Compare and find a $50,000 life insurance policy

Not all insurers offer a $50,000 life insurance policy option. Most standard term or whole life insurance policies start at $100,000 of coverage. So, $50K life insurance policies are priced as specialty policies, which means you may pay more for this coverage than for a policy with a much larger payout.

How much does a $50,000 life insurance policy cost?

Shopping for a $50,000 policy can be difficult, as most insurers don’t let you get an online quote for coverage that low. But, as with most life insurance, the main factors in determining your premium are your age and health. A 30-year-old man in good health who doesn’t smoke may pay $19.71 a month for $50,000 in term life insurance, and a woman may pay $18.00 per month, based on the most recent rates from Policygenius.

Not only will getting a larger policy give you more options, but you’ll likely pay less as well. For example, using the same stats, the man might pay $18.74 for a $100,000 policy, and the woman $16.37. It’s not a lot of savings, but you’re still paying less for twice as much coverage.

A $50,000 life insurance policy may have age restrictions

Opting for a $50,000 policy might limit your options and may come with age restrictions. For example, some insurers offer $50,000 of insurance as a specialty policy for people 40 years old and older, or only for retired seniors. Child policies also often cap at $50,000 of coverage.

You can get a $50,000 life insurance policy without a medical exam

A guaranteed issue life insurance offers “guaranteed” coverage without a medical exam or questionnaire, and the coverage usually caps at $50,000. But you pay for the privilege of not taking an exam with higher premiums.

When a $50,000 policy makes sense

If you’re using life insurance as a supplement to savings or other life insurance policies, you may only need a policy worth $50,000. Tally up your income, any savings and financial obligations to determine if this coverage amount meets your needs, but it may be enough for people that:

• Have no debt. If you have little to no debt, your family won’t be forced to pay your expenses from your estate, so any life insurance you leave goes to your beneficiary without being reduced by your debt. Knowing they receive the total amount means you could purchase a smaller life insurance policy.
• Are still in college. If you are a college student, you may not need to carry much life insurance to protect your family from any student debt or final expenses you may have. A $50,000 life insurance policy can be sufficient coverage for college students and young adults starting out.
• Have no dependents. Adults who don’t have any dependents – no children or spouses who rely on them – may need minimal life insurance. Life insurance is often used to support your family and their future needs, so this is less of a concern if you are single. You may want to think about your extended family – siblings, nieces, nephews or your aging parents but with no direct dependents, a $50,000 life insurance policy could meet your needs.
• Want to supplement other policies. Maybe you have a life insurance policy through your job or one your parents purchased for you that covers your main debts and obligations to your family. In that case, $50,000 can be the perfect amount of additional coverage to purchase for final expenses or to provide a further layer of protection to your beneficiary.
• Only want to cover funeral expenses. In 2020, the average funeral and burial costs are between $6,000 and $9,000, an expense that a $50,000 policy can easily cover.

Decide between whole or term life insurance

When shopping for life insurance, you can pick between term and whole life policies. The same is true when shopping for a $50,000 policy, but because some companies don’t sell this coverage level, your options are more limited than if you were shopping for a higher coverage limit.

Deciding between whole and term life insurance is something only you can decide. But, at this coverage level, many insurers only sell whole policies that are guaranteed issue, which can come with additional eligibility rules and a much higher cost. Though, whole life offers lifelong coverage that builds cash value over time.

A future increase add-on lets you up your coverage later on

Some insurers allow you to add a future increase rider to your life insurance policy, so you can increase your coverage in the future if you want your $50,000 life insurance policy to grow along with you. But since the policy is so small, it can sometimes be more cost-effective to purchase a new policy with a higher death benefit.

What to watch out for with a $50,000 life insurance policy

Having fewer choices of insurers to work with may mean you end up paying more for coverage that doesn’t fully suit your needs. And cost is something to keep in mind as you shop for a policy. No-exam policies may seem convenient, but they cost significantly more.

Consider if the $50,000 life insurance policy you’re considering will supplement other coverage you have or is your only life insurance policy. Some insurers let you increase your policy in the future, but you may pay a higher price for this benefit.

Bottom line

Finding the right $50,000 life insurance policy for you can be difficult because you’ll have limited options, which means that comparing life insurance companies can make the difference in finding the best coverage at the best price. But with so few policies available at that level, you may consider boosting your coverage to $100,000, which could give you more choices and possibly lower premiums.