You may be wondering where you find a policy that best suits your needs if you’re over 50. We cover all of that below, so keep reading.
What Policies are Available to Individuals Over 50?
Life insurance for people over 50 does exist, with a few variables to consider. Depending on your age, you may qualify for several types of policies or you may only be eligible for one. Insurance companies gauge their own risk level when insuring an individual, so factors like age and health history will come into play.
Term life insurance is a type of life insurance purchased in “terms” or a set number of years. When that term is over, the policy expires and your coverage is lost. If you were to purchase a 20-year term policy at the age of 50, you could find yourself at 70 years old without life insurance protection. The older you get, the more likely your policy will outlive you which may result in higher premiums. While it’s possible to buy a 10-year term life insurance policy at 80, the monthly premium will be more expensive.
Whole life insurance is a policy covering an individual for life. The premiums never increase and the coverage never expires as long as the premiums are paid on time. Whole life insurance also has an added cash value that acts as a savings component. A portion of those funds are paid to that cash value and grow interest over time when premiums are paid on time. When needed, these funds may be borrowed against by the policyholder at a much lower interest rate than typical loans. For individuals over 50, a whole life insurance policy might make the most sense.
Final expense insurance is a type of whole life insurance that carries a smaller death benefit, usually enough to cover burial expenses. The smaller death benefit may be a better option for older individuals who have health concerns and want to keep affordability in mind.
Why Does Life Insurance Become More Expensive as You Age?
After the age of 50, premiums for life insurance increase by approximately 9-12% per year. The reason for this is pretty simple. Life insurance companies weigh their risks when issuing you a policy. Age, health, family history, and lifestyle are all factors the insurer takes into consideration. Premiums reflect any potential risks. Simply put, the older you are, the more expensive life insurance can become.
While age and family medical history can’t be helped, your current lifestyle can. Exercising regularly and eating a healthy diet lowers your risk for certain chronic conditions and may reduce the cost of insurance premiums.
Do I Need a Life Insurance Policy?
Each individual must determine the level of life insurance they need based on their current financial situation. There are several considerations to keep in mind when deciding if life insurance is beneficial to you and how much coverage is needed.
- To cover final expenses – If you don’t have a prepaid funeral plan and you don’t have the savings to cover the cost, you may need a life insurance policy. Losing a loved one is difficult enough; prevent additional difficulties by tying up loose ends and easing the financial burden on your family with a policy.
- To pay off debt – If you still owe on a mortgage or other loan, you may need a life insurance policy. If your estate cannot cover these debts after you pass, repayment will fall to the remaining responsible party.
- To support dependents – If you have a spouse or family member dependent on your income, you may need a life insurance policy. Consider what their cost of living would be to determine the amount of coverage needed.
- To leave an inheritance – If you are debt-free or your estate can cover all outstanding balances, consider leaving an inheritance for a loved one or donating to your favorite charity.
What Do I Need to Purchase a Life Insurance Policy?
Securing over 50 life insurance is typically simple, but lengthy. Some life insurance companies will require a medical exam before issuing a policy. These medical exams are usually two parts; a medical questionnaire and a physical exam.
The medical questionnaire may require you to answer questions about your medical history and your family medical history. It’s vital that you answer these questions honestly, as discrepancies can result in your policy being canceled or it may not be paid out upon your death. More than likely, you will need to answer questions about your height, weight, age, and prescription history.
A physical exam includes taking measurements of height, weight, and blood pressure. Typically, a physical exam will also screen for health conditions like high cholesterol and diabetes with blood and urine samples.
Some insurance companies offer whole life insurance to seniors with no medical exam required. These policies usually request that you answer the medical questionnaire, but don’t require the physical exam. For many adults over 50, this may be the fastest way to obtain a life insurance policy.
Where Do I Find Affordable Life Insurance at My Age?
When other insurance companies deny you coverage due to your age, Americo Senior Life is here to help. We offer senior life insurance for people over 50. In fact, it’s our specialty. Our application process is fast and easy, we require no medical exam, and you can be approved in just minutes! We even have coverage options for smokers with our Quit Smoking Advantage. When you’re ready, apply for your free insurance quote online and enjoy a more secure future.