As we all know, purchasing a policy can become a struggle and an unaffordable service as you get older. For this reason, paying life insurance while you are young is an ideal investment.
In life, you might find yourself in situations in which you could consider that having life insurance is the best thing for you. But if you are unsure or do not have clear ideas on what a life insurance policy is and why it is good for you, in this article we will explain all you need to know and which life insurance companies can suit you best.
What is a Life Insurance? Why life insurance ?
This service consists on financial aid that covers death risk, surviving and disability. It is a contract made with an insurance company, which offers a lump sum payment in exchange for premium payments; this service is known as a death benefit.
As you get older, your economic needs change. So purchasing life insurance for 20 or 30 year olds might be different from purchasing one for 50 year olds, although both can offer the same financial benefits. It is important to have in mind that acquiring life insurance when you are older can be more difficult and even more expensive, since most insurance companies establish age cutoffs for specific policies and at the same time, premiums offered ascend every year.
Importance of Life Insurance
As mentioned above, when you get older, your needs change. The most common reasons a young person purchases a life insurance are normally because they want to protect their children’s life until they reach adulthood, or protect their partner until they get retirement.
That death benefit could work to pay a shared debt or even the mortgage of your home. Nevertheless, once you are over 50, life insurances have a different function on your life; at that point, your partner has already reached retirement, your children are grown up, and your house has been paid off. You might want this life insurance to protect your state or cover your final expenses.
So, you might be wondering why it is so difficult for people who reach their 50s to geg life insurance. It is due to a couple of reasons.
Health issues are most likely to appear in an advanced age. This can be a concern for most insurance companies. Health conditions can result in a higher premium payment or a coverage denial.
Besides, once you turn 50, you represent a higher risk for the insurance company each year to come. In the U.S., 78.6 years is the average life expectancy. When you get closer to that number, it is hard for companies to offer you coverage taking into account the risk it could represent. Because of this, most insurance companies have age limits for certain policies and even if you are able to acquire a policy, the price will be hard to afford.
Companies for People over 50
We have looked around for the 6 best life insurance companies for those persons that have reached their 50. These companies have been chosen based on flexibility on policies, experience, number and variety of products, among others.
Mutual of Omaha
This company is the best overall provider for those over 50. Mutual of Omaha offers a wide range of products including term life, whole life, universal life and accidental death policies.
This policy is available for ages 18 to 80, with a length between 10 and 30 years and a starting coverage around 100,000$. A whole life policy is available for ages from 45 to 85 with a coverage between $2,000 and $25,000. This company offers a term renewal in one-year increments, not exceeding 95 years.
Mutual of Omaha has been offering their services for more than a century and it is available in all 50 states including the District of Columbia.
AIG started in 1919 and it offers its services in 80 different countries. It currently has 88 million customers worldwide.
For a variety of final expenses, AIG’s offers a final expense life insurance, providing up to $25,000. This company does not require medical exams and offers a guaranteed acceptance for clients up to age 85 with no need of a waiting period or speaking to an agent. This is the best company for final expense insurance. It is important to remark that AIG’s guaranteed issue policies include a death benefit of two-year graded; if death occurs within the first two years of the policy, beneficiaries are able to receive 110% of paid premiums.
Heaven life is a recent company founded in 2014, but it has been issued by MassMutual, an insurance company founded in 1851. Heaven Life has been rated A++ in AM Best.
This company is the best for term life insurance policies in the life insurance world currently. It makes it easier for people in their 50s and beyond to purchase life insurance and it offers coverage from 100,000 up to $3million. However, this policy can only be acquired until age 64. Heaven life is available in all 50 states, including the District of Columbia. It is important to mention that a term life policy in this company cannot be purchased for those who are active duty military or are enlisting.
Principal Life Insurance
Principal is the ideal company if you are interested in state planning. It offers the highest price in coverage available for people around ages 20 to 80.
It was founded in 1879, and it started as a life insurance company. Nowadays, it is considered a highly respected financial service provider. Nowadays, they offer a term life policy, universal life, indexed universal life, variable universal life and survivorship insurance. A total of five insurance products. Also, the term coverage can be renewed up to age 95. Needless is to say that this company has well prepared services.
If you want to get benefits for state planning, this company gives you a minimum coverage of $200,000. At the same time, this company offers you a life insurance protection of $5 million.
Transamerica is a company in which you can find the best index life insurance; it offers new policies for ages up to 85, including an option for terminal illness riders. If you are diagnosed with a serious illness, this option allows the customer to create funds before their death.
The index life insurance policy coverage is around $25,000, $500,000, or more depending on the customer’s age. It is important to highlight that health issues, family history, and diagnosis will be taken in consideration to determine premiums for coverage.
Fidelity Life is a company that has been offering a wide variety of life insurance products since 1896 in all 50 states.
Among the services established by Fidelity Life, there are term life, whole life, accidental death and permanent life. Each of them has a wide range of optional riders. Depending on the type of policy the customer is looking for, the age and coverage will change. The purchases can vary ages from 50 to 85 and the coverage can vary from $5,000 to $35,000.
Finding the life insurance company that suits you best will not be a problem, no matter what age you are. The companies listed here are the best in the market and we know you will be pleased with any of their services.