Are you interested in $50,000 whole life insurance policy? This can be an excellent option for permanent coverage, but this must be the right plan for your life insurance needs.
The monthly premiums for a $50,000 whole life policy can be more than some budgets allow. This article will look into the cost and alternative options.
Quick Links
- How Much is $50,000 of Coverage?
- Types of Whole Life Policies
- Do I need this Much Coverage?
- Whole Life Vs. Term Life
- How to Buy
How Much Is A $50,000 Whole Life Insurance Policy?
Men can expect to pay between $90 – $550 monthly for a $50,000 whole life policy. In comparison, it is estimated that women will pay between $87 – $350 for the same $50,000 death benefit. Your age, health, gender, and policy amount significantly affect your price. You will have to qualify for these plans by answering several health questions.
What Determines the Monthly Premium Cost
Age: The younger you are when taking out a policy, the cheaper it will be.
Health: The healthier you are when applying, the lower the price will be. Each insurance company sets its underwriting requirements and prices accordingly.
Gender: The price for life insurance is higher for men and lower for women.
Policy Amount: The more coverage you take out, the higher your monthly premiums will be. For example, getting a $30,000 death benefit will be less expensive than a $50,000 policy.
$50,000 Whole Life Insurance Policy Quotes
| Age | Female Non Smoker | Male Non Smoker | Female Smoker | Male Smoker |
|---|---|---|---|---|
|
40 - 49 |
$87 - $120 |
$90 - $135 |
$113 - $185 |
$133 - $221 |
|
50 - 59 |
$124 - $174 |
$141 - $214 |
$190 - $254 |
$232 - $310 |
|
60 - 69 |
$178 - $244 |
$221 - $334 |
$260 - $343 |
$321 - $548 |
|
70 - 79 |
$256 - $465 |
$355 - $605 |
$366 - $701 |
$587 - $1,084 |
Types of Whole Life Policies
Within final expense whole life insurance for seniors, there are simplified issue and guaranteed issue plans.
Simplified Issue: You will be asked a short series of health questions by your insurance agent to determine eligibility. Upon qualifying, you will get coverage immediately with no waiting period. Seniors will never be asked to get a medical exam to receive whole life burial insurance.
Guaranteed Acceptance: Plans that have acceptance guaranteed will have a minimum 2-year waiting period. If the insured dies during this waiting period, the beneficiary will receive the paid premiums plus interest (10% is standard). You have likely seen the Colonial Penn Jonathan Lawson $9.95 plan advertised on TV.
Most seniors do not need guaranteed acceptance policies because they can qualify for a better plan and a lower rate. These policies have a maximum coverage amount of $25,000.
Why is a Whole Life Policy Good?
Whole life insurance has permanent benefits with monthly costs locked in. The policy will never expire and will build a cash value. You don’t have to worry about a whole life insurance policy changing its plan details.
Whole life is a good option if you:
- do not want to get a medical exam
- want a permanent policy (no expiration)
- want a policy to cover funeral expenses
- have no money set aside for your final expenses
- want your monthly insurance premiums to be locked in for life
- want your coverage amount to remain the same
- are unable to qualify for a policy that requires a medical exam
Do I Need $50,000 Of Coverage?
If you want to cover your burial and other final expenses, you probably do not need this much coverage. But since everyone’s situation is unique, so are their life insurance needs.
A typical funeral costs between $8,000 – $12,000.
These smaller coverage amounts could be a better option for you and your budget.
We recommend getting a small whole life policy to cover your burial costs and other final expenses. If your looking for more coverage to replace an income, a term plan could work well for you, as we will explain in the next section of this article.
Whole Life Vs. Term Life
Two popular types of $50,000 life insurance policies are term and whole life.
Whole Life Insurance: This coverage never expires and has lifelong features. The monthly cost will not change, and the provider won’t cancel coverage as long as you make your premium payments. Small whole life policies are often taken out to cover funeral expenses, so the family is not left to shoulder the costs.
The coverage for final expense whole life insurance ranges from $2,000 – $40,000, and coverage is permanent. Since these policies do not expire, your monthly premiums will cost slightly more than term insurance.
Term Life Insurance: This coverage is temporary and comes at a lower monthly rate than whole life. Term is typically used as income replacement rather than exclusively for burial costs. Term usually comes in coverage lengths of ten, fifteen, twenty, or thirty years or simply expires when you reach a certain age.
Term life coverage amounts range from $50,000 to the millions and will expire at the end of the term. Typically the price will be less expensive initially than a whole life policy.
Why Can I Get More Coverage with Term Insurance?
Term insurance comes in more extensive coverage amount options, usually starting at $50,000. There are red flags with term insurance due to how the companies issuing the policies structure the plans.
Prices are not always locked in and could increase the older you get, and this is the case with AARP and Globe Life term insurance plans. Other term options decrease your death benefit as you get older, so if you decide to go with temporary coverage, ensure the death benefit remains the same for the policy term.
For these reasons, term insurance is not recommended as the primary option to cover burial and other final expenses.
How to Buy
When looking to purchase a whole life burial policy, regardless of the amount of coverage, the best option is to work with a specialized insurance agency. Alternatively, you can elect to work directly with an insurance company, which significantly limits your choices.
Let me explain.
Working Directly with Insurance Company: When you call the insurance company directly, their agent representatives only have access to their plans. These limited options could lead to denial of coverage or grossly overpaying because you are not comparing them to other options on the market.
Working with an Insurance Agency: Specialized life insurance agencies with access to multiple policies from separate companies will be your best option. This is because they can compare all the pricing and underwriting to meet the needs of your insurance goals, saving you time and money.
$50,000 Whole Life Policy Final Thoughts
a. Look at how much coverage you need and compare it with your monthly budget.
b. If a $50,000 whole life policy costs too much, consider looking into a $25,000 – $40,000 death benefit.
c. Work with a specialized final expense insurance agency so they can compare policies to get you the best deal.