Let’s face it: Financial security is among the most important things to achieve in life. It improves your quality of life, helps prepare for the unknown and protects your family financially. That’s why investing in life insurance should be a no-brainer.
Surprisingly, LIMRA’s Life Insurance Barometer Study found that only 54% of people in the U.S. have life insurance. And while this problem is prevalent among all age groups, it’s more challenging for those over 50 years of age who may face tighter underwriting and higher rates.
But there are reasonable insurance options out there for people over 50. However, with thousands of insurance firms offering different services in the country, locating the best for you can be daunting. This post outlines six of the best life insurance options for people over 50.
I’m 50 Years Old. Do I Need Life Insurance?
If you’re 50 years or older, you may be wondering whether you need life insurance. And the answer is often: yes. Everyone prioritizes their loved ones’ health, financial stability and overall well-being. And buying life insurance helps you securely achieve that.
Life insurance is designed to help your loved ones in the event of your death. Depending on your needs and situation, you may consider getting life insurance when you’re 50 years or older because of varying reasons, including:
- Family protection
- Coverage for final expenses
- Business protection
- Pension replacement
- Estate planning
- Saving for retirement
- Charitable remainder trust
Now that you know how life insurance can benefit you and your family, let’s look at how you can choose the best life insurance plan.
Choosing the Best Life Insurance Plan
Some people may believe that buying a life insurance cover when you’re 50 years or older is a bad investment. However, that’s not the case as we’ve seen that life insurance protects your family members, businesses, helps cover last expenses, etc.
However, as is with all investments, poor research before the investment can lead to losses and wasted money. To ensure that your investment is safe, you need to research and compare all the available insurance policies available to you at your age.
Here are a few key aspects to consider before opting for a life insurance policy:
- Rider benefits: The best life insurance policy should provide you with additional rider benefits. For instance, you may get a policy with accidental death rider, illness rider, accidental disability rider benefits, etc. Get yourself the most reasonable policy that provides these rider benefits to improve the policy coverage.
- Tenure: The tenure is how long the policy lasts. A term life insurance policy might have a tenure of 10, 20 or 30 years, for example. When purchasing a life insurance policy over 50 years, you’ll generally get a short tenure period. Therefore, always ensure that you choose the most suitable policy for your age. Moreover, you should choose life insurance firms that allow tenure extensions, meaning you’ll pay your premium even after your tenure is over and receive coverage accordingly.
- Medical analysis: It’s very common for persons in their 50s or older to have health complications. Different insurance policies provide separate coverage for health and medical issues. You should choose a policy that provides coverage for all your current or possible health issues for better outcomes.
- Premium type: Another factor you should consider when looking for a life insurance policy when you’re over 50 years old is the premium type. Cost can be especially important if you’ve retired or plan to retire during the term of the policy. You should choose the life insurance firm that provides you with the most flexible premium payment plan – one that matches your income.
Compare Your Options: What’s the Best Life Insurance for People Over 50?
When shopping for a life insurance firm over 50, you should understand each type of insurance you’re likely to get. Generally, there are three main types of life insurance options, as outlined below:
- Term life insurance
- Whole life insurance
- Universal life insurance
Now let’s look at the life insurance firms for you.
What Are the Best Life Insurance Firms for People Over 50?
Regardless of the challenges you’ll go through when buying life insurance when you’re over 50, you can still purchase the best policy in the market. But you’ll never know which insurance firm has the best terms unless you compare insurance companies in the market.
We’ve simplified this task for you by outlining five of the best life insurance firms in the U.S. Without further ado, let’s look at these companies:
1. Mutual of Omaha
This insurance firm is one of the best for those over 50 years – and for a good reason. The company has competitive pricing, demands no medical examination, and offers a wide range of life insurance policies.
Founded in 1909, Mutual of Omaha boasts one of the best portfolios of insurance products, including term life and permanent insurance.
Persons aged 18 to 80 years can purchase term life insurance of 10, 15, 20 or 30 years in length. The firm also allows you to renew the policy to 95 years or convert it to permanent coverage.
The premium you pay depends on your age and health status, among other factors. A person in their 50s is estimated to pay around $100 per month with a tenure of about 20 years, with the death benefit amounting to approximately $250,000.
Key features:
- Excellent customers service
- Competitive rates
- Many policy options
States they serve:
All the 50 states in the U.S and District of Columbia
Drawbacks:
You receive no dividends.
Website review:
It’s easy to navigate and has detailed information about the policy plans offered by the firm.
2. New York Life Insurance
Founded in 1845, New York Life Insurance is among the largest and oldest insurance firms in the U.S. As a mutual insurer, the firm pays a dividend to policyholders.
New York Life Insurance provides eight life insurance plans, including universal, whole, term life, etc. What’s more, the firm offers three special plans for AARP members.
The insurance company provides life insurance plans with a maximum issue age of 75 years. The length of coverage for term life insurance is usually 10 to 20 years. You can be sure to be accepted by New York Life, with no medical exam for AARP members.
Key features:
- Convertible term life options
- Increased death benefits
- Endorsed by AARP
- Excellent financial stability
States served:
All the 50 states and the District of Columbia
Drawbacks:
The premium may increase after your tenure is over.
Website review:
The website is well developed and has all the information you may need to purchase a policy.
3. Protective Life
If you’re looking for the most price-competitive life insurance firm around, look no further than Protective Life. Its cost is 43% less than its close competitors, with equal or better insurance services.
The age limit for policyholders varies depending on the policy, with a maximum age of 85 years. You may be required to undergo a medical examination depending on your health status, age and policy.
Key features:
- AM rating of A+
- Online application
- Competitive rates
- Rate readjustment after the first year
States served:
All states except New York
Drawbacks:
- Slow approval process
- Inability to cancel online
4. Transamerica
If you’re looking for a life insurance policy without having to undergo a physical exam, Transamerica is the company for you. Founded in 1904, this insurer provides policyholders with the best terms, including rider benefits.
Transamerica has universal and whole life options with flexible premiums, death benefits, no-lapse guarantees, etc. The firm also has term life insurance for 10 to 30 years.
Key features:
- Coverage starts at $25,000
- Has indexed life insurance coverage up to age 85 years
States served:
All the 50 states and the District of Columbia
Website review:
Transamerica’s website is easy to navigate and has all the information you might need.
5. Northwestern Mutual
Are you looking to leave a legacy for your family members and transfer your wealth when you die? If that’s you, Northwestern Mutual is your go-to life insurance provider.
Founded in 1859, this insurer provides individuals with at least four different types of insurance policies, including term, universal, whole, and blended life policy that’s customized for the provider.
Key features:
- Financially stable
- May pay dividends
States served:
Available in all states
Website review:
Their website is well developed. However, it’s hard to find detailed policy information on Northwestern Mutual’s website.
6. AIG
Founded in 1919, AIG is one of the world’s best insurance firms. The company provides term, universal, and whole life insurance policies with living benefits. There are 18 different term durations to choose from, and policies can be converted to permanent coverage at the end of the premium period.
Key features:
- Long term limits
- Quality of life riders
- Variety of policy options
Drawbacks:
No online quote options
Website review:
The website is well-developed with crucial information easy to find.
The Bottom Line
Life insurance is a critical part of financial stability. Regardless of your income, life insurance can make sure that your loved ones can live independently in the event of your death. And the good thing is, life insurance might be more affordable than you think – all you need to do is shop for the best life insurance firms in the market. We’ve simplified this hassle for you by providing some of the best life insurance options for people over 50.
SOURCES USED:
https://www.aig.com/individual?reason=UserLogout
https://www.northwesternmutual.com/
https://www.transamerica.com/
https://www.protective.com/
https://www.newyorklife.com/
https://www.mutualofomaha.com/
https://www.limra.com/en/research/research-abstracts-public/2020/2020-insurance-barometer-study/