Top 7 Reasons 58 Year Olds Buy Life Insurance

by Jeff Rose on September 12, 2016 · 0 comments

As you are getting closer to age 60, you most likely are starting to think about what might happen to your family in the event of some kind of misfortune.

Life Insurance Age 58

At age 58, you can still obtain very reasonable rates on life insurance, especially if you are still in good health. Even if you are not in good health, we have some guaranteed issue plans available to you.

It is never too late to obtain life insurance although there is certainly no better time than the present. You will most likely find that there are still options available to you at this point in your life.

One of the most important things to consider when shopping for life insurance at age 58 is the importance of determining who to name as your beneficiary?  Your spouse or your children or a charity? Be sure and discuss this with your tax adviser.

Why Would a 58 Year Old Want to Buy Life Insurance?

In our experience, we have seen a frequency where folks have waited until buying or changing their life insurance until they were 58 years old. Here are the top reasons given by our clients:

  1. One or more of their parents have passed away and have either left them life insurance proceeds or didn’t leave them with life insurance proceeds. This makes them begin to re-evaluate their own situation.
  2. The need for term life insurance is no longer an issue. Maybe the home mortgage or other debt has been paid off and/or there is no longer a need to save for a college fund for the kids.
  3. There is a greater concern to have enough life insurance to pay final expense costs throughout the remainder of the life, even to age 80 or 90. Typically this would require some type of permanent life insurance.
  4. There is a realization that Social Security benefits might not be enough on going income for a surviving spouse to live on.
  5. One of the family members is retiring, and just realized they will not have any life insurance since they might have only been covered at work.
  6. The client may be in a good enough financial situation now to consider taking out a life insurance policy to the benefit of their favorite charity. In this case the life insurance premiums could be a tax deductible donation.
  7. And last, our client has either retired from their lifelong work and is borrowing money to start their own business, or is still working but finally able to buy out a business partner or former employer.

Obviously it is good to look now, even though every year you wait, the life insurance premiums begin to increase.  Regardless of what you have or haven’t done in the past, take care of your loved ones today and get your life insurance situation taken care of.

What are Your Options for Life Insurance at Age 58?

This day in age, you will find that your resources for information are endless. With the internet at your disposal, there is never a better time to shop and compare rates on life insurance. You can do this yourself and spend a lot of time and energy, or take the convenient route and let us get the lowest rates from different companies for you.  Just complete the quote form on the right side of this page.

The advancement of technology has brought about an even playing field for many industries and life insurance is certainly one of these. We are independent agents and are constantly looking to represent the companies with the lowest rates.

Two of the most prevalent types of life insurance that people explore are term life insurance and permanent life insurance. Term life insurance is known for having a term, or an amount of time that you choose to pay for at the beginning of your coverage. Compared to other types of insurance, term life insurance is extremely affordable.  If you live past the initial term that you chose, for example a 20 year term policy, then the rates will begin to increase in year 21.  The rates should be guaranteed to be the same rates for the first 20 years.

The other type of insurance available to you as a 58 year old is permanent insurance, which could be either whole life insurance, or universal life insurance. This type of insurance is permanent and lasts until a claim is made on it, or until you stop paying the premium and the cash value runs out. It can be viewed as an asset as it does typically accumulate a cash value over time from which you can borrow against. At age 58, this type of insurance could be expensive unless you are looking at death benefit amounts of $50,000 or less.

Over the last few years, there is what I call a type of a hybrid life insurance plan, which combines the best of term insurance and permanent insurance.  I have also referred to it as permanent term insurance.  This type plan is designed to last until age 100, but is not designed to build a lot of cash value.  It costs more than straight term life insurance, but less than traditional permanent life insurance. For someone at your age, this might be the best choice if you want a higher death benefit (over $100,000), but are not concerned with building up a lot of cash value in your plan.

Rates for a 58 Year Old

Assuming you are a very healthy adult and lead a positive lifestyle, here are a few sample rates that can give you a good idea of what you may pay for life insurance at age 58.

To obtain a $250,000 20 year term life insurance policy, a 58 year old male will pay about $89.61 per month. A female on the other hand will pay about $64.38 per month. These rates of course may vary depending on many factors that you may be affected by. The best course of action is to obtain quotes from the best life insurance companies. You can fill out our Compare Quotes form on this page and we can shop the life insurance market for you and find the lowest rates available in your area.

See the chart below to also view rates for a 10 year term policy and a 30 year term policy.  These rates are also for someone in excellent health wanting $250,000 in death benefits.

Sex10 Year20 Year30 Year
MaleProtective - $50.37/monthSBLI - $89.61/monthTransamerica - $201.03/month
FemaleProtective - $36.76/monthSBLI - $64.38/monthTransamerica - $141.53/month

If you aren’t in very good health, then the rate could be over $400 per month for a male, or over $275 for a female.  If you do have health issues, I will tell you it is much better to go ahead and talk with a licensed agent who can get some medical information from you, and then go to life insurance company underwriters to find the best quote for you.

Since rates can vary a great deal, you could end up paying way too much each month trying to do this yourself.  You don’t want to get quotes from agents who only represent one company, because they may not have the best rates for your particular medical condition.

How Life Rates are Determined Based on Health

It is still very likely that folks who are 58 years old are in great health. If this is not the case rates will vary as seen from the above example. A healthy adult is one who is known to not smoke or have any pre-existing or diagnosable diseases.  If you have had any medical problems in the last few years then you will probably get rated at a lower health rating than someone who has had a clean medical record.

In maybe 10% to 20% of our clients, we find that it is necessary to find cheap life insurance without taking a medical exam as a way to suit their life insurance application needs better at this time.

Obviously, life insurance companies are always running their business juggling the pressures of marketing and growing their premium volumes versus having profitable underwriting results.  This means that they want to write new business and approve as many applications as possible, but at rates that can help them remain profitable.

This means they evaluate each individual’s medical conditions as they relate to life expectancy, and then their actuaries try to determine competitive rates that will maintain their profitability.

Getting Affordable Life Insurance Premiums

When you look at rates on life insurance policies for people over 50 there will be a wide range on the premiums.  These differences in price are mostly a result of different types of policies and people being rated differently by the life insurance underwriters.

Seeking out the guidance of a licensed insurance agent is advisable in most cases because they can not only shop all the companies that provide service to your area, they also bring about a wealth of knowledge as to which companies will provide you with the best rates regarding your personal needs.

So if you are a smoker they will match you up with a company that does the best rates on life insurance for smokers or if you have had some heart problems they will know which company views that most favorably.

If you are ready to get started with your own set of term life insurance quotes then use the form on this page to get started or call us at 888-836-7071 and an agent will be happy to help you and answer any questions you may have.

Summary
How to Choose Life Insurance At Age 58
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How to Choose Life Insurance At Age 58
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Getting life insurance at a later age can be expensive. Learn how to choose the right life insurance at age 58. Talk to us and know your choices.
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