Depending on your life insurance needs, sometimes less is more.
If your list of debts and expenses is on the shorter side, $50,000 could be just the right amount of life insurance to protect your family.
Read on to see what kind of rates you can expect for $50,000 of coverage.
In addition to quotes, we’ll give you a preview of the best companies for this amount of coverage and a few tips for securing great rates.
Sample Quotes for a $50,000 Life Insurance Policy
Keep in mind, the shorter the length of the policy, the lower your premiums will be.
On the other hand, if you near the end of your policy and find that you still need coverage, you can expect far steeper costs.
Weigh your needs and compare each of these policy options to see which one fits your situation best.
We’ve broken down the sample rates by duration:
10-Year Term Rates
If you’re incredibly healthy and aren’t a tobacco user, here are the lowest rates you could expect to pay for a 10-year policy:
15-Year Term Rates
Likewise, here are the rates you can secure on a 15-year term policy as a top-tier applicant:
20-Year Term Rates
If you extend the length of the policy to 20 years, you might expect the following rates:
Looking at rates for policies you can’t outlive (or they pay out at age 121), here’s what you may have available to you:
As you can see from the samples above, if you opt for a longer term length or a permanent policy, you can expect to pay higher premiums.
That’s why it’s crucial to secure just the right amount and length of coverage.
Before you lock into a $50,000 policy, there are a few factors you need to consider.
Let’s walk through a few of those considerations so you can decide whether or not $50,000 is the right amount of coverage for you.
Who Needs $50,000 of Life Insurance Benefits?
$50,000 isn’t the smallest amount of life insurance you can purchase.
Some individuals choose to only purchase $10,000 or $25,000 of life insurance to cover their final expenses.
At the same time, $50,000 only goes so far. Considering that the average funeral today ranges from $8- to $10,000 on the low end, you’ll be left with about $40,000 to apply elsewhere.
That amount could cover some of the costs below:
- Other Final expenses: In addition to paying for a funeral, funds could be put towards medical bills or other end-of-life expenses.
- Debt: While $50,000 won’t go far towards major debts like a mortgage or student loans, it can be applied to smaller debts left over from certain lines of credit.
- Income replacement: Even if you’re a senior and your income is as small as a social security check, replacing it could be crucial to your spouse’s well-being.
People buy life insurance for a plethora of reasons reaching far beyond this list, but $50,000 isn’t likely to cover many expenses beyond the ones above.
If you’re looking to fund your children’s college tuition, pay for your house, or take care of lofty estate taxes, you probably need to aim for a higher policy amount.
As you determine your policy needs, try to consider your financial position not just today, but in the years to come.
Along those lines, don’t forget about inflation. Chances are, $50,000 won’t cover as much a decade or two from now as it does today.
Who Does Not Need a $50,000 Life Insurance Policy?
Before you jump into a $50,000 life insurance policy, or any policy for that matter, pump the brakes and consider your circumstances.
If you’re young and healthy, a smaller life insurance policy may be tempting, costing less than your monthly streaming services.
But just because life insurance is affordable and you’ll likely need it at some point in life doesn’t mean it’s the right call right now.
If you don’t actually need life insurance today, there’s no need to purchase a policy.
If you fit the bill as outlined below, you can hold off on life insurance for now:
- No dependents: The number one reason people buy life insurance is to replace income for their dependents. If you don’t have a spouse or kids, you’re probably good to go.
- No transferrable debts: Likewise, if there’s no risk of you leaving behind debts for your loved ones, you may be okay without a policy.
- No legacy: If you aren’t concerned with leaving behind an inheritance to your kids and grandkids, you may not need a policy.
- No final expense needs: If you have enough in the bank to cover the expenses of your funeral and can check off all the other boxes above, there’s no need to buy a policy.
Should You Buy Term or Permanent Coverage?
When you buy $50,000 of life insurance, you’ll have to choose between term and permanent coverage.
While you can lock in level premiums and a death benefit with either type of policy, only permanent life insurance stays in place for you for your entire life.
Term life insurance, on the other hand, covers you for a set period of time, like the 10 and 20-year terms referenced above, so you can tailor the coverage to your temporary needs and save money.
While your options are extensive when you go up to $100,000 of coverage, you’ll find fewer companies offering term policies in the $50,000 range.
At any rate, you may be better off opting for permanent coverage at the $50,000 level. The reasons for buying this amount of coverage are closely linked to final expenses.
A term policy isn’t always ideal for paying for those types of expenses, although young and healthy applicants could find a long term policy the most affordable solution.
With that in mind, you’ll have a few permanent policy options to choose from:
- Universal: The most affordable form of permanent life insurance, universal coverage lacks the guarantees of its alternatives.
- Whole: Whole life insurance comes with lifelong guaranteed coverage, assuming you keep up with your payments. As such, it can get expensive.
You may also be able to find a graded or guaranteed policy with a few providers, though nearly all of these policies max out closer to $25,000 of coverage.
Regardless, guaranteed policies are the most expensive option and should be a last resort only.
If you can’t get approved for term, universal, or whole life insurance, you may have to lower your coverage amount and consider this type of policy.
Top Companies Who Provide $50,000 Life Insurance Policies
We’ve compiled an overview of the best companies to partner with for $50,000 of life insurance coverage, broken down by types of policies.
Best Companies for a $50,000 10-Year Term Policy
If you’re looking for simple and affordable term life insurance coverage for 10 years, start with the companies below:
It’s no surprise Assurity tops the list of short term providers. Assurity is one of the most affordable options on the market and offers applicants across the board the lowest prices on $50,000 coverage in most cases.
The company also holds an “A-“ rating with A.M. Best, evidence of its impressive financial performance and reputation.
For short term policies in particular, Assurity is likely to be your best bet.
Sagicor is another great choice for $50,000 of 10-year term life insurance.
Known for its simple no exam coverage, Sagicor offers an impressive lineup of products, including affordable short term policies.
With an “A-“ from A. M. Best, it’s also a name you can depend on.
If you’re in great health and want to skip the medical exam, Sagicor should be at the top of your list.
3. Fidelity Life
Not only can you house your investments with Fidelity, but also your life insurance policy.
Fidelity Life is highly rated, too, with an “A-“ from A.M. Best and over a century of experience under its belt.
Fidelity offers term products to younger applicants and seniors alike.
They also offer a streamlined online application that can get you $50,000 of coverage in no time.
Best Companies for a $50,000 20-Year Term Policy
If you’d like to purchase coverage for a longer period of time but still access affordable rates, check out the companies below:
Once again, Sagicor is among your best options for affordable term life insurance.
When you move from a 10-year term to 20, you may find that Sagicor’s rates are the lowest.
With its affordability, dependability, and simplified underwriting options, Sagicor should be one of the first places you look for $50,000 of coverage and a medium-length term.
Sagicor and Assurity may have swapped spots on the list, but Assurity should still be on your radar.
Assurity is known for its affordable smaller term policies, and it’s worth keeping in mind whether you opt for 10, 20, 0r 30 years of coverage.
You can also add a return of premium rider to your 20-year policy, allowing you to recoup your premiums if you outlive your policy.
3. American Amicable
If you want to look beyond Sagicor and Assurity, you should consider American Amicable.
Though lesser known than some of its competitors, American Amicable is a reputable carrier, with an “A” rating from A.M. Best.
Their no exam underwriting and simplified application make securing coverage a breeze, and you could get a good deal on a 20-year term policy.
Best Companies for a $50,000 30-Year Term Policy
If your needs are a bit more long term but you still aren’t ready to leap into permanent coverage, here are a few companies to start your search:
When it comes to longer term lengths, Assurity leads the pack once again.
Their rates are unmatched in this category, but there’s more to their position as number one than the cost of coverage.
If you reach the end of your 30-year term and still have debts or other expenses to pay for, you can easily convert your term life policy to whole life insurance.
2. American Amicable
While Assurity is likely the most affordable and comprehensive option, you might want to get quotes from American Amicable as well.
Their 30-year products are cost-efficient, and their simplified underwriting could speed things along.
You can also opt for a conversion rider and return of premiums with American Amicable’s term life policies, providing some flexibility.
Transamerica is a carrier worth considering for a 30-year term.
They excel with smaller policy amounts, as well as offering a wide variety of life insurance products and useful riders.
Transamerica is also highly reliable, with an “A” or higher rating from A.M. Best and all of the major credit rating agencies.
Transamerica is another provider who makes converting your term life insurance to permanent coverage simple.
Best Companies for a $50,000 Universal Life Policy
If you want to obtain lifelong coverage without footing the bill of a whole life policy, take a look at the following providers for universal coverage:
Sagicor is our frontrunner for universal life insurance.
In addition to being competitively priced, Sagocir’s no-lapse universal product was one of the first of its kind.
With its no-lapse feature, your policy is guaranteed to stay intact as long as you make your premiums on time.
Coverage can be obtained without a medical exam up to age 65.
Banner Life Insurance Company is another top-notch provider in the universal arena and beyond.
They’re one of the industry’s most reputable carriers, backed by an “A+” rating from A.M. Best along with high marks from other agencies.
Banner’s universal products come with a no-lapse guarantee, as well as flexible payment options.
You might also want to look into Protective for a $50,000 universal policy.
Protective is another name you can count in, with “A” or higher ratings across the board.
They also offer some of the most customizable and affordable universal policies out there, allowing you to stretch your coverage up to age 121.
Best Companies for a $50,000 Whole Life Policy
If you need permanent guaranteed coverage and are willing to spend more, you may want to turn to the following whole life providers:
Assurity is a good fit for more than just term life insurance.
The top-tier provider also excels in the whole life insurance arena, especially for $50,000 policies.
Whether you convert a term policy with Assurity or purchase a whole life policy to begin with, you could get the best rates with Assurity.
You may not be familiar with our runner-up for $50,000 whole life insurance, but that shouldn’t stop you from exploring what Foresters has to offer.
The “A” rated company is an excellent choice for a smaller whole life policy.
If you’re an older applicant, you may find more luck at accessing lower rates with Foresters than you would with some of its alternatives.
If Assurity and Foresters aren’t good fits, your best bet for permanent coverage may be Sagicor, with a product that isn’t technically whole life insurance.
With its innovative features, Sagicor’s universal life insurance policy is practically whole life insurance.
To recap, this no-lapse coverage comes with guaranteed level premiums and interest.
Coverage is lifelong, and you can even apply through age 85, with no-exam coverage up to age 65.
3 Bonus Tips to Lower Your Premiums
If you’re looking to access the absolute best life insurance rates, there are a few steps you can take, both today and tomorrow, to save money.
Here are a few pointers you may not have considered.
1. Stop Using Tobacco Products
Whether you smoke, chew, or vape, using tobacco equates to paying significantly higher premiums for life insurance.
While a rare celebratory cigar won’t put you in the smoking category, any habitual tobacco use will.
Kicking smoking to the curb is a surefire way to lower your life insurance premiums.
Just note that you have to be tobacco-free for a year or more before companies will label you as a non-smoker.
2. Compare Quotes
There’s no shortage of life insurance companies today, and every one of them promises to offer the best rates and policies.
The only way to guarantee you get the best life insurance to meet your needs is to get quotes.
While the companies listed above are a great starting point and generally offer the best rates and products, they might not automatically be the best providers for you.
Depending on where you live, what risk factors you pose, and what you’re looking to get out of coverage, you could fare better with a different carrier.
Taking a few minutes to get quotes could connect you with a provider and policy you weren’t even aware of and save you thousands down the line.
3. Look Into Annual Payments
Many policyholders fail to realize they can save a pretty significant amount on life insurance premiums by changing their payment schedule.
If you’re able to make annual life insurance payments rather than monthly ones, you could get a discount from your provider.
Annual payments make keeping your policy up-to-date easier on you and your life insurance provider.
The bill might seem steep as you’re paying all of your premiums at once, but if you can budget for it, the savings might be worth your while.
Final Thoughts on Buying $50,000 of Life Insurance Coverage
Buying life insurance may seem like one big decision, but it’s actually a process that encompasses a lot of small decisions.
To make sure you get the right policy, you need to consider your family’s needs, the type of coverage that best suits those needs, and who has the best policy to offer you.
$50,000 can be crucial to protecting your family from your debts and the burden of final expenses.