There are many factors that go into the pricing of a life insurance policy. However, one of the biggest of these is a person’s age. This is due in large part to the fact that life expectancy plays such a big part in how much risk the applicant will be to the insurance company – and certainly, the older you are, the closer you are to your anticipated life expectancy, thus making your premium amount higher.
For those who are in their late 50s, however, the price of life insurance coverage may not be as high as they may think. In fact, the ability to purchase a very affordable term life insurance policy may still be available for quite some time. As you age, however, the premiums will tend to rise.
Premium Criteria for Life Insurance Policies in Your 50s
For those who are in their late 50s – and especially those who are 58 and over – it is important to understand how life insurance policies are priced, as it could make a big difference in the type of life insurance policy that you choose, as well as when you apply for the coverage.
The Type of Life Insurance Coverage That You Choose
The type of life insurance coverage that you buy will make a big difference in the amount of premium that you pay on your coverage. In most instances, for those who are in relatively good health, term life insurance coverage will typically start out with the lowest amount of premium. This is because term life insurance is the most basic form of life insurance coverage that is available. It consists of just pure death benefit coverage, and it contains no cash value build up or savings component of any kind that is associated with it.
Term life insurance, however, will be limited to a certain amount of years. For anyone who is 58, term life insurance is typically available with coverage lengths of up to 30 years. But this is the last year that you can purchase term life insurance for this length of time. If you wait until after you turn 59, you will be limited to coverage lengths of less than 30 years – and for some people, this could pose a problem.
With all term life insurance policies, once the term life policy has expired, coverage would need to be renewed at your then current age and health condition. The premium on the new policy will also be based on your then current age.
A permanent life insurance policy will contain both a death benefit and a savings component. Therefore, the premiums for this type of coverage will usually be higher than for a term life insurance policy that has a comparable amount of death benefit.
Therefore, initially the best life insurance rate will likely be a term life policy. However, a permanent life insurance policy does not expire or have a time limit on it. Because of this, the premium on these types of life insurance policies is locked in for life.
The type of policy that you ultimately choose, therefore, should ideally be determined based upon the specific needs that you are covering. Many 58 year olds have numerous needs to cover, including mortgage debt, final expenses, future college expenses for their children, income replacement, and future estate taxes.
The Last Chance to Buy 30-Year Term Life Insurance
For those who are interested in purchasing a term life insurance policy, there is a key milestone to turning age 58. This is because 58 is the last age in which you will be eligible to purchase a 30-year term life insurance policy. With this in mind, if you are hoping to purchase a term life insurance plan with an affordable premium that will carry you through until age 88, then right now is the time to do so – because if you wait until your next birthday, it will be too late.
What are your other options?
If you wait until age 59 to purchase coverage – or to add to the coverage that you currently carry – it is still possible to buy other types of life insurance. For example, permanent policies are oftentimes still available for many more years. However, because permanent life insurance comes with both a death benefit and a cash value component, the premiums for this type of coverage are oftentimes much, much higher than those of term life insurance. And, if you really only want the death benefit protection, then paying a much higher amount of premium doesn’t make much sense.
Other Factors Affecting Life Insurance Premiums for 58 Year Olds
In addition to basic criteria like age, height, and weight, there are several other key factors that will also have an effect on life insurance premium rates. These include your overall health, as well as whether you are a smoker or a non-smoker. If you smoke, you could end up paying double the amount of premium for your policy than if you were a non-smoker. Therefore, this alone can make a big difference.
Overall health can also make a big difference. Those 58 year olds who are in exceptional health can oftentimes obtain preferred premium rates, meaning that they can pay lower premiums that average. If, however, your health is not very good, you could end up paying a higher amount than average and have your policy classified as a Substandard.
Gender will also play an important role in your life insurance premium calculation. Typically, 58 year old males will pay more in premium than females of the same age, as the typical life expectancy for males is shorter than for females. Therefore, the premium on a policy for a 58 year old male will be more than that for a female.
Where to Find the Best Life Insurance for 58 Year Olds
If you are looking for the best life insurance policy, it is usually best to shop through a company that has access to numerous different life insurance companies. That way you will be able to compare a wide variety of policy features and benefits, as well as different premium quotes. Doing so will help you to ultimately determine the best type of coverage for your goals and needs, as well as the best premium for your budget.
We can help you to find the ideal coverage for your situation. We work with many of the top rated life insurance companies who issue over 50 life insurance policies, and we can help you in narrowing down the one that is best for you. In order to get the process of finding the right policy and premium, simply start by using the form on this page now.
We also know that when trying to find the best life insurance for 58 year olds – or for anyone – questions can, and oftentimes do, come up. Therefore, should you have any type of question or concern regarding life insurance coverage, obtaining premium quotes, or finding the best type of coverage for you, please feel free to contact us directly, toll-free, at 888-229-7522. Our experts are ready to help you in ensuring that you obtain the best life insurance protection for you and those whom you love.