Best Life Insurance Options for 58 Year Olds

Age 58 starts to get a little more limited for life insurance options. Your options for 30-year terms are dwindling so don’t put this off any longer if you need a longer term length.

There are also still a few non-medical options for policies, but those are also dwindling rapidly.

The good news is that if you get your life insurance taken care of now, you won’t have to suffer the massive jump in premiums once you hit your 60s.

Why a 58-Year-Old Needs Life Insurance

Despite what some people will tell you, not every person needs life insurance. The only reason for life insurance is to help someone who is financially better off while you are alive.

If you are financially supporting someone now, then getting life insurance to continue supporting them if anything happens is a way to ensure that they are taken care of. Even in your absence.

The specific reasons vary widely. Some people focus on covering any loss of income during their working years so their spouse can still retire on time. Other people focus on ensuring their children will have the funds to give them the best start in adult life.

If you aren’t sure, ask yourself who (if anyone) is financially dependent on you? If you can name one person, life insurance might be a kind thing to do for them.

Best Life Insurance Policy Type for Age 58

The best type of life insurance policy for you will depend on why you are getting life insurance.

But three major types of life insurance cover the vast majority of personal needs. (Life insurance for business is a whole different story.)

The three categories are term life insurance, permanent life insurance, and burial insurance.

Term Life Insurance

Term life insurance is simple. The policy is active over several years, usually between 10 and 30. If you pass away in that time frame, then the life insurance company pays the death benefit you selected to your beneficiary. Once the policy expires, that’s it.

The main advantage of term life insurance is that it is much more affordable for the average person than other types of life insurance. Because a good percentage of people survive their term, the life insurance company doesn’t have to charge as much to afford to pay the benefits on all of those policies.

The best reasons to buy term life insurance are ones that you only need temporary coverage for. People nearing retirement age take out policies that cover the length of time until their spouse retires. That way if anything happens, their spouse will still be able to afford to retire when they were planning to.

Permanent Life Insurance

Permanent life insurance policies last for your entire life. If they expire at all, it’s at age 121. They are more expensive than term policies both because they last your whole life and they have additional cash value parts to them which offer other benefits while you’re living.

These cash value components can function as no questions asked loans. You can borrow from the insurance company, and they hold your death benefit as collateral. Not the whole thing, just the equivalent amount to the loan.

Most people buy permanent life insurance to cover any costs associated with the handling of their estate and to leave something for their children.

Burial Insurance

Burial insurance (you also see it called funeral insurance or final expense insurance) is a small life insurance policy. They are designed to offer just enough of a death benefit to cover someone’s funeral with a little left over.

The popularity of these policies is starting to increase dramatically because funerals now average $8,000. It’s about the same cost whether you choose to be buried or cremated. That in combination with over 60% of people having less than $1,000 on hand makes end of life expenses tough for many families.

Burial insurance is best for people who don’t have the liquid assets to cover their own funerals. It’s a generous thing to do for the people you leave behind. We also see adult children getting burial insurance policies for their parents.

Sample Rates for Term Life Insurance at Age 58

Even in your 50s, term life insurance can still be affordable. We have tips below on how to ensure that you’re getting the best rates. The main thing to understand is how health classes work.

Underwriters at the insurance company have to assign someone a health class to figure out what to charge them. There are over a dozen criteria used, but the main factors are your height, weight, medical history, age, and biological sex.

The short version is that someone in average health usually ends up in the regular health class. Someone in good health may end up in preferred.

Below are tables showing sample rates for both men and women in preferred and regular health classes. Your prices may be different, but this is a good baseline to use when you start your comparison shopping.

This first set of monthly rates reflect a 58-year-old man who is in good (preferred) health and doesn’t smoke.

$50,000$100,000$250,000$500,000$1,000,000
10-Year$26$32$66$120$222
20-Year$42$58$115$218$417
30–Year$117$227$555N/AN/A

The next set is for the same man in average (regular) health.

$50,000$100,000$250,000$500,000$1,000,000
10-Year$37$47$106$192$360
20-Year$56$87$185$352$690
30–Year$117$227$555N/AN/A

These monthly sample rates reflect what a 58-year-old woman might pay if she’s in good (preferred) health and doesn’t smoke.

$50,000$100,000$250,000$500,000$1,000,000
10-Year$20$25$47$89$159
20-Year$30$40$82$153$293
30–Year$117$227$555N/AN/A

The final set of sample rates for term life insurance is for the same woman as above, but in average (regular) health.

$50,000$100,000$250,000$500,000$1,000,000
10-Year$26$35$69$128$243
20-Year$44$59$130$245$457
30–Year$117$227$555N/AN/A

At age 58, you are running short on options for 30-year terms. Most companies won’t offer above $250,000 in death benefit for 30-year terms at this age. The one company that does gives the same rates to everyone as long as they qualify.

What is the Longest Term Policy You Can Get?

Most companies limit their term policies to 30-year terms. At age 58, that would give you until 88. With the average lifespan in the United States resting in the early to mid-70s, that is well beyond expectation.

However, if your reasons for life insurance lean toward permanent life insurance and you still choose to go with a term policy, realize that it is a gamble. You may even outlive your term and getting life insurance at age 86 is difficult.

Sample Rates for Whole Life Insurance

Whole life insurance is one of the many types of permanent life insurance. It is also the most straightforward type of life insurance.

Whole life insurance is composed of the death benefit and cash value accumulation component. While most permanent life insurance policies have cash value accumulations, the ones tied to whole life insurance tend to offer steadier gains.

They won’t match the market on a great year. But they also typically guarantee some gains, even if the market is having a bad year.

The following monthly rates are for non-smoking men and women. The first set reflects people in good (preferred) health.

$50,000$100,000$250,000$500,000$1,000,000
Men$167$321$792$1,561$3,117
Women$152$281$681$1,356$2,706

The second table shows potential monthly rates for non-smoking men and women in average (regular) health.

$50,000$100,000$250,000$500,000$1,000,000
Men$167$324$800$1,578$3,149
Women$152$295$728$1,436$2,865

You will notice on the $50,000 benefit that the rates for preferred and standard health are the same.

Tips on Getting the Best Life Insurance Rates

There are ways to make sure you are paying a little as possible for life insurance. First, make sure you are getting the right type.

If you buy the wrong kind now,  you risk paying too much or having to get a different and more expensive policy later. Remember that each year you age, the cost of a new life insurance policy increases.

Next, make sure you know how much you need. Sit down and calculate the amount. If you take a guess at it, you run the same risks of either paying too much now or having the need to buy later.

Once you know what you need and how much, talk to an independent life insurance agent. The difference between an independent agent and a captive agent is that independent agents work for their clients. They can offer the products of as many companies as they want.

Captive agents can only sell one company’s products. They work for the insurance company. While insurance companies offer a vast range of products, their underwriting guidelines are the same for all their products.

The advantage of comparing companies is not just their rates. You get the most prominent benefits out of comparing how they will underwrite you. This is where an independent agent comes in handy. They have experience working with dozens of companies and can point you in the direction of the handful that will offer you the best health class.

Let’s take someone as an example who has diabetes. Company A might bump them down a health class just for being diabetic. Company B might have less strict guidelines for diabetes and offer a better health class. It’s challenging and time-consuming to find that information. If our example person just called an independent agent and said, “I’m diabetic and looking for X type of life insurance policy,” the independent agent could save them all that trouble by pointing them in the right direction.

Best Companies for a 58-Year-Old

Below we listed our top 5 favorite companies for 58-year-olds. We picked these based on their financial standing, claims history, and affordability.

The company you choose for your life insurance coverage should have a stable financial outlook so they’ll be around when your family needs them.

They should have a track record of taking care of their client’s families. Finally, they should offer competitive rates to help people afford their products.

Phoenix

While most companies cut off their non-med policies in the mid-50s, Phoenix is still offering them to 58-year-olds. They are only in the lower benefit levels. But the crazy part is they’re more affordable than the policies from other companies which require a medical exam.

They have a B from AM Best with a stable financial outlook.

Protective

Protective is hugely competitive in the shorter term lengths at age 58. They also hold their own well across all term lengths and benefit amounts.

AM Best gave them an A+ for superior financial standing.

Americo

The 30-year term options are extremely limited at age 58. In fact, they’re so limited that Americo is one of the only companies offering them at affordable rates.

They also have an A- with AM Best putting them in strong financial standing with a stable outlook.

Lincoln

Lincoln does a wonderful job offering policies with considerable death benefits for affordable prices compared to its peers.

They hold an A+ from AM Best so it would be difficult to find a more financially responsible company.

Bottom Line

You can both save money and get the life insurance that will protect your family. Be upfront with your insurance agent about your health. They have the experience to help you find the companies who will underwrite you in the best possible health class.

Even if you have some health concerns, there are still many options. You can find the life insurance that will help your family should anything happen.

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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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1 Comment

Georgeanne pinkston

I would be interested in a basic qoute for a 25,000.00 policy. I am 58 and the only health issue i am tx for is hypertension, which is very well controlled. I have recently lost my job and will have no life insurance, and need reasonable coverage.

September 18, 2016 at 9:39 am
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