Is buying a $50,000 life insurance policy worth it? That’s a question many people are asking themselves these days.
Sure, a $50,000 policy is not that much coverage, but it may be enough to cover some immediate expenses, funeral costs, credit card bills, or other outstanding debts.
Plus, a $50K policy will not cost much, and you most likely can get it without taking a medical exam.
In this article, we will look at some reasons for buying coverage and help you decide whether or not it’s right for you.
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Why Buy a $50,000 Life Insurance Policy?
Do you have $50,000 sitting around that you don’t mind parting with? If not, then you should seriously consider getting a life insurance policy.
There are many reasons someone might need a $50,000 life insurance policy.
Perhaps they are the primary breadwinner for their family and want to ensure their loved ones are taken care of financially if something happens to them.
Or maybe they have a lot of debt and want to ensure their loved ones don’t have to bear that burden when they pass away.
Whatever the motivation, a $50,000 life insurance policy can provide peace of mind in knowing that your loved ones are taken care of financially.
Why You Need 50k of Life Insurance
- Single People: A $50,000 insurance policy for young people is an excellent place to start when you do not have kids yet.
- New Parents: Parents with a newborn child can benefit from purchasing a small policy.
- Newlyweds: Most married couples buy a little policy to cover each other early in their careers.
- Debt Protection: To pay off outstanding debts such as credit cards or personal loans.
- Mortgage Protection: A term policy can help protect a small mortgage balance.
- Income Protection: A life insurance policy is a fantastic way for couples to preserve income for surviving family members.
- Final Expenses: Seniors can buy a universal life policy to cover funeral expenses.
Is $50,000 really enough coverage?
Radio star Dave Ramsey recommends purchasing 10-12 times your income in coverage, although your number may differ based on your needs and budget.
It would be reasonable to assume that buying a $50,000 term policy would be about half the cost of a $100,000 term life policy.
But for people under 60, the difference between a 50k and 100k policy is minuscule, particularly when buying term insurance.
So, we always recommend getting clients additional term quotes on a $100,000 life insurance policy.
Not to mention that many healthy, younger life insurance buyers can lock in excellent prices on a $250,000 term life policy for a nominal extra cost.
Types of Life Insurance Policies
Types of Life Insurance PoliciesThere are many different types of life insurance policies available on the market.
While they all share the same goal of providing financial security for loved ones in the event of your death, the way each policy achieves this goal can vary greatly.
We will help clear things up. We’ll discuss the three most common coverages: term, whole, and universal life insurance.
We will also provide sample life insurance rates for each policy so you can decide which is right for you.
50K Term Life Insurance
50K Term Life InsuranceAre you looking for a way to get life insurance without spending a fortune? If so, you may consider getting a $50,000 term life insurance policy because it is inexpensive.
Term insurance offers fixed premiums for between 10 and 40 years with a level death benefit.
Term policies are much less expensive than permanent policies, such as whole life and universal life.
Plus, many term life policies contain a conversion privilege that allows you to convert your policy to permanent coverage without undergoing a new medical exam.
What does a $50,000 term life insurance policy cost?
Because your premiums will depend on how long your policy will last, you can save money by matching your insurance needs with the proper term duration.
Comparing term life insurance rates by age is often beneficial to understand which plan best fits your budget.
Here’s a quick look at two common term lengths and the costs associated with buying coverage.
$50,000 Term Life Insurance for 10 Years
No one ever knows when their time might be up, so it’s essential to have life insurance in case something happens.
If you’re looking for an affordable way to cover short-term needs, consider a 10-year term policy.
For example, a 10-year term is a good idea for someone looking for life insurance over age fifty to protect their kids until they finish college.
Here are the average monthly life insurance costs at selected ages for ten years.
$50,000 10-Year Term Life for Males
| Death Benefit | $50,000 |
| 30 Years Old | $8 |
| 40 Years Old | $9 |
| 50 Years Old | $14 |
| 60 Years Old | $26 |
| 70 Years Old | $75 |
| 80 Years Old | $226 |
$50,000 10-Year Term Life for Females
| Death Benefit | $50,000 |
| 30 Years Old | $7 |
| 40 Years Old | $8 |
| 50 Years Old | $12 |
| 60 Years Old | $20 |
| 70 Years Old | $54 |
| 80 Years Old | $193 |
When it comes to life insurance, most people think of coverage that lasts for 10 or 20 years. But did you know that you can also buy a 15-year term?
If you need coverage for a more extended period, a 15-year term can be a happy midpoint between a 10-year and a longer duration 20-year plan.
$50,000 Term Life Insurance for 20 Years
A 20-year term life insurance policy can be perfect for somebody looking to protect their income for remaining family members for a reasonable price.
How much does 20-year term life insurance cost?
Please look at the average 50k term life insurance rates for males and females.
$50,000 20-Year Term Life for Males
| Death Benefit | $50,000 |
| 30 Years Old | $9 |
| 40 Years Old | $11 |
| 50 Years Old | $20 |
| 60 Years Old | $45 |
| 70 Years Old | $126 |
| 80 Years Old | $350 |
$50,000 20-Year Term Life for Females
| Death Benefit | $50,000 |
| 30 Years Old | $9 |
| 40 Years Old | $9 |
| 50 Years Old | $16 |
| 60 Years Old | $34 |
| 70 Years Old | $226 |
| 80 Years Old | $193 |
We have furnished sample rates for the most popular plans, and if you need coverage for a longer time, a 30 or 40-year term length may do the trick.
Longer-duration term plans are more expensive, and most carriers only offer term life insurance for seniors until a certain specified age.
So, if you want life insurance above 70, you may consider buying a universal life insurance policy.
What if I am not sure which term strategy is best for me?
If you are unsure which term period is suitable, you can use our insurance calculator to compare cheap term life insurance plans.
50k Permanent Life Insurance
50k Permanent Life InsurancePermanent life insurance is a form of life insurance that provides coverage for the rest of your life as long as premiums are paid.
Permanent life provides peace of mind in knowing you will always care for loved ones financially if something happens to you.
Different types of permanent life insurance policies are available, so it’s essential to research the options and find the policy that best suits your needs.
If you need your policy always to be there when you die, permanent life insurance is more suitable than term life insurance.
Whole Life Insurance
Whole Life InsuranceWhole life insurance is a permanent policy that guarantees a death benefit payout and builds cash value and dividends over time.
Because whole-life policies last for the policyholder’s entire lifetime, they offer more stability.
Plus, you can use a policy loan to access your policy’s cash value to help pay for future expenses like college tuition or retirement.
Whole life is typically more expensive than term and universal life insurance coverage.
Universal Life Insurance
Universal Life InsuranceMost people have heard of universal life insurance but may not know what it is.
Universal life insurance is a type of permanent life insurance that combines the features of term and whole life policies.
Universal life lasts your entire lifetime and has cash values that grow tax-deferred and can be borrowed against in an emergency.
Unlike whole-life policies, however, you can adjust the death benefit and premium payments according to your needs.
This flexibility makes universal life insurance an attractive option for those who want coverage they can tailor to their specific needs.
How much does a universal life policy cost?
Please look at the average 50k universal life insurance quotes for males and females of various ages.
$50,000 Universal Life for Males
| Death Benefit | $50,000 |
| 30 Years Old | $36 |
| 40 Years Old | $45 |
| 50 Years Old | $65 |
| 60 Years Old | $98 |
| 70 Years Old | $168 |
| 80 Years Old | $350 |
$50,000 Universal Life for Females
| Death Benefit | $50,000 |
| 30 Years Old | $28 |
| 40 Years Old | $41 |
| 50 Years Old | $57 |
| 60 Years Old | $87 |
| 70 Years Old | $139 |
| 80 Years Old | $295 |
Should I buy a $50,000 whole life policy, or is universal life a better bargain?
If you need coverage for the rest of your life, a guaranteed universal life is cheaper than whole life.
Another option for people who find a 50k policy too expensive is to reduce the death benefit to $25,000.
The Pacific Life Insurance Company offers permanent coverage starting at only $25,000 with cheaper pricing than whole life insurance.
You can use our calculator to compare permanent coverage with various insurers if you are not convinced.
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Buying a $50,000 Life Insurance Policy
Affordable Life USA can help you decide whether term insurance will cover your needs or if permanent life insurance is better.
Plus, we can discuss if you should add any living benefit riders to supplement your new policy.
Most insurers will want to know your current and past medical history by conducting a phone interview or a medical exam.
$50,000 Life Insurance No Exam
A $50,000 life insurance policy will not cost much; you most likely can get it without a medical exam and blood tests.
Many insurance companies offer coverage with no medical exam without additional costs based on your health status and age.
These insurers will call you to ask a few medical questions during a telephone interview instead of an exam.
Buying a $50,000 life insurance with no medical exam is speedy, and most people in decent health will qualify for coverage in less than a week.
Sometimes, you can get lower premiums by doing a quick exam in your home.
Your medical profile is presented to several companies to determine which carrier would be willing to extend coverage at the most competitive pricing.
A $50,000 policy may not seem like much, but it can be a great starting point, especially if you’re on a budget.
And remember, you can always increase your coverage as your needs change.
Now that you know more about how life insurance works and what kind of coverage may be right for you, it’s time to get started on your quote.
You can use our life insurance calculator to get tailored recommendations and prices in minutes.
And once you’re ready to move forward, we’ll be here to help every step of the way.
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Affordable Life USA is dedicated to providing comprehensive life insurance solutions to families and business owners throughout the United States.
For over thirty years, our agency has provided a platform for comparing hundreds of life insurance policies without the stress of high-pressure sales tactics.
Our experienced team of financial planners has helped thousands of clients obtain affordable coverage through our efficient online application process.
Our founder, Eric Van Haaften, expanded our consumer-centric sales model nationally by leveraging the influence of renowned publications such as Time, Newsweek, and The Wall Street Journal.
Eric acquired his love for quantitative analysis while getting his business degree from Ferris State University, which provided a solid foundation for his analytical approach to financial planning.
Eric Van Haaften, LUTCF
1-877-249-1358
