What is the Best Life Insurance for 50 Year Old Persons?

It is common knowledge that the best time to buy life insurance is in your 20s and 30s. However, if you had only purchased a 10 or 15 year term life policy at that age, you are probably without coverage in your 50s. The first thing you must do now is to buy the best life insurance for 50 year old persons. There are several companies that give you affordable options.

The need for the best life insurance for 50 year old people

Gone are the days when 50 was old age. Today, 50 is the new middle age due to several reasons.

  • Life expectancy has increased
  • Age of retirement in many institutions has increased, thereby increasing the number of working years of people
  • People who remarry after a divorce probably have dependent children when they are in their 50s. Current policies might not be adequate to support children until they become independent
  • In the 50s, people are at the peak of their careers. Lifestyle is more sophisticated and expensive

Owing to all these reasons, it becomes important that you choose the best life cover for people above 50. This way, you can plan a supplementary income that will help you family sustain their lifestyle in case you suddenly die.

For people in their 50s, saving money is important so that they can plan their retirement. The focus is on protecting income so that they don’t have to suffer financial crunch later in life. Considering all these aspects, term life insurance definitely comes across as the best plan for people who are past 50.

Insurability considerations

Typically, you need insurance till the end of your life so that your family receives benefits when they need it the most. If you had opted for a term life policy in your 20s or 30s because of the low costs, you should now buy a policy that you can convert into a whole life policy at the end of the term, or a policy that allows easy extension of your existing term.

At the age of 50, guaranteed conversion option is usually not easily available because of the health risks that you might suffer a decade or two down the line. Some insurers do offer extension of term life policy until you are 85 years old. However, premiums are higher right from the beginning. Contact insurance agents and find a policy that guarantees cover until your death. The best way to do it is to buy a long policy before your previous life coverage ends.

The best combination of life coverage plan for people over 50

If you want to save costs on insurance and want coverage until the end of your life, you need to buy a combination of whole or universal life cover and term insurance. Buy a twenty year term life policy and a modest whole life policy so that your family is adequately covered. If you die before the term life policy ends, you family receives benefits from both the policies. Whole life policy also gives you an amount of cash value.

Try out different combinations and buy the best life insurance plan for 50 year old people.