurance offers pure death benefit protection only, without any cash or investment build up.
This type of coverage is purchased for a set amount of time, such as 10, 15, 20, 25, or 30 years.
During this time, the policy’s death benefit will typically remain level, as will the amount of premium.
Because of its specific period – or term – a term life insurance policy is often considered to be “temporary” life insurance.
A term policy can be a good way to ensure that the balance of your home mortgage is paid off, as well as other promises kept such as funding a loved one’s college education.
A permanent life insurance policy offers death benefit coverage, and may build cash value depending upon the plan design.
Unlike term life insurance, permanent coverage is typically intended to remain with the insured throughout the remainder of his or her life, as long as the premium is paid.
If there is cash value in a permanent life policy it can grow tax-deferred, meaning that there will be no taxes due on the growth of these funds unless or until they are withdrawn.
There are many different types of permanent life insurance policies that you can choose from if you are over 50 – although not all of these may be suitable, depending on your specific coverage needs and goals.
Some of the most common types of permanent life insurance protection include whole life, universal life, and indexed universal life insurance coverage.
If you need life insurance that will stay in force no matter how long you live and are not concerned about building cash value, then a guaranteed universal life policy or even a universal life policy designed properly is often the best option.
If you are more concerned about accumulating cash value then an indexed universal life policy and certain whole life policies that are designed properly would tend to be your best options.
The key thing to understanding when buying a permanent life insurance is why are you purchasing the policy.
Once you know specifically why you need the life insurance, this will help you determine how long you need your life insurance to last.
Are you concerned about paying the least you can for the amount of the death benefit or are you concerned about maximizing the cash accumulation?
Different products are designed to do different things.
In a properly designed permanent policy you are either trying to maximizing the death benefit or the cash value. Not both.
Think back when you were a kid and went on a teeter totter. Imagine one side is the death benefit and one side is the cash value.
If you are trying to maximize the death benefit for the premium paid the cash value will be low.
And vice versa, if you are trying to maximize the cash value for a given amount of premium then the death benefit should be low to reduce internal expenses of the policy.
So, if you are over 50 should you purchase term or permanent life insurance? Well it depends.
Knowing your objective and why you are specifically needing the life insurance coverage will help determine the right policy for you.
How to Keep Your Life Insurance Premium Lower
If you are over age 50, there may some ways that you can keep your life insurance premium more affordable.
For example, because term life insurance coverage provides a death benefit for a certain period – as versus lasting throughout the remainder of your life indefinitely – a 15 or a 20-year level term life insurance policy may allow you to have a lower premium than a comparable permanent life insurance plan.
This is especially the case if you do not need the cash value build up that a permanent life insurance policy can provide.
There are other ways in which you could keep your premium more affordable as well – regardless of the type of life insurance coverage that you choose.
For example, those who are non-smokers will typically be able to get a much better rate on their life insurance coverage than those who smoke.
So, if you are not currently a smoker – don’t start.
And, if you are a smoker while quitting won’t lower your rate right away, in the future, you could re-apply as a non-smoker and potentially lower your premium by quite a bit. Many insurance companies will require you to have quit smoking for one full year to apply for non smoker rates.
It can also help if you maintain a healthy diet and take part in a regular exercise program.
This is because, in the eyes of the life insurance underwriters, someone who is working to manage their good health is viewed much more positively than someone who lives a more sedentary lifestyle.
Also, taking care of your health by having regular annual checkups with your doctor is important.
However, the insurance companies are concerned whether you have those conditions under control or not.
Perhaps you take one medication for high blood pressure and it’s under control.
With many insurance companies it’s possible to qualify for the best rates the insurance companies offered.
On the other hand if you have high blood pressure that is not under control and you haven’t seen a doctor in years that’s a huge red flag for an underwriter.
Also, keep in mind that when applying for any life insurance coverage over the age of 50, it is likely that you will need to take a medical examination – unless you specifically purchase a no medical exam life insurance policy.
Where to Get the Best Premium Rates on Life Insurance Coverage
Although your specific need for it may change, having life insurance protection over age 50 can still be an important component of your overall financial plan.
If you are looking for the best rates on affordable life insurance after 50, I can help.
I work with many of the top life insurance carriers in the industry today, and can assist you with obtaining all of the important details that you require.
I can do so for you quickly, easily, and conveniently – all from your computer – and without having to meet in person with a life insurance agent.
If you are ready to move forward with the process, then just simply take a quick moment to fill out the form on this page.
Should you find that you still have any additional questions about finding affordable life insurance after 50 – or, even if you just happen to have a general question about life insurance – then please feel free to call me directly.
I understand that you may feel a bit overwhelmed when searching for life insurance coverage – especially if you are over the age of 50 and wonder if you will be able to obtain an affordable policy.
But the good news is that you may still have any coverage options that are available to you – at a premium price that will fit your budget. So, give me a call today – I’m here to help.