Life insurance over 50: term, whole or no exam?
Buying life insurance after 50 is common: a mortgage still runs, a spouse depends on your income, or you want to cover final costs. Prices rise with every year of age and with health conditions, so it pays to be clear about what the cover is for.
Start with the need
Ask what would actually be left unpaid if you died next year:
- remaining mortgage and other debts
- income a spouse or partner relies on until retirement benefits start
- final expenses
- money you want to leave to heirs or a charity
If your children are independent and your savings cover the rest, you may need little or no cover.
Term life
The NAIC describes term life as lower-cost cover for a set period. At 50 to 60, a 10, 15 or 20-year term can match the years left on a mortgage or until retirement. It is usually the cheapest way to buy a large amount of cover if you are in reasonable health.
Whole and other permanent life
Permanent policies last for life and build cash value, but premiums are much higher. They suit specific goals such as leaving a guaranteed inheritance or estate planning, not a temporary income gap.
No-exam and guaranteed issue
These are quicker and avoid a medical exam, but cover less and cost more per dollar. Guaranteed issue policies often have a graded benefit in the first two or three years. Healthy applicants usually get better prices by going through full underwriting.
Tips for this age
- Get quotes before your next birthday; age bands change prices.
- Check whether existing employer cover ends when you retire.
- Compare a fully underwritten term quote with any “no exam” offer.
- Buy the shortest term that covers the need.