Best Life Insurance Companies For People Over 50
What is life insurance for people over 50?
Basically, life insurance for people over 50 is the same as policies written by people in their 20s, 30s, and 40s. This is a policy you buy to financially protect your family or other beneficiaries in the event of death. As long as you pay your monthly premium, the company that holds your policy will issue a death benefit to cover expenses such as funeral costs or debts.
Life insurance offers the same benefits regardless of your age. However, someone in their 50s will likely have different financial obligations than someone younger. For example, seniors may not need to send their children to college, but they will need to plan for retirement or final expenses.
Another key difference is the cost. Life insurance often becomes more expensive with age, and the full range of life insurance policies may not be available for someone in their 50s.
How much does life insurance cost for people over 50?
Life insurance costs depend on many factors including your age, health, family medical history, job, and location. The choice of policy and death benefit also affects the price. For example, whole life policies are generally more expensive than fixed-term policies, and a policy paying $ 250,000 will be less expensive than a policy paying $ 1 million.
During our research, we found that a 50 year old woman could buy policies starting at around $ 20 per month for a term of 10 years, with a policy of $ 100,000. This amount has increased to around $ 70 per month for a 30-year term policy.
Finding the prices for term life insurance is difficult online, as many insurance companies prefer that you use an agent for more comprehensive policies.
Are there multiple coverage options?
Although there are a variety of life insurance policies, they generally fall into one of two categories: term life insurance and whole life insurance.
Term life insurance covers a fixed period, for example 10 or 25 years. If the policyholder dies within this period, the company pays the death benefit to the beneficiary.
In contrast, whole life insurance lasts a person’s entire life. It does not expire after a set time. The whole life insurance policy has a death benefit and it also has a cash value that accumulates interest. This is why, generally, whole life insurance policies are more expensive than term life insurance.
Each type of life insurance has advantages and disadvantages that depend on your situation and what you would need in order to use the death benefit. For example, term life insurance can be used to ensure children can attend college. In contrast, a whole life insurance policy is more useful for estate planning and to cover the living expenses of dependents.
Can you be denied coverage for health reasons?
Life insurance becomes more expensive as someone ages, and coverage may not be available for people with specific health conditions. For example, some companies will deny coverage due to certain health conditions such as cardiovascular disease, arthritis, diabetes, and dementia, which become more common with age. Additionally, conditions (or family history) such as HIV, cancer, or disease precursors such as high blood pressure make coverage from an insurance company riskier and you may be turned down.
You may even be denied coverage for excess weight, which puts you in higher risk categories for chronic disease.
Is Life Insurance Worth It If You Are Over 50?
Whether or not life insurance is useful for you depends on your particular situation. While you may not need to pay off a mortgage or cover student fees, you can enjoy the peace of mind that life insurance provides. This means that your final expenses are protected and that your spouse or family will receive a lump sum upon your death.
However, if no one is relying on your income to survive and you have no debt, life insurance may not be a worthwhile expense.
We evaluated 19 insurance companies that offer life insurance policies to people over the age of 50 before making our top picks.
In addition to factors such as the price and amount of benefits, we’ve taken into account the ease of getting a quote and completing the application as well as the number of optional endorsements you can use to customize a policy. We also looked at customer service and company reputations as well as data from AM Best and JD Power.