Different stages of life bring a wide range of needs. Those aged 50 or more may find their financial needs have changed. With retirement on the horizon and children beginning to leave the home, life insurance may have to work for you in different ways.
We have analyzed various life insurance companies that provide the best policies for those over 50 to help address your needs and work for you in this unique stage of life.
Best life insurance for people over 50: shortlist
- Everyday Life — best option for affordable life insurance for people over 50
- Nationwide — best whole life insurance for over 50
- Lincoln Financial — best life insurance for parents over 50
- Penn Mutual — best guaranteed life insurance option for over 50
Best life insurance companies for people over 50 in 2023
Answering the question of the best life insurance for those over 50 is a difficult one. With so many options, we sought to narrow your choices to only the best. Using our strict criteria, we have a breakdown of the top five best life insurance companies for those over 50.
Each has been evaluated based on customer satisfaction, price, living benefits, and options for those concerned about retirement, estate planning, and other relevant needs.
1. Everyday Life — best budget-friendly life insurance for 50+
Because so many are making a final push toward retirement, finances are often tight, with a focus on ensuring retirement accounts are where they need to be. As a result, there may not be much left for life insurance premiums. Everyday Life aims to meet this concern by providing affordable life insurance policies after only a 15-minute online process.
While these policies may be affordable, the value doesn’t reflect cheap life insurance for 50-year-olds and older. Everyday Life provides 24/7 assistance, meaning they can address any questions or concerns regardless of the time. With an average cost of $15 a month, it’s hard to find a more affordable option with the value these policies bring.
Policies offered: Accidental Death, Term Life, Whole Life, No Exam, and Guaranteed Acceptance Whole Life.
2. Nationwide — best whole life insurance for 50-year-olds and older people
Many insurance companies offer whole life insurance, so what makes Nationwide one of the best options for those looking for Whole Life insurance 50 and over? Not only have they received awards for customer service, financial stability, and trustworthiness, but applicants under 60 can receive up to $1 million in coverage without a medical exam.
Many approaching age 50 and beyond may be concerned about the potential for increased medical costs. Nationwide addresses this concern by providing a living benefit for many of its policies at no additional charge. These living benefits allow the insured to use the death benefit or a portion of it to cover medical costs should they become chronically, critically, or terminally ill.
Policies offered: Term Life, Universal Life, Whole Life, Variable Life, and Long-term Care.
3. Lincoln Financial — best for parents over 50
While insureds may want the life policy to cover any outstanding debts, replace lost income, or pay for burial costs, others at 50 and over may be considering life insurance options to assist them with estate planning. With the desire to leave money behind to set up children well, Lincoln Financial offers parents life insurance for those 50 and older.
Lincoln Financial’s Life Guarantee SUL is Lincoln’s survivorship universal life policies. With the ability to cover two parents, only paying out the death benefit when both die, those aged 20–80 could receive guaranteed coverage and premiums. These policies earn a minimum of 2% interest off of the cash value, 100% of the cash surrender value can be borrowed, and premium payment frequency and amounts can be adjusted if a positive cash value amount remains.
Policies offered: Fixed-rate Universal Life, Guaranteed Universal Life, Indexed Universal Life, Term Life, Variable Universal Life.
4. Penn Mutual — best for guaranteed life insurance
The options for guaranteed life insurance continue to decrease with age. As health risks increase, finding quality guaranteed life insurance policies becomes more difficult. For Penn Mutual, guaranteed universal life insurance is possible for applicants up to 85 and is the only carrier to offer up to 7.5 million in no-medical-exam coverage.
Penn Mutual offers a great deal more than just their no-exam policies, with the option to convert many of their term life policies to a whole life insurance policy. Many of their term life insurance policies are $20 below the industry average for life insurance quotes over 50 years of age or older as well. Many of their whole-life cash value investments have reaped higher-than-average returns as well.
Policies offered: Term Life, Whole Life, Variable Universal Life, Indexed Universal Life, Guaranteed Universal Life.
Affordable life insurance over 50: top policies compared
The following table helps organize some of the data from our list of best life insurance over 50.
|Company||Plan types||No-exam policies||AM best rating||Best for|
|Everyday Life||Accidental Death, Term Life, Whole Life, No Exam, and Guaranteed Acceptance Whole Life||Yes||A- to A+||Most affordable|
|Nationwide||Term Life, Universal Life, Whole Life, Variable Life, and Long-term Care||Yes||A+||Best Whole Life|
|Lincoln Financial||Fixed-rate Universal Life, Guaranteed Universal Life, Indexed Universal Life, Term Life, Variable Universal Life||Yes||A+||Best for parents|
|Penn Mutual||Term Life, Whole Life, Variable Universal Life, Indexed Universal Life, Guaranteed Universal Life||Yes||A+||Best Guaranteed Life|
Ranking the top life insurance for people over 50
When comparing life insurance companies for parents, we took the following criteria into consideration:
- Overall value. The age of 50 and above brings many changes and various needs. As a result, value cannot be placed in just one area. We looked for companies that valued quality policy add-ons, customer service, and the policy itself.
- Policies offered. We looked not just for flexibility with the add-ons of the policy but the different types of policies. We gave special attention to companies with multiple policy options and a no-exam policy option to benefit our older insureds.
- Financial strength. Part of our criteria was that a company would last as long as people would need them. Therefore, we did not consider any company below an A for their AM best rating.
- Online reputation. With life constantly pulling insureds in different directions, we understand that life insurance is the last thing that should be demanding more time from people. This is why we gave precedence to companies recognized for excellent customer service.
- Price. An essential final criterion marker is affordability. With insureds 50 and above trying to save for retirement and support their children while in school or moving out independently, we looked for policies with low and affordable premiums. Many listed companies offer money-back guarantees within a specific time.
Why would you need life insurance when you are over 50
It is good to remember that life insurance can be as versatile as the insured, meeting needs and assisting with pursuing financial goals that may not be why others seek insurance. Yes, income may not need replacing, and there may not be debts to cover with life insurance.
However, life insurance can bring the opportunity of added financial security for a family, with many even ensuring the policy benefit is placed in a trust. Still, others use life policies to add to their retirement if they max out their other contributions through a life insurance retirement plan.
Even if the policy covers funeral expenses, it allows your family to enjoy the life you’ve provided for them without a significant portion of your money going to burial costs. Life insurance is a tool, but a tool that can be used well to help insureds accomplish goals at every stage of life.
Choosing life insurance quotes for over 50: things to consider
While it may be helpful to understand different insurance companies, there are many details to consider. What is the best insurance for those at 50? Over 55 life insurance? Should other policies be considered at 60? While we cannot tell which approach is best for you, several things must be considered. We have criteria to get you started:
Type of policy
The question of life insurance policy type is answered only when insureds have a good idea of what they want their policy to do for them. However, if unsure, Term Life is a fantastic option, as it provides more coverage at a much lower premium cost. With Term Life policies lasting up to 30 years or even more in some cases, this policy will cover insureds for as long as they would likely need at 50 or above.
Features, riders, benefits
Some features of a policy are beneficial at different times. For example, one should probably not prioritize a child term rider at 50 or older, as this allows the insured to place children on their term insurance, a feature that often doesn’t apply with children out of the home, and companies generally don’t offer to insureds over 55.
We recommend prioritizing living benefits like the waiver of premium rider, which allows the insured to waive the cost of insurance premiums altogether if they become critically ill.
Your health needs and finances
Generally, the more medical concerns there are, the higher the policy premium. If this is the case, Term Life is the better option. If there is a concern about paying for insurance as one gets older and potentially becomes ill, a whole-life policy with the option to use cash value to pay premiums is an effective strategy.
The life insurance beneficiary
An essential but often overlooked question is who is the policy beneficiary. A typical term or whole-life policy is great if it is a spouse because it allows the surviving spouse direct access to the policy benefits to replace the lost income or remaining debts the insured left behind.
If children are the beneficiaries, then a survivorship policy is a better option, which passes on the death benefit only after both spouses die. This would allow the policy's cash value to continue to grow since the surviving spouse would likely be able to continue to care for the children. A conversation with an insurance agent will help ensure the most informed policy choice based on needs and who will receive the death benefit.
What are the best life insurance types for people over 50?
Many different policy names have been mentioned, but what are the best life insurance policies for those over 50? Here are a few that are most likely applicable and what makes them different from others.
- Term life insurance. The most common type of life insurance policy, especially for those 50 and older, and for good reason. Term life is simple to manage, affordable, and often allows higher death benefits than other policies. Term insurance allows the insured to purchase a policy that lasts for a set amount of time, usually 10, 20, or 30 years. The policy only provides a death benefit, which ends when the term concludes.
- Guaranteed life insurance. Simply means the insured cannot be denied coverage. However, the insured will ensure they are eligible to apply for the policy. With lower coverage limits, this policy is good for those concerned about being denied due to details like a complicated medical history.
- Level term life insurance. While it is often very similar or the same as term insurance, there can be slight differences that insureds may find useful. A level term policy simply means a term life policy with a death benefit that does not change at any point. An appealing option is an annual renewable term life policy that only lasts a year, renewing each year if the insured desires, with premiums slowly increasing each year as the insured ages. This option allows coverage for those who don’t want a longer-term policy.
- Variable universal life insurance. A form of whole life insurance, with a death benefit and a cash value amount that grows. Variable life aggressively invests the cash value, with the potential to grow at a faster rate. However, there is often not a guaranteed minimum growth rate of the cash value since the investments take on more risks. This policy is excellent for those who want to use the policy as an investment tool.
How much does life insurance cost for people over 50?
While there is no way to determine how much a policy will cost until an application is submitted, a few factors can be considered that will influence the cost of life insurance.
- Age. Plays a consistent factor in the cost of insurance. At 50 and older, one can expect an increase in premiums compared to a 30 or 40-year-old.
- Credit history. A bad credit history can be considered a risk for life insurance companies as it is used to determine the ability to pay premiums consistently. The better the credit score, the better the premium.
- Health history. A significant factor as well. Is there a history of heart failure or hereditary disease? Is there the presence of a preexisting condition? How is the applicant's overall health? All of these factor into premium costs.
- Coverage amount. How much coverage is being purchased? Are there a large number of riders or policy features? These can also increase the cost of premiums.
- Type of policy. Whole life policies have higher premiums than term because a portion of the premiums must also support the policy's cash value alongside the death benefit.
While these factors may feel discouraging, purchasing cheap, affordable life insurance at 50 is possible. While one will likely need to manage expectations and not expect to buy a large death benefit cheaply, options like term life insurance can provide significant coverage at a reasonable price.
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What is the best life insurance for over 50?
While this is a question best answered by an insurance agent, term life policies often offer higher coverage amounts for lower premiums and are an excellent option to combat the higher premiums that come with increased age.
Do you really need life insurance over 50?
Life insurance is a fantastic tool at any age. Consider if life insurance can accomplish financial goals, pay off debts, and build financial security for your family.
Are there affordable life insurance options for people over 50?
There are certainly affordable life insurance options for those over 50. Guaranteed life and Term life policies both offer affordable options.
Should people over 50 pick Term life or Whole life insurance?
While this depends on what the insured wants the policy to accomplish, Term life is often better at offering high coverage at a more affordable rate.