Finding the right life insurance plan after 50 can feel like a complex challenge. New York Life stands out in 2024 as a top choice for seniors seeking reliable coverage. This article will guide you through selecting the ideal policy to meet your financial needs and provide peace of mind during your golden years.
Discover your options and secure your legacy today.
Key Takeaways
- New York Life offers different policies for over 50s and gets high marks for financial health.
- Bestow provides quick, online term life insurance without medical exams up to $1.5 million in coverage.
- State Farm’s universal life insurance allows you to adjust your premiums and build cash value.
- Lincoln Financial is good for estate planning with options like survivorship policies that pay after both people pass away.
- Principal allows seniors up to age 80 to get term life insurance and renew until they’re 95, which helps with estate planning.
Important Factors When Choosing Life Insurance Over 50
Selecting the right life insurance after 50 hinges on several discerning elements unique to this season of life. It’s crucial to weigh these aspects carefully, as they will significantly shape your policy’s structure and its role in your financial plan going forward.
Type of coverage
You have two main choices for life insurance coverage after age 50: term life and permanent life. Term life policies are less expensive and cover you for a set number of years. If you pass away during this time, your family gets the death benefit.
Permanent life insurance lasts your entire lifetime and usually costs more. It can also build up cash value that you might use while alive.
Think about what fits your needs best. A term policy could be right if you’re looking to cover specific debts or financial goals over a certain period. But if you want something that builds cash value and offers lifelong protection, consider whole or universal life insurance policies – they provide both death benefits and potential living benefits.
Financial objectives
Think about what you want your life insurance to do for you. Your financial goals can guide your choice of policy. Maybe you want to make sure your spouse can pay off the home mortgage, or maybe you wish to leave money behind for your grandchildren’s education.
Some people focus on covering funeral costs so their families don’t have to worry.
Pick a life insurance plan that fits with these aims. Whole life insurance might be right if building cash value is important to you. If leaving a lump sum for your family matters most, consider term life insurance which often has lower premiums but does not build cash value.
Whatever your decision, ensure it aligns with the financial future you envision for yourself and loved ones.
Health status
Your health matters a lot when picking life insurance after 50. If you have medical conditions, finding coverage that is affordable and available becomes crucial. Some of you might want a policy without a medical exam.
That’s an option too.
Keep in mind, your current and past health issues will affect the kind of policies offered to you. Companies look at your health to decide how much you’ll pay and what benefits they can provide.
Healthy living could lead to better rates and more choices for your insurance needs.
Premium costs
Premium costs for life insurance can be surprising as you reach 50 and beyond. You might pay between $1,733 to $2,040 annually for a 20-year term policy at age 50. Prices go up with age because insurers see older policyholders as higher risk.
A person’s health also affects the price of life insurance premiums. If you’re healthy, you’ll likely pay less than someone with medical issues.
Before buying a policy, think about how much coverage you need and your financial goals. Look into different life insurers to find one that fits your budget. Check out customer satisfaction ratings and reviews to get an idea of their service quality before making a choice.
Coverage amount
Choosing the right coverage amount is a big decision. You can find life insurance policies that offer up to $1.5 million for people over 50. This wide range of options means there’s something out there for everyone, whether you’re looking to cover final expenses or leave a legacy.
Think about what your family needs. If you want to make sure they’re financially secure or have specific debts paid off, aim for a higher coverage amount. Always check if the limits meet your long-term goals because sometimes, what seems like enough might fall short in reality.
Best Overall Life Insurance: New York Life
For those seeking a robust life insurance policy beyond the age of 50, New York Life stands out as a top contender. With its comprehensive coverage options and established reputation for financial strength, this insurer delivers policies tailored to meet the complex needs of mature individuals looking for security and peace of mind.
Summary & Features (New York Life)
New York Life insurance gives you lots of choices. They have term, whole, and universal policies to fit what you need. This company is strong and reliable – it gets top marks for financial health.
In 2023, people said New York Life was one of the best.
Their policies can also include extra coverage for things like accidents or illness. You even get a guaranteed death benefit with their term life plans, which means your loved ones will be taken care of no matter what.
Pros & Cons (New York Life)
New York Life stands out for its variety of policy options, including term and whole life insurance. You can start with term coverage and later switch to permanent insurance. Their financial strength means your policy is secure.
High customer satisfaction scores show they care about their clients. Plus, if you’re over 50, their broad age limits are a big plus.
However, New York Life’s policies may come at a higher price compared to some competitors. The complexity of certain policies can be confusing without help from an insurance agent.
If budget is tight or simplicity is key for you, it might be worth looking around before deciding.
Best Term Life Insurance: Bestow
For individuals over 50 seeking affordability combined with simplicity, Bestow stands out as a top contender in term life insurance. It offers a streamlined online application process and competitive pricing, catering to those who prefer not to engage in the traditional medical underwriting procedures.
Summary & Features (Bestow)
Bestow stands out for its ease and speed. You can secure a term life insurance policy fast, without the need for medical exams. Their policies range from $50,000 to $1.5 million in coverage to fit different needs and budgets.
If you’re between 18 and 60 years old, Bestow has options that could work well for you.
Their application process saves time by being online and straightforward. Many customers praise Bestow for affordable rates and the convenience of getting insured quickly. Plus, their strong financial stability means peace of mind knowing they’ll be there when needed most.
Pros & Cons (Bestow)
Bestow makes getting life insurance simple. You can get a policy fast without a medical exam. They offer term coverage from $50,000 to $1.5 million. Approval might only take minutes.
This is ideal if you have health issues and need quick protection.
But Bestow’s policies don’t build cash value like whole life policies do. They pay out only if you die during the term of the policy. If living benefits or investment options matter to you, consider other types of insurance as well.
Best Universal Life Insurance: State Farm
When considering a universal life insurance policy that combines flexibility with the potential for cash value growth, State Farm stands out. Their policies cater to those seeking both death benefit protection and financial planning tools as part of their comprehensive retirement strategy.
Summary & Features (State Farm)
State Farm shines with its top-notch universal life insurance. This reliable insurer ranks first in both whole and universal life policies, a testament to their commitment to quality coverage.
You have options here: choose from three types of universal life insurance to match your needs. Each policy is adjustable, letting you tweak your coverage and premiums as your life changes.
With State Farm’s policies, you also build cash value over time. Use this money while you’re still around — it can help with retirement or emergencies. They stand out as one of the biggest providers in the U.S., backed by strong financial ratings and glowing customer reviews.
Trust in their ability to support your financial security now and for years to come.
Pros & Cons (State Farm)
State Farm shines with its A++ financial strength rating from A.M. Best, making it a solid pick for life insurance over 50. Its universal life policies offer flexible premiums and the potential to build cash value.
You can adjust your coverage as needed, which is great for changing life situations.
But there are downsides too. Adjusting premiums might affect the cash value and future coverage. You’ll need to manage your policy well to keep the benefits you want. Also, while State Farm has excellent customer service ratings, their prices may not be the lowest available.
Shop around to make sure you get a deal that fits your budget and needs.
Best for Estate Planning: Lincoln Financial
6. Best for Estate Planning: Lincoln Financial.
For those over 50 with an eye on their legacy, Lincoln Financial emerges as a top contender in estate planning. Offering robust options tailored for wealth transfer and preservation, this insurer provides the financial instruments to secure your beneficiaries’ futures.
Summary & Features (Lincoln Financial)
Lincoln Financial understands your needs for both life insurance and long-term care as you age. They offer Lincoln MoneyGuard® solutions, a unique type of universal life insurance.
This policy comes with a long-term care rider designed especially for people over 50. It helps protect your assets while providing the added benefit of coverage for potential health costs later in life.
Their estate planning options are top-notch too. With Lincoln Financial, you can get policies that cover two lives under one plan—often called survivorship or second-to-die policies.
These plans pay out after both individuals pass away, making it easier to manage estate taxes and leave a legacy for your heirs. Keep in mind though, their policies aren’t the same everywhere—they have some rules and benefits that vary by state.
Lincoln Financial encourages regular policy reviews to keep up with your changing legacy protection goals. Plus, they recently launched “The Action Plan” campaign aimed at highlighting vibrant lifestyles after 50 and the importance of financial preparation for the future.
Pros & Cons (Lincoln Financial)
Lincoln Financial’s life insurance plans stand out for estate planning. They offer unique policies that help you manage your wealth and pass it on smoothly. You can choose different riders to tailor the insurance to your specific needs, but be aware of any exclusions or conditions.
However, if growing cash value is important to you, some of their products may disappoint. The investment returns on certain cash value life insurance policies have been just fair.
It’s crucial to weigh these factors carefully before deciding if Lincoln Financial is right for your situation.
Great for High Issue Age for Term Life: Principal
For those seeking term life insurance with a generous issue age limit, Principal stands out as an accommodating choice. Their policies cater to individuals over 50 who desire coverage without age being a barrier to entry.
Summary & Features (Principal)
Principal stands out for seniors over 50 looking for reliable term life insurance with high issue ages. You can apply for a policy later in life, which is great if you’re planning ahead for estate matters or simply want protection as you grow older.
Their term insurance comes with flexible coverage options, giving you the freedom to choose what fits your needs and budget best.
With Principal, estate planning becomes less complicated. They offer valuable features like cash value accumulation and policy conversion opportunities. This means that as your personal finance goals evolve, your policy can adapt to meet those changes without leaving any gaps in your plan for the future.
Pros & Cons (Principal)
Principal stands out for seniors because it allows you to get term life insurance up to age 80. That’s quite high compared to other companies. You can even renew your policy until you’re 95, although the costs will go up as you get older.
If estate planning is on your mind, Principal is a solid choice.
However, while the issue age is generous, keep an eye on rising premium costs over time. This makes budgeting for future expenses important. Also consider how changes in health status might affect renewability and rates at advanced ages with Principal’s policies.
Understanding Life Insurance Costs Over 50
Life insurance after 50 gets pricier. As you age, companies see you as a higher risk which means they often charge more to cover you. You could pay around $1,733 to $2,040 annually for a 20-year term policy if you’re in your fifties.
Expect even higher rates for longer terms like a 30-year plan.
Forbes Advisor looks closely at each life insurance company’s costs and benefits, making it easier for people over fifty to choose wisely. Insurers like Guardian and MassMutual make the top list because they offer robust coverage suitable for seniors’ needs.
Some policies skip the medical exams or provide whole-life coverage that builds cash value over time. Always check the details so you can find life insurance that fits within your budget while still meeting your goals.
Type of Life Insurance Suitable for 50-Year-Olds
AIG provides options that cater to your age group, like term life policies and permanent coverage. These offerings give you the flexibility to choose a plan that matches your long-term goals and current health status.
Protective stands out for term insurance, especially if you’re looking for something affordable with high issue ages.
You have many choices at 50 years old, such as whole life insurance, which offers consistent premiums and builds cash value over time. Term life policies are often less expensive and can cover needs like paying off a mortgage or protecting income during working years.
Policies tailored for seniors might focus on covering final expenses or leaving an inheritance without requiring a medical exam. Consider what matters most to you now and in the future before making a decision.
How much life insurance should a 50-year-old have?
Choosing the right amount of life insurance at 50 can make a big difference. You might want enough to cover your debts, support loved ones, or pay for final expenses. Experts often suggest having 10 to 15 times your annual income in life insurance coverage.
At age 50, rates are still reasonable. A $250,000 policy could cost as little as $29 a month on average for a term plan.
Your needs may vary though. Maybe you prefer more security with longer coverage like a 20-year term policy. Depending on personal rates, this might range from $1,733 to $2,040 annually for someone who is fifty years old.
It’s all about matching your financial goals and providing peace of mind during later years without breaking the bank each month.
Is it worth getting life insurance at 50?
Getting life insurance at 50 can be a smart move. You might want to protect your family, cover end-of-life expenses, or leave some money behind. Life changes, like kids still at home or a spouse who relies on your income, make insurance important.
At this age, you’re likely in good health and can lock in lower rates than when you’re older.
Think about what you need from life insurance. Are final expense insurance or burial insurance enough? Or do you need something that helps with more, like estate planning? Forbes Advisor and U.S. News have advice on the best options for those over 50.
It’s possible to find a plan that fits your budget and gives peace of mind without breaking the bank.
FAQs
1. What are the best life insurance plans for people over 50 in 2024?
Top life insurance plans for those over 50 come from reputable companies like Penn Mutual, Mutual of Omaha, and Pacific Life. These carriers offer policies that may include dividends, long-term care additions, and different types of coverage to suit your needs.
2. How do I get life insurance quotes if I’m over 50?
You can obtain life insurance quotes by contacting insurance agents or researching online through the websites of carriers such as Northwestern Mutual or Haven Life. Ensure you compare multiple plans to find one that fits your budget.
3. Why is it important to look at a company’s AM Best rating when choosing an insurance plan?
An AM Best rating indicates an insurer’s financial strength and ability to pay out claims. Checking this rating helps ensure you choose a reliable company for your life insurance policy.
4. What should I consider about a policy’s liquidity before buying?
Liquidity refers to how easily you can access cash values from your policy without major penalties. This is crucial if you might need funds quickly for emergencies or unexpected expenses.
5. Can life insurance help with funeral expenses after age 50?
Yes, many whole-life policies include riders or built-in benefits that can cover funeral expenses, relieving your family of potential financial burdens during an already difficult time.
6. Are there specific terms used in the underwriting process that I should know about?
When reviewing policy illustrations in the underwriting process for variable universal life insurances or similar products, understand terms like “maximum issue age,” which denotes the oldest age at which you can apply for coverage.
Source Links
- https://www.usnews.com/insurance/life-insurance/best-life-insurance-over-50
- https://www.forbes.com/advisor/life-insurance/best-life-insurance-over-50/
- https://www.cnbc.com/select/best-life-insurance-seniors/
- https://www.nerdwallet.com/article/insurance/senior-life-insurance
- https://www.investopedia.com/best-life-insurance-for-seniors-4845439
