Looking for a quote for life insurance or burial insurance? Click here and send me a message with details of what you’re wanting to accomplish. If you’d prefer to talk live, call 888-626-0439 to speak with me directly.
In This Article I’m Going To Discuss The Many Different Ways An Individual Who Is 50 Years Old Or Older May Be Able To Qualify For A Life Insurance Plan
Most likely you’re here today either because yourself or a loved one has just turned 50 or older. You’ve reached a point in your life, maybe through some sort of event or circumstance, that has caused you to decide that owning life insurance coverage is a worthwhile endeavor.
However, you’re here because you have some questions. You wonder how life insurance works and want to make sure you get the best type of life insurance coverage that’s available to you. You also have goals in mind and a budget to consider.
If this describes your situation, you’ve found the right article. My job as a life insurance agent is to explain to people like yourself how life insurance works, why people buy it, and to explain how different packages can work to help you accomplish your goals.
NOTE: Would you prefer me to present this information to you in video format? Watch the video below for the complete presentation. Enjoy!
Here’s An Overview Of The Topics We Will Discuss:
- What Life Circumstances Cause People To Purchase Life Insurance?
- What Are The Most Common Reasons Why People 50 And Older Buy Insurance?
- The Top 5 Reasons Why People Buy Universal Life Insurance
- Case Study Examples
- What Types Of Life Insurance Products Are Available For People 50 And Older?
- Stories From The Field
- Strategies To Get The Best Insurance Package For Those 50-Years-Old And Older
- What Factors Affect Insurability For People 50 And Older?
- Exam Or Non-Exam
- Burial Insurance Rates, Age 40 to 90
What life circumstances cause people to purchase life insurance?
What I want to do in this section is share with you circumstances people in your age group and older experience that causes them to decide to purchase life insurance. You may relate to one or more of these scenarios.
Recently married or currently married
Most people 50 and older reading this are recently married or currently married. Having someone who depends upon you and your earnings or the work you provide is a great reason to own a life insurance plan. While it cannot prevent someone’s demise, it can replace to a certain extent their earning power to help ease the loss of a loved one. The most common reason why a married person would purchase life insurance is to protect their spouse economically.
Most commonly what we see is a husband who buys life insurance on himself. If he ends up dying and leaves that money behind to a surviving widow, she can live comfortably and not be financially stressed to the point where she has to move out of their home, downsize, or live in squalid conditions that otherwise wouldn’t have happened if the husband had insurance.
Many people purchase life insurance who are married or were recently married solely to care for their surviving spouse. This can go both ways – wives may take out insurance because they are the sole providers or perhaps they provide economic value by taking care of the kids or grandkids.
Up and coming mid career or end of career
Many people in their 50’s and older who still work are at the top of their career and receive raises and bonuses that make a big contribution toward their lifestyle. They may be in the best shape of their lives, but this is the perfect time to purchase life insurance. You see, the higher your income, generally the better your living standards are and your lifestyle usually accommodates.
If you were to pass away and lose your economic earning power, then that lifestyle would have to be supplanted and replaced with something else. Otherwise, the people that you love dearly will have to downsize and all of your hard earned work will wither away in an instant.
Many times people in their fifties who are doing well in their careers already have life insurance, but find a need for more because of their promotions and economic raises. Adding more coverage to your life insurance plan protects against the potential for your earlier than expected demise at or near retirement. this is especially a concern as people turn 50 and older.
Retirement is a surefire reality and at or near retirement financial obligations emerge that otherwise may not have been a concern earlier on. Chief among them is the payment of burial and cremation expenses. Many people buy a life insurance plan to pay for burial or cremation so that money doesn’t have to be taken from savings or a family member doesn’t have to come out of pocket to make the payment.
Also, some retirees who did not achieve their financial goals through savings and investments, buy a life insurance plan to replace their income or their pension plan that they may lose if they die and their surviving spouse lives. This allows for an economic boon to the surviving spouse who may make substantially less and may not get that pension plan upon their passing.
We are dedicated to helping people meet their life insurance goals by providing affordable first day coverage so that your loved ones will be provided for.
We search a variety of competitive companies to find the best priced option for your unique circumstance. Call us today at 888 626-0439 for a free quote to find out what type of coverage you could qualify for or get in touch by sending a message on the left hand side of the screen.
What are the most common reasons why people 50 and older buy insurance?
I want to expand upon some of the points we mentioned earlier as to why people who are 50 and older buy life insurance. Again, this whole section, just like the prior section, is designed to further clarify and solidify in your own mind why life insurance is important to you and what circumstances best match what you’re looking to accomplish.
Cover final expenses
As mentioned in the previous section, especially as one gets over the 60 year mark, the reality of our mortality becomes more tangible and the safeguard of life insurance protection for final expense related items becomes a logical choice, especially if there is very little to no savings at retirement.
Many people in their 50’s and beyond still have a mortgage that must be covered for a period of time, maybe into retirement or beyond. A mortgage protection life insurance plan is a great buy.
Mortgage protection life insurance plans are designed to pay a lump sum to the beneficiary of your choice so that a portion or all of the mortgage can be paid down with the goal of eliminating the monthly mortgage debt.
This allows the surviving family to be free of the weighted responsibility of monthly payments, which could potentially put them in a difficult position where they would have to move out of the home quickly or foreclose.
Leave money to people you love
People in their 50’s and 60’s at this point usually have grandkids or kids they want to help out as they get started in life. A life insurance plan can be a worthwhile surprise to people in your life that you want to leave money behind to and it can positively affect their lives in amazing ways.
The process is very simple. You insure yourself and name the person or an organization that you care about, like a charity or a church, as a beneficiary to receive the money.
Ultimately, life insurance is all about one thing and that’s love. People don’t buy life insurance plans without having love or affection towards something or someone, whether that’s a person, a home, a business or an organization.
Why? Because the benefit of life insurance isn’t realized until it’s beyond your grasp to comprehend the meaning. Money is paid out after your death, so you never personally see the benefit. It takes a particular type of faith to pay premiums for a very long time with the assurance that it will be paid out.
Most commonly, people 50 and older buy life insurance while working because they want to make sure that their income is replaced if they die earlier than expected.
Income replacement is important, especially as promotions occur and income increases because most likely the lifestyle increases as well, which can bring on more debts and obligations. If for some reason an individual reaches retirement age and they don’t adequately save or prepare enough, their spouse may be financially in dire straights should they pass away.
A life insurance plan can protect a surviving spouse by providing an income replacement that allows them to continue to live comfortably with peace of mind in knowing their financial situation is taken care of.
Retirement continuity plan
Many people who are 50 and older begin to aggressively save in a large way towards retirement. But have you thought about insuring your retirement? What happens if you don’t?
If you die, losing out on funds that would have otherwise been paid into a retirement plan will affect the people you love, chiefly among them, your spouse and perhaps your kids. If your plan was to give them some of the money upon your passing, with a life insurance policy you can ensure that retirement contributions are made in addition to a death benefit.
If you’re a business owner or entrepreneur, you may want to consider buying life insurance to give your business the ability to continue if you or a partner happen to pass away . You do this by creating a buy- sell legal document. Life Insurance can fund the buyout of the partners heirs to facilitate full ownership to the surviving partner.
Assuming full control of the business allows the remaining partner to continue with the business goals that you had in mind. The insurance provides a cash payout that goes to the partner’s heirs so that they’ll be satisfied with having some sort of buyout provision.
Cover key people
If you run a business and have a key person that’s responsible for an important aspect of your business, consider taking out insurance to cover their death. This pays a death benefit to your corporation and allows you to literally buy time to find a replacement to secure relations with important vendors and people that your key person may have been responsible for.
This essentially gives your business the best chance of continuity if your key person were to pass away.
Cover business loans
Insurance can also cover business loans. If you take out a loan with a bank, often they require that you have some sort of life insurance in place to protect against the chances that you might die before the loan is paid off.
Supplemental life insurance retirement plan
Life insurance is not only used to pay a death benefit, it also can be used as a tax advantage way to plan for retirement, typically using whole life or index universal life products. A person in their 50’s can design a plan that will allow for tax free withdrawals from their life insurance plan while also providing a death benefit at the same time and covering against the risk of a downside market.
If you are interested in seeing what type of life insurance you may qualify for, give Buy Life Insurance for Burial a call at 888 626-0439 to get your own customized, free quote.
You can also use the contact box on the left and bottom of your screen to request more information. We will contact you in 24 business hours or less to discuss your options with you.
The Top 5 Reasons Why People Buy Universal Life Insurance
Unlike term life insurance or whole life insurance, universal life insurance provides the ability to alter your payments upwards or downwards in whatever circumstances that you find you are in. For example, let’s say you have a rough year financially but you don’t want to lose the universal life insurance policy that you have. A universal life insurance policy will in many circumstances allow you to adjust your rate downward for a period of time so that you can keep the policy in force without losing it entirely.
This would not be the case with a whole life or term life insurance which requires level premiums throughout the life of the policy, which means if you had to miss payments because of financial difficulties you may lose the entire policy. Note that flexible payments do have an impact on the level of coverage and its ability to stay in force. Consult with your agent to find out more about how to design a program that accomplishes your goal while keeping the flexible payment arrangement.
You can adjust the coverage amount for your universal life insurance upwards or downwards based on how much coverage you intend to put into the policy and how long you want the coverage to be in effect. You can have some programs that are permanent in nature that last throughout your entire lifetime or you can have shorter term coverage that provides permanent coverage for a set period of time.
Again, there are lots of ways to skin a cat when it comes to universal life insurance so talk to a broker like us at Buy Life Insurance for Burial so that we can better describe your options to you.
3.Maximum, permanent death benefit using a no-lapse rider
One of the things I like to use with my older clients to maximize their death benefit options is what’s called a no-lapse universal life insurance policy or a guaranteed universal life insurance policy. Both are the same thing. The concept is simple. The policy requires that you maintain the same premium throughout the lifespan of the policy and in exchange the guaranteed universal life policy is designed to not lapse because of a certain age that is reached.
This gives you the ability to cover yourself until age 121 which effectively is longer than anybody ever lives and gives you permanent protection. The biggest advantage when compared to most other common types of permanent life insurance, which is whole life insurance, is that the death benefit payout is much larger than what you would find from a whole life insurance plan. This gives you the ability to maximize your beneficiaries death benefit proceeds as opposed to a whole life plan which would minimize the cash value acquisition of the policy.
4.Principle protection with upside market exposure
There’s been a very big surge in interest in what’s called index universal life plans. These are universal life plans which can be custom tailored by price, coverage amounts, and coverage length, but also are designed to build cash value reserves based on how the market performs.
The added advantage of putting your money into the market directly is that you have principle protection. Essentially what this means is that you don’t experience the downside forces of the market, only the upsides in a limited fashion.
What this allows you to do is have a portion of your retirement plan, the most common use for universal index life, experience exposure to positive market years but have minimal exposure to the down years. For those of you looking for safety and want some kind of retirement strategy that allows for safety and the benefits of the upside of the market, the universal life plan may be something to consider.
5.Designed to meet practical realities of clients
The reason universal life insurance plans were created was that it was very difficult to imagine a client always having the same level of income expectations his entire life. When problems arose it was obvious that many people would lose their coverage that they had paid diligently or have to start anew, possibly paying much higher premiums than they had in prior years.
A universal life plan was ultimately designed with the realities of a person’s life in mind. It’s designed to give quality coverage but have the needed flexibility to allow individuals to keep it for the long term.
Case Study Examples
Replacing Income Near Retirement
Mr. Goldsmith contacted me because he was concerned about income replacement. He was 62 years old and was worried that if he passed away sooner than expected his wife would struggle to live on a very limited income from social security.
He was looking for a burial life insurance policy that would replace his income and help fund his retirement savings so that his wife would be taken care of.
The only problem Mr. Goldsmith expressed to me was that he was on a very limited income. He worked part time and wanted to be sure he could afford the insurance premium without breaking the bank. The good news is that despite his limited income, Buy Life Insurance for Burial was able to get Mr. Goldsmith quality, first day coverage at a price he could afford. While every application outcome is different, we do our best to get clients great coverage at a price they can afford.
COPD Sufferer Looking for Final Expense Coverage
Miss Lowry was 61 when she contacted me about burial insurance. She knew that burial expenses in her area ranged from $7,000 all the way up to $12,000 and she was concerned about leaving her children with the out of pocket expense.
Miss Lowry had a history of COPD and was concerned it would affect her eligibility for quality burial insurance. Thankfully she contacted Buy Life Insurance for Burial and were were able to shop a number of insurance providers to find a policy that met her final expense goals.
What types of life insurance products are available for people 50 and older?
In this section I’m going to briefly discuss and show rates for the four most common types of life insurance plans available to people 50 or older. What type of plan you choose solely depends upon your goals, which we’ll discuss shortly so that you can better match the right type of plan with your particular goals.
Term Life Insurance
Term insurance is the most common form of life insurance protection. We see term insurance most commonly purchased to protect and replace income retirement coverage or to cover a mortgage or business loan.
Term insurance by default is temporary insurance. It’s designed to only cover for temporary obligations. Eventually over time an individual can outlive the term policy, which is the downside to this type of insurance. It is not guaranteed to last for as long as you live so many times term insurance never pays out.
The biggest advantages of a plan like this, despite its potential to cancel at a future date, is that you get the most coverage for the least per dollar amount of money that you pay in premiums relative to the other options available. About 80 percent of the population choose to go with term insurance because they find that it matches the most common reasons why life insurance is purchased.
Term Life Insurance Coverage – 10 Year Term – $100,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $250,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $500,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $1,000,000 in Coverage
Stories from the Field
Early on in my career I met an older couple in their 50’s. Both were retired. It dawned on the husband, who had adequate life insurance coverage, that it was important to have his wife covered too. He didn’t want a lot of coverage, just enough to take care of her burial. He saw that she was getting older, a little more frail, but nothing serious. So he decided to take care of this concern now rather than wait until it possibly became too late.
Luckily she was in good health and we were able to qualify her for first day full coverage with a reputable company. I didn’t hear back from this client of mine until about three years later when unfortunately the call came in that his wife had passed away after a struggle with cancer.
He was pleased to hear that his life insurance coverage would pay out within several weeks since we had to wait on the death certificate to be processed before the money would be released. There was enough indication for the funeral home to go ahead and proceed with the burial. He was able to take care of those final expenses and didn’t have to worry about coming up with the money on the short term.
I remember him telling me something that always stuck with me. He said, “Thank you so much for this help. I really appreciate everything that you did.” It was one of those incidents early in my career where I had spent many a year selling insurance but not necessarily has seen the benefits of it. I realized the kind of good work that we do to help all sorts of people everywhere.
And I understood how we can benefit people just like you by relieving financial burdens so that the family you leave behind can spend time mourning their loss and thinking good thoughts about how you impacted their lives.
Whole Life Insurance vs. Term Life Insurance
Whole life insurance is more commonly purchased among people who are 50 or older because many people in this age range need a permanent type of plan that doesn’t cancel due to age or health like term insurance does.
Usually people buy whole life insurance when they want to cover final expenses such as burial and cremation. Whole insurance ensures a death benefit payout at the end of life to make sure a spouse is more comfortably protected.
The biggest cons of whole life insurance is that the rates tend to be 5 to 10 times as much as a term life insurance plan, so comparatively speaking, while the advantages of whole life are clear, you do have to pay more for that guarantee. see below for rates.
Rates For $10,000 In Burial Insurance
Rates For $25,000 In Burial Insurance
$150,000 Whole Life Insurance, Life Pay
$250,000 Whole Life Insurance, Life Pay
Universal life is a unique blend of term and whole life insurance. You can custom tailor it to be permanent or temporary and you also have some level of control regarding the premium that you pay.
However, there are some downsides to universal life plans in the sense that they have to constantly be managed and many people have had problems later on in their lives with universal life plans because they were poorly designed.
I only recommend universal life when we’re looking at a guaranteed universal life plan. The maximized death benefit payout with this type of plan provides a permanent death benefit at a premium that stays the same as long as that premium is paid.
$50 a Month – Guaranteed Universal Life Insurance
$100 a Month – Guaranteed Universal Life Insurance
$150 a Month – Guaranteed Universal Life Insurance
Accidental Life Insurance
Accidental life insurance simply pays when someone dies from an accident and not because of natural death. It’s very affordable and is useful for people who have higher risk jobs that may feel that death by accident is more likely to happen.
Strategies to get the best insurance package for those 50-years-old and older
What follows below are my three most commonly recommended strategies to make sure you get the best deal on your life insurance coverage, especially for those who are 50 and older.
I use all of these strategies with my clients at Buy Life Insurance for Burial. And I teach other agents to use the same principles as well because they’re important.
Clearly define your budget
This may be a surprise coming from a salesperson, but I think more than anything it’s important to determine what you can comfortably afford to pay for your life insurance because if it’s outside the realm of comfort, then you may find that you’ll have to drop the plan at a later point.
I’ve seen too many times well meaning people take out life insurance at a time when they could afford it, but because of circumstances out of their control, they had to drop coverage later down the road. Life insurance is no good when you have to drop it, so it’s best to buy a plan that is easily affordable – so much so that you almost forget you’re paying for it.
Working to a budget is something Buy Life Insurance for Burial can help you achieve. See the different rate chart amounts below so that you can get a better idea of what you may be able to buy at different price ranges.
Clearly define your goals
This action is really a summation of everything we’ve talked about up to this point. You have to define why you’re considering life insurance. What do you want to accomplish by buying a life insurance plan? Do you want to:
- Pay for final expenses?
- Replace income?
- Leave money to family members?
- Cover retirement?
And then we have to pick the type of life insurance that best meets those particular goals. The better you define your goals, the easier it will be to find coverage that is the right fit for your needs.
At Buy Life Insurance for Burial we encourage you to define your purpose for life insurance so that we can match those goals to the most appropriate type of coverage.
Work with a broker
Working with a broker is probably the most important strategy you can utilize to get the best insurance price and coverage.
Brokers like us at Buy Life Insurance for Burial have access to a variety of different life insurance plans that give us the ability to shop around and see which policy is going to be the best package for you. This is in contrast to those agents who represent one company and will only give you one option, which could be too high or too limited in coverage. Why not make your money go as far as possible? You deserve the best options and choice, which is what a broker offers.
What factors affect insurability for people 50 and older?
In this section, I’ll briefly talk about some of the most common questions asked during the application process for life insurance so that you can better prepare for what might be involved.
Your health matters. It’s natural and expected that health questions will be asked on your application. Be prepared to answer a litany of health questions related to internal and external factors over a long period of time.
These questions are usually fairly straightforward. Be prepared to think about any instances in your life or health that may be of benefit or concern. The more information you divulge the better chance you’ll have for a better quality life insurance plan. A limitation of information sometimes causes write ups, especially for those who are 50 years old or older.
The older you are, the more you pay and vice versa; the younger you are, the less you’ll pay. Embedded with that, if you work with a broker you may find more competitive prices at your age range.
Smoking typically won’t cause you to be declined for life insurance, but it does require you pay 25 to 50 percent more, so make sure that you divulge what you smoke and how much you smoke. Those who smoke cigars, cigarillos, pipes, and chew tobacco, in some circumstances may be eligible for a non-cigarette rate which can save a substantial amount of money.
Height and weight
The heavier you are, the greater the chance you may pay more for your life insurance. Again, just like with health and age related questions, some carriers are more stringent or less stringent with weight related concerns and will help you shop the carriers to figure out which ones will give you the better deal.
Profession and hobbies
Your profession and hobbies do impact your eligibility for coverage and the price that you’ll pay. The more risky your profession or hobby, such as commercial fishing or sky diving, the more likely you’ll have to pay what’s called a flat extra, which is an additional charge on top of the premium that you qualify for.
Make sure that you fully divulge all the details related to your professional hobby because if you do not divulge at the time of the application and you die, you may find yourself in a bit of a pickle where the insurance company is not willing to pay the full amount out because you weren’t fully transparent.
Exam or non-exam
Exam or no exam… what should you do? The last point I want to talk about is that in general, if you’re in good shape, taking an exam in association with your life insurance generally gets you a better price than if you do a non-medical application, which doesn’t require an exam.
The exception to this rule is if you’re doing a final expense plan for burial or cremation expense coverage, usually under the $300,000 to $500,000 range. If you’re otherwise healthy, you’ll find that you’ll save a substantial sum of money by taking an exam. The only reason why you might not want to take an exam is if you’re scared of needles or afraid of your own blood.
A non-medical exam allows you to avoid the requirements of an exam and in most cases price are still pretty competitive. If you work with a broker like us, you’ll get a better overall deal whether you decide to do the exam or not.
I hope you enjoyed finding out more about how an individual in their 50’s can get quality life insurance coverage. I hope this information will help you take the next step toward getting life insurance in place.
If you have any questions or would like to receive a free quote, feel free to contact us by phone 888 626-0439 or by entering your information in the box on the left hand side of the screen. It takes less than 10 minutes and could change your family’s life forever. Thanks for reading and we hope to hear from you soon!
Burial Insurance Rates, Age 40 to 90*
Rates for $5,000 in Burial Insurance
Rates for $10,000 in Burial Insurance
Rates for $15,000 in Burial Insurance
Rates for $20,000 in Burial Insurance
Rates for $25,000 in Burial Insurance