Best Life Insurance Options For Over 50S

Life insurance for over 50s is a product that promises a lump sum when the policyholder dies. It is similar to life insurance for younger people, but with some key differences. For example, over 50s life insurance often pays out less than the total paid in premiums, and monthly premiums are typically higher. However, it can still be worthwhile if you want to protect your loved ones financially, cover funeral costs, or pay off any remaining debts. When choosing a life insurance company, it is important to consider factors such as customer satisfaction, financial strength, policy types, and costs.

Term life insurance

If you're over 50, life insurance can still be a worthwhile investment to offer financial protection for your loved ones. While your financial needs may differ from when you were younger, a policy can help financially protect your partner, children, or other beneficiaries in the event of your passing.

The main advantage of term life insurance is that it provides coverage for a specified period, which can be useful if you have specific goals or needs during that time frame. For example, if you have children, you may want a policy that will cover their college education expenses if something happens to you. Term life insurance can also be a good option if you're on a tight budget, as the premiums are typically lower than those of permanent policies.

However, it's important to consider the potential downsides of term life insurance. Firstly, there is a risk of outliving your policy, especially if you choose a shorter-term option. Additionally, if your health declines as you age, you may face higher premiums when it comes time to renew your policy. Term life insurance also does not build cash value over time, so it may not be the best option if you're looking for a policy that can provide additional financial benefits while you're still alive.

When considering term life insurance, it's essential to think about your unique circumstances, budget, and goals. While term life insurance can offer peace of mind and financial protection for your loved ones, it may not be the best option for everyone over 50. It's important to review your current coverage, financial goals, and the specific offerings of different insurance providers to make an informed decision.

Whole life insurance

Some companies that offer whole life insurance for seniors include Aflac, Colonial Penn, and Nationwide. Colonial Penn offers guaranteed acceptance whole life insurance for those aged 50-85 (in most states) with options starting at $9.95 a month. Their coverage amounts are based on age, gender, and state of residence, and multiple units can be purchased to build a larger death benefit. Aflac also offers whole life insurance for seniors with a wide range of coverage options and reasonable rates.

Final expense insurance

There are several companies that offer final expense insurance, including Colonial Penn, Legal & General, British Seniors, and Nationwide. These companies offer various plans and features, such as guaranteed acceptance, no medical exams or health questions required, fixed premiums, and different coverage amounts. It's important to note that the availability and specifics of these features may vary based on factors like age, gender, and state of residence.

When considering final expense insurance, it's essential to evaluate your personal circumstances and financial needs. This type of insurance often offers smaller payouts compared to other life insurance options, and the payout amount is typically intended to cover funeral expenses or provide a small one-off financial boost for beneficiaries. It's also worth noting that, for individuals who live for an extended period after taking out the policy, there is a risk of paying more into the policy than the eventual payout.

To make an informed decision, it may be beneficial to consult a financial adviser or use online tools to compare different over-50s life insurance policies. By understanding the available options, you can choose the coverage and features that best suit your needs and ensure your loved ones are financially protected.

Premiums and affordability

When it comes to life insurance for over 50s, it's important to consider the affordability of premiums. While life insurance can provide financial protection for your loved ones, it's also a financial commitment that needs to fit within your budget.

Types of Policies

The type of policy you choose will impact the cost of your premiums. Term life insurance, which offers temporary coverage for a specified time period, tends to have lower premiums than whole life insurance, which provides permanent coverage for your entire life. Whole life insurance includes a death benefit and a cash value component, which can be accessed while you're still alive, making it a more expensive option.

Age and Health Considerations

As you get older, your risk of death increases, and insurance companies typically charge higher premiums for older applicants. The rates for new policies tend to increase with age, so purchasing life insurance earlier in your 50s can help you secure better rates. Additionally, your health can impact your premiums. As health generally declines with age, your health status in your 50s may result in higher premiums compared to when you were younger.

Gender and Lifestyle Factors

Premiums for life insurance are also influenced by gender and lifestyle choices. Rates can vary based on factors such as gender, with men and women sometimes having different premium amounts. Lifestyle choices, such as smoking or participating in risky activities, can also affect the cost of your premiums.

Provider and Plan Options

When considering affordability, it's worth noting that different insurance providers may offer varying rates for similar plans. It's essential to compare quotes from multiple providers to find the best option for your budget. Additionally, some providers, like Colonial Penn, offer guaranteed acceptance whole life insurance for individuals aged 50-85, with rates starting at $9.95 per month.

Customization and Coverage

The amount of coverage you need will also impact the cost of your premiums. If you require a higher death benefit or want additional riders, such as coverage for chronic illnesses or long-term care, your premiums will likely increase. Customizing your policy to match your specific needs and financial situation is crucial to ensuring affordability.

Best providers

Life insurance for over 50s is similar to life insurance for younger people. In exchange for premium payments, a life insurance company will pay your beneficiaries a death benefit payout if you pass away while the policy is active.

Nationwide

According to Investopedia, Nationwide is the best overall life insurance company for people in their 50s. It has many different types of policies and riders to choose from, affordable rates, and a stand-out final expense policy. Investopedia also highlights that Nationwide is financially strong, garners relatively few customer complaints, and offers the most policy types out of all the companies it researched.

Lafayette, Banner, and State Farm

These companies were also listed by Investopedia as some of the best life insurance providers for over 50s.

Colonial Penn

Colonial Penn offers guaranteed acceptance whole life insurance for those aged 50-85 (in most states) with options starting at $9.95 a month. It is rated A (Excellent) by AM Best, indicating an excellent ability to meet ongoing insurance obligations. It has over $3.6 billion of life insurance in force and over 810,000 life insurance policies in force.

Aflac

Aflac offers term life insurance, whole life insurance, and final expense insurance for seniors. These plans come with reasonable premiums and coverage that can be customized to meet your needs.

Frequently asked questions