Best Life Insurance Companies For People Over 50
When reviewing your current insurance needs, you may find that another life insurance company or policy type is better suited for people over age 50. You may consider switching your life insurance policy from term life to final expense, for example, if you are worried about age caps and maintaining your policy. Final expense insurance may also be a worthwhile option if your debts are paid off and you feel that your assets are a sufficient legacy for your loved ones.
Based on financial stability, policy type availability and customer satisfaction ratings, we have evaluated several insurance providers to determine the best life insurance company for people over age 50. Although the best life insurance company for you will depend on your specific needs, the following providers are a great place to start your search if you are currently reviewing your life insurance needs:
Insurance Provider To Consider: Your Employers Plan
If youre on the hunt for an affordable entry into life insurance, start by checking with your employer rather than an independent insurance agent. Many companies offer a term life insurance benefit for free or at a discounted rate as part of a benefits package. If yours doesnt, consider getting a life insurance quote from several life insurance providers to find a policy that works with your budget and provides your loved ones with a degree of financial security.
Best For Investing In Your Childs Future: Whole Life Insurance
If youre a new parent, you may want to consider taking out a child insurance policy that your kid could tap into later down the line. And though this is a form of whole life insurance that covers children should they die, the main reason were looking at it is for the benefits your child could see later in life, when theyre ready to pay for college or buy their first home.
With the cost of college on the rise, your child may appreciate having the ability to borrow money against the cash value of a life insurance policy to help pay for their education. Your child could also tap into the insurance policy to help make up a down payment for a first home or to pay for a financial emergency.
Hopefully, youll never need to tap into the death benefit. We understand that no amount of money will ever make up for the loss of a child. But a life insurance policy for a child could be an investment in your childs future, while providing you with the knowledge that if tragedy strikes, the coverage can help.
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What Type Of Life Insurance Do People Over 50 Need
The type of life insurance that you purchase will depend on your individual needs. If price is your primary concern, you may want to look at term policies. If you are wanting coverage that will last for your entire life or you are interested in a policy with living benefits, whole or universal life may be a good fit for you. Our life insurance calculators may help you get a better idea of what policy type might be best for you and your loved ones.
Sample Life Insurance Rates For 60
If youâre in your 60s, you may qualify for term life insurance a broker can help you with quotes. If you donât qualify for term life insurance or if you donât want to get a medical exam, then final expense insurance can be a good option for life insurance if youâre over 60.
Rate illustration represents non-smoking individuals in the Preferred health class, as of 1/28/2021. Not all policies in this calculation are available in all states. Rates may vary by term, policy amount, health class and state.
N/A = Policies not available
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Determine How Much Life Insurance You Need
We recommend carrying a term life insurance policy that covers 10 to 12 times your annual, pre-tax income. If you make $40,000, you should carry at least $400,000 in coverage. Why this much?
If your surviving spouse invests that $400,000 in a good mutual fund with an average 1012% return, they could peel off $40,000 a year from that investment to replace your income without ever cutting into the original investment amount.
Other Types Of Life Insurance
Group life insurance is typically offered by employers as part of the companys workplace benefits. Premiums are based on the group as a whole, rather than each individual. In general, employers offer basic coverage for free, with the option to purchase supplemental life insurance if you need more coverage.
Mortgage life insurance covers the current balance of your mortgage and pays out to the lender, not your family, if you die.
pays the balance of a specific loan, like a home equity loan. Your bank might offer to sell you a credit life insurance policy when you take out a loan. If you die, it pays off the lender, not your family.
Accidental death and dismemberment insurance covers you if you die in an accident, such as a car crash. AD& D insurance also pays out for the loss of limbs, as well as the loss of your sight or hearing.
Joint life insurance insures two lives, usually those of spouses, under one policy:
First-to-die: Pays out after the first policyholder dies. The policy would then expire it doesnt continue to cover the second person. These policies are extremely rare as the demand for them is low.
Second-to-die: Pays out after both policyholders die. These policies can be used to cover estate taxes or the care of a dependent after both policyholders die.
Cash value grows in permanent life insurance policies, including whole life insurance, universal life insurance, variable life insurance and variable universal life insurance.
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Other Types Of Life Insurance To Consider
While term life insurance and whole life insurance are some of the more common types of life insurance youll come across, they arent the only options out there.
As we noted earlier, whole life insurance is one type of cash value insurance, which combines a death benefit with the ability to accumulate cash over time. Here are some other types of cash value insurance you may want to consider.
- Variable life insurance This type of life insurance has a death benefit thats tied to the performance of certain investment assets. The value of the death benefit varies depending on the performance of those assets, which could mean a higher or lower payout depending on interest, timing, investment performance and other factors.
- Universal life insurance If flexibility is what youre after, a universal life insurance policy could make sense. This type of policy may allow you to vary the amount of your premium payments or even skip certain payments. The death benefit is also adjustable, and youll accumulate cash value from a combination of premium payments and interest.
- Variable universal life insurance As its name implies, this is a combination of the above types. Its variable in the sense that its value is also tied to certain investments, and universal in the sense that it allows for some extra flexibility.
What Type Of Life Insurance Is Best
There is no one best type of life insurance for everybody. Each type of insurance has its pros and cons, and the best policy for you may be very different from the policy that is best for your neighbor.
A licensed life insurance agent can help someone find the right life insurance policy to meet his or her needs, Bayerle says.
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Consider Permanent Life Insurance If
- You need life insurance for as long as you live. A permanent policy pays a death benefit whether you die tomorrow or live to be over 100.
- You want to accumulate a savings element that will grow on a tax-deferred basis and could be a source of borrowed funds for a variety of purposes. The savings element can be used to pay premiums to keep the life insurance in force if you cant pay them otherwise, or it can be used for any other purpose you choose. You can borrow these funds even if your credit is shaky. The death benefit is collateral for the loan, and if you die before its repaid, the insurance company collects what is due the company before determining whats goes to your beneficiary.
Keep in mind that premiums for permanent policies are generally higher than for term insurance. However, the premium in a permanent policy remains the same no matter how old you are, while term can go up substantially every time you renew it.
There are a number of different types of permanent insurance policies, such as whole life, universal life, variable life, and variable/universal life. For more details, see our articles on the specific types of policies.
Best Whole Life: Northwestern Mutual
- Types of Life Insurance: 3
- Issue Ages: 18-80
While Northwestern Mutual is known for quality overall, its whole life insurance policies are especially popular. The company paid out a record $6.2 billion in dividends to its policyholders for the year 2020. Not only do its policies tend to pay generous dividends, but you get the benefit of working with a financial advisor who can help guide you to the best whole or other type of life insurance policy for your situation.
Excellent ratings for quality and financial strength
Term life, whole life, and universal life insurance offered
Must work with a financial advisor to get a quote
Northwestern Mutual has been in business since 1857, and it has solid ratings that show its commitment to offering quality products and services. Not only does Northwestern Mutual boast an A++ rating from AM Best and an AA+ rating from S& P Global, but it also earned high marks for customer satisfaction in the J.D. Power 2020 U.S. Life Insurance Study.
Northwestern Mutual offers term life insurance coverage, whole life insurance coverage, and universal life insurance coverage. However, due to the fact it employs financial advisors who oversee your full financial picture, you will need to go through a complete financial review to get a quote.
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What Happens When Term Life Insurance Ends
A term life policy will expire at the end of the term, such as at the end of 10, 20 years or 30 years. You wont receive a refund for your premiums paid .
If you still have a need for life insurance at the end of the term, you can typically renew the policy but will likely pay a much higher rate. Its a good idea to get quotes for a new policy before you pay the higher renewal rate. Even though youre older and may be less healthy, you could still find a better deal in a new policy.
Some folks decide they no longer need life insurance before they reach the end of the term and stop making payments. Before you go this route, make sure you truly no longer have the need for life insurance. If you end a policy and your life circumstances change later, you could regret not having kept the policy.
Other Life Insurance Options
The main types of life insurance are term life, whole life and universal life. And within each of those types are further varieties. With so many life insurance options, you can likely find a policy that fits your life insurance goals.
The array of choices can seem overwhelming at first, but keeping a focus on the reasons you need life insurance will help you pinpoint the right type.
Can you define the amount and end of the financial obligation you want to cover? For example, this could be the amount you expect to earn until the year you plan to retire. Term life is the best option for specific amounts like this.
Does the financial obligation stretch indefinitely? For example, using life insurance to fund a trust for a special needs child requires lifelong coverage. Permanent life insurance is right for these situations.
Do you need life insurance for burial expenses? If your family will need funds for funeral costs, youll need a permanent life insurance policy that wont expire like term life. There are even special policies designed as burial insurance that have low amounts of coverage and are suited for small budgets.
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Other Types Of Life Insurance Policies
The two primary types of life insuranceterm life and permanent lifeare just the tip of the iceberg. Insurance companies also offer dozens of other insurance policies, each designed to pay death benefits in different ways. Heres a brief overview of the types of life insurance you may encounter when youre shopping around.
How Do Life Insurance Policies Work
As with home or auto insurance, you purchase a certain amount of life insurance coverage and pay annual premiums for it. If you die while insured, your beneficiaries will receive a payout of the amount of coverage you purchased this is called the death benefit.
Do you need life insurance? If you provide financially for your dependents, the answer is yesespecially if you’re the sole wage earner. Stay-at-home parents should also consider life insurance to cover the cost of replacing services they provide for free, such as child care and housekeeping.
On the other hand, if you’re single, don’t have any dependents and have enough money to pay your debts when you die, you really don’t need life insurance. Of course, you can still purchase life insurance if you want and declare a favorite relative, charity or whomever you choose as the beneficiary.
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Dont Just Rely On Group Or Employer Life Insurance
But what about life insurance provided by an employer? If your company offers free life insurance, then sign up for this free benefit but don’t stop there. Many companies offer their employees a certain amount of insurance for free, but this is usually not enough.
Usually, you can purchase supplemental insurance through your company’s benefits, but this insurance does not travel with you if you move jobs unless your company allows you to pay an expensive premium price to take your policy with you. So, if you want to fill in any gaps in coverage and make sure you can take that coverage with you if you change jobs, an individual term life policy might be worth checking out.
What Are The Different Types Of Life Insurance
There are many different life insurance policy types. Choosing the right coverage can help you get the most from this type of insurance.
- There are multiple types of life insurance, including term life, whole life and final expense insurance.
- The best life insurance for you depends on what you want and need from coverage.
- Term life is usually less expensive than whole life, but you may outlive your policy.
- You can often benefit from permanent life insurance policies while youre still alive, including tapping into the policys cash value and riders that help with long-term care and critical illness.
Here are the basic types of life insurance options.
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Best For No Medical Exams: Mutual Of Omaha
- Types of Life Insurance: 4
- Issue Ages: 0-85
Mutual of Omaha offers term and whole life insurance policies with no medical exam for applicants who qualify. This means you may be able to fill out a health questionnaire from the comfort of your home, with no invasive health exam, and get coverage when you pay your first months premiums.
Excellent ratings for financial strength
Easy to get a quote online
Apply for certain term and whole life products without a medical exam
Must apply for eligibility of coverage with no medical exam
Originally founded in 1909, Mutual of Omaha has grown tremendously over the years and is now a provider of life insurance, long-term care insurance, annuities, investments, and more. In terms of financial strength, Mutual of Omaha has an A+ rating with AM Best and an A+ rating with S& P Global. Also, Mutual of Omaha secured the fifth spot out of 23 in the J.D. Power 2020 U.S. Life Insurance Study with 789 points out of a possible 1,000.
Mutual of Omaha offers a selection of life insurance policies to choose from including term life insurance, whole life, universal life, childrens whole life insurance, and accidental death insurance. You have the option to speak with an agent in your area if you prefer, but Mutual of Omaha also lets you get a free quote or apply for any of its policies online. Mutual of Omaha also offers term and whole life coverage options with no medical exam, although not all applicants will qualify.
Types Of Life Insurance: Which Is Right For You
16 Minute Read | September 17, 2021
If you have a car, you have car insurance. If you have a home, you have homeowners insurance. If you have a life . . . well, it only makes sense to carry life insurance, right?
Life insurance is one of the most vital pieces of your familys long-term financial planand its the one we want to discuss the least. Its purpose is simple: to replace your income for your family if you die. But with all the choices available, finding a policy thats just right for you could lead to extreme confusion and frustration.
Fortunately, it doesnt have to be that way. Well take you through the most common life insurance policies and help you find the one you need.