How Much is Life Insurance For a 50-Year-Old?
Posted in Life Insurance last updated on November 2, 2021
Life insurance plays a unique role in all the stages of your life. The reason you’d take out a life insurance policy at 25 years might not be the same reason you take out a life insurance policy when you turn 50 years old. The type of insurance policy you need is dependent on several factors some of which include how much you can afford, the amount of coverage you will need, the best policy for your loved ones, and if you will get approved for the type of policy you are looking into getting.
While it is true that life insurance costs increase as you age, policies for people in their fifties is not as expensive as you’d expect them to be. Also at age 50 you are still eligible based on your age for almost all types of term and permanent life insurance options. Here is a quick rundown of the types of life insurance for 50 year-olds and their rates.
Types of Life Insurance For a 50-Year-Old
When it comes to life insurance policies, you have permanent and term life options to choose from. Below is a quick explanation of how these products work. For a more in depth analysis to help determine if term or permanent is best for you click here.
Whole Life Insurance
Whole life insurance policies are designed to provide coverage for the rest of your life. If you buy a whole life policy at 50 , it will provide coverage until you die, and the death benefit is paid out to your beneficiary then. Because of the ‘lifetime coverage’ aspect, whole life insurance policies tend to have high premiums. Apart from the death benefit amount, whole life insurance policies also include a cash value component which is part of the accumulated amount of the premiums.
Term Life Insurance
Term life insurance provides coverage for a specified period of time, usually a maximum of 30 years, although some companies offer terms of up to 40 years. These are easier to understand when compared to whole life insurance policies and are usually cheaper. So if you are 50 years and in need of a term life policy, you can opt for a 30-year term life insurance policy. Also, term life policies strictly provide death benefit. They do not include a cash/savings component like whole life insurance.
Guaranteed Universal Life Insurance(GUL)
Guaranteed universal life insurance policies are sort of a balance between term life and whole life policies. As such, they offer coverage for life no matter how long you live. Also, they are not as expensive as whole life policies since they lack a cash value component. So, you get lifelong coverage at an affordable cost. Also, many GUL policies allow you to decrease the coverage amount within the life of the policy if your needs change in the future.
Typical Rates
Below are some sample non smoker rates for a 50 year old for life insurance. Smoker rates can be about 2 to 5 times higher. That said certain forms of tobacco use such as cigars, pipes, and chew can qualify for non smoker rates with some insurance companies sometimes depending on the frequency of use. Also, you can get non smoker rates as well for smoking Marijuana with some companies depending again on the frequency of use. If you smoke cigarettes’ though you will always have to pay tobacco rates.
20-year term life policy for 50-year-olds.
Average monthly non-smoker rates based on gender – Preferred rate class (better than average health)
| Policy Amount | Rate | |
| Male | $250,000 | $45 |
| $500,000 | $83 | |
| $1,000,000 | $160 | |
| Female | $250,000 | $36 |
| $500,000 | $64 | |
| $1,000,000 | $123 |
Average monthly rates based on gender – Standard rate class (average health)
| Policy Amount | Rate | |
| Male | $250,000 | $70 |
| $500,000 | $133 | |
| $1,000,000 | $256 | |
| Female | $250,000 | $51 |
| $500,000 | $98 | |
| $1,000,000 | $185 |
30-year term life policy for 50-year-olds.
Average monthly non-smoker rates based on gender – Preferred rate class (better than average health)
| Policy Amount | Rate | |
| Male | $250,000 | $79 |
| $500,000 | $151 | |
| $1,000,000 | $286 | |
| Female | $250,000 | $59 |
| $500,000 | $110 | |
| $1,000,000 | $209 |
Average monthly non-smoker rates based on gender – Standard rate class (average health)
| Policy Amount | Rate | |
| Male | $250,000 | $90 |
| $500,000 | $174 | |
| $1,000,000 | $336 | |
| Female | $250,000 | $51 |
| $500,000 | $95 | |
| $1,000,000 | $179 |
Guaranteed Universal (GUL) for 50 year old’s – Lifetime life insurance protection
Average monthly non-smoker rates based on gender – Preferred rate class (better than average health)
| Policy Amount | Rate | |
| Male | $250,000 | $230 |
| $500,000 | $442 | |
| $1,000,000 | $825 | |
| Female | $250,000 | $191 |
| $500,000 | $368 | |
| $1,000,000 | $696 |
Average monthly non-smoker rates based on gender – Standard rate class (average health)
| Policy Amount | Rate | |
| Male | $250,000 | $273 |
| $500,000 | $531 | |
| $1,000,000 | $1,014 | |
| Female | $250,000 | $231 |
| $500,000 | $448 | |
| $1,000,000 | $857 |
How Companies Figure Out Rates
Once you decide on which life insurance company is best for you, it is important to understand how they calculate policy rates. A number of factors such as the type of policy you choose, the amount of coverage you need, and your health will impact the rates you pay. Let’s dig further into some of the main factors that companies use to determine your rates.
Age
To determine your policy rates, your insurer will factor in your current age and life expectancy. Generally, younger individuals pay lower monthly premiums since they are less likely to die all things being equal. So this means the insurance policy will stay in force for a longer period before paying out to your beneficiaries. On the other hand, older individuals are more likely to pay higher premiums.
Age is not only used to determine your rate but is also used to determine how much coverage you qualify for. For instance, a 50-year-old individual will qualify for a longer period length of term life insurance than a 65-year-old individual. At 50 years year old all 10, 15, 20 and 30 year term products we are aware of are available to you. There are even at least 2 companies that will offer a 35 year term. In addition all permanent life insurance options which offer lifetime coverage are available as well.
Health
Life insurance quotes are also highly impacted by the health of an applicant. Health information is obtained through either an application, a medical exam or both. This is all part of the underwriting process and the process varies from company to company.
This information might include your height, weight, your own medical history and your immediate family’s medical history (parent and/or siblings) as well as risky behaviors such as smoking, drug use, and drinking. All of these factors combined help determine the rate you need to pay for coverage.
Gender
Males have a lower life expectancy than women. It’s about 5 years less on average, and is the reason males pay more for life insurance than woman again all things being equal.
Lifestyle
When applying for a life insurance policy, you can expect your insurer to ask questions about your driving history, occupation, hobbies, or criminal record, etc… A history of reckless driving convictions, DUIs, or suspended licenses makes you a high-risk individual. If your occupation includes hazardous tasks or your hobbies are regarded as dangerous, then the rates will be higher. Other factors are those associated with your financial stability such as bankruptcy are also taken into account when determining rates.
Amount of Coverage
This is a no-brainer, a large amount of coverage automatically attracts high rates while a lower amount of coverage has lower rates. This is one of the trickiest parts of choosing a life insurance cover, as you have to consider your current financial situation but also don’t overlook the future financial needs of your loved ones.
Type of Coverage
Term life insurance policies are the least expensive, universal life policies will cost more, and whole life policies are the most expensive. Each type of policy serves a different purposes so it’s important to understand your coverage needs to make a wise decision. You need to to determine how much coverage you need and for how long. For some the need for coverage is temporary such as only needing for 10 years perhaps until a mortgage is paid off or until the kids are financially dependent enough to be out on their own. On the other hand your need for coverage may be for longer such as 20 years or you may even need coverage that will last no matter how long you live. Each person circumstances are different.
Exam or No Exam
If you go with a no exam policy you will usually have to pay higher rates. Not always, but it is the case more often than that if you are in average or better than average health. If you think about it the insurance company has less information when considering your application if they don’t have a exam to review. As a result they need to build in higher pricing since some people may have some health issues that slip the cracks. For instance, let’s say someone hasn’t been the doctor for a physical in a while. They may not know know that their cholesterol is elevated. Neither would the insurance company. This is just one example as to why the insurance company usually has higher pricing for no life insurance exam policies. Sometimes health issues aren’t realized and that has to be factored in.
Shop Around
There are different types of life insurance policies, each with unique components. Your decision should be guided by your financial situation and the future needs of your loved ones. While finding the right life insurance policy can be a daunting task, we can help make your search for the right policy a simple process.
