Looking for Life Insurance for 50 and Over?
I've Got Some GREAT News for YOU!
If you are looking for life insurance 50 and over, then I’ve got some awesome news for you!
Thankfully age isn’t what it used to be. In fact, I would argue that 50 is the new 40 when it comes to your physical fitness and place in society.
When my parents turned 50 it was a massive milestone and people really looked their age.
During that period you would be considering retirement and getting that gold pen for 30 years of service with the same company.
NOT the same picture today. In fact, my wife turned 50 this January and to look at her you’d have no idea. Shhhh she doesn’t know I am using her birthday in this post.
Anyway, 50 is just a number – but do life insurance companies see it the same way?
But Before We Get Started, Why Should You Listen to My Advice?
First of all, I am an independent life insurance agent, so knowing the ins and outs of this topic is my day gig. I spend my working hours researching different companies and their products to find the best fit for your family…
…BUT secondly and most importantly I am a family man over 50. Yep. I am officially a boomer and can identify with your plight.
If fact, I am in an interesting position as I started my family late. So I know just how worrisome the life insurance application process can be for those who have dependents in their later years.
Thankfully, I have some really great news for you – life insurance is surprisingly affordable for those of you in your 50’s and there are lots of solutions throughout your senior years. So let’s check ’em out.
Life Insurance for 50 and Over: Important Birthdays
One of the biggest things people over 50 have to consider when shopping for life insurance is cut off birthdays.
So let’s say you’re like me and meet the love of your life later in life, which means a 30 year term wouldn’t be out of the question in your 50’s.
BUT is this product even available?
The thing about term insurance is that it’s affordable compared to permanent insurance in your younger and healthier years. This is because a payout is NOT guaranteed and the life insurance companies are gambling that you won’t make a claim.
As you get older this changes radically. The chances of you dying at 80 are a lot bigger than in your 60’s. So let’s see how the life insurance companies approach this issue.
Life Insurance Cut Off Dates for 30 Year Term:
50 Years Old for Most Carriers and 55 Years Old for Some- Wawanesa
If you are turning 50 and want 30-year term coverage, my advice is to get on it now. The older you get the more it costs and once you turn 56, Wawanesa is the only carrier that will cover you...
…that is if you qualify! Hey the older we get the more medical issues we encounter!
There is also the question: Does 30 year term even makes sense at age 55 or 56 (coverage until you are 85 or 86)? The reason most people select term insurance is because it provides affordable coverage for a temporary need such as income replacement.
At this point, the difference in cost between term and permanent insurance becomes less of an issue – and often my older clients opt for permanent insurance because they know their beneficiaries will receive a payout when they die.
Let’s take a closer look at this in a bit.
Life Insurance Cut Off Dates for 20 Year Term:
65 Years Old for Most and 66 Years Old for Wawanesa & Industrial Life
So now your term options are whittled down to 20 year term. This makes sense as you are covered until your 85th or 86th birthday.
At this point I would not recommend term insurance unless you need short term temporary coverage and are in great shape.
Most of my clients opt for permanent insurance at this stage because they are typically more concerned about estate planning and leaving gifts to loved ones…
…or if you are like me helping out with college and university fees.
Life Insurance Cut Off Dates for 20 Year Term:
75 Years Old For All Carriers
After the age of 66 you are limited to 10 year term if you want temporary coverage. This sort of policy works if you are looking to do something targeted such as co-sign a loan and don’t want to be responsible for the payments if someone defaults or possibly for business purposes.
Once again I wouldn’t consider term insurance at this point unless it was for a very specific need and my client was in optimum health.
Life Insurance for 50 and Over: Rates
At the end of the day, this is what most people are interested in. How much is it gonna cost.
To give you an idea of how much term life insurance costs in your 50’s 60’s and 70’s I am going to include some basic rates for female & male nonsmokers in average health for you to peruse.
Remember these rates are just for reference purposes.
You have to qualify for ’em!
50 Year Old Woman, 30 Year Term
$166.94 per month RBC
50 Year Old Man, 30 Year Term
$236.07 per month RBC
60 Year Old Woman, 20 Year Term
$254.07 per month Wawanesa
60 Year Old Man, 20 Year Term
$381.10 per month Wawanesa
70 Year Old Woman, 10 Year Term
$392.63 per month IA
70 Year Old Man, 10 Year Term
$599.85 per month IA
Points to Note Life Insurance for 50 and Over
As You Age, Your Choice of Life Insurance Company Will Change
Some life insurance companies are more generous to elderly people than others. I used the cheapest quotes for each age range and as you can see one the insurer changed each decade.
This is one of the many considerations an independent agent will weigh when selecting an insurer for you.
You Have to Qualify for the Rates Advertised
For the most part, people qualify for standard rates…
…but if you are in terrific shape and don’t have a family history of serious illness you may qualify for preferred or even preferred plus rates which means you spend a lot less on your premiums.
There is a lot to consider and all companies handle the way they approach your health differently. This is why you should call Policy Architects today.
Men Pay More Than Women
Yep! This is because they don’t live as long as their female counterparts. Life insurance companies weigh risk.
They know that insuring a man means there’s a greater chance they have to pay out benefits down the line, so the client pays for that risk through elevated premiums.
As You Age Term Insurance Becomes Less Appropriate
Term life insurance is an awesome product and works for most people most of the time. That is if you’re relatively young and looking for income replacement.
The thing is, term gets more expensive as you age. Which makes permanent life insurance much more attractive. Hey who doesn’t want a guaranteed payout for their loved ones?
If you need coverage in your older years it’s important to speak to an independent life insurance agent about your needs. It may be that permanent life insurance is a better fit. Especially if you are looking at estate planning needs.
Creating an estate plan enables you to control who inherits your assets and takes care of your children if you die. If you don’t make a written estate plan, the courts will distribute your assets and assign guardianship for your children based on your state laws. Guess what? The courts may not make the same decisions you would.
If You're a Smoker, Throw These Rates Right Out the Window
Smoking is bad for you and life insurance companies penalize you for it. Prices really do get out of hand.
To give you an idea a 50 year old smoking female with a standard rate pays $322.13 for $500K of coverage for 30 years, as opposed to her nonsmoking counterpart who pays $166.94 per month. Ouch!
…and it doesn’t get better as you age.
If You Are Looking for Life Insurance 50 and Over Call Policy Architects
If you’re looking for life insurance 50 and over, then there’s a lot to consider. Your health, financial needs and where you fall in terms of age are just a few things that can change the company you apply to.
Life insurance is a complicated business. What seems like a great fit at 50 may not be right at 55 and what seems right at 55 won’t be right at 70.
This is why you need to speak to an independent life insurance agent like those at Policy Architects. We go through your financial requirements, your budget, check out your medical history and review products that might suit your situation.
If there are any worries we always go the extra mile to contact potential companies to see how they might view your unique profile.
Why not give us a call today! Remember making the right call here can save you literally thousands over the course of your term.