Life Insurance Over 50 Years Old

See Rates, Quotes, and Best Companies

Updated by: Bennett Bier licensed insurance agent January 2022

People need life insurance over 50 for many reasons. Even after the age of 65, life insurance might still be necessary to offset medical expenses, long term care, a mortgage, business loan, or supplement a retirement plan proving insufficient.

Quick Navigation
Why Get Life Insurance Over 50 Years Old?
What is the Best Type of Life Insurance for People Over 50?
Life Insurance Rates Age 50 to 59
The Best Life Insurance Companies
4 Tips for Finding Cheap Life Insurance Over 50
How to Apply for Life Insurance

Life Insurance Over 50 Years Old

Why Get Life Insurance Over 50 Years Old?

Absolutely. The bottom line is that if you have people dependent upon your income in any way or you have any type of debt remaining, life insurance is a necessity.

Here are some reasons why life insurance for people over age 50 is still important:

1. Provides financial support to loved ones

You work hard for those you love but can they pay for debt, expenses, a mortgage, college, or the care of younger children without you? This is exactly what life insurance proceeds from term life coverage are meant for.

2. Leaves your legacy behind

Life insurance can be used to pay any taxes that your beneficiaries have to pay for your estate. Any remaining amount can be put toward a cause or charity you like. Most clients use a whole life insurance policy with an accelerated death benefit rider or guaranteed universal life insurance policies for this. We have information on whole life policy vs term life insurance policies here.

3. Create another income source

You might have large expenses in life that eat away at your savings over time. Your retirement might not stretch as far as you like.

So, with permanent life insurance plans, you can accumulate cash value and then use that cash as extra retirement income if needed.

4. Money in the event you are sick

No one ever anticipates a chronic or terminal illness as they age. The cost of medical bills and treatment for terminal illness can be debilitating in and of itself.

Permanent life insurance plans allow you to add riders like accelerated death benefits so that you can cash out a percentage of your life insurance and use it to pay off the medical costs before your passing.

5. Pay reduced taxes

Term and life insurance policies give your beneficiaries a tax-free death benefit upon your passing.

What is the Best Type of Life Insurance for People Over 50?

Couple over 50 with Life Insurance

Well, that depends on your needs. Factors you have to consider other than your age include health, financial stability, and family situation or dependents.

All type of life insurance falls into either permanent or term life insurance. Each provides different benefits, and you should choose the right policy based on your unique situation.

Let’s take some time to review some of the more common types of life insurance, and explain who they are right for.

Term Life Insurance Quotes Over 50

Term life insurance policies are typically for shorter term needs and they are offered for 30 years or less.

Term policies provide guaranteed death benefits for specific amounts of time and during that time, the rates do not go up, so your premiums remain the same.

If you have two kids in college and you are contributing to their education, then a ten year policy would give money for the continued education if you were to pass away, as well as provide income short term to a spouse, pay any remaining debts on a mortgage, and handle funeral costs.

With a term life insurance policy you can:
    Get a term policy to cover the years you are paying for your children and their education.
    Get a policy adequate to pay off a business loan you do not want your spouse to end up with.
Get a term policy in case you are a small business owner and want protection should your partner pass away.

Benefits of Permanent Life Insurance Policy

Permanent life insurance plans are for needs that might last indefinitely. A spouse or child who is dependent upon you, a mentally challenged child who needs in-home care regularly, parents who are in a nursing home that you pay for, all these things need permanent financial coverage.

Permanent life insurance plans are ideal for coverage that has no end point. These give you beneficiaries a tax-free sum of money upon your passing.

Family can:You can:
  • Replace income
  • Create additional retirement income

  • Pay final bills or expenses

  • Access money if you have unexpected needs or illness

  • Stay in your house, paying off the mortgage

  • Tax-free loans if you need them

  • Keep plans for future in tact

Each time you make a premium payment toward your permanent policy, a portion of that covers the cost of insurance and any applicable fees. The remainder funds your cash value account. From the very first day, you start getting cash value that accumulates growth which is tax deferred.

That growth potential is different continent upon the type of permanent policy you get. For example: a Variable Universal Life policy accumulates growth based on how an underlying investment is performing. Consequently, certain permanent policies also have the risk of being reduced in value because of how poorly an underlying investment performs.

Whole Life Insurance

Whole life insurance is basic coverage. So long as you pay your premiums on time, you are covered. The policy then continues to build cash value.

It is a form of permanent coverage and with it, your premiums could increase with age depending on the type and the company you use. Types of permanent life insurance include:

  • Universal life insurance
  • Whole life insurance
  • Indexed universal life insurance
  • Survivorship or second to die insurance
  • Variable universal life insurance
  • Final expense insurance

Below is a chart that better explains what you get from different plans:

Term Life InsuranceUniversal Life InsuranceIndexed Universal Life InsuranceSurvivorship Universal Life InsuranceVariable Universal Life Insurance
Temporary Coverage
Permanent Coverage
Provides Guaranteed Death Benefits
Focuses on Better Cost
Offers Coverage for the Rest of Your Life
Covers Two Benefits with One Policy
Can Build Cash Value
Provides Growth Based on Performance of Index
Provides Growth Based on Market Performance
Has a Tax-Advantage Death Benefit
Allows you to Access Money in Your Policy
Custom Riders Available

Now that we have an idea of the types of life insurance coverage for seniors, let’s take a deeper look into how much life insurance costs for people over 50.

Life Insurance Rates for People Over 50

There are many things that influence your life insurance rates, ranging from your age, gender, and health. Some companies take into consideration your job and any sports you do. Those with riskier jobs, lifestyles, exercise, or older ages are offered higher premiums. So, what does the difference in cost look like?

Term Life Insurance Rates for Ages 50 to 59

This sample is for a 10 year term life insurance policy, for a male with monthly premiums, based on different coverage amounts.

50 years old14.1525.4328.5637.75
51 years old15.0627.1931.4340.92
52 years old16.0529.3034.5744.79
53 years old17.1331.5938.0049.37
54 years old18.3134.4141.7555.65
55 years old19.6038.6345.8360.28
56 years old21.0140.7449.9465.91
57 years old22.5444.4454.4071.90
58 years old24.2048.6659.2378.98
59 years old26.2852.5665.2987.06

Now, the coverage amount you get should be based on your needs, which change as you get older.

As you can see, your age should play a role in determining how much coverage you need, based on the simple math that as you get older, you have paid off more debts, paid off more of a mortgage, and have fewer dependents.

The Best Life Insurance Companies for People Over 50

Most life insurance cater to people age 50 and up. That said, some companies offer better policies than others in terms of benefits, flexibility, and the financial strength of the company.

The best way to find the best company for you is to fill use our life insurance quote tool and give us a call. Below are typically the 3 best life insurance companies for people over 50 years old.

Protective Life Insurance Company

Protective Life Insurance Company logo

Protective is a great company. They specialize in longer terms for older individuals and plans for those with different health concerns.

Protective Term Life Insurance
ProsThis is a good solution for those who want an inexpensive policy. Coverage can be 10, 15, 20, 25, and 30 year term limits. The death benefit is guaranteed, and your premiums are the same.
Cons If you are 52 or older, you can get any plan.

If you are 55 or older, you can only get 25 year term plans or less.

AIG Life Insurance

AIG logo
AIG Term Life Insurance
ProsYou will find a wide range of products.

They offer competitive pricing

Cons They have complex Indexed Universal Life policies.

There are no simplified products.

Banner Life Insurance

Banner Life company logo
Banner Life Insurance
ProsThere are many riders available.

The term policies are very affordable especially for older applicants.

They are known for their superior underwriting.  

Cons There is no “instant issue” option.

They have no whole life insurance plans.

You want to stay away from the companies that advertise on TV. Companies like Colonial Penn and Globe Life Insurance. You can do so much better.

4 Tips for Finding Cheap Life Insurance Over 50

If you are over the age of 50, the process of getting life insurance is the same as any other age. You should start by applying to multiple companies so you can compare options. Look over their financial stability, their target plans, and compare that to what your needs are. Remember that everyone is different.

You might have had a term policy expire and now are 55 and need a new plan. This might be the time to consider bids from permanent policies.

Conversely, you might be 55 without any previous coverage, and trying to make sure you have enough money to cover the remaining care of your single child who is still in college.

1. Apply for Life Insurance as Young as You Can

So, naturally the first tip to getting better rates between 50 and 55 is to apply when you are younger. The younger you are, the better your premiums for a life insurance plan will be.

2. Stay Healthy

The healthier you are, the better your premiums. If you can, take time to reduce your cholesterol and blood pressure. Regular exercise and a slight change in diet can go a long way to improving the results of your medical exam.

3. Avoid Medications When/If Possible

Avoid any dependence upon medication that are not in line with your doctors orders. This will bode well for your long term premiums when buying life insurance. If you have any alcohol or drug dependence currently you can still shop for final expense policies and buy life insurance with no medical exams or health questions to make sure funeral expenses are covered.

4. Make Sure You Get the Right Amount of Life Insurance Coverage

Only pay for the coverage you need. The amount of coverage required is going to vary based on your individual needs. Someone who is 50 and has 2 kids still living at home is going to need more coverage than someone who is 50 without any kids and a spouse who works full time with their own retirement and life insurance. If you have no financial dependents you would just need to cover end of life expenses with a burial insurance plan.

How to Apply for Life Insurance Over 50

When it comes to a large investment like life insurance, you want to be sure that you weigh all of your options before making a decision that could govern your family’s financial life in the future.

The best way to be sure that you are getting the best life insurance for people over 50 is to work with an independent life insurance agent who can compare life insurance rates and policies from dozens of the best life insurance providers for seniors at once.

Our independent agents are ready and willing to take the time to understand your specific situation and recommend life insurance policies based on your family’s needs. We’ve worked with 1000’s of people, so it’s likely we’ve successfully recommended a plan to someone in a similar situation to you.

We will be able to find a list of companies, policies, and costs based on your age, state of residence, and health.

Give us a call today to work with an agent, or use our online quoting engine to get instant life insurance quotes for seniors!

Compare Life Insurance Rates for Seniors Over 50

Quick quotes, great rates.