Life Insurance

What Is The Best Life Insurance For Someone Who Over 50?

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 6 minute read

In the end, we all die. One’s odds of dying on any given day increase with age; this is a sad truth of life. This fact is reflected in both the cost and availability of life insurance. It is more difficult for those over the age of 65 to obtain affordable life insurance, and even if they do, they will almost certainly pay more than younger applicants for the same amount of coverage.

Thankfully, insurance companies won’t automatically reject you if you’ve reached a particular age. Those who are in their latter years of life when they get life insurance can find coverage from several of the greatest insurance firms in the industry. In this article, we rank the best companies that offer life insurance to AARP members, who must be at least 50 years old.

Best Life Insurance Companies for Seniors

For those in their fifties and beyond, these are the top life insurance providers to consider. Whether it’s providing affordable coverage with no chance of rejection due to health difficulties, giving high coverage limits for high net worth policyholders, or providing a variety of life insurance options to the elderly, each company excels at something.

Our top recommendation here provides the best value for the widest range of eligible customers who are in need of life insurance.

Mutual of Omaha is the best overall.

For retirees, Mutual of Omaha is the top life insurance provider overall. That’s in part because of guaranteed-issue, no-medical-exam, whole-life insurance policies. In light of the prevalence of age-related health problems among the elderly population in the United States, it is a crucial factor to take into account.

In most states, the minimum age for applying for a guaranteed issue insurance from Mutual of Omaha is 85. Death benefits can be as high as $25,000, and your rates will never change as long as your insurance is active. The policy’s cash value increases over time, making it possible to take out loans against it if necessary.

Older candidates can choose from a variety of insurance options from Mutual of Omaha, including level term and convertible term (which you can convert to a permanent policy after a waiting period). In atypical fashion for this form of insurance, Mutual of Omaha accepts applications from persons as elderly as 80 for term life coverage.

AIG Direct is the best option for guaranteed issue life insurance.

If you’re over 50 and looking for permanent life insurance in the United States that won’t cancel your policy due to a change in your health, go no further than AIG Direct.

The living benefits package offered by AIG Direct is the service’s crowning achievement. These add-ons, known as riders, might raise your policy’s payout if certain predetermined events occur. Specifically, policyholders over the age of 60 should take note of two:

  • This rider can accelerate up to half of your death benefit. If you are diagnosed with a terminal disease that meets the criteria, such as cancer or ALS, you will be eligible for this benefit.
  • A chronic illness rider deducts a portion of your death benefit and pays out less than the whole amount in the event of a major disease that impairs your capacity to care for yourself.

Best for No Medical Exam: Haven Life

Haven Life, which is backed by MassMutual, is the market leader in no-exam life insurance for seniors. Haven Simple is a simplified issue product that provides term life coverage of up to $500,000 with a few health questions but no physical.

You may apply for Haven Simple up until you become 55 years old, and the loan periods range from 5 to 20 years. Death benefits start at $25,000 at the very least. The following are additional benefits:

  • Online-only application without paper forms
  • During the free-of-charge look time, there is no cancellation fee.
  • Accelerated death benefit for terminally ill individuals who qualify.
  • Included in the Haven Life Plus policy rider are complimentary subscriptions to a fitness program and a secure digital storage vault for vital papers, as well as discounts on CVS MinuteClinic services.

John Hancock is the best option for high coverage limits.

Unlike the majority of these firms, John Hancock does not provide guaranteed issue life insurance. It’s good news for people over 50, though, because they may get term life insurance plans with extremely high coverage limits thanks to their age.

John Hancock’s term life death benefits begin at $750,000 and go as high as $65,000,000, which is far more than the offerings of any of their competitors. There are a few different kinds of permanent life insurance available, and all of them have rather large coverage limits.

Best for Accelerated Death Benefit is Transamerica

If you’re over 50 and looking for a life insurance provider with excellent death benefits, your best bet is Transamerica.

Although the premiums for Transamerica’s Financial Foundation Index Universal Life (FFIUL) plan increase sharply with age, applicants as elderly as 85 are accepted. Can top it all off, FFIUL offers an optional accelerated death benefit rider that allows you to claim up to your whole death benefit during life in the case of a qualified terminal diagnosis, making it one of the most generous life insurance alternatives for older people, period.

The cash value feature of FFIUL is completely voluntary but adds a valuable source of possible retirement income.

New York Life is the best option for low-cost premiums (AARP)

AARP’s only life insurance provider is New York Life. That in and of itself ought to inspire faith in the venerable insurer. Large advocacy groups that work exclusively for the interests of those over 50 are the most likely to have a firm grasp on what these individuals may expect from society.

New York Life’s guaranteed issue plans up to $25,000 have low premiums, in part because of the company’s affiliation with AARP. This is more than enough money to cover the last expenditures of the vast majority of people. Two more forms of life insurance coverage for seniors are also available, but at lesser premiums and benefits:

  • Life insurance with a level benefit that covers you for up to $100,000 until you’re 80 years old, but whose rates may rise as you become older.
  • For a fixed premium for life insurance that lasts forever (and requires no medical exams), you may get coverage of up to $50,000.

Can You Get Term Life Insurance After the Age of 50?

Yes. There is a widespread myth that only young individuals can get life insurance.
People in their fifties are often eligible to apply for term life insurance policies from the majority of insurance companies. They even take applications from folks in their 60s. The age limit is often between 64 and 65.

However, some insurers place limits on term durations for applicants above a certain age. If you’re above the age of 50, you may not be able to get a 30-year term, but you should be able to get a term of 10 or 20 years.

How Much Life Insurance Can Someone Over the Age of 50 Obtain?

Insurer preferences will determine the answer. After age 50, you may be able to qualify for a sizable death benefit provided you can pass medical underwriting (including the medical exam) and your health history and lifestyle questionnaires don’t raise any red flags.

Your budget can be the stumbling block. Your premium will increase in proportion to the sum insured and the length of the policy. Your already high age-related premiums will increase even further. You may not be able to afford a policy with coverage of more than $500,000, even if you need $1 million in protection.

When You’re 50 or Older, How Do You Choose the Best Life Insurance Policy?

As you enter your elderly years, it is crucial that you have the finest life insurance coverage possible. You only get so many opportunities to do things correctly at this age.

To begin, think about why you’re buying this insurance.

Do you want to make sure your loved ones don’t have to worry about money when you die? If that’s the case, a low-face-value life insurance policy should cover all that has to be paid for after death. Guaranteed issue policies, like those used for last expenditure coverage, cannot be declined due to a person’s health status.

Do you want to make sure that your loved ones are taken care of financially when you’re gone? An insurance plan with a larger death benefit may be necessary in such a scenario. 

To keep costs down, this will likely be a term insurance with a 15- or 20-year duration, depending on your age and the level of risk your insurer is prepared to assume.

The other aspects of our technique, such as the provision of living benefits and riders including accidental death coverage, should then be taken into account. Think about whether or not your age precludes you from purchasing the desired coverage.

With some research, you can locate life insurance coverage at practically any age. Although it may fall short of your ideal level of protection, it is undoubtedly preferable than having none at all.

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