$50000 life insurance policies are a popular choice for those looking to lift the burden of their end-of-life expenses off their loved ones. These affordable policies provide the funds needed for funeral and burial costs.
These relatively small policies are a great option for people who are in less-than-perfect health or those who are looking to save money. In this article, we’ll discuss:
- The types of life insurance policies available that offer $50,000 worth of coverage
- The average monthly cost
- The best companies that sell $50,000 life insurance policies
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Types Of $50,000 Life Insurance Policies
You have three options for $50K of life insurance coverage:
- Simplified Issue Whole Life Insurance
- Simplified Issue Term Life Insurance
- Accidental Death Insurance
Let’s take a look at each one.
Simplified Issue Whole Life Insurance
Whole life insurance provides coverage for your “whole life.” It is a long-term coverage option that builds cash value over time without requiring a medical exam.
- Benefits: No medical exam required, fixed premiums, and strong cash value growth over time.
- Drawbacks: Higher rates compared to term life policies and lower coverage amounts.
Simplified Issue Term Life Insurance
Simplified issue term life insurance offers coverage for a specified period, usually between 10, 20, and 30 years. Just like whole life, term life does not require a medical exam.
- Benefits: No medical exam, lower premiums compared to whole life insurance
- Drawbacks: term life insurance expires at the end of the term, no cash value build-up.
Accidental Death Insurance
Accidental death insurance provides a payout specifically if the insured dies due to an accident.
- Benefits: It’s cheap and easy to get (as long as you’re eligible by age and state of residence, acceptance is guaranteed)
- Drawbacks: You’ll very likely never need it (only a small fraction of deaths are accidental)
How Do Life Insurance Companies Decide Your Cost?
When determining your life insurance rates, insurance companies consider several key factors about you. They look at how much risk these entail, and this allows them to calculate a monthly payment that accurately reflects your unique situation.
Here are a few of them:
Factors Affecting Life Insurance Costs
| Factor | Impact on Cost |
|---|---|
| Age | Because younger applicants have more years remaining to pay premiums, so they have to pay less per month |
| Health | Healthier individuals live longer, so they qualify for lower rates |
| Gender | Women live longer than men, so have lower rates |
| Lifestyle | Risky behaviors, like smoking or bungee jumping, increase premium costs |
| Occupation | Hazardous jobs, like offshore drilling, can lead to higher premiums |
| Policy Type | Whole life policies, because they last indefinitely, have higher premiums than temporary (term) life insurance |
| Length of Term | Longer term lengths correspond to higher premiums |
Check Out: $5K Term Life Insurance Rates
Check Out: How Rates Vary with Age in AARP Life Insurance Plans
Choose kindness.
You never know what battles people may be fighting.
How Much Does A $50K Policy Cost?
People often wonder, “How much is a 50k life insurance policy? Is 50,000 good for life insurance?” But they never look into it.
That’s a shame because, according to LIMRA, people overestimate the cost of life insurance by 300% on average.
The tables below show the rates for all three products we discussed above.
The Cost of a $50,000 Whole Life Insurance Policy
First up is simplified issue whole life insurance.
How much is a $50000 whole life insurance policy? As you’ll see, there’s a clear correlation between age and higher insurance costs, which is even more drastic for smokers.
| Age | Male | Male Smoker |
|---|---|---|
| 40 | $13 | $15 |
| 45 | $14 | $17 |
| 50 | $16 | $19 |
| 55 | $19 | $22 |
| 60 | $22 | $26 |
| 65 | $26 | $31 |
| 70 | $32 | $38 |
| 75 | $50 | $68 |
| 80 | $69 | $92 |
| 85 | $95 | $130 |
| 89 | $172 | $274 |
For male non-smokers, the rate increase is gradual from ages 40 to 70, moving from $13 to $32.
However, the rate of increase becomes more pronounced from age 75 onwards, jumping from $50 at age 75 to $172 at age 89. This is a 300%+ increase!
How much is a 50,000 whole life insurance policy for smokers? For male smokers, rates start at $15 at age 40 and increase more steeply compared to non-smokers, reaching $274 by age 89. The increase is especially noticeable between ages 85 and 89, when monthly premiums jump from $130 to $274.
| Age | Female | Female Smoker |
|---|---|---|
| 40 | $12 | $14 |
| 45 | $13 | $16 |
| 50 | $14 | $17 |
| 55 | $15 | $21 |
| 60 | $18 | $24 |
| 65 | $22 | $28 |
| 70 | $28 | $32 |
| 75 | $37 | $49 |
| 80 | $50 | $69 |
| 85 | $67 | $98 |
| 89 | $133 | $185 |
The trend for female non-smokers is similar but at a lower scale. How much does $50,000 life insurance cost? Rates start at $12 at age 40 and gradually increase to $28 by age 70. Women over 70 see the sharpest increase in rates, with rates reaching $133 by age 89, which is more than four times the rate at age 70.
Female smoker rates start at $14 at age 40 and increase steadily but at a slower rate than male smokers. By the time you’re 89, a $50k whole life insurance policy will cost a woman $185 a month.
$50,000 Accidental Death Insurance Rates
The rates for $50,000 of Accidental Death Insurance follow a similar pattern to those above, but there are two key differences:
- There are no “smoker” rates. Accidental death insurance policies pay out for accidents. If life insurers have no data that says smokers are more likely to die in an accident, then there’s no reason to raise their rates
- Prices are set by age range, not by individual age. While older people are generally more likely to have an accidental cause of death (due to higher rates of fatal slips and falls), there isn’t a large age-by-age difference to warrant different rates
| Age Range | Gender | Standard | With ROP |
|---|---|---|---|
| 18-50 | Male | $10.29 | $14.41 |
| 18-50 | Female | $7.53 | $10.54 |
| 51-60 | Male | $10.72 | N/A |
| 51-60 | Female | $8.27 | N/A |
| 61-70 | Male | $13.22 | N/A |
| 61-70 | Female | $10.68 | N/A |
For those between the ages of 18 and 50, men pay $10.29 per month for $50K of AD&D coverage, while women pay only $7.53 per month. That’s 27% less, which implies that not only do women live longer lives in general, but they are also less likely to die in an accident.
Prices increase for the next age group, but only slightly. 51-year-old to 60-year-old men pay $10.72, while women spend $8.27. The real price jump happens once you turn 61, with males in the 61-70 age bracket paying $13.22 a month and women paying $10.68, roughly a 30% increase for each gender.
The Right 50,000 Life Insurance For Seniors
A simple whole life insurance plan offers protection tailored for seniors. It provides coverage that lasts for life at a fixed cost to help address expenses, legacy goals, and end-of-life arrangements.
These policies determine approval based on your answers to basic health questions on the application. The lack of a medical exam makes it an attractive option for those with health issues or privacy concerns.
Benefits of Simplified Issue Whole Life Insurance
- No Medical Exams
- Fixed Premiums
- Lifetime Coverage
- Cash Value Growth
- Quick Application Process
Best Companies For A $50,000 Life Insurance Policy
Below are our top three recommendations for a $50,000 life insurance policy.
Simplified Issue Whole Life Insurance: Transamerica
Transamerica offers simplified issue whole life insurance through their Immediate Solution, 10-Pay Solution, and Easy Solution products. These policies are well-suited for those seeking affordable $50,000 permanent life insurance coverage.
Benefits:
- Same-day approvals on applications in many cases
- Premiums remain fixed for life
- Death benefits are income-tax-free for beneficiaries
- Cash value that builds over time. Accessible through policy loans
Company Highlights:
- Part of Aegon, a top global insurance company with over $1 trillion in assets
- Over 100 years in business providing retirement and insurance solutions
In short, Transamerica’s products offer convenient permanent protection for a $50,000 final expense policy.
"Immediate Solution" Whole Life Insurance
| Policy Type | Whole Life |
|---|---|
| States | All except NY |
| Ages | 0 - 85 |
| Coverage | $1,000 - $50,000 (varies by age) |
| Duration | Lifelong |
| Waiting Period | No |
| Rate Lock | Yes |
- Very low prices
- No medical exam
- Flat, never-increasing premiums
- No waiting period
- Underwriting has become stricter (e.g., no insulin)
- Coverage limited to $25,000 for older applicants
- ADHD
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- Asthma (Chronic)
- Asthma (Mild)
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- Declined for Life Insurance
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- Narcolepsy
- Neuropathy (Non-Diabetic)
- Osteoarthritis
- Osteoporosis
- PAD
- PTSD
- PVD
- Pagets Disease of the Bone
- Pain (Chronic)
- Pancreatic Insufficiency
- Panic Disorder
- Parole / Probation
- Pernicious Anemia
- Pneumonia
- Pulmonary Embolism
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- Respiratory Failure
- Restless Leg Syndrome
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- Shingles
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- Sleep Apnea (No Oxygen)
- Spina Bifida
- Spinal Stenosis
- Stem Cell Transplant
- Suicide Attempt
- Thrombocythemia
- Thrombocytopenia
- Thrombosis (Blood Clots)
- Thyroid Disorders
- Tourettes
- Ulcer
- Ulcerative Colitis
- Unexplained Weight Loss (> 10 lbs)
- Vertigo
- Wegeners Granulomatosis
- Wet Macular Degeneration
- Wolff-Park. Syndrome
- ADL Assistance Required
- Alcohol / Drug Abuse
- Aneurysm (Corrected)
- Aneurysm (Not Corrected)
- Angina
- Angioplasty
- Assisted Living Facility
- Awaiting Surgery
- Awaiting Test Results
- Bedridden
- Brain Tumor (Not Removed; Benign)
- CHF
- CPAP Use (w/Oxygen)
- Cancer (Not Skin)
- Cardiac Ablation
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- Gastric Bypass
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- Nephropathy
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- Non-Hodgkins Lymphoma
- Nursing Home
- Organ Transplant (Completed)
- Oxygen (Non-Continuous)
- Oxygen (Sleep Apnea Use Only)
- Oxygen Use (Continuous)
- Pacemaker
- Paralysis
- Paraplegia
- Pending Hospitalization
- Pending Surgery
- Quadriplegia
- Retinopathy
- Sleep Apnea (w/Oxygen)
- Stent Placement
- Stroke / TIA
- Watchman Implant
- Wheelchair (Confined)
- Wheelchair (Not Confined)
Simplified Issue Term Life Insurance: Mutual of Omaha
For 50k term life insurance coverage, our top pick is Mutual of Omaha’s Term Life Express product.
Benefits:
- Competitive rates that are locked in for the selected 10, 15, 20, or 30-year policy term
- Face amounts from $25,000 to $300,000 available depending on coverage term
- You can upgrade to permanent life insurance
Company Highlights:
- Over 100 years as a trusted and well-established carrier
- A.M. Best rates the company A+ for its strong finances
- Great customer support
Accidental Death Insurance: Mutual of Omaha
Mutual of Omaha offers $50,000 Accidental Death Insurance through their Guaranteed Advantage program.
Benefits:
- Coverage for accidents with no medical exam required
- 24/7 protection for accidental death
- Premiums start as low as $7/month
Company Highlights:
- Strong, stable carrier in business for over 100 years
- Provides fast claims processing
Choose kindness.
You never know what battles people may be fighting.
Conclusion
If you made it this far through the article, you’re doing the right thing by your family! Life insurance is not right for everyone but given the consequences of not having a policy, everyone ought to look.
Warm regards,
The GetSure Team