Many people believe that getting life insurance for people over 50 years old is very expensive, but that is not even close to the truth. Over 50 life insurance rates are more affordable than you may think.
Use our instant quote tool on the side of this page so you can compare how inexpensive senior life insurance rates you qualify for. You should know that the longer you wait the more expensive your rates may be.
All that being said, these are the 3 tips for buying life insurance for people over 50.
Most people looking to get over 50 life insurance are trying to weigh whether they should look at term or permanent life insurance. Term insurance gives you the most coverage for each dollar you spend, while permanent life insurance guarantees that you have a cash value no matter how long you have the coverage.
We recommend that you consider doing a combination of the two.
We have seen a trend where people over 50 are purchasing a small permanent life insurance policy to take care of funeral and burial expenses AND a term life insurance for people over 50 policy to cover themselves until they reach retirement age.
The thought here is that with the term policy you make sure your loved ones just in case something happens to you during these top income producing years. Since these years are a huge part of contributing to your retirement, they are the years you need life insurance the most. By purchasing a term policy that matches with your expected retirement date, over 50 consumers are making their families are taken care of financially.
Once you hit retirement, the term policy is finished and you continue with the small permanent life policy so that you can leave a little inheritance behind and/or take care of funeral and burial expenses. This works great for people as they age and is what we recommend for all our clients who are over 60, 70, and 80 as well (learn more about getting life insurance for seniors over 60 HERE).
While employing this strategy does not work for everyone, it is becoming a more and more common life insurance over 50 strategy. We can help you decide whether this works for you and your life insurance planning.
It seems like everyone over the age of 50 has received advertising from AARP.
AARP does not actually sell life insurance. They have a life insurance endorsement. This means another company actually sells the life insurance. Right now the endorsement is going to New York Life. This is not a bad company but they are not competitive in the life insurance over 50 market.
We are replacing AARP over 50 life insurance policies all the time. We have seen people cut significant dollars off their rates. Please do not make the mistake of buying the same coverage for more money just because you have heard of the AARP name. So remember AARP may represent senior citizens but they are not the best for their life insurance (learn more about senior citizen life insurance HERE).
People tend to need more life insurance in their early 50’s than they do when they get older. Once kids are out of the house and you retirement funds are set up, life insurance becomes less of a necessity. As the years go on, you can drop some of your coverage and lower your payments.
Let’s look at an example. When you were 52 you needed $500,000 of coverage to make sure your mortgage and college tuition for the kids were taken care of. As you reach 60 those obligations may already be met and you can “shed” that policy to a $150,000 over 50 life insurance policy which will lower your payments.
Never let the premium payments of the future influence your decision to buy a proper coverage amount today.
Many life insurance companies will not let you do this, but we only recommend companies that are very friendly to selling life insurance to people over 50 and will work with your needs.
Using an independent agent who has access to all the top rates carriers and who has experience in the over 50 life insurance market can save you thousands of dollar in premiums. As an agency that specializes in life insurance for people over 50 and life insurance for smokers (learn more about life insurance for smokers HERE) we are confident that you will benefit from our expertise and be pleased with the recommendations we make based off of your unique situation. Please fill out the form on the side of this page or give us a call to request a quote and we can get this process started today.