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) you can call us at 1-800-712-8519.

Whole Life or Term Insurance?

There are two broad kinds of insurance. 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 is the length of protection. 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.

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.

Do You Need Life Insurance?

At age 50, your insurance needs are wildly different than younger age groups. Just because you’re in your 50s, doesn’t mean you no longer need life insurance. In fact, you might still need a massive plan.

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 for buying insurance. Your family would go from two paychecks to only one. Most families can’t survive this kind of financial jump.

Many parents plan to provide for their children’s college education. if you didn’t know, college is expensive. If you don’t want your spouse to have to pay for your children’s college degree by them self, you should add this into your life insurance plan.

4 key features of Indexed Universal Life for College Planning

Another common expense you should consider when buying insurance is your mortgage loan. For most people, it’s the biggest debt they will ever have. That massive debt will go to your spouse or children. Without a life insurance plan, that mortgage can become a serious burden.
Life insurance at 50

Indexed Universal Life for Mortgage Protection?

One less common reason is for small business owners. If you have a company, but something happened to you, what would happen to the business? Without you, would they be able to keep the doors open? Life insurance plans can help your small business keep running and get through the loss.

Funding buy sell agreements with indexed universal life insurance

How Much Life Insurance Do I Need?

The guidance of a independent broker 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.

Depending on your situation, your life insurance needs are going to change. For most people, adding up their needs is simple,

You need to replace your paycheck to ensure your family has enough money for everyday expenses. You want to leave enough money behind to set up a “nest egg” which can earn enough interest for your family to smooth over any financial bumps.

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

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

$25,000   ÷   .04   =   $625,000

 Note that this calculation leaves the “nest egg” intact for your family to use for other necessary expenses.

What’s the Cost?

Okay, let’s get to the nitty gritty – the price. Everyone wants to know they can afford the plan their family will need.

Okay, before you look at the quote we provided, we need to make a few things clear. First of all, the prices below are for a non-smoker. If you light up cigarettes, disregard these premiums. Instead, fill out a quote form and we can get smoker prices tailored for you.

Also, take these quotes with a grain of salt. Because there are so many variables, your exact rates are not going to be identical.

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

Now you should have all the info you need to get a quality insurance plan. We don’t think you should wait any longer to get life insurance.  The quickest way to buy life insurance and get coverage is through a no exam life insurance policy.  Waiting will only put your family at risk and cost you more money in the long run.
Are you ready to get started?

Getting started is easy!

life insurance at 50

 

 

  • 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 Doug Mitchell
About Doug Mitchell

Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA.  Doug has spent over 20 years in the life insurance industry and has also held licenses to sell securities, long-term care insurance, home and auto insurance.  For two years, Doug served as President of the Auburn Opelika Association of Financial Advisors and has been a member of the Million Dollar Round Table.  He obtained Life Millionaire status at Horace Mann Insurance Company and was awarded the Life Agent of the Year Award.  Later in his career with New York Life he was an Executive Council Member.  Doug currently serves as President of Ogletree Financial, a life insurance marketing organization with over 1000 life insurance agents.  Today, Doug’s main focus is servicing 1000s of policyholders and growing his agency through the reach of www.insurancequotes2day.com.

This entry was posted in Quotes By Age. Bookmark the permalink.

Leave A Reply