Why Is It So Expensive
Why does life insurance cost so much for someone in their 50’s?
Life insurance premiums increase as we age. That is because the older you get, the more risk you have of dying. So, all other things being equal, a 50-year-old woman will pay more for coverage than a woman who is in her 40âs or 30âs. Additionally, many 50-year-olds have an underlying health condition, like diabetes, and consequently, receive higher premiums. Insurance companies need to make money and so, the bigger liability you are, the more expensive your life insurance will cost you.
All the same, there are several things you can do to reduce your over 50s life insurance cost, such as:
- Giving up smoking. Staying smoke-free for 12 months can help you qualify for better rates.
- Get in shape. While you cannot stop the clock, eating well and exercising will lower your life insurance cost.
- Do not over-insure your life. Factor in your income, debt, budget, and other financial factors to determine how much coverage will be sufficient for your family. If in doubt, speak to an independent life insurance advisor. Buying too much coverage is almost as bad as buying too little since it means wasting a sizeable amount of money that could have been used for some other purposes, like taking more family vacations.
- Combine yours and your spouseâs policy into one. If you and your partner are fairly healthy, buying a joint life insurance policy may be much cheaper than purchasing two separate plans.
How To Find The Right Over 50 Life Insurance Policy In Canada
While getting life insurance when youre 50 or older is fairly easy these days, weighing your options is critical when trying to get the most affordable policy that meets your needs. Here are a few simple steps for you to consider when purchasing a life insurance policy:
- Read the terms and conditions. Be sure that youre getting the correct protection without any unnecessary features to avoid overpaying for a policy. Dont hesitate to ask questions about any details on the policy that are unclear to you.
- Consider your health. If the insurance provider you apply with requires a medical test, know that any pre-existing medical conditions, lifestyle habits and driving records can significantly affect the cost of your premiums.
- Look for discounts. When applying for coverage, consider insurance needs for your partner or spouse as well you may get a discount on your premiums. Insurance providers will generally also offer discounts if you pay your premiums annually.
- Talk to an insurance broker. If youre unsure of which life insurance plan makes sense for you and is within your budget, an insurance consultant likely has the ability to provide recommendations on policies for you with competitive prices.
Things You Need To Know
- Depending on how long you live, total premiums paid may be greater than the cash sum payable on death.
- This is not a savings or investment product and has no cash value unless a valid claim is made.
- If you stop paying premiums when due, your plan will be cancelled and you won’t get anything back.
- The cash sum is fixed, so inflation will reduce it’s buying power in the future.
- Over 50s Fixed Life Insurance is not designed to meet the full costs of a funeral, and does not guarantee to do so.
- If you choose to reduce your premiums, your cash sum will also be reduced.
Please read the key documents before you apply.
Read Also: Do Va Loans Have Mortgage Insurance
Nationwide Wins With Three Free Living Benefits And Happy Customers
We recommend the best products through an independent review process, and advertisers do not influence our picks. We may receive compensation if you visit partners we recommend. Read our advertiser disclosure for more info.
Buying life insurance can become more difficult as you get older, but it’s certainly doable. In part, this is because life insurance gets more expensive as you age. But it’s also because you may have developed health issues that make life insurers less inclined to approve your application. But if you’re over 50 and in need of a new life insurance policy or additional coverage, you still have plenty of options. Best not to wait though.
We’ve researched the best life insurance companies for different situations and types of coverage. All have stellar reputations and financial strength ratings, plus offer valuable perks to the 50-plus crowd.
How Much Does Term Life Insurance Cost For A 50 Year Old
The following term life insurance rates for ages 50-59. All quotes are from top rated insurance companies for both a male and female in excellent health, are subject to change and must be qualified for.
About Term Life Insurance
Term life is great because it gives you the coverage you need for a specified time. You dont have to pay the higher premiums for permanent coverage. Instead, you choose a term length and your life insurance rates are determined by how long you plan on having the term policy.
Obviously the drawback is the term policy ends. When a term life policy ends, the policy can typically be renewed, but at an increased premium. Over time, the insurance premium increases too much and most people are forced to drop the coverage.
However, for many, life insurance over 50 only requires a small whole life policy, where the death benefit can be used to pay for final expenses and burial.
Also Check: Whole Life Insurance Rates By Age Chart
You Want To Bolster Your Retirement Portfolio
Some over 50s life insurance policies include a built-in investment component, called cash value. The policyâs value grows over time, usually at a fixed rate. Besides being a source for tax-free retirement income, it can buttress your investment portfolios. Its stable growth acts as a volatility buffer during a market downturn and makes it easier for you to pursue higher-risk, higher-return strategies with other investment vehicles.
Sample $25000 Final Expense Whole Life Insurance Quotes From Top Rated Companies
All whole life rates shown below are fixed and will stay the same for your lifetime.
About Final Expense Insurance
Final expense insurance is usually cash value whole life. The policys premium payment is fixed for your lifetime. Further, the death benefit is locked in and never changes.
And since it is whole life, the policy builds cash value that can be used to borrow against, pay premiums for a time, or use to buy paid-up life insurance.
You May Like: How Much Is Sonobello Without Insurance
Should You Buy No Medical Exam Life Insurance In Your 50s
Perhaps. One of the nice things about no medical exam life insurance is the convenience factor. Typically, you need to fast for about 8 hours before taking a medical exam. The exam itself usually only takes about 20-25 minutes, but you have to make the time for it.
For people that are leading busy lives opting to skip the medical exam can make sense. Other people, quite frankly, are uncomfortable with needles and would prefer not having their blood drawn if they dont have to.
Some havent had a physical in a couple years or more, and are concerned as to what might show up in their labs that could increase the rates they get offered by an insurance company.
How To Buy Life Insurance For Seniors
Like all life insurance, the products available are many, and very complicated. However, as a senior life insurance customer, your premiums will be higher than most customers, so you have more to lose if you pick the wrong policy! Don’t stress – we can help. The best place to start when purchasing senior life insurance is to compare quotes, and find a product that works best for you. Speaking to a broker can be a good idea as well. Complete our quote form today, and we’ll get you started on the right track in a matter of minutes.
Ratehub.ca is not affiliated or otherwise associated with Hub International Canada.
Recommended Reading: The Hanover Insurance Group Regional Office
Compare Rates In Seconds Apply In Minutes
Shop life insurance quotes for applicants over age 50 without sitting down with an insurance agent or receiving phone calls, and apply in 10 minutes.
Our Quote and Apply tool allows you to:
- Instantly receive life insurance quotes from over 20 carriers
- Complete an online application
- Sign the agreement with DocuSign
- Securely attain the policy from respective insurance carriers
- With or without a medical exam
Applying For Life Insurance
Life insurance quotes are usually only valid for a set amount of time, like 90 days. If you don’t apply for coverage by then, you have to begin the quoting process again.
The application process is much more in-depth than the quoting process. It consists of four stages: documentation, medical exam, underwriting, and the decision.
Depending on the type of policy you’re applying for, your application may skip through some of these stages.
The DocumentsOnce you apply for life insurance, you need to provide the following documentation:
- Proof of identification, such as a valid driver’s license or passport, birth certificate, permanent resident card, or employment authorization card
Some life insurance companies may schedule a phone interview to gather additional details. This information usually pertains to your lifestyle, hobbies, your financial health, and other life insurance policies you may have.
The Medical ExamDepending on the type of life insurance you are applying for, you may need to take a medical exam. This exam is scheduled through the life insurance company using their medical testing firm. You don’t have to pay for this medical exam.
This basic checkup includes:
Read Also: Home Insurance Claim Adjuster Secret Tactics
What Kind Of Life Insurance For Over 50 Is Available In Canada
These policies are the best choices for life insurance over 50 in Canada:
- Term life insurance. This offers temporary coverage for a set period of time, like 10, 15 or 20 years, or until a set age, like 65 years old. You could purchase a policy that would expire when you no longer have financial obligations for example, the year you retire or pay off your mortgage, or when your grandchildren go to college. If you die during the term, your beneficiaries receive a guaranteed death benefit.
- Whole life insurance. If you want to treat your life insurance policy as a cash asset, look into whole life. A portion of your premiums are invested to give your policy a cash value, which earns interest over time at a set rate. Once youve built up enough cash value, you can begin to borrow against your policy which can be useful if you have large expenses to cover, like a home renovation.
- Final expense insurance. Often marketed to those aged 55+, these policies are designed to cover end-of-life costs, such as a funeral and medical bills.
- Simplified issue life insurance. If you have a preexisting health condition, you can forgo the medical exam with simplified issue life insurance. You may need to complete a health questionnaire, though.
Which riders should I add to my policy?
Depending on your needs, you could add these riders to your coverage:
Dont Be Rushed Into A Life Insurance Purchase
Financial predators often focus on seniors. They may try to get you to purchase unnecessary coverage, or a more expensive policy than you need. Be wary of anyone who tries to rush you into making a decision or discourages you from discussing a proposed policy with a family member or trusted advisor.
Also Check: How Much Are Root Canals With Insurance
Factors That Affects The Cost Of Life Insurance
The older you are, the higher the cost of life insurance coverage. That’s why life insurance professionals often encourage people to take out policies in their twenties and thirties. However, if you are in your 50s, there may still be time to get coverage. You just need to be prepared to pay more for coverage and understand that some types of policies may no longer be available to you. Here are some of the main factors that contribute to policy cost:
Your age: Life expectancy has an understandable impact on how much life insurance costs, which is why premiums can go up significantly for applicants over age 50. Life insurance companies have a greater risk of payout as you age conversely, when you buy at a younger age, even permanent life insurance policies with a guaranteed payout cost less because you have a longer time to pay into the policy.
Your health: Younger people, in general, are healthier. As people age, health tends to deteriorate, which puts the life insurance company more at risk of having to pay out on your policy. Smoking and other risky behaviors also impact the cost of life insurance.
What Questions Will My Independent Agent Ask Me
Heres another difference between a captive agent and an independent agent.
Since a captive agent can only offer one companies products there isnt nearly as much of a need to ask you a bunch of questions upfront. Regardless of your medical history or anything else a captive agent is limited in the options they can offer you. Quite frankly, their only choice is to have you complete an application with their company and hope for the best.
In comparison , a good independent agent should ask you a number of questions upfront. If they dont I suggest you run for the hills!
Imagine asking a medical doctor what prescription medication you should take without the doctor learning about your medical history and perhaps running some tests.
Talk about scary!
The important thing to know is that each insurance company will look at you differently based upon your background, medical history, and so on. The questions below are some of the types of questions you should expect to be asked to help match you to to the carrier that will offer you the most affordable life insurance rates.
Read Also: What Is Product Liability Insurance
How Do I Choose The Best Life Insurance Company
Choosing the right life insurance company is a balancing act between how well a companys products satisfy your needs and how good that company is overall. That said, the latter may be better than the former, since the policy you own is only as good as the company backing it.
But you dont have to compromise. You just need to establish what you need and then apply a set of filters to the life insurance companies youre considering. A stepwise approach can help.First, assess your needs:
Second, get life insurance quotes from solid companies:
No : Compare Life Insurance Quotes
The best way to find a good price on a life insurance policy is to compare quotes from multiple insurers. You can get free quotes:
- Online. Most insurance companies offer free quotes on their website. You can visit several insurers websites and compare quotes. Or you can save time by using a website that provides quotes from multiple companies.
- You can call or visit a local insurance agent who can help you get life insurance quotes. Keep in mind, a captive agent only works for one insurance company, so make sure you speak with an independent agent who sells policies from multiple insurers.
Don’t Miss: How Much Does Long Term Care Insurance Cost
Whats The Conversion Option
Sometimes people are still not sure if they should buy a term or permanent policy. Other times a permanent policy is whats needed, but cash flow is a little tight when buying a life insurance policy.
One strategy is to buy term life insurance with a company that has good conversion options and historically has good permanent products that you can convert to if you want to in the future.
Converting your life insurance policy means to change your term life insurance policy to a permanent policy. For example, you might buy a $250,000 term life policy. Then if your policy allows you to, you can convert the term policy to a permanent policy.
If you choose to convert you will not have to go through the underwriting process again and re-qualify. That means that even if you had a heart attack the day before or were just diagnosed with any sort of health illness you will still be allowed to convert no matter what. All it takes is the completion of some paperwork which your agent can help you with.
The conversion rules vary with each insurance company. Many companies will allow you to convert up to the end of the level term period, but no later than age 65 or 70 typically. Then theres some term policies that only allow you to convert in the first five years.
Heres two examples based on a company that allows you to convert during either the level term period or before reaching age 70. Whichever comes first.
Third, some companies allow for partial conversions, but some do not.