Inexpensive Life Insurance for 49 Year Olds

Life insurance is a financial safety net that can give you and your loved one’s comfort knowing that money is set aside in the event that you pass away unexpectedly.

Why Do I Need Life Insurance at Age 49?

At age 49, you might still have kids at home. If you started a new job or moved to a new city, or got re-married, there could be younger kids in the home that were not there before and now you want to provide them with a financial safety net.

At this age, you could have grandchildren newly born who you want to provide some sort of inheritance too. Rather, you might simply want to prevent your children from having to take money out of their savings to cover things like your burial costs when they have just started a family themselves.

In some cases, you might know that your family history indicates a certain medical issue arising in the late 50’s or late 60’s, and you want to get protection against that, possibly with money you can take out for home care or a nursing home if needed. For these reasons, and many more, you should consider life insurance at age 49 if you do not already have it.

When you set out to pick your insurance policy at this age, you have three main options:

Term, Permanent, and Burial

Term has the lowest prices and is the easiest to understand. Permanent is more complex and has more benefits, but it costs more as well. There are many types of permanent policies you can get including variable universal, variable, and whole. Burial insurance is great for those who need to make sure their final expenses are covered but nothing else.

Term covers you for a set amount of time. This is only meant to protect your dependents in the event that you pass away prematurely. For these, you can choose the amount of time, ranging from 10 to 30 years. The death benefit and the premiums remain the same.

Choosing a term policy, you should choose a length of time that coincides with the years you need to pay. The amount you get in coverage should protect your family in the event that you were no longer able to provide for them. Realistically, needs like money for child care or a mortgage are going to end at some point.

Permanent, whole life insurance give you cash value that you can enjoy while you are still alive. With these policies, you can grow money that is tax deferred and then borrow against it or use the cash value to pay your premiums.

Policy FeaturesTerm PoliciesWhole Policies
Choose your lengthYes
Provides lifelong coverageYes
Premium remains the sameYesYes
Low premiumsYes
Death benefit is guaranteedYesYes
Accumulates cash valueYes
Can be eligible for annual dividendsYes

Which Policy is Best for Age 49?

At this age, your goals in life are likely to replace income with a term policy, or to cover your mortgage or debt. You might also want to provide money for your children for college. Even this late in the game, a term policy is a great choice for this.

A permanent policy—whether you pick a whole life, universal life, or indexed universal life—is best for gaining cash value you can borrow against right now.

If you want the lowest premiums, a guaranteed universal life is better.

If you want protection for long term care or a chronic illness, then you want a product with those riders available, especially if those riders are available without any additional fee.

 

Sample Rates

 

Below are sample rates for a 49 year old female in good health, who falls into the super preferred or preferred plus category. The results show you the monthly amounts said applicant would pay for different policies, with varying face amounts:

Face

Amount

10 Year

Term

15 Year

Term

20 year

Term

30 Year

Term

Age 90

Guaranteed UL

Age 120

Guaranteed

UL

$250,000$19.14$22.36$29.03$49.24$139.93$158.75
$500,000$31.77$38.70$51.60$89.01$259.85$297.50
$750,000$44.66$55.69$75.04$131.15$389.78$446.25
$1,000,000$54.07$71.81$94.17$164.61$499.70$575.00

By comparison, this is a sample of the same applicant with health problems, put into the standard risk category:

Face

Amount

10 Year

Term

15 Year

Term

20 year

Term

30 Year

Term

Age 90

Guaranteed UL

Age 120

Guaranteed

UL

$250,000$34.40$43.22$53.75$88.14$185.80$204.10
$500,000$61.06$79.12$100.25$169.45$351.65$388.20
$750,000$89.23$116.32$147.61$251.41$527.48$582.30
$1,000,000$113.09$147.40$187.91$330.78$683.30$756.40

Males pay slightly more on average than females because their life expectancy is less. On average men pay what a woman 3 years their junior would pay. Below are sample rates for a male in the preferred category for the different policies out there:

Face

Amount

10 Year

Term

15 Year

Term

20 year

Term

30 Year

Term

Age 90

Guaranteed UL

Age 120

Guaranteed UL

$250,000$22.15$28.85$38.27$65.58$162.65$183.35
$500,000$37.37$49.62$63.72$122.31$305.35$346.70
$750,000$53.07$71.45$92.10$180.70$458.03$520.05
$1,000,000$63.77$89.77$117.67$231.30$590.70$673.40

The following would be the sample rates for a male in the standard health category:

Face

Amount

10 Year

Term

15 Year

Term

20 year

Term

30 Year

Term

Age 90

Guaranteed UL

Age 120

Guaranteed UL

$250,000$22.15$28.85$38.27$65.58$162.65$183.35
$500,000$37.37$49.62$63.72$122.31$305.35$346.70
$750,000$53.07$71.45$92.10$180.70$458.03$520.05
$1,000,000$63.77$89.77$117.67$231.30$590.70$673.40

Best Companies for 49 Year Olds

As a 49 year old, there are a handful of reputable companies out there that provide policies best suited to your needs.

If, for example, you want a term policy at this age, American National has their ANICO Signature Term policy which comes with the critical illness accelerated death benefit and the chronic illness accelerated death benefit without any additional cost.

If you want a 30 year term at this age, Protective has their Custom Choice UL policy which has competitive rates and after the level period comes to an end, you get decreasing death benefits at a fixed rate, perfect for those whose financial needs change with time.

If you want to use your policy as an investment tool to get cash value and supplement your retirement, North American or Penn Mutual have the better Indexed Universal Life policies.

For a standard Universal Life policy, North American is a good contender.

If, instead, you are looking for a guaranteed universal life policy, Symetra, Protective, and North American are great.

For a whole life policy, MassMutual is best.

If you want whole life with first-to-die components, Assurity or Nationwide are better.

For a simplified issue, without any medical exam, guaranteed whole life final expense policy, United of Omaha is the best option, followed by Gerber Life.

For tobacco users, MassMutual offers the best whole life policies at this age while John Hancock is better for universal life plans. Those who use chewing tobacco, smoke cigars, or use electronic cigarettes should go with Prudential.

Tips to get the best rates

When you set out to get the best rates, you need to be cognizant of your particular situation. Everyone is different.

Example: You are a 49 year old female with four children. Three are grown up and out of the house but one still lives at home. You had a policy through your job but have changed jobs and that policy has expired. So now you need a new one with lower coverage to provide for your one child who is still at home. You might want to get a return of premium term policy so that if you outlive that term, you get your paid premiums back as a tax-free refund which you can then apply toward a new plan, like a single premium policy where you pay a single lump sum.

Example: You are a 49 old male who recently remarried and now you have a new wife with a heart condition, who previously had three heart surgeries, and you have two more children living at home. You want to make sure that there is financial protection for your wife who can only work part time and the new children if you—as the breadwinner—were to pass away prematurely

Example: You have a policy already, but it is about to expire and now you need one with a spousal rider so that you and your new spouse are covered under the same policy.

Example: You are a 49 year old parent and your parents who have no protection of their own, were recently put up in a nursing home. You are paying for this out of pocket, but if you pass away before them, there will be no money for their nursing home and no family left to care for them. So, you want to get a whole policy to make sure they have coverage in the event that you pass away before them.

Everyone is different, again, so it is important to work with a third party broker and compare the rates you receive from at least a dozen companies. Each company offers similar products, but they all serve their niche. The information on the individual companies above is indicative of that niche. So, consider what your situation is and what your needs are, decide whether you want a term or permanent policy, and then narrow down the list of types from there. Work with companies that give you competitive rates with the riders you want.

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About Jeff Root

is the owner of rootfin.com. He's an independent life insurance agent who has helped 1,000's of consumers purchase life insurance online and over the phone.

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2 Comments

Robin Gilchrist

I am a 49 year old woman with high blood pressure in need of insurance, and was wondering if I qualify?

August 24, 2015 at 11:27 am
    Jeff Root

    Hi Robin,

    It depends on your blood pressure readings, but even with very high blood pressure we have options. Please give us a call so we can gather some details of your blood pressure and provide you with the company that will give you the lowest rates.

    November 16, 2015 at 1:43 pm
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