Cost of Term Life Insurance at Age 50, What to Expect

term life insurance cost at age 50

Once you reach your fifties, you know you’re at a huge transition point in your life. While most major adulthood life changes people commonly think about revolve around new homeownership, a wedding, and parenthood, things still change even as you get older. That means you’ll need to consider your financial plans and how your family is protected once you enter your fifties. So, if you are thinking about purchasing life insurance to protect your loved ones if something happens to you, you’re probably wondering about the prices of life insurance for people in their fifties.

Once people enter their fifties, most consider retirement, paying off the mortgage, sending children to college, and other needs. Thus, your financial requirements in your fifties can be drastically different from what you decided to apply before you needed to worry about retirement or supporting your loved ones if something tragic happens to you.

You might be concerned about what could happen to your loved ones if you passed away and you have financial dependents. If that is the case, buying a life insurance policy will give you the peace of mind that they’ll have the financial protection to handle any problems that might happen if you passed away. Some people in their fifties purchase life insurance because they have dependent children or a dependent spouse. If that’s the case, you’ll want to make sure these people you love are cared for in case of your death.

So, you can view the process of buying life insurance as a way to demonstrate how much you love your family because you’ll ensure they are financially protected if something happens to you. Life insurance policies also offer many benefits that you may not know about and that we’ll cover below. If you are considering term life insurance, you’ll want to make sure you purchase the right amount to meet your needs.

If this is the first time you’ve considered life insurance, or if you want to change something and invest in another term life policy, knowing about the costs and expectations of term life insurance for people in their fifties can help. So, if you are considering term life insurance in your fifties, keep reading, and we’ll give you the details.

Purchasing Life Insurance in Your 50s

So, why do people in their fifties buy life insurance policies? There is a bevy of reasons why people in this age bracket purchase life insurance. You won’t be able to get rates as low as if you would have purchased your life insurance in your twenties or thirties. Still, suppose you are purchasing a term life policy in your fifties. In that case, you’ll be able to receive decent rates since term life policies are still very affordable, even for people in their fifties, especially if you are in wonderful health.

So, if your health is decent and you haven’t had any serious illnesses to date, you are still in an excellent position to secure a decent rate, especially for term life insurance. If you have run into any health problems, you’ll still have decent options at this stage of your life when it comes to term life policies. Fortunately, term life policies offer you one of your most affordable options to protect your family for decades.

Some people in their fifties have some health coverage through group plans at work. However, with retirement right around the corner, you may not feel like the amount provided by your work plan is enough to protect you and your family. Still, that all depends on your retirement plans and how much financial support your loved ones may need in case of your death.

At this stage of your life, some of you may have life insurance you purchased at an earlier date. However, that plan may not suit your changing needs, and you may need something else. Regardless of your concerns, if you want financial protection for your loved ones if you pass away, adding another or purchasing a new term life plan can be an affordable path to peace of mind.

Term Life Insurance

If you are in your fifties and you want a life insurance option that is affordable, then term life is a great choice. Term life is, by far, the cheapest way for somebody in their fifties to obtain a life insurance policy and give their family financial protection. So, if you don’t have any life insurance and you are in your fifties, now is the best time to purchase some. The rates on insurance policies and their pricing increase as you age. So, if you continue to wait to purchase your term life insurance, your policy rates will only increase.

A term life insurance policy lasts for a certain time frame. Once that time is over, the contract ends, and the life insurance policy no longer applies. At that point, when your contract is over, your insurance provider may offer you a conversion to whole life or another term policy. However, when that happens, you will have aged substantially, meaning the pricing on those policies will be much higher at that stage. Thus, if you are thinking about buying a term life insurance policy, now would be the best time for you to get the most affordable rates.

Most insurance carriers that offer term life policies have them set at periods of ten, fifteen, twenty, or thirty years. Still, you’d be allowed to select other length options if this was required. Remember that the longer your term life policy is, the more you’ll pay each month. Still, if you need life insurance to give you some temporary peace of mind for now, then term life is a great option. If you are worried about your spouse or any children that are financially dependent on you if you were to die, then a term life policy would help ease your mind.

If you are worried about the affordability of life insurance at this stage of life, then term life insurance would give you the best coverage option. For instance, a term life policy for a male that is fifty and lasts fifteen years for $250,000 of coverage could cost an estimated $50 a month as long as that person is in good health. For many people, that’s a long enough time frame for children to grow up and for spouses to retire. By comparison, a whole life insurance policy for that same male could cost as much as $500 a month. While this life insurance premium would stay the same for the rest of your life, that’s a hefty price difference to consider if affordability is a vital concern.

So, if you decide to pick a term-life policy, you’ll need to figure out the length of time you want your coverage to last. Most people in their fifties pick either ten, fifteen, twenty, or thirty-year term life insurance policies. For example, if the same fifty-year-old man above in great health wanted a twenty-year term life policy, then his insurance coverage would cost him about $60 a month for that time frame. If that same male wanted a thirty-year term life policy, then the coverage would increase to about $100 per month.

Keep in mind that your life insurance premiums will only go up the older that you get. So, once you hit fifty and you are looking for life insurance, you’ll want to make sure you get the right amount of coverage. If you don’t have enough, you’ll wind up wishing you would have bought more. If you get too much, you’ll be overpaying into your policy and wasting money before you are retired. So, you’ll need to think about whether you need the full thirty years or if you’ll be better off with twenty. The most popular option for term life coverage for an individual in their fifties is twenty years. However, that doesn’t mean twenty years might be right for you—you might feel you need thirty years. The choice depends on you, your loved ones, and your family’s specific needs.

Cost Analysis

The amount you’ll pay for your term life insurance depends on several items, including age, gender if you smoke, your health, and your overall lifestyle. Let’s say a man is fifty, in excellent health, and doesn’t smoke. In that case, a 10-year term life policy at $50,000 would cost about $18 a month, $100,000 would cost $25 monthly, $250,000 would cost $40 monthly, and $500,000 would cost about $85 a month. If that same man wanted a twenty-year term policy instead, that would cost $28 monthly at $50,000, $40 monthly for $100,000, $80 a month for $250,000, and $145 a month for $500,000. A thirty-year policy for this same individual would cost about $60 a month for $50,000, $75 a month for $100,000, $155 a month for $250,000, and $300 a month for $500,000.

If you’re in average health and are about fifty years old, your life insurance rates would be different. If you don’t smoke, however, your rates will still be decent. A 10-year term life policy that would pay out $50,000 would cost about $25 monthly. $100,000 would be priced at about $38 a month, $250,000 would cost $80 a month, and $500,000 would cost $250 a month. Now let’s say this same man would rather have a twenty-year term policy. In that case, his rates would be $60 a month for $50,000, $69 a month for $100,000, $135 a month for $250,000, and $400 a month for $500,000. If he opted for a thirty-year term policy instead, that would cost $62 a month for $50,000, $82 a month for $100,000, $205 a month for $250,000, and $415 a month for $500,000.

Unfortunately, if you are a smoker, your rates can increase by as much as double even if you’re quiet in the past year. Let’s say a fifty-five-year-old male that smokes wants a 10-year term life plan. At $50,000, that would cost him $45 a month, $100,000 would be priced at $75 monthly, $250,000 would be priced at $155 monthly, and $500,000 would cost nearly $300 each month.  Now let’s suppose he’d prefer a twenty-year term policy. If so, that policy would cost him $85 a month for $50,000, $115 a month for $100,000, $340 a month for $250,000, and $500 a month for $500,000. If he opts for a 30-year term policy instead, he’ll pay $105 a month for $50,000, $140 a month for $100,000, $400 a month for $250,000, and $600 a month for $500,000.

So, if you are a non-smoker, you are in good or average health, and you are in your fifties, you can see that you can select a fairly affordable term life plan and still get ample peace of mind that your loved ones will be protected in case anything happens to you. Compared to whole life policies, term life is much more affordable. Plus, by purchasing ample term life insurance, you’ll get peace of mind for at least a decade, if not a few decades, that your family will receive financial support in case anything ever happens to you.

Shop Around!

Don’t forget to shop around when you select your term life insurance plan. If you are willing to shop around, you’ll probably get the best rates and the plan that’s right for you. There are several life insurance companies on the market, so it’s best to work with an expert so you can get the best rates.

Never shop for life insurance based on impulse because you’ll get much better rates if you are willing to shop around and spend some time talking to different insurance companies. Keep in mind that every company has different underwriting requirements. So, they’ll look at your health, medical records, lifestyle, and other issues to assess how much you pay. Try to find a company that will put you in the best health class possible, which is preferred plus, which indicates you are in great health. The second best would be preferred, then regular plus, and then regular, which would mean average health.

The best way to approach life insurance shopping is to contact an independent life insurance agent. Independent life insurance agents work for their clients and offer several life insurance policies from various companies so that you get the best rates. Independent insurance agents work for your best interests to get you the best rates and help you shop around.  

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If you’re ready to pick your life insurance plan and check out your options, consider working with us! We are independent agents that shop around with different companies to get you the best rates at no extra cost. Contact us today, and we can get the best options to you quickly!