If you are over 50, you may be wondering whether you still need life insurance. The answer is generally yes, as your estate will likely grow in value and your financial needs will evolve. Here are some factors to consider:
Types of Life Insurance Policies
There are two primary types of life insurance coverage: permanent life coverage and term life coverage.
|Type of Policy||Description|
|Term Life Insurance||Policies that are good for a specific term of time, often 10, 20, or 30 years. Generally more affordable but expires at the end of the term.|
|Permanent Life Insurance||Covers the duration of your life and may provide a cash value benefit you can access while you are still living. May cost more, but locks in your premium rate for life.|
Assessing Your Life Insurance Needs
When reviewing your current insurance needs, you may find that another life insurance company or policy type is better suited for consumers age 50 and above. Here are some factors to consider:
- Determine the amount of death benefit you want to purchase
- Consider whether a permanent coverage policy may be a better financial choice in the long term
- Talk to a licensed agent or certified financial planner to help point you in the right direction
Best Life Insurance Companies for People Over 50
Based on financial stability, policy type availability, and customer satisfaction ratings, GetSure’s insurance editorial team evaluated several insurance carriers to determine the best life insurance company for people aged 50. and older. Although the best life insurance company for you will depend on your specific needs, the following carriers may be a great place to start your search:
- New York Life
Factors that Affect Life Insurance Premiums
You can typically expect to pay more for life insurance coverage once you reach age 50. This is because the older you are, the more likely you are to pass away based on actuarial data that life insurers use to price policies. Additionally, many life insurance policies require a medical exam or a comprehensive survey with health questions. If you know your medical review will likely raise a red flag for your insurer, you can likely expect to pay more for your policy.
Although it is a good idea to re-evaluate your financial situation when you turn 50, you may still have similar life insurance needs to those you had at a younger age. Whether you are shopping for your first life insurance policy or thinking about making some refinements to your existing coverage, there are a few key factors to consider if you are aged 50 or older.