Life insurance at 50

Congratulations, you’ve made the big five-oh! You’ve accomplished a lot in half a century, mainly supporting a family you love and who rely on you for financial support and a lot more! Life insurance at 50 will protect your family’s financial future and your peace of mind.

Many in their fifties are sure life insurance will be too expensive. This is not necessarily so. Life insurance rates will rise each year and you want to act quickly to save money. But, the premiums you will pay for a policy at 50 can be very affordable, easily fitting into a tight family budget.

This article is geared toward those who are largely unfamiliar with the basics of life insurance. We will address a few questions many new clients have, followed by some sample quotes for a 50-year-old male and female.

What is term versus permanent life insurance?
Why do I need life insurance?
How much life insurance do I need?
How much will my life insurance cost?

A few minutes of reading should get you started on the road to proper life insurance coverage. If you have any questions not answered here (and there are many) feel free to give us a call at Ogletree Financial Services.

1-800-712-8519

What is term versus permanent life insurance?
These are the two main types of life insurance policies. Both carry the essential aspect of life insurance, the death benefit. If you pass away while your policy is in effect, your beneficiaries will receive the death benefit of your policy.

The first main difference between term and permanent life insurance is the length of time the policy will stay in effect. Term life insurance had a definite length of contract and can be viewed as temporary insurance. Many financial obligations, such as the support you provide your children or a mortgage, will pass at some point in time. Permanent life insurance never expires. As long as you pay your premiums, your beneficiaries will receive the death benefit of your policy, no matter when you die.

The second main difference between term and permanent insurance are the interest-earning cash accounts and the associated “living benefits” that are connected to permanent policies, but not term policies. The benefits of permanent life insurance transform your policy into a powerful tax-friendly financial tool. A tool that creates a cash flow that can be directed towards education, medical expenses, retirement or any other important “living” financial needs.

This article is mainly concerned with term life insurance and the samples quotes presented are for term life insurance policies. Look for a few links to some relevant articles about indexed universal life (IUL), an exciting variety of permanent life insurance.

Why do I need life insurance?
This is the first question many people ask. Why do I need life insurance? Generally, the purpose of life insurance is to be certain that the people who count on you financially will not be plagued by monetary loss on top of the obvious grief they would experience if you were to pass unexpectedly. If you and your income were to suddenly disappear, would your family be okay? In all likelihood, no. This is why people buy life insurance.

Let’s look briefly at four of the main reasons we see clients purchasing life insurance:

  • income replacement
  • college education expense
  • mortgages and other large debts
  • partners in a small business

Beyond the basic final expenses and burial costs, income replacement is a primary reason many clients decide to purchase term life insurance policies. These policies provide your loved ones with a cash settlement when you die that enables them to maintain the standard of living you work hard for them to enjoy.

Many parents plan to provide for their children’s college education. Therefore, many clients Life insurance at 50consider these costs when deciding on the death benefit for a term life insurance policy. Even if you were to pass unexpectedly, you want to be certain that your children will be able to rely on this valuable transition to adulthood.

4 key features of Indexed Universal Life for College Planning

If you are planning on buying a home, you may want to think about a life insurance policy to cover your mortgage. You don’t want your family to be saddled with any financial burdens such as a large debt. A large debt that could lead to years of financially hard times in addition to an overwhelming family loss.Life insurance at 50

Indexed Universal Life for Mortgage Protection?

Another use of a life insurance coverage is for partners of a small business. This is usually two policies that the partners would each purchase. If one partner were to die unexpectedly, the other partner’s policy would pay a benefit that would enable them to buy out the deceased partner’s interest in the business. This type of policy could be the difference between a small business’ continued operation or an unfortunate bankruptcy.

Funding buy sell agreements with indexed universal life insurance

How much life insurance do I need?
The guidance of a qualified independent agent is mandatory as you maneuver through the life insurance marketplace and decide upon your family’s life insurance needs. College expenses depend on many factors. Public or private? Four-year or two-year? University or trade school? Full ride or just books and tuition? The decisions are piling up.

In a small business situation, each partner’s interest in the business must be calculated. A close look at your books will be required to arrive at some accurate figures here.

Ogletree Financial Services can be your guide to the right life insurance decisions to guarantee you and your family get the coverage you need at the lowest premium available.

The life insurance benefit needed to restore your income can be roughly approximated using some basic math. The plan is to leave a “nest egg” that will earn in interest the yearly income your family would require if you were to pass away unexpectedly.

How much income would your family need? This amount that you and your agent will decide upon will depend on a few factors, including your spouse’s future income-earning potential. What lump sum would your family need to receive as a benefit of your life insurance policy to earn the yearly income you have decided upon?

Let’s use a conservative 4% interest rate you are sure your family’s pay-out would earn.

Now some math! Divide the desired yearly income by the 4% interest rate.

If your family would need a yearly income of $25,000,Life insurance at 50

$25,000   ÷   .04   =   $625,000

So, for your family to be able to rely on a yearly income of $25,000 after you have died, you would need a life insurance benefit of $625,000. Note that this calculation leaves the “nest egg” intact for your family to use for other necessary expenses.

How much will my life insurance cost?
If you are 50 and in good health, your life insurance coverage should be affordable. Contact the experts at Ogletree Financial Services to make sure. We work with over 30 top insurers and can assess your unique risk, choosing the best life insurance company for you and your family.

We have four tables here with sample monthly premiums for a non-smoking, 50-year-old male and female. The sample quotes shown here are for term life insurance. There is a table for a preferred plus risk rating and one for a standard risk rating.

Term lengths of 10, 15, 20, 25, and 30 years, with face values of $100,000, $250,000, $500,00 and $1,000,000 are shown. These are only sample premiums, your premium will be based on how your unique risk is assessed. These sample quotes were gathered in June of 2016.

50-year-old Male Preferred Plus Health Category
Term Life Policy – Sample Monthly Premiums – Non-smoker

$100,000 $250,000 $500,000 $1,000,000
10-year $16.26 $27.59 $48.35 $85.98
15-year $21.79 $38.03 $65.23 $110.25
20-year $27.21 $42.95 $82.08 $149.99
25-year $36.33 $63.63 $118.24 $226.11
30-year $39.27 $75.83 $137.02 $265.12

50-year-old Male Standard Health Category
Term Life Policy – Sample Monthly Premiums – Non-smoker

$100,000 $250,000 $500,000 $1,000,000
10-year $29.24 $55.94 $96.77 $175.08
15-year $34.43 $69.98 $120.53 $220.92
20-year $38.62 $78.24 $152.93 $278.88
25-year $59.43 $123.40 $224.02 $430.79
30-year $67.05 $143.78 $279.90 $500.94

50-year-old Female Preferred Plus Health Category
Term Life Policy – Sample Monthly Premiums – Non-smoker

$100,000 $250,000 $500,000 $1,000,000
10-year $15.66 $23.48 $40.14 $71.28
15-year $18.14 $26.94 $48.35 $84.67
20-year $20.57 $33.22 $63.07 $116.64
25-year $29.49 $56.14 $88.80 $168.55
30-year $35.09 $63.49 $101.40 $196.76

50-year-old Female Standard Health Category
Term Life Policy – Sample Monthly Premiums – Non-smoker

$100,000 $250,000 $500,000 $1,000,000
10-year $21.80 $45.79 $74.74 $130.96
15-year $24.80 $54.22 $88.58 $177.98
20-year $29.89 $66.96 $118.80 $212.27
25-year $43.36 $91.13 $170.32 $325.93
 30-year $49.25 $97.47 $188.91 $369.95

Life insurance at 50

With your basic understanding of these important life insurance concepts and knowledge of how affordable life insurance can be, your next move is to get in touch with us right now. Ogletree Financial Services is ready to stand by you throughout the initial application process and beyond as your family and life insurance needs evolve.

Getting started is easy!

  • Give us call at 1-800-712-8519!
  • Leave us a message on our contact page to get a custom quote!
  • Use the free term quoter on the left side of this page!
About Ogletree Financial Services
About Ogletree Financial Services

As independent life insurance agents, we specialize in finding the best life insurance rates and policies for our clients.  Our customers are located all over the USA.  If you would like a personalized life insurance quote, you can start here on our website or give us a call at 1-800-712-8519.

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