Hitting “the big five-0h” can come as a bit of shock for some. To be sure, contemplating the fact that we’ve arrived at some point beyond the halfway point can be a daunting realization. And with that comes a good number of valid questions: What will my retirement be like? Will my family be comfortable? What would they do should something happen to me or my spouse?
The fact is, even if you’ve never contemplated “the end”, and likewise never considered life insurance, you are not alone. While we don’t all have the leisure of Shakespeare’s Hamlet famously soliloquizing on that “undiscovered country from whose born, no traveler returns”, in To Be or Not To Be, when the time is right you’ll know.
The good news is, if you’re over 50 and just starting to think about a term life policy, it can much easier on you and your pocket book than you might think.
In this short post we’ll walk you through some of the basics, talk plans, prices and how to find the best life insurance companies even if you have a pre-existing medical condition, all intended for those looking for life insurance over 50 years old.
If you’ve had life insurance before, you may have already answered some of the questions below, but wherever you are in the hunt, the following are some good questions to ask.
What Type of Life Insurance Will I Need?
While the right answer will depend on your age, current state of health and family and marital status, most life insurance policies will fall into one of the following three categories:
- Term life Insurance
- Permanent Life Insurance
- Final Expense Life Insurance
While we recommend direct consultation with an experienced, independent life insurance broker, the following provides a handy guide with some helpful basic triage.
Just Over 50? Then Term Life Insurance is Probably the Best Bet
With another 20-40 years ahead, a Term Life policy makes a lot of sense. This is a life insurance policy with a set duration and expiry date, and is also the most affordable. For that reason, a great many people just over 50 choose term life insurance. Providing the most amount of insurance at the lowest cost, it provides the best return on your money in the worst case scenario.
Of course once you’ve decided that Term Life is the best category, further considerations come into play as you drill down to find the right policy for you and your family. When are you planning to retire? In 10 years or 15? Maybe never, if you are an independent business person. Perhaps you are planning to buy a new home or save for your children’s college education. All of these important considerations that can help you decide how long your term policy should be. It is important to be aware that a Term Life policy does have an expiry date, but if you can find one that is convertible, and at a good price, it is usually the best option for many over the age of 50.
Because every person is different, there is no kind of policy that is going to work well for everyone. You’ll need to look at each type of plan and decide which one fits your life insurance needs the best and will give your family the protection that they need.
Choosing a Permanent Life Insurance Policy
If you still have young children to think of, or your spouse is younger than you are, you might consider looking at a Permanent Life insurance policy. This type of life insurance breaks out into two categories; one that builds cash value (providing “whole life” or “universal life” insurance coverage) and a second type that builds no cash value (a.k.a. “No Lapse Guaranteed Universal Life”). The latter is recommended for anyone looking for a permanent policy, is less expensive overall and guaranteed to last for your entire life without premium increases. Many people are not aware that this type of policy exists, but it may be worthwhile to consider it as an option.
Final Expense Life Insurance
For those who are seeking life insurance to cover just the costs of a burial, our recommendation is that you purchase a “Final Expense” life insurance policy. These policies generally have low minimum death benefits – around the $5,000 up to around $25,000 – and will last your entire life. As suggested, they are designed to take care of any final expenses that would be incurred in the event of your death, so that the costs associated with funeral arrangement, internment and a casket are not a burden on your family.
Advice: Get the Best Rate Possible
A rate is calculated by your current state of health, any pre-existing medical conditions you might have and the amount of coverage you want. If you have a pretty good idea of the kind of insurance you need, you can start today. Simply fill out our quote form on the right or call us at 1-800-574-0245 ext. 101 for a personalized consultation and quote.
Below are some examples that will help you get a sense of the costs to anticipate:
A quote for a $250,000, 20 year term policy for a 50 year old male at three possible health ratings – Preferred Best Non Tobacco (the best possible rate), Standard Non Tobacco (a rate you might get if you are overweight, or have high cholesterol for example), and Standard Tobacco (rates for smokers).
$250,000 20 year term Preferred Plus Non Tobacco – $43.28 per month
$250,000 20 year term Standard Non Tobacco- $79.17 per month
$250,000 20 year term Standard Tobacco – $221.16 per month
BestLifeQuote.com will help you compare quotes amongst all of the country’s top providers to find the best rate possible for you, and your family. Again, if you’re ready to take the plunge, simply fill out our quote form or call us at 1-800-574-0245 ext. 101.
Lastly, and as we wrap up this overview post, we’ll take a look at the sometimes complicated issue of the state of your health
First off, and to dispel a common myth, it is not necessarily true that once you have a health condition you won’t be able to find life insurance. But let’s say you do suffer a pre-existing medical condition and that your previous attempts for a traditional insurance policy have left you empty handed, you may well qualify for one with a graded death benefit policy. These policies usually have a 2 or 3 year waiting period before one can claim the full death benefit but would be a logical next step if you are considerably older (60-80), with a pre-existing condition or having trouble qualifying for a standard policy.
Regardless of the health that you’re in, or any pre-existing conditions that you have, there are plenty of affordable life insurance options for you. There are dozens of life insurance companies out there that specialize in working with high-risk applicants and they will give you a quality life insurance plan at a rate that works well for you. Finding the right company could be the difference between getting an affordable policy or being declined for coverage because of your health.
Because there are thousands of different insurance companies on the market, you could spend weeks calling companies to receive rates, or you can let us do all of the hard work for you. Our independent insurance agents represent some of the most highly rated companies across the nation and can bring all of the best premium prices directly to you.
We know that your time is valuable, you shouldn’t waste it by looking for the best plan. Let our independent agents save you both time and money on the insurance buying process. We know that the application and search can be a long and confusing process, but we can help make it as simple as possible to get the life insurance plan that you want.
As we get healthier as a society and are living longer, and with new medical breakthroughs coming online daily, it’s not out of the ordinary for people not to even consider life insurance over 50, or even in their 50s,60s,70s and in some cases as old as 80. Whatever age, financial disposition or health bracket you find yourself within it’s important to know that life insurance is in service of you, and that when you work with an independent broker, you win.
If you have any questions about getting a life insurance plan to protect your family or about the different policy options available to you, please contact one of our agents today. We would be happy to answer those questions and ensure that you’re getting the best plan to fit your life insurance needs. Because you never know what’s going to happen, you shouldn’t wait any longer to get the insurance protection that your family deserves.
Not having life insurance is one of the worst mistakes that you can ever make. If you were to pass away, your loved ones would be responsible for all of your debts and final expenses, which can leave them with a massive amount of debts. That can make an already difficult situation a thousand times worse. Having a life insurance plan is the best way to ensure that your family has the funds that they need, regardless of what happens to you.
Call us at 1-888-552-6159 to get a the right life insurance quote today.
By: Liran Hirschkorn
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