Guide to the Best Life Insurance for a 50 Year Old (Ages 50 - 59)
So ‘yer looking for the best life insurance for a 50 year old? Then it’s likely you feel the heat is on.
Why bother right? Because you’re not gonna be able to afford it anyway…
Wrong!
Most potential clients overestimate the cost of life insurance on a good day, so I imagine that is even more exaggerated as every decade passes.
Fear not. I am going to give you all the basic information you need to find the most affordable and comprehensive coverage.
So let’s dig in!
Consumers still want to have the option to explore coverage online, but they also want to be able to talk to a professional, the survey revealed. More than two-thirds of those surveyed (68%) said they would buy life insurance through an agent, while 38% said they would likely buy coverage online. Insurance News Net, Half of Consumer Think Life Insurance is Not Relevant
Life Insurance Rates Ages 50 - 59
There are no if’s, and’s or buts about it. Life insurance DOES cost more the older you get!
I can hear you complaining already! Hey, James you just told me that life insurance is more affordable than I think – what’s the deal?
The deal is life insurance. It’s cheaper than you think but that doesn’t take away the cold hard fact that life insurance is an industry based on risk.
So let’s take a look at the reality of your age and how it corresponds to your premiums right now!
Basic Term Life Insurance Rates in Your 50's
For the purposes of this example, I’m using standard rates. For the most part on this site, I use standard because it’s the rating MOST people qualify for.
Even super healthy people receive standard health rates the majority of the time.
Don’t get me wrong some clients qualify for better rates and that might be you – which is an added perk. It means you will even less than you think – but it’s not as common.
I’m also showing you rates for 30-year term from 2 different insurers and you will find out why I did that below.
RBC Life Insurance Rates: Women
Standard Rating, 30 Year Term
 | ||
| Age | $500,000 | $1,000,000 |
| 50 Year Old Female | $175.95 | $339.57 |
| 51 Year Old Female | $193.68 | $373.23 |
| 52 Year Old Female | $213.26 | $410.22 |
| 53 Year Old Female | $234.86 | $450.90 |
| 54 Year Old Female | $258.66 | $495.72 |
| 55 Year Old Female | $284.90 | $545.04 |
| 56 Year Old Female | NA | NA |
| 57 Year Old Female | NA | NA |
| 58 Year Old Female | NA | NA |
| 59 Year Old Female | NA | NA |
| 60 Year Old Female | NA | NA |
*Quotes above are for RBC Life Insurance 30 Year Term, monthly, Standard Class, non-smoker. Your rates may differ depending on your unique circumstances. August 2021.
Ivari Life Insurance Rates: Men
Standard Rating, 30 Year Term
| ||
| Age | $500,000 | $1,000,000 |
| 50 Year Old Male | $303.30 | $600.30 |
| 51 Year Old Male | NA | NA |
| 52 Year Old Male | NA | NA |
| 53 Year Old Male | NA | NA |
| 54 Year Old Male | NA | NA |
| 55 Year Old Male | NA | NA |
| 56 Year Old Male | NA | NA |
| 57 Year Old Male | NA | NA |
| 58 Year Old Male | NA | NA |
| 59 Year Old Male | NA | NA |
| 60 Year Old Male | NA | NA |
*Quotes above are for Ivari Life Insurance 30 Year Term, monthly, Standard Class, non-smoker. Your rates may differ depending on your unique circumstances. August 2021.
There’s a problem at the intersection of human nature and life insurance: When you’re young and healthy and able to get cheap insurance easily, you can’t imagine needing it—or at least not enough to go to the trouble and expense. But if your health declines and you suddenly find insurance compelling, you may not be able to get it, or at least not at a price you can afford. Forbes, How Much Life Insurance Do You Really Need?
The Difference Between Men & Women
When it comes to life insurance there is a big difference between being a man and a woman. This is because statistically speaking women live 5% longer than men and that translates into savings for your life insurance if you are a female.
So ladies, all things considered equal, you pay 30% less than a men for your life insurance!
As you can see there’s a huge difference in premiums for a 50 year old man and a 50 year old woman with a standard rating.
For example, let’s say our female client is looking for $500k of coverage for 30 years. She pays $185.09 per month with RBC insurance.
A man looking for identical coverage with RBC pays $261.90 per month.
Our female client saves $27,651.60 over the course of her term! OMG!
Now that’s a lot of cash. But that’s not all!
If our male client gets identical coverage with Ivari insurance he pays $303.30 per month.
So not only does he pay 30% more than his female counterpart, but he also pays $14,904 more with Ivari over the course of his term than he will with RBC life insurance. Double Whammy!
There are other pitfalls to watch out for as well when you’re looking for life insurance in your 50’s!
The Difference Between Carriers
Check out Ivari Canada’s rates for 30 year term…what do you see? There are No rates listed for ages 51 and above. Why is that?
Do you think this is a mistake? Or maybe I want to promote a life insurance company I prefer? NOPE!
It’s because all life insurance companies are NOT created equal. Ivari’s maximum issue age for 30 year term is 50. That means anyone 51 and over is ineligible for longer term coverage with Ivari!
So if you’re 54 years old looking for a term 30 product, with Ivari, I’m afraid you’re out of luck.
With RBC insurance, however, you can get a 30 year term policy up to the age of 55.
This may not seem important but if you’re looking for level premiums to age 85 to protect a mortgage or debt, it sure is. Canadians are having children later, living longer and carrying more debt into their senior years.
Another reason to make sure you select the right company for your circumstances and it’s a lot more complicated than you think.
Give Policy Architects a call and we can help!
One Year Can Make a BIG Difference: 55 Is a BIG Birthday
If you are looking for coverage in later life it’s important to know what the cut-off dates are for terms.
If you want 30 years of coverage, your 50’s are your last opportunity. You can get 30 year term until your 55th birthday.
Thereafter you have to consider 20 year term. This makes perfect sense as 30 year term at 55 takes you until your 85th birthday.
Let’s see how your 50’s unfold:
- Life Insurance Ages 50 & 51: At Ages 50 and 51 life insurance rates stay in the same ballpark – although every year that passes costs you more. If you’re in your 50’s and looking for 30 year term this is the time to pull the trigger.
- Life Insurance Age 52: There’s a jump in rates here for men and women. For example, a 51 year old male pays $288.45 and a 52 year old male pays $317.70. That’s $10,530 over the course of your term.
- Life Insurance Age 53 & 54: This trend of escalating premiums continues.
- Life Insurance Age 55: Age 55 is an important life insurance birthday. It’s the last year you can get 30 year term coverage.
- Life Insurance Age 56: You need to check out 20 year term or permanent coverage.
Which Means We Need to Check Out 20 Year Term Rates
If you are looking for the best life insurance in your 50’s chances are you are looking to cover a shorter term. This is where 20 year term comes in.
It’s less expensive and a great fit for those don’t need long term protection.
Another option is permanent insurance. In your 50’s you should consider this product, it’s not a whole lot more expensive than term and you get coverage until the day you die.
More about this later in the article. But I want to make sure you get some 20 year term rates too as it may be sufficient for your needs.
RBC Life Insurance Rates: Male
Standard Rating, 20 Year Term
| ||
| Age | $500,000 | $1,000,000 |
| 50 Year Old Male | $127.44 | $246.06 |
| 51 Year Old Male | $144.27 | $278.19 |
| 52 Year Old Male | $163.40 | $314.55 |
| 53 Year Old Male | $185.09 | $355.77 |
| 54 Year Old Male | $209.75 | $402.39 |
| 55 Year Old Male | $237.69 | $455.13 |
| 56 Year Old Male | $267.35 | $514.62 |
| 57 Year Old Male | $300.78 | $581.94 |
| 58 Year Old Male | $338.45 | $658.08 |
| 59 Year Old Male | $380.88 | $744.30 |
| 60 Year Old Male | $428.63 | $841.86 |
*Quotes above are for RBC Life Insurance 20 Year Term, monthly, Standard Class, non-smoker. Your rates may differ depending on your unique circumstances. August 2021.
RBC Life Insurance Rates: Female
Standard Rating, 20 Year Term
| ||
| Age | $500,000 | $1,000,000 |
| 50 Year Old Female | $85.55 | $164.07 |
| 51 Year Old Female | $97.56 | $187.02 |
| 52 Year Old Female | $111.38 | $213.21 |
| 53 Year Old Female | $127.22 | $243.18 |
| 54 Year Old Female | $145.35 | $277.47 |
| 55 Year Old Female | $166.14 | $316.62 |
| 56 Year Old Female | $187.97 | $358.83 |
| 57 Year Old Female | $212.72 | $406.80 |
| 58 Year Old Female | $240.80 | $461.16 |
| 59 Year Old Female | $272.61 | $522.90 |
| 60 Year Old Female | $308.70 | $593.01 |
*Quotes above are for RBC Life Insurance 20 Year Term, monthly, Standard Class, non-smoker. Your rates may differ depending on your unique circumstances. August 2021.
The Best Life Insurance for a 50 Year Old & Up!
Your Health
Your health has a lot to do with how much you pay for life insurance. This is truer than ever in your 50’s. At this point in your life chances are you have had some sort of brush with medical issues.
The good news is as long as your condition doesn’t impact your longevity, is under control……and you can prove it has been for a period of time – the impact is minimal.
I would go as far as to say most people are healthier than they think.
If you have elevated cholesterol or high blood pressure these aren’t overly serious issues unless they are causing serious knock-on consequences.
Same for being overweight.
Carrying some extra pounds doesn’t make you high risk. Now if you’ve had a serious stroke because of your weight or blood pressure then that’s an entirely different situation.
Smoking Is a Serious Issue
As you get older your premiums go up but if you really want to send them through the stratosphere – smoke. I hate to be the bearer of bad news but if you’re a smoker it costs you a bomb.
The good news is you can get 30 year term at age 51 even if you are a smoker and in good health.
My female client wants $500K in coverage it’s gonna cost her $379.80 per month through Industrial Alliance. Comparatively a nonsmoker with a standard rating pays $203.76 through RBC.
The cold hard reality is this smoker pays $63,374.40 MORE over her term.
Finding the Right Company for YOU
I say this again and again in all my articles.
Not all life insurance companies are created equal. Each insurer has a particular area of expertise. This means some offer more competitive rates than others for specific medical issues…
…even weight!
The key to obtaining the most affordable and comprehensive life insurance is to consult an independent life insurance agent.
We know the ins and outs of the underwriting guidelines for the best insurers in Canada. This enables us to pick out the best company for your unique circumstances.
I think a lot of people select a company based on name recognition or personal recommendation. This is NOT the way to go. It can literally cost you 10’s of thousands of dollars over the course of your term. It’s not a little thing.
Reasons You Need Life Insurance In Your 50's
Your 50’s ain’t what they used to be. No siree! I am a great case in point. My son is 9 years old and I am in my 50’s. People are starting families later and living longer.
This means financial obligations last well into your senior years
Which leaves a lot of room for life insurance planning in your 50’s. That being said companies still view you as a higher risk to insure than you were in earlier decades.
So let’s take a look at reasons you may need life insurance right now!
Your Family May Still Need Your Income
Life insurance is usually about income replacement. Most people who call me do so because they are worried that if they die unexpectedly their loved ones will flounder financially. Remember, your ability to earn an income dies when you die.
If you have debt and dependents, life insurance is a no brainer.
You need a good policy that covers your needs. The thing is, 30 year terms aren’t available after 55, not to mention, they get really expensive.
This means a 10 or 20 year term may be a better alternative plus it will likely fit your budget better as well.
At this juncture it may even make more sense to take out a permanent policy depending on your needs.
Divorce & Dependents
Divorce is never easy, but when you add kids, debt and a mortgage well then it gets really complicated.
Finances have to be sorted out before you part ways. One thing a lot of people forget when they are working the details out is the value of time.
Sure you can see the importance of taking out a life insurance policy just in case the main breadwinner dies unexpectedly. That means child support stops and the person in a vulnerable situation wants to make sure they are covered.
This is why life insurance is often a prerequisite of signing off on a divorce agreement.
But what about the other spouse? Their time is worth serious cash.
If they were to pass away what would it take to replace their parenting? I am here to tell you it costs a pretty penny. This is why both parties should be covered by a term policy as part of the agreements.
This protects both of you during vulnerable periods of time.
Business Interests
Businesses cost money and take up a lot of time. There are many reasons an entrepreneur should consider taking out a life insurance policy.
The first situation that comes to mind is to cover a loan. Often a bank requires an applicant to take out a term policy to cover the loan just in case they die before it is paid off.
This also protects the person’s estate.
If you have a business, I am sure your family will appreciate that debt being paid off without eating into their share.
Another reason an entrepreneur takes out life insurance is to cover their contribution should they die unexpectedly. This is called Key Person coverage. What would it take to replace you? If you’re a specialist it may cost a bomb.
This sort of protection is meant to take care of your partner/s and employees should a worst-case scenario unfold.
There are also some pretty complicated tax sheltering techniques. But I will save this for another day.
Final Expenses & Estate Planning
So this is one of the main reasons people consider buying life insurance in their 50’s!
It’s easy to avoid the topic of estate planning in your 30’s and 40’s. Come on that’s for old people. The thing is, it’s not.
Far too many people die without wills or a plan for their funeral. Did you know burials cost a lot of money?
Costs really start to build up and can set your loved ones back $5K – $20K depending on the desires of the deceased. That’s where final expense insurance comes in.
For a small amount of money per month, you can leave your family enough cash to take care of everything without digging out their checkbook. Hey, you can even plan for taxes attached to your estate.
Children With Disabilities
If you have a child with a disability you know what a big responsibility this is…
…and it doesn’t go away when you die.
Life insurance can help you make sure there are funds available for your child no matter what happens to you.
This is a very complicated topic. Trusts are typically used to manage these funds, and there are all kinds of considerations that have to be accounted for.
Taxes and government benefits are just a few things that are impacted by the decisions you make in this area.
Should You Select Term or Permanent Coverage?
Life insurance comes in two basic forms:
- Term: For me this type of coverage suits most people most of the time. It’s temporary protection that is used for income replacement should you die unexpectedly. You select a coverage amount and period of time you want to be protected and pay a premium to an insurance company for the coverage. If you die during your term the company pays your beneficiaries.
- Permanent: This is coverage until the day you die. Similar to term you select a coverage amount and as long as you pay your premiums there will be a payout when you pass away. You can get fully underwritten coverage or simplified or guaranteed issue which doesn’t require a medical exam.
What Do I Suggest?
For those of you that read this blog, you know that I don’t usually recommend permanent insurance. BUT there are exceptions.
As you get older permanent insurance becomes more palatable. This is because term insurance gets more expensive and permanent has a guaranteed payout. So the argument that term is far less expensive starts to fall apart here.
Also if you are looking for lesser face values and want coverage for your final expenses then permanent insurance is the best option.
Your personal situation dictates which type of life insurance works for you in your 50’s.
We review your medical history, your goals, and your financial obligations before we make a recommendation. Call us today!
Best Type of Life Insurance for a 50 Year Old & Up
Face Value
So as you can see there are a lot of things to take into consideration before you buy a life insurance policy. One of the biggest decisions you make is how much coverage is enough!
Sadly many Canadians are underinsured because they don’t do the math when figuring out how much it really costs to replace a breadwinner.
It’s very important to go through:
- Your household income
- Debts
- Projected Income
- Goals
All of this determines how much coverage you need to take out.
Don’t have time to figure this out? I’ll simplify it.
Example of 10X'ing Your Salary
If you have small kids at home, you need to 10x your salary at a minimum. If you can afford to 15x it, you should do that.
For example, if you’re 50 with small children, making a $60k income, you should have a minimum of $600,000 of 20 year term coverage.
$600k replaces your after-tax income of $45k ($3,750 monthly) for approximately 20 years. This helps your spouse, who may be working full-time as well, during the years when your family’s most vulnerable.
A $600,00, 20 Year Term Policy with Wawanesa Life costs a 50 year old male $156.60 per month at standard non-smoker rates. For a female, the same coverage will be $103.14 per month.
Final Expense Insurance to the Rescue
My client, John, is 59 and has the following medical issues:
- Diabetes type 2 (taking Janumet)
- High Blood Pressure and cholesterol managed with medication
- Overweight by 30lbs
- Had colon cancer 9 years ago (cancer-free for 8 years)
The average cost of a burial in Canada today is $8k to $10k. By the time John dies, it will probably be closer to $20,000.
He is interested in $25K of permanent insurance to cover his burial costs and leave a bit of money for his daughter.
Based on his current health and history, John does NOT qualify for medically underwritten coverage at an affordable rate.
He does, however, qualify and secure $25,000 of No medical exam, Whole Life insurance with Industrial Alliance at $66.58 per month.
Don't Be Caught Underinsured Call Policy Architects Today!
If you are looking for the best life insurance in your 50’s, we are the agency for you!
The advice I give you in your 30’s is often a lot different than the advice I give you in your 50’s.
That’s why it’s important to speak with an independent life insurance agent.
Failure to do so can result in you overpaying thousands of dollars over the life of your policy. At Policy Architects, we don’t want you to pay a penny more than you have to!
Call us today.
