There are a lot of Americans who skip purchasing a life insurance policy, especially once they start to reach their mid-50s and early 60’s, but this could be an awful mistake.
When looking for life insurance at age 56 one of the greatest impacts on your premium is your health.
Unfortunately, at this age, there are many medical conditions that can start to creep up if it hasn’t already started affecting you.
Depending on what type of medical condition you have, your rates may or may not be affected significantly. There are a lot of people who think that if you have any pre-existing condition, you can’t get life insurance. That isn’t true.
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Regardless, life insurance is something that everybody should have for their own peace of mind.
What Type of Coverage to Get?
Ninety percent of 56-year-olds who obtain life insurance typically only need it for 10 to 20 years. This is the case because the purpose of life insurance is meant to fill in for displaced income.
With this in consideration, it is assumed that you will not need insurance after retiring and for that reason, you only need a policy for the term of your working career.
Buying cheap term life insurance is the solution for this. This type of insurance is surprisingly affordable, especially considering all of the benefits that come with it. If you need more extensive or permanent insurance, whole life insurance is most likely for you.
There are a lot of people who prefer having permanent coverage and don’t have to worry about reapplying for another policy. If you want the comfort of having a whole life policy, go for it, but be warned, you’re probably paying way more for life insurance coverage than you have to.
What Are the Rates for a 56-Year-Old?
Your rates are going to be based on your age, your health, and much more. We can’t give you exact numbers, but we can give you a rough idea of how much coverage you’ll pay.
For example, let’s say you are a 56-year-old man who wants to get a $500,000 insurance plan. You’re going to pay around $1,600 every year for your plan. A woman is going to pay $1,200 for the policy.
Here are some quotes for $250,000 of coverage for someone aged 56:
| Sex | 10 Year | 20 Year | 30 Year |
|---|---|---|---|
| Male | Protective – $42.48/month | SBLI – $73.30/month | Transamerica – $161.88/month |
| Female | Protective – $32.07/month | SBLI – $55.46/month | Transamerica – $113.75/month |
Keep in mind, that these are only ballpark figures for life insurance coverage. There are so many variables, that there is no way for us to tell you exact numbers without getting information from you.
What Risk Tables Does a 56-Year-Old Operate On?
Pre-existing health conditions are the main reason people in this age group are declined for life insurance. This could be anything from diabetes to heart problems.
There are a lot of life insurance companies that have experience working with high-risk applicants of various conditions. These companies understand the conditions and how they can be controlled, which means they will view applicants for favorably than companies without that experience.
Even if you’ve been turned down for coverage because of your health conditions, there are still several insurance coverage options that you can choose from. Your health won’t prevent you from getting at least a small amount of coverage.
How Much Life Insurance Do You Need?
Aside from asking what type of policy you should get, this is the next most common question that we receive, “how much life insurance do I need?” it’s one of the most important calculations you can make in regard to your insurance.
Shopping for life insurance at age 56 is extremely different than shopping for a policy in your 20s or 30s. There are many notable differences that are going to impact your life insurance needs. More than likely you don’t have as much debt as you did twenty years ago. One of the main goals of life insurance is to pay off any debt you would leave behind, you might be able to buy a much smaller policy at this stage of life.
Another key difference in a life insurance policy in your mid-50s is your salary and how many people are relying on your income. Your salary is probably higher than it was when you first bought a life insurance policy many years ago, but that doesn’t necessarily mean that you need a larger insurance plan. If your spouse is still working, and your kids all have jobs of their own, you can consider getting a smaller, cheaper insurance policy.
Getting the Best Rates on Your Life Insurance Policy
Getting life insurance is important for the protection of your family, but it’s also important that it doesn’t break your bank. Even at 56, a life insurance policy can still be more affordable than most applicants assume. The older you are, the more your plan is going to cost, but just because you aren’t as young as you used to be doesn’t mean your policy has to be expensive.
The first way is to focus on your health. Aside from your age (which you can’t change), your health is the next most important factor that impacts your monthly premiums. Sure, you probably aren’t in as good shape as you were twenty years ago, but now is the time to focus on your health.
If you’re carrying any extra weight, it could hurt your monthly rates. The more weight that you’re carrying, the higher your chances of having health problems. The higher your risk for health problems, the higher your rates.
Shedding some of those pounds through a diet and exercise will not only lower the number on your scale, but it will also work wonders for your cholesterol, blood pressure, and much more. Not only is this great for your health, but good for your wallet as well.
Additionally, kicking your bad habits like smoking cigarettes will also save you several hundred dollars on your policy coverage. Smokers pay double their monthly premiums, sometimes triple, versus a non-smoker.
Whether it is standard term life insurance or a no-medical exam policy, the best way to locate the perfect plan is to partner up with an independent agent. Each insurance carrier is very different. Different plans, rates, riders, and much more. Sure, you can look through them all to find the best, or we can bring you 50 companies all at once.
We work with all of the top-rated life insurance companies so that we can shop for you and get the absolute best rates. Life insurance is a long-term investment, and just like any other investment, you want to make the best choice. You should always work with an expert to make your choice.
