Hollay Ghadery Last Updated On: September 12, 2023

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Life Insurance for Over 50

Life Insurance for People Over 50

Whether you’re looking into life insurance for parents over 50, life insurance for couples over 50, or life insurance for people over 50 for yourself, there’s a lot about getting insured at this age that makes it different from getting covered when you’re older or younger.

And what you don’t know could end up costing you. Literally. 

According to Bankrate, not only do 50% of all Americans overestimate the cost of life insurance (and over estimate it by 300%), but many Americans overpay for their life insurance. A lot of time, people who overpay simply don’t understand which type of life insurance is best for them, and the best type will depend on your age and stage of life, among other things.

That’s why if you’re in the market for life insurance at 50, you need to know what you should be looking for. It doesn’t matter if you’re just getting a policy for the first time, or are wondering if the policy you’ve had previously is still the right one for you, we’re here to help.

Keep reading to learn more about the 6 things you need to know about life insurance for people over 50.

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Life Insurance for People Over 50: 6 Things You Need to Know

  1. You really should get life insurance. Many people over 50—especially people with no dependents—think that life insurance is an expense they can do without. And we get it: no one wants to spend money on things they don’t need to. But hear us out: even if you don’t have dependents, you can certainly use  it to help cover final expenses and as business protection, if you own a business or are a partner in a business. 

    Final expense insurance is simple: these policies are created to cover the cost of funerals and expenses related to death. That’s all. So while final expense insurance won’t replace your income for your dependents, if you have them, it will make sure no one is left paying for your end-of-life expenses, like the cost of burial and final medical and hospice bills. (Of course, check with the provider to see exactly what is covered in your policy.)

    Most final expense insurance is affordable and requires no medical exams.

    Learn more about final expense insurance here.

    Business protection. Whole life insurance is a great policy to help ensure the life of your business, even after you’re gone, by providing the capital needed to replace your skills and knowledge or buy out your interests.

    In fact, whole life insurance can be an integral part of business planning, helping to pay loans and mortgages, fund supplemental retirement programs, and fund buy-sell and stock agreements.

    Protect dependents. This is the reason most people get life insurance: to protect the people they leave behind by replacing lost income. 
  1. Term life insurance is the most popular type of life insurance for people over 50. By the time you’re 50 years old or older, the ideal, most affordable type of life insurance for most people is term life. This is because it offers coverage for a preset period of time, usually between 10-30 years. When that time is up, the insurance is gone and there is no payout or value. But for people who only wish to protect their family while their dependents are younger and need it, term life insurance for people over 50 is by far the most affordable option. 

    AND, some term life providers allow you to convert your term policy to a whole life policy without getting a medical exam—though your premiums will increase.
  1. Whole life insurance is an often unsung hero of life insurance for people over 50. Whole life insurance provides coverage for as long as you live, with no change in premium, and they’re guaranteed to build cash value over time. This means you can use these savings to help you pay for expensive items, like medical bills, and you can even use the money to pad your income after you retire. 

    Whole life can also help you optimize your investment or business portfolio for massive capital gains taxes if you sell those assets for retirement income. You may also want to support charitable causes that reflect your interests. If you do both of these in tandem, you can enjoy a lifetime income, help a charity, potential tax deductions, and perhaps even avoid paying capital gains.

    Whole life insurance is, however, more expensive, but if you need a financial cushion, it may be your best option.

    Learn more about whole life insurance
  1. It’s never too late. Ideally, people should get life insurance in their 20s and 30s to lock in a good rate, since life insurance is cheaper when you’re younger and less likely to have medical issues. However, it’s never too late to get insured. If you’re in good health and don’t smoke, you can expect to get a better price. 

  2. Adding a permanent life insurance policy can help boost your retirement savings. Permanent policies provide coverage that lasts a lifetime. It differs from other types of policies because, in addition to providing a savings vehicle, it’s actually an investing vehicle too. Part of your premium dollars will be invested, allowing your cash value to grow, tax-deferred. You can use your policy’s cash value to borrow against, help pay the policy’s premiums, or surrender it to supplement your retirement income. 

    Learn more about permanent life insurance compared to term life insurance here.
  1. Life insurance can replace a pension. If your pension stops paying out when you pass, your life insurance can replace that pension amount for your surviving spouse. 

Life Insurance for People Over 50: Which is the Best?

As you may have been able to gather, there is no best life insurance for people over 50.

If you’re single and debt free, then final expense life insurance may be all you need.

If you’re looking for life insurance for parents over 50, then term life or whole life is a good option, depending on how much they have to spend and how much they have saved. 

If you’re a business owner, then whole life or permanent are solid policies, because they offer savings vehicles while you’re around to enjoy the funds and can help your business carry on without you. 

But there are many variables that could disrupt even these tidy and simplified recommendations. Your best bet is to get a life insurance quote, using the information here to help you ask the right questions and make sure you’re getting the coverage you need, and can afford.

You’re only 50, after all, and you’ve got a lot of life left to live. Make sure you’re living it with as much peace of mind as possible. 

We can help. Request a fast and free life insurance quote here. 

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Hollay Ghadery Hollay Ghadery is a writer and editor who is passionate about financial literacy as a means to personal fulfillment. Hollay has over 18 years of experience creating content about a range of topics related to personal finance, including insurance, investing, banking, and credit cards. When Hollay isn't writing, she's spending time with her four children, two dogs, and three goats.

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