Inexpensive life insurance over 50

GraveyardWhere did the time go? You are over 50 years of age and intended to purchase additional life insurance years ago. When the idea to buy life insurance came to mind, you were relatively young and healthy. In other words, time was not an issue. Now you are over 50 and life insurance at this age will definitely be more expensive. So, the million dollar question is: Can one purchase inexpensive life insurance over 50?

Where should one begin

Before beginning our search, we need to determine how much life insurance we need. Here are a few things to consider:

  • Burial Expense
  • Supplement retirement income
  • Help paying off the mortgage
  • Home expenes
  • Replace lost wages
  • Estate taxes
  • Pay for college
  • Charitable gift

Next we should look at a very simple insurance need calculation.

  • Write down the financial obligations we wish to cover (refer to the list above for ideas).
  • Subtract any existing assets that can be used toward bills.
  • What remains represents your life insurance need.

Our life insurance need equation will look like this:

  • [Financial obligations we wish to cover] – [Existing assets that can be used toward bills] = Life insurance need

Types of life insurance policies

Insurance Policy

Now that we have identified how much life insurance is needed, the next task is to figure out what type of life insurance policy would best satisfy our need.

  • Term Life- A type of life insurance policy that provides a death benefit to the beneficiary only if the insured dies during a specific period.
  • Whole Life- An insurance plan that builds cash value while providing coverage throughout ones lifetime if the policy remains in force.
  • Universal Life- A policy with premiums applied to cash value and the death benefit. This policy allows flexibility of premiums and benefits.
  • Variable Life- A life insurance policy that allows the insured to direct money ear marked as cash value be applied to mutual fund sub accounts.

Choosing the right policy for me.

Wallet

We have determined how much life insurance is needed and the various types of policies available. However, you should know that life insurance costs vary based on several factors, including age, gender, health and the death benefit amount purchased.

Several Companies that carry life insurance

7 Life Insurance Companies for People Over 50

  • New York Life
  • Mutual of Omaha
  • AIG
  • Guardian
  • State Farm
  • Northwestern Mutual
  • Transamerica

This list is not all-inclusive but provides a great place to begin.

Final Step

We have identified how much life insurance is needed, the type of policy desired and several companies that work well with people over 50. So, let’s get started. Select several companies from our list and get a quote. Once you have a few quotes in you possession, don’t be afraid to contact an agent with specific questions.

If you have any questions about this topic, let me know in the comments section below. I have many years of experience in this area and would be happy to address any questions and or concerns.

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