Depending on your age, your insurance needs change. As an applicant who is 51 years of age, your needs vary tremendously from those of someone who is younger. There are multiple factors that need to be considered before deciding on which life insurance to settle on.
If this is your second time buying a life insurance policy, you may notice that it’s very different from the last time that you purchased a plan, but it’s no less important at age 51. Life insurance is the single most essential investment you’ll buy for your family, but there are a lot of people in their 50s who avoid buying life insurance coverage.
Table of Contents
Determine Your Needs
As a 51-year-old, you are most likely starting to hunker down on your retirement, your children have most likely left the house, and your home is hopefully close to being paid off. It might even be the case that you have grandchildren at this stage of life. With all of these potential factors in your life, it is not surprising that life insurance may not be a top priority. The fact of the matter is that it is still extremely important.
Before you buy an insurance plan, you need to calculate how much life insurance you need, and there are several things you need to account for. The first is your debt. As we mentioned, your house should be close to being paid off, but that isn’t going to be your only debt, or maybe you still have a lot left on your mortgage. All of your debts and unpaid expenses would be passed on to your family if you passed on. You’ll also need to account for any funeral costs or possible medical expenses you could rack up.
What Cost Can You Expect at Age 51?
Assuming you are a non-smoker and can achieve a Preferred Plus rate, you are in a good spot to receive top-notch insurance at a reasonable rate. The going rate for a 10-year term is $15.26 whereas the going rate for a 20-year term is $25.20. Both of these rates are for a man who is seeking $100,000 of coverage and assumedly good health. Here are some quotes for $250,000:
| Sex | 10 Year | 20 Year | 30 Year |
|---|---|---|---|
| Male | Protective - $26.73/month | SBLI - $46.93/month | Banner - $79.84/month |
| Female | Protective - $22.35/month | SBLI - $35.24/month | Banner - $59.94/month |
You may still be of the mindset that you will not need life insurance for the foreseeable future, but there is no telling what health problems you can be faced with in this stage of life. Your body unfortunately starts to deteriorate whether you like it or not, and being proactive and prepared is the best defense against this.
There are several things that you can do to help you get the lowest rates possible. The first is to quit smoking. The sample quotes above are from a non-smoking applicant, if you’re a smoker, you can expect those rates to double, or even triple depending on the company.
Additionally, you’ll need to get in the best shape possible. Starting a good diet and getting regular exercise is an excellent way to lower your blood pressure, lose some weight, and lower your cholesterol. They aren’t quick or easy changes, but committing yourself to a healthier life can save you hundreds.
We give every applicant the same piece of advice, compare plans. With 6,000 insurance carriers, there are plenty of options. Working with an independent agency (like ourselves) is like working with over 50 different highly-rated companies. You could spend days calling insurance companies yourself, or you can let us do the work for you. Independent agents not only save you time but save you money by connecting you with the perfect insurance company to fit your needs.
What Type of Insurance Does a 51-Year-Old Need?
There are dozens of options, but as a 51-year-old applicant, not all of them are suitable. The two main kinds are term and whole, but whole life insurance is going to be drastically more expensive at this age. We suggest people 50 and above buy a term plan.
There are several different types of life insurance that you’ll have to compare. You’ll need to weigh the pros and cons before you make a choice. It’s vital that you pick the perfect policy type to fit your insurance needs.
What Is Term Life Insurance?
At age 51, perhaps the best type of insurance to consider is term life insurance. Not only is it affordable, but it oftentimes covers you for a wide variety of situations and provides you with the peace of mind that is so appealing with insurance.
Term insurance is the most common. It’s simple and it’s cheap, what’s not to love? These plans are temporary coverage, and you can buy them to match your life insurance needs.
Getting the Best Rates
The key to getting the best rates for anyone looking to get over 50 life insurance is to shop around. Instead of having to go from company to company or website to website, an independent agent will shop all of the available plans and companies in your area.
Conclusion
In summary, as individuals age, their insurance needs shift. At 51, while life’s circumstances may have evolved – perhaps with children moving out, nearing retirement, or even becoming a grandparent – life insurance remains paramount. Before settling on a policy, one should consider outstanding debts, potential expenses, and their annual salary’s impact on dependents.
It’s essential to note that health is a significant determinant in insurance costs, emphasizing the importance of a healthy lifestyle. Given the plethora of insurance options available, it’s advisable for individuals in their 50s to opt for term insurance and to engage the services of an independent agency to navigate the best fit, ensuring both time and financial savings.
