Amazing Options for Life Insurance at 57
Why Life Insurance at 57?
Life insurance is a part of financial planning, and you will need it if you have dependents, especially financial dependents. Some people also buy life insurance to leave some financial help behind for their family.
If you have small children, you should strongly consider buying life insurance as they cannot be independent until at least they are 16 years old. Life insurance can provide financial stability until your children are financially fully independent in case of your unexpected demise.
You should think of life insurance if you have a partner who is financially dependent on you. After you, they may fall in bad times without regular income. Life insurance allows you to care for them even though you may not be around forever.
If you have children who may not be financially independent ever due to a disability, life insurance will provide for them after your demise.
Another primary reason to keep in mind is rising funeral costs. Funeral in the US currently costs over $8,000. Even if your family does not need your financial support, your burial costs may be significant, and you may want to be generous and consider covering for them.
Right Insurance at 57
If you want to cover for your current financial commitments and not necessarily to provide a fixed income for the rest of your loved one’s life, you can consider term life insurance. Your insurance agent will pull up some sample term life insurance rates to give you an idea of how much it may cost.
However, if your loved one is financially dependent on you and will need a fixed income to support them after you pass away, you should consider permanent life insurance.
If you want to be generous and make sure you cover for your burial costs while you are still alive, burial life insurance is the best option for you.
Permanent Life Insurance
Permanent life insurance, also called whole life insurance covers your whole life as long as you make regular payments. If you are lucky, you can be eligible for policies that need you to pay for 20 years and then get converted to permanent life insurance with no additional cost. Premiums get fixed according to figures available on a life insurance cost calculator.
Permanent life insurance costs more than other policies as the coverage is higher and also everyone who buys this policy gets to use its benefits. This policy even has a cash value accumulation option that allows you to accumulate cash value that you or your family can use, or you can take a loan against it with low interest.
Term Life Insurance
Term life insurance does not last a lifetime. It provides cover for a set number of years, usually from 10 years to 30 years. At 57, you may not be eligible for a 30-year term. The next best option available for you is to opt for the 20-year term.
Given the life expectancy in the US is the mid-70s, a 20-year term provides the necessary cover. In case you outlive the term, you can choose to extend the insurance or convert it into permanent life insurance.
As the term insurance may end up going waste if you outlive the term, there is a provision called the return of premium where this addition will make sure you get all your paid premiums back if the term expires and you are still alive.
Burial Insurance
Even if you don’t have any responsibilities, there may still be significant cost that your family will have to foot for your burial. You may want to help them by covering for it through burial life insurance.
Given this covers a particular cause, it is also the cheapest available life insurance.
Term Life Insurance Rates at 57
The general rule of thumb in case you are searching for good life insurance rates is to maintain good health within your age group to get the best reasonable rates as per a life insurance rates by age chart. The higher the health risk, the higher the insurance premiums. This issue does not mean that you will have to pay the penalty for health conditions you have due to age but what this means is, you will be rewarded with lower rates if you keep your health conditions and lifestyle choices like smoking in check.
Here are some sample rates according to a life insurance rate calculator to give you an idea of how much life insurance will cost you at 57.
Preferred class (good health) males for $100,000 coverage:
- 10-year term: $29
- 20-year term: $53
- 30-year term: $101
Standard class (average health) males for $100,000 coverage:
- 10-year term: $43
- 20-year term: $77
- 30-year term: $122
Preferred class (good health) females for $100,000 coverage:
- 10-year term: $23
- 20-year term: $36
- 30-year term: $94
Standard class (average health) females for $100,000 coverage:
- 10-year term: $33
- 20-year term: $55
- 30-year term: $108
Permanent Life Insurance at 57
Permanent life insurance will be more expensive than term life insurance, but it also lasts a lifetime and comes with more benefits.
Below is a sample of how much permanent life insurance will cost you if you have good health vs. average health for your age group.
Permanent life insurance rates for premium class (good health) for coverage of $100,000:
- Males: $307
- Females: $271
Permanent life insurance rates for standard class (average health) for coverage of $100,000:
- Males: $310
- Females: $282
Guidelines for Getting Best Life Insurance at 57
To get the best possible rates within the defined life insurance age brackets, you will have to list down all your personal needs and be clear about why exactly you need life insurance. You also need to evaluate how much premium you can afford per month to arrive at what is the right policy for you.
It is essential to evaluate your current financial situation because your research may show that you will need permanent life insurance but if you don’t have the means to pay the couple of hundred dollars every month as premium, there is no point opting for permanent life insurance.
Once you know your personal needs clearly, you have to start evaluating different companies and the underwriting guidelines to identify the best fit. If you do not want to do this research on your own, you can work with an experienced insurance agent to do this work for you.
If you are keen for an evaluation, get in touch with aninsurance agentwho will have extensive experience and will be able to help you navigate the nuances of the insurance policies as each company has slightly different guidelines.