In this article I’m going to talk about how a 50 year old male or female may qualify for life insurance coverage.
Most likely you’re here today because either yourself or your loved one is 50 years old and you’re concerned about having some kind of life insurance in place to take care of specific debts and final expenses in case he or she passes away earlier than expected. If this defines your circumstances, then this article will be beneficial to you.
My goal is to explain all the reasons why a 50 year old would purchase life insurance, what products are available, as well as strategies to make sure you get the best price and coverage. We will also talk about what you can expect as far as questions asked during the application process when qualifying for a life insurance plan as a 50 year old. So let’s get started.
NOTE: Would you prefer me to present this information to you in video format? Watch the video below for the complete presentation. Enjoy!
Why do 50 year old’s buy life insurance?
In this section we will cover the most common reasons why a 50 year old person would feel compelled to buy a life insurance policy. The reason I think this is important is that it often helps to see how life insurance can cover different kinds of life events or circumstances. Relating to a certain circumstance can help solidify your own motives for purchasing life insurance and help you choose a plan that is right for you.
1. Cover final expenses
Sometimes we’ll run across 50 year old’s that are in the phase of their life where they’re thinking about retirement. They want to make sure that the costs associated with retirement are taken care of, one of which is the cost of being buried.
Burial costs are expensive. Typically they range between $10,000 up to $15,000 on average, but can cost more or less depending on the region of the country you live in. Many people look at what’s called a final expense life insurance plan, specifically designed to cover the costs related to a burial. This way the surviving spouse or family doesn’t have to come out of pocket for this expense and can be completely relieved of that final burden.
We hear at Buy Life Insurance for Burial represent many final expense life insurance plans and can qualify 50 year old final expense coverage fairly simply as long as you’re willing to fill out a questionnaire and run the numbers with the various companies that we represent.
2. Cover mortgage
If you’re 50 years old, you may not be in a position where you still owe money on a mortgage and you need to make sure that if you pass away that mortgage payments are handled or that the mortgage itself is completely paid off. This is where a mortgage protection life insurance plan comes in handy.
The idea behind it is fairly simple. You take out an insurance plan and as long as the plan is enforced, when you pass away the death benefit is paid to the beneficiary of your choice. Those funds can then be used to pay off the home or to pay off a portion of the mortgage to do what we call a mortgage payment protector program, which means it’s designed to help handle payments for several years in order to allow the family to sell the house for top dollar and not lose money on a fire cell where the home is sold off quickly at a discount because the survivors cannot afford the payments.
A mortgage protection life insurance program generally uses what we call term life insurance coverage, which we’ll talk more about later. Term insurance tends to be the best way to cover temporary obligations within a set time frame.
3. Leave a legacy
Sometimes people want to buy life insurance because they are thinking about their kids and grandkids and want to make sure that they’re comfortably taken care of. If an insured 50 year old happens to die earlier than expected, an insurance policy could maybe pay college expenses, or help the child or grandchild out with a down payment on a car or house.
Whatever reason you have in mind, life insurance can be used for that purpose. You simply take out a policy, name the beneficiaries as your kids, family or whomever you’re trying to benefit and from there the life insurance policy will be paid to that beneficiary and they can do as they wish with the money upon your death.
4. Income replacement
This is a big reason why many people buy life insurance at age 50. They figure they’ve got at least 15 more years of work and they want to make sure if they die prior to that, that those years of income are properly accounted for. This ensures their surviving family and kids don’t have to dramatically change their lifestyle in response to not having the income earner around.
An income replacement plan is typically a term insurance plan which is designed to cover 15 years or whatever period of time that you need for it to replace your income if you died earlier than expected.
As far as coverage amount, generally we recommend approximately 10 times your annual income. This amount of coverage will give your family a suitable lump sum to replace your income for many years to come.
5. Business reasons
If you’re a business owner and thinking about buying life insurance, there are several reasons why you should consider purchasing life insurance at 50 years old. If you’re in a partnership, you may want to consider what’s called a buy-sell agreement, which funds a partnership buy out program if either yourself or your partner dies.
This allows you to create a guaranteed market for your business and allow for the business to continue for either your partner or yourself while also providing cash money to the survivors so that they have something to walk away with versus owning and operating a business they may not be comfortable with or want to manage.
6. Cover key people or a loan
At age 50 you may want to take out life insurance coverage if you have a key person in your business that you would like to cover or if you get a bank loan to grow your business. In these scenarios the coverage would provide a lump sum payout to cover either the loss of a key person, giving you time to find a replacement, or a bank loan, ensuring the bank is paid in full.
Types of life insurance coverage available for people who are 50 years old
Let’s talk about the three main types of life insurance products available and under what circumstances people would select each type. The reason I’m mentioning these three is because now that you probably have a better understanding of why you want to purchase life insurance, it’s important that you take the next step and select the plan that best represents what it is that you’re looking to accomplish. Different life insurance plans do different things and you don’t want a misalignment between your goals and the life insurance world.
Term life insurance
Term life insurance coverage is the most popular form of life insurance. It typically offers the most coverage per dollar of premium paid and can be custom designed to the length of time that you need to take care of more temporary obligations such as replacement of income, retirement funding and paying off debt such as your mortgage.
The downside to term life insurance is that you may potentially outlive the coverage while still needing life insurance coverage. It’s important to take careful consideration when looking at life insurance offers to make sure you pick the right length of time for life insurance coverage and the right amount of coverage not just for the present, but also the future.
If you’re unsure of the right type of plan or coverage amount, we here at Buy Life Insurance for Burial or burial.com would be happy to help. So feel free to get in touch for a quote or a call to find out more about our rates listed below.
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
Whole life insurance
Whole life insurance, unlike term life insurance, is permanent coverage designed to never cancel due to age or health as long as the premium requirements are upheld. Permanent plans like whole life insurance cover permanent problems such as payment for burial or if there is a need to have a fixed sum of money paid out upon someone’s death to pay off a debt or to replace income.
It’s kind of a coin toss as to whether or not you’re going to go the final expense route for coverage. If you’ve had health issues and have more difficulty qualifying for final expense type of coverage plans, then whole life insurance may be the best bet. More commonly than not, more than 50 percent of the time you’ll buy a whole insurance plan because you have other obligations above and beyond just being buried.
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 insurance plans
Universal life insurance plans can be used for all sorts of unique types of insurance problems. They can be custom tailored and are designed to be permanent. You can even alter the premiums accordingly if you need an alleviation on premium payments.
The downside to universe life plans is that if they’re incorrectly designed they may terminate earlier than expected because of their unspecific nature. Take special consideration if you do ultimately get a universal life insurance plan and make sure it’s designed appropriately to accomplish the goals that you want to accomplish.
$50 a Month – Guaranteed Universal Life Insurance
$100 a Month – Guaranteed Universal Life Insurance
$150 a Month – Guaranteed Universal Life Insurance
Strategies to get the best price on life insurance coverage for 50 year old’s
The following three tips will help you optimize your results and most likely qualify you for a quality life insurance program.
1. Always seek counsel from a broker
It’s important to buy your life insurance from a broker. A broker, or somebody who represents a variety of different life insurance companies, can shop around and try to find the best price and coverage. No matter what type of insurance you are interested in, or the reason behind your purchase, a broker can oftentimes offer a better deal than a captive agent.
Brokers have access to a variety of different companies which may give you a better choice if you’ve had health issues or have a limited budget. Buy Life Insurance for Burial offers brokers who can find the best deal for our clients.
The opposing option is to go with a captive agent who offers coverage from only one company. Obviously this limits your choice and won’t often give you the best deal.
2. Clearly define your goals
As mentioned earlier, whether or not you purchased term or permanent life insurance comes down to what your goals are. What you don’t want to do is pick the wrong type of policy that doesn’t match your goals. This ultimately will lead to a future point where you won’t have coverage when you need it most.
3. Clearly define your budget
It’s important to make sure you’re comfortable with a predefined budget so that you can keep up with payments on the policy. A lot of people buy too much coverage and have to drop it within a year, which ultimately is a big waste of money. Don’t be that person. Think carefully about what you need and why you need a life insurance policy and make sure the need reflects your budget so that you can keep it for the long haul.