The following term life insurance rates by age are for someone in their 50s in excellent health, with no other risk factors.
The life insurance quotes provided are from highly rated life insurance companies rated by AM Best with an A- rating and higher.
- Term Life Insurance Rates in Your 50s
- Whole Life Insurance Rates in Your 50s
- Term Life vs Whole Life Insurance Quotes
- So Why Buy Life Insurance in Your 50s
- Top 4 Reasons to Consider Whole Life
Term Life Insurance Rates in Your 50s
Whole Life Insurance Rates in Your 50s
| Age | $100,000 | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|---|
| 20 | $83 | $151 | $293 | $580 |
| 25 | $92 | $178 | $348 | $689 |
| 30 | $105 | $216 | $422 | $839 |
| 35 | $121 | $267 | $522 | $1038 |
| 40 | $141 | $326 | $639 | $1273 |
| 45 | $173 | $401 | $789 | $1571 |
| 50 | $214 | $499 | $982 | $1959 |
| 55 | $270 | $629 | $1239 | $2473 |
| 60 | $324 | $802 | $1582 | $3158 |
| Age | $100,000 | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|---|
| 20 | $56 | $132 | $255 | $504 |
| 25 | $66 | $156 | $304 | $602 |
| 30 | $79 | $188 | $368 | $729 |
| 35 | $96 | $230 | $450 | $894 |
| 40 | $115 | $278 | $544 | $1081 |
| 45 | $143 | $350 | $685 | $1364 |
| 50 | $175 | $429 | $843 | $1681 |
| 55 | $223 | $549 | $1082 | $2158 |
| 60 | $280 | $700 | $1381 | $2756 |
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Term Life vs Whole Life Insurance Rates
So, Why Buy Life Insurance in Your 50s?
In this article we wanted to take a moment and discuss why it might be a good idea to purchase a whole life insurance policy while you are in your 50s.
What weโre not going to doโฆ
Is try and โsellโ you on the idea that you โMUSTโ buy a whole life insurance policy.
Rather, weโre going to provide you with some situations where purchasing a whole life insurance policy โMIGHTโ make sense and where working with an agent who is dead set on NOT offering permanent insurance coverage could be doing you a huge disservice!
*** NOTE TO THE READER ***
Three of the main arguments that many financial advisors will use for not wanting to offer their clients a whole life insurance policy is first, these types of life insurance policies generally cost multiples more than what a term life insurance policy would cost, so in their minds, by offering you a term life insurance policy, they are trying to offer you the most affordable life insurance for a 50 year old available.
Secondโฆ
When whole life insurance policies are viewed as โinvestments,โ dollar for dollar the return on whole life insurance as an investment is typically lower than a similar investment made in the stock market.
And thirdโฆ
Ordinary whole life insurance policies (versus dividend paying whole life insurance designed for high cash value) will typically net the โagent of recordโ a higher commission then a similar face amount term life insurance policy, which is presumably why some agent might be tempted to promote whole life insurance in cases where a much more affordable term life insurance for a 50 year old client might be the better coverage.
Which leaves usโฆ
In a situation where we, not only need to demonstrate how a whole life policy might be better for a male or female in their 50s, while also acknowledging these โfactsโ about why some in the industry firmly believe that whole life insurance policies are a waste of money.
We should alsoโฆ
Point out that we here at I&E offer both term life insurance policies as well as whole life insurance policies, so it really doesnโt matter to us โwhichโ type of life insurance you believe will be the โBEST life insurance for a 50 year oldโ for you as long as youโre making an informed decision, and youโve had all of your options laid out for you.
Which isโฆ
Exactly what we do here at I&E, explain to you all the options for your life insurance plan.
So, letโs first discuss 4 different situations where a whole life insurance policy might be better for you than a term life insurance policy.
Top 4 Reasons for Buying Whole Life Insurance in Your 50s
1. Youโre not going to live forever, but your insurance needs might!
Chances are, if you decide to purchase 20 or 30 year term life insurance in your fifties, many of the reasons โwhyโ you chose to purchase this policy will slowly go away.
For example, you may have purchased your policy to protect:
- School aged children,
- A dependent spouse,
- Lost wages in the event of your death,
- A mortgage,
- Etc
Which means that as you age, and your children grow up, and your mortgage gets paid off, and you enter into retirement, many of the reasons why you โneededโ insurance may no longer exist.
Or at the very least, your โreasonsโ have decreased, making the amount of insurance that you need in your 70s or 80s much less than you did in your 50s.
But this isnโtโฆ
Always the case.ย For some, itโs quite possible that oneโs need for insurance isnโt going to automatically diminish when they hit their 70s and 80s.
For exampleโฆ
Clients who may have a special needs child who will always be dependent upon them for support will always benefit from having a life insurance policy that wonโt end after a specific term.
Additionallyโฆ
Itโs not all that uncommon for grandparents to have to take the primary parenting role in the raising of their grandchildren, which could mean that their financial responsibilities to care for young children might extend much further than they originally intended.
This is why, is some situations, it still might make sense for someone in their 50s to want to purchase a more expensive whole life insurance policy, than a more affordable term life insurance policy.
2. Just Pay My Final Expenses Please
Conversely, there are those who by the age of 50 already see that their insurance needs have already diminished.
Clients like these may realize that they either donโt need to purchase a huge term life insurance policy or understand that once their existing term life insurance policy ends, they likely wonโt need to purchase another one.
For clients like theseโฆ
It might make sense to purchase a small final expense life insurance policy, so that when they do pass away their family wonโt be burdened with having to try and figure out how to pay for oneโs final expenses or burial costs.
Additionallyโฆ
For those who may have existing family members who are unlikely to have the means or foresight to prepare for oneโs demise, it might make sense to purchase a small whole life insurance policy on them as well.
This way when they do pass, the remaining family member wonโt be burdened with having to take a โcollectionโ to come up with the funds to pay for a proper burial.
Obviouslyโฆ
Not the most pleasant โkindโ of conversation one can have with the family, but clearly one reason why many folks might want to consider purchasing whole life insurance vs term life, particularly because these โtypesโ of life insurance policies are also a lot easier to qualify for and may not require the insured to have to take a medical exam.
3. What do you mean Iโm denied?
Another reason some folks might want to consider purchasing whole life insurance at age 50 to 59 is because they canโt qualify for a traditional term life insurance policy, either because of some type of preexisting medical condition, or because of some kind of โlifestyleโ choice which could range from oneโs passion for โexotic travelโ or their passion for wanting to get from point A to point B in their automobile way too fast (AKAโฆ too many speeding tickets!).
Either wayโฆ
What weโre trying to say is that there will be a rather significant percentage of the population at age 50 and above who simply may not be able to qualify for life insurance coverage due to some pre-existing condition.
Which is whyโฆ
In cases like these, it may make sense to pursue an โalternativeโ guaranteed issue whole life insurance policy which will typically only have three requirements for approval.
For Guaranteed Issue, the applicant must:
- Be a United States citizen,
- Be between the ages of 50 and 85 years of age (in most cases).
- And live in a state where these types of whole life insurance policies are offered.
*** But Be Warned ***
Like the old saying goes, if it sounds too good to be true, it probably is. We will point out that these types of life insurance policies do have their drawbacks.
Mainly, guaranteed issue whole life insurance policies will only provide a small amount of coverage ($25,000 or less), the coverage tends to cost more (dollar for dollar) than other other types of life insurance, and they all contain a clause called a “graded death benefit,” which limits coverage for accidents only in the first 2 or 3 years, not covering โnatural causesโ of death such as a heart attack, stroke, cancer or diabetes.
That saidโฆ
If your two options available to you are:
- Option one:ย No insurance.
- Option two:ย Guaranteed issue life insurance.
Itโs possible that one might find a guaranteed issue life insurance policy a decent choice.
That is of course, if their agent offers it to them, which is why we find it so strange that some agents simply donโt believe in offering whole life insurance at all!
4. Whole life insurance critics are โrightโ.
When critics of whole life insurance policies claim that whole life insurance policies are a terrible investment, in their own way of thinking, they are correct!
The problem isโฆ
Most (if not all) of these same critics fail to fully understand the pros of cash value whole life insurance which when funded properly can provide ENORMOUS benefits to its owner besides just a death benefit.
This is whyโฆ
To truly understand why someone buying life insurance at age 50 might want to own a cash value whole life insurance policy, one must โchangeโ the way that they think about whole life, no longer as an โinvestment,” but rather thinking of it as aโฆ
โForced Savings Accountโ
In which your monthly premiums go into a cash value account which will earn you a much higher return than they would in a traditional savings account in a bank, with properly designed whole life policies providing guaranteed returns ranging from 3-5%.
The only difference isโฆ
Now that this money is stored in your โcash value whole life insurance policyโ earning a higher return than traditional bank savings accounts, you will also reap many other benefits not commonly discussed or understood by those who believe term life insurance is always better than whole life insurance.
Whole Life Benefits such as:
- Tax free policy loans,
- Guaranteed Tax deferred cash value growth,
- Dividends on Participating Life Insurance,
- Improved cash flow and liquidity vs other types of โinvestmentsโ,
- Death Benefit protection,
The problem isโฆ
It does take a while for folks to โwrap their mindโ around the idea of using whole life insurance as your own bank, which is why you generally wonโt see advertisers on TV or Radio promote it because these โtypesโ of whole life insurance policies and strategies generally donโt fit a call center insurance brokerage sales model.
The good news is thatโฆ
Here at I&E, we donโt operate like a call center.ย And we donโt assume any one type of life insurance policy is going to be the right kind for you.
And this is why we have chosen to remain an independent life insurance brokerage, able to offer a variety of insurance products from dozens of different insurance companies.
So, what are you waiting for?ย Give us a call today and see what we can do for you!
