Buying Low Price Life Insurance at Age 57 (Simple Ways to Cut Costs)
Posted in Life Insurance in Your 50s last updated on October 29, 2020When you’re looking at life insurance at age 57, you know that premiums aren’t going to be what they were in your 30’s. But there are several ways to make sure that you can find the best rates. The best part is that none of them involve much (if any) work.
Quick Summary
Life insurance gets more expensive the older you get. There are still ways to save money at age 57. Saving money comes down to researching the best options for you. Think through why you are getting life insurance.
Don’t let someone tell you how much you need. You can figure that out yourself. The reason you are buying life insurance will tell you what type of policy to buy. After that, you can consider other money-saving options.
It’s also smart to do some independent research on rates before talking to an agent. With tools like the Instant Quotes box on this page, you can get a ballpark idea before picking up the phone.
Table of contents
Steps to Saving Money on Life Insurance at 57
You should know that not every tip listed below will work for every person. It’s important to match your reasons for buying life insurance to the life insurance policy you are buying. Life insurance isn’t a one size fits all situation. Your agent needs to customize it to your family’s needs.
If the tip below makes sense for your family, please use it. If it doesn’t, then do right by your family.
Use a Life Insurance Needs Calculator
The worst way to waste money is by buying the wrong thing. Buying too much life insurance wastes money. Buying too little, while better than nothing, can still leave loved ones in a tight spot.
The old way of buying life insurance was to multiply your annual income by a number. That number varied depending on who you asked. You might get someone who said, “Use 3 to 5 times your annual salary.” Then you might get another person insisting on 7 to 10 times. We’ve heard of recommendations as high as 20 times someone’s annual earnings.
Rather than picking a number out of a hat, it’s easy to calculate the amount of life insurance you need. You can take into account factors like your mortgage and any credit card debt. It’s the hands-down best way to make sure you are not overpaying.
Once you figure out how much life insurance you need, use the Instant Quotes Tool on the left to see what your rates may be. (Top if you’re on mobile.) You can compare companies and see how different term lengths affect premiums.
Convert or Requalify, Check Your Options
If you are finishing up a term life insurance policy, you may have the option of converting it to a whole life policy. (Sometimes you see this called conversion privilege.) Most companies will base your new rates on your current age and health at the original time of underwriting.
That means if your health had deteriorated, then your rates will better if you convert or renew. Renewals work like conversions, but extend the term into another term.
Conversely, if your health has improved since you last applied for life insurance, you might pay less if you reapply or re-qualify for a new policy. Perhaps you lost weight or stopped smoking.
Get Quotes from an Independent Agent
Out of the two types of life insurance agents in the country, one of them can only sell the products of one company. Where is the incentive to compare prices with other similar policies? (There isn’t.) Those are what the industry calls captive agents. They are contractually bound to only one company. It’s their job to convince you that their company is the best.
The other type of life insurance agent is an independent agent. They aren’t restricted to just one insurance company. They can compare policies for you. Independent agents fit the policy to you and your family. You can find the company with the best underwriting guidelines for you.
Having someone else do all the comparison research saves you both time and money. That way you can find the best company that fits your family with the least amount of effort. That’s what independent agents do.
Term Costs Less than Permanent Life Insurance
Term life insurance is a gamble for the life insurance company. It’s a well-researched, data-driven gamble. For your family, it’s a safety net. Life may continue, mostly as planned. That’s what the insurance company is gambling on. So they can afford to offer term life insurance at significantly cheaper rates than permanent insurance.
Permanent life insurance will force the insurance company to pay out at some, unknown point. They will need to charge everyone more to make sure they have the cash to pay your beneficiaries.
Is term life insurance is right for you? That will depend on your reasons for buying life insurance. Some people want to make sure their family is taken care of until their children grow up. Other families might want to ensure that their mortgage gets paid off so their spouse won’t have to leave their home if something happens. Those are good candidates for term life insurance.
Another family might think it makes the most sense to use life insurance to leave something to their heirs and pay off any debts. It can take years to get a will or estate through probate. Meanwhile, the family might struggle to meet the financial obligations that didn’t go away.
Choose a Policy Requiring a Medical Exam
Medical exams are an inconvenience, but they save you money. The more a life insurance company can establish that you are relatively healthy, the less they need to charge you. People can lie on applications. (Although lying on your life insurance application not smart.) It’s harder to fudge the results of blood tests.
But even then, there are ways to ace your life insurance medical exam. Because if you are on the cusp between health classes, good test results can bump you up a level. The difference between health classes can mean a 25% difference in your premiums.
Without the medical exam, the underwriter has to assume there is a reason you don’t want the medical exam. Usually, people avoid medical exams when they’re unhealthy. That means the insurance company must charge more to make sure they can pay out everybody’s claims.
So it may be inconvenient. You may find it tricky to adjust your lifestyle for the week or two preceding the exam. But you will save a lot of money.
Life Insurance Rates at Age 57 – Men
The table below shows rates for moderately healthy 57 year old men. These are monthly rates for non-smokers. Click the link to view rates for ages in your 50s.
| Male Rates | $100,000 | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|---|
| 10 Year Term | $27 | $56 | $99 | $185 |
| 20 Year Term | $48 | $94 | $175 | $335 |
| 30 Year Term | $92 | $223 | $428 | $820 |
Life Insurance Rates at Age 57 – Women
Like the rates for men, these reflect what a moderately healthy, 57 year old woman might pay for life insurance each month.
| Female Rates | $100,000 | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|---|
| 10 Year Term | $21 | $40 | $73 | $138 |
| 20 Year Term | $33 | $67 | $123 | $238 |
| 30 Year Term | $85 | $192 | $370 | $723 |
You can also compare these rates to sample rates at age 58 or age 59 to see how the premiums change if you put off an application.
Permanent Life Insurance at Age 57
Permanent life insurance is almost always the better option for people with sizable estates, mainly because nobody has to pay taxes on life insurance benefits. Imagine not paying taxes on half a million dollars. There are several benefits of permanent life insurance if it’s the right fit for you.
Life insurance companies pay out their claims quickly. So if there is any chance that your will is going to be tied up in the courts, the life insurance benefits will keep your family afloat.
One of the other major draws of permanent life insurance is the cash value accumulation. You can borrow against your policy, no questions asked. The insurance company holds your benefits as collateral, so make sure to pay the money back. We have seen people use this super easy loan to fund everything from annual cruises to surprise medical expenses.
Plus, the longer you have your policy, the more you can borrow against it.
No Exam Life Insurance at Age 57
No exam options, while more expensive, have come down in price over the last decade. The demand for a more convenient life insurance process forced more companies to offer this type of policy. More companies offering no exam options mean more competition and lower prices.
The catch is that most companies limit the amount of life insurance you can get with a no exam policy. Finding companies offering more than $250,000 in benefits is tricky. However, they do exist. Some companies offer $500,000 benefits all the way up to $1,000,000 no exam insurance.
Conclusions on Buying Life Insurance at Age 57
Don’t put off life insurance. It will get more expensive each year. Use the cost-saving tips at the top of the article to make sure you don’t pay a penny more than you must. Remember, each company has different underwriting policies. Make sure to shop around.
Through knowing exactly how much life insurance you need, you won’t overspend. By knowing what type of policy to buy, you don’t realize that your family might be in trouble a decade down the line. An independent insurance agent can help.
Why Use Abrams Insurance Solutions
We are a small group of independent agents. Our goal is to find the best company to fit your unique family situation. Since everybody is different what worked for your neighbor or co-worker, may not be right for you.
Our agents shop the market and pit life insurance companies against each other for your business. If your application comes back with unexpected ratings, we promise to shop the market again instead of pushing you just to take the policy.
The Bottom Line
We have families too. All insurance companies price their products the same no matter where you get it. So working with independent agents can give you peace of mind knowing that your family is taken care of for as little as possible out of your pocket.
Give us a call today at 858-703-6178 with any questions about your unique situation.
