Best Life Insurance Companies for People Over 50
When you’re shopping for life insurance after age 50, you’ll likely encounter fewer options than when you were younger. Plus, because of your age, you’ll definitely be facing higher rates. However, you can still find high-quality, competitively priced policies.
This guide analyzes companies based on both term and permanent policies, considering costs, how quickly they accumulate cash value, and the reliability of policy illustrations.
Our Expert Picks
- Pacific Life
- Penn Mutual
- Protective
- Lincoln Financial
- Prudential
- Midland
Best Life Insurance Companies for Over 50 Summary:
How To Choose the Best Life Insurance for Over 50
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Figure Out the Most Suitable Policy Type
The first step is to determine what type of policy is best for your situation and goals. Consider whether you want to build cash value or if you’re looking for the maximum death benefit for your insurance dollars. An experienced life insurance agent or financial advisor can help determine what life insurance types fit your financial picture.
- Term Life Insurance: This is the most affordable type of policy at any age. There are still many options available at age 50, including 30-year term life policies. Term life is good for buyers in their 50s who want coverage until they retire or until their children graduate from college.
- Permanent Life Insurance: Buyers over 50 looking for lifelong coverage have choices like whole life and varieties of universal life. These policies are suitable if you want to build cash value, borrow against it, or withdraw it. Permanent policies also ensure a life insurance payout to your beneficiaries, regardless of how long you live. You can also buy burial insurance to cover funeral and final expenses.
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Decide How Much Life Insurance to Buy Your goals for buying life insurance will determine how much coverage you need. For instance, if you want to simply cover funeral costs, you will need less coverage. If you want to replace income for 15 years if you pass away, you’ll need much more.
A life insurance calculator can help pinpoint a good amount. Consider working with a financial advisor, especially if you have more complex needs, like providing for a special needs child. A basic calculation is to add up the obligations you want the insurance to cover (debts, income replacement, college tuition) and subtract any assets that could be accessible if you pass away (existing life insurance and savings). This result is a rough estimate.
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Pick a Company and Apply
Once you’ve decided on the policy type and coverage, you can get quotes and compare the best life insurance options. Term life insurance is easy to compare. For permanent life insurance, you’ll want to consider the overall cost of the policy, including internal charges, and how fast cash value will build, if that’s a concern. Check the financial strength rating of each insurer; look for a rating of A or higher from agencies like Standard & Poor’s and AM Best. If the quotes turn out to be unaffordable, consider buying a level of life insurance you can afford.
How Much Are Life Insurance Quotes Over 50?
Life insurance quotes average about $972 per year for a $250,000 20-year term policy for a 60-year-old female buyer in good health. For a 60-year-old male buyer in good health, it’s approximately $1,389 a year.
Why Is Life Insurance More Expensive For Buyers Over 50?
Age is a primary driver of life insurance rates. With each birthday, you’ll pay more, even if your health is excellent. If your health has declined, your rates increase. However, many with health conditions, like diabetes, can still qualify, though at higher rates. Once you purchase the coverage, your rates can’t go up because of age or health (except with certain companies with tiered pricing based on age bands).
Is It Worth Getting Life Insurance If You Are 50+?
Buying life insurance after age 50 is worthwhile if your beneficiaries will need financial support after you’re gone. While buying life insurance earlier would have meant better rates, competitive options are still available for buyers in their 50s. Choices diminish at ages 60 and 70, so buying in your 50s is a smart move.
