Life Insurance Quotes Over 50

Is your life insurance used to pay someone else in case of your demise? Unlike other types of insurance (that you purchase so as to provide to you in the case of financial hardship), you most likely purchase life insurance in order to pay your spouse or children if you pass away. Research whether you need life insurance if you're over 50 years old. The next step is to calculate how much money will be necessary to pay off what you are already offering for them.

Key Takeaways

• Before you purchase life insurance for 50 years, first examine who is dependent on you financially. 
• Then, consider in what amount you need to cover what you are currently providing for them.
• If you are over 50, a smoker, or use moderate health, the life insurance premiums you pay could be higher than a non-smoker who is considered to be in good health and has a significantly younger age. 
• At most, life insurance insurance can be divided into two major categories: term life insurance and cash value life insurance.

Financial Dependents

Financial dependents may include a spouse, children, parents, or a sibling that you provide for financially. Determine how much money you assist with dependents. Would they be able to sustain themselves if you were no longer around? You could purchase a life insurance policy and designate multiple beneficiaries, thereby providing a specific amount to many people without having to obtain multiple life insurance policies.

If you are financially independent, but you still want life insurance, that's still a good option. For example, some parents wish to pay an annual or monthly fee so they know a fixed sum will be received by their minor children after they pass away. Other parents believe that their children will get whatever is left, which will be sufficient. It is a personal choice.

Getting Life Insurance Over 50

To obtain life insurance you must go through underwriting. This process usually involves answering health-related questions and subsequently requires a physician to conduct a physical examination. If you're in good health, getting life insurance coverage should not be an issue. If you're over 50, a smoker, or have short health troubles, you may get life insurance at a lower cost than a healthier, younger, non-smoking person would.

How Much Life Insurance Do You Need?

Determining the right quantity of life insurance will be crucial. The more you purchase, the higher the cost will be. A life insurance agent will have an incentive to recommend that you should purchase more life insurance, as they are paid on commission. You may want to seek the services of a noncommisioned financial advisor to determine if you should be purchasing life insurance. You may want to seek the services of a fee-based financial consultant to help you decide if you need life insurance, and if so, the right amount.

What Type of Life Insurance Should You Buy?

Life insurance can be bought up to age 50. Life insurance can be broken into two broad categories: term life insurance and cash-value life insurance.

The premium of term life insurance works much like other forms of insurance. You have a yearly premium, as long as you pay it, you have life insurance. Just like other forms of insurance, there is no cash value attached to term life insurance.

With cash value life insurance a part of your premium goes to cover the expense of your insurance policies and a portion goes to an account. Cash-value life insurance comes in many forms, such as whole life insurance or universal life. Each type will have different guidelines that apply to what your cash value is invested in, and when and how you can access it.

Term life insurance is good for temporary needs, such as spending for your children's school or paying off a mortgage. As soon as your kids go to college or the loan is paid off, you won't need life insurance anymore so you can cancel it.

Cash-value life insurance is excellent for permanent needs, so no matter what time of life you're in, you want to guarantee that you have a policy in place that will payout at your passing.

Life Insurance as an Investment

Life insurance can be seen as a type of insurance policy and as an investment vehicle. In life insurance, you pay an additional cost of insurance.

With this loan, you might be able to calculate the internal rate of return it can potentially provide you with, if you invest it for a set amount of time.

For $500,000 of life insurance coverage and paying $5,000 a year for 300 years, that policy offered a 326 return on your initial investment. For $500,000 of life insurance that you paid $5,000 a year for 30 years and then passed away, that policy offered a return of 6.94 on your initial investment.

Some people purchase life insurance for their parents as an investment. This may sound morbid or inappropriate, but it can also be an effective way as life insurance is a guaranteed payout. Some companies issue life insurance to people even in their 80s. The costs here will be exceptionally high, but some people view it as a wise investment.