1-888-601-9980Understanding the Benefits and Costs of a $50,000 Life Insurance Policy
The cost of a $50,000 life insurance policy varies from person to person, with age, smoking status, and the type of policy being the major factors that influence how much you pay for your policy. While the amount may not seem huge, there are many reasons for a $50,000 policy amount such as covering final expenses or part of a broad ladder strategy.
- How much does $50,000 of term life insurance cost?
- How much does $50,000 of whole life insurance cost?
- Why do I need $50,000 of life insurance coverage?
- How does your health status impact your $50,000 life insurance policy?
- Additional factors influencing the cost of a $50,000 life insurance policy in Canada
- How do I get the best quotes for $50,000 of life insurance coverage?
- Frequently asked questions
Finding out how much $50000 life insurance policy coverage costs is not a one-size-fits-all answer. Multiple factors determine the cost of coverage, including your age, health, and gender, as well as the type of life insurance coverage you may take. With that said, fifty big ones worth of coverage may not cost as much as you think.
If you want to find out immediately how much $50,000 of life insurance would cost for you, go ahead and get a free online life insurance quote. For more details on pricing and how it’s determined – read on.
How much does $50,000 of term life insurance cost?
A term life insurance policy provides coverage that lasts for a specific period of time known as a term. Your term life insurance can last either a fixed number of years (like 10, 20, 30 or even 40 years) or until you reach a certain age (like age 65).
The insurance premiums are guaranteed for the initial term of the policy and are paid directly to the insurance provider. Upon the end of the term, the coverage may automatically renew, or expire depending on the plan type.
In return, if you die during the validity of the policy, your beneficiaries will receive the death benefit as a tax-free lump sum of cash. If you choose to renew the policy at the end of the term, the premiums will increase based on the renewal schedule provided at the time of the initial contract. If you do not want to continue your coverage with the renewal premiums, you can cancel the policy.
The cost of term life insurance is primarily based on the length of term, the insured person’s age, gender, health, smoking status, and the amount of the death benefit they choose. For the purpose of this blog, we are looking at a death benefit of $50,000.
Term life insurance costs for $50,000
Based on standard health, male, $/month
| Age | Non-Smoker | Smoker |
|---|---|---|
| 20 | $9.65 | $9.73 |
| 25 | $9.71 | $9.73 |
| 30 | $10.08 | $10.15 |
| 35 | $10.47 | $10.87 |
| 40 | $11.47 | $13.86 |
| 45 | $13.00 | $20.47 |
| 50 | $17.51 | $31.27 |
| 55 | $24.70 | $49.77 |
| 60 | $36.94 | $77.89 |
| 65 | $56.43 | $117.54 |
Term life insurance costs for $50,000
Based on standard health, female, $/month
| Age | Non-Smoker | Smoker |
|---|---|---|
| 20 | $6.88 | $6.90 |
| 25 | $6.92 | $7.47 |
| 30 | $7.24 | $7.92 |
| 35 | $7.87 | $9.22 |
| 40 | $10.61 | $13.81 |
| 45 | $11.74 | $19.17 |
| 50 | $14.76 | $30.24 |
| 55 | $18.94 | $42.62 |
| 60 | $27.76 | $59.91 |
| 65 | $41.80 | $74.88 |
Call 1-888-601-9980 to speak to our licensed advisors right away, or book some time with them below.
How much does $50,000 of whole life insurance cost?
Whole life insurance is a form of permanent life insurance that gives an insured individual coverage from the day their policy is placed until they pass away; in other words – their whole life. As long as the policy is in force (meaning you’ve kept the policy’s premiums in good standing), the coverage does not expire and the premiums remain level.
Furthermore, whole life insurance combines this financial protection with some access to liquidity. Some whole life insurance policies have an associated cash value. As one pays into their whole life policy, a portion of the premiums are invested generating an increasing cash value.
The cash value of a whole life insurance policy is accessible while the policyholder is still living. They can either borrow against or withdraw from the cash value.
Similar to term life insurance above, the cost of whole life insurance premiums is based on age, health, gender, smoking status, the size of the death benefit, and the added expense of insuring someone’s life for an extended period (their entire life).
As a person gets older, the health risks increase, which is why it is more expensive to have a long-term policy. Because the coverage lasts one’s entire life and the policyholder retains the value put into the policy, whole life insurance has higher premiums.
Whole life insurance costs for $50,000
Based on standard health, term-to-100 coverage, $/month
| Age | Non-Smoker | Smoker |
|---|---|---|
| 20 | $26.82 | $29.61 |
| 25 | $27.50 | $34.83 |
| 30 | $32.85 | $41.13 |
| 35 | $38.61 | $50.18 |
| 40 | $46.53 | $63.05 |
| 45 | $57.65 | $81.81 |
| 50 | $73.22 | $110.57 |
| 55 | $88.16 | $149.54 |
| 60 | $126.45 | $199.40 |
| 65 | $172.53 | $265.19 |
Whole life insurance costs for $50,000
Based on standard health, cash value coverage, $/month
Why do I need $50,000 of life insurance coverage?
Your financial needs change and evolve, and there are many reasons someone may need a relatively smaller life insurance benefit of $50000.
Some reasons to contemplate $50,000 of life insurance include:
- Covering any outstanding debt from loans, credit cards, or joint lines of credit
- Covering end-of-life expenses like funeral arrangements or estate taxes
- Contributing to a life insurance ladder strategy where you layer different amounts of life insurance to match financial risks throughout your life
- To leave a gift to grandchildren or a favourite charity as a legacy
If you are not sure if $50000 life insurance is the right amount for you, there’s an easy way to double-check: our life insurance calculator. It takes less than 5 minutes to answer a few simple questions and find out exactly how much coverage you need.
How does your health status impact your $50,000 life insurance policy?
In Canada, your health status significantly impacts your life insurance policy, including a $50,000 policy. The impact can extend to the premium amount, underwriting process, policy acceptance rates, and more. Here’s how:
1. Premiums
Your health status is a major factor in determining your premium rates. If you’re in good health, with no pre-existing conditions or risky habits like smoking, you’ll generally qualify for lower premiums.
Conversely, if you have health issues, you may face higher premiums because the insurance company considers you a higher risk.
2. Underwriting process
When applying for life insurance, you’ll typically undergo an underwriting process. This may include a health questionnaire, a medical exam, or both.
The insurer will evaluate your medical history, current health conditions, family health history, and lifestyle choices. Having serious health conditions can lead to changes in your policy underwriting, affecting policy coverages.
3. Policy acceptance
If you have serious health conditions, the insurer may offer you a policy with exclusions for those conditions, increase your premiums, or even deny coverage altogether.
4. Buying alternate policies
If your health is a concern, you might consider a guaranteed issue policy, which doesn’t require a medical exam. However, these policies usually come with higher premiums and lower coverage limits.
Additional factors influencing the cost of a $50,000 life insurance policy in Canada
The cost of a $50,000 life insurance policy in Canada may be attributed to several additional factors including an individual’s gender, job profile, and whether they have additional riders. Find out more:
Gender
Gender is a key factor in determining the cost of a life insurance policy in Canada. Statistically, women tend to live longer than men, which can result in lower premiums for women.
Insurers calculate premiums based on life expectancy, so men may face higher premiums for the same coverage amount, such as a $50,000 policy, compared to women.
Job profile
Your occupation can also influence the cost of your life insurance policy. Jobs that are considered high-risk, such as those in construction, aviation, or mining, often lead to higher premiums because they increase the likelihood of injury or death. Conversely, low-risk occupations, such as office work, may result in lower premiums.
Additional policy riders
Policy riders and options are additional features you can add to your life insurance policy, which can increase the overall cost. Common riders include critical illness coverage, accidental death benefits, and waiver of premium.
While these riders provide extra protection and benefits, they come at an additional cost, raising the premiums of your $50000 life insurance policy. The more riders you add, the higher the premium will be.
How do I get the best quotes for $50,000 of life insurance coverage?
At PolicyAdvisor, we help Canadians compare quotes from 20 of the country’s best life insurance companies and find the right fit for their coverage needs. Book some time with our licensed advisors and find out how easy it is to get the right amount of coverage from the comfort of your own home.
Frequently Asked Questions
How much is a $50,000 whole-life policy?
The cost of a $50,000 whole-life policy for a non-smoker can range from $25 to $175 per month. For the same coverage amount, a smoker may have to pay between $30 to $250 per month.
Healthier applicants typically pay less, while individuals with health issues may face higher premiums. Additional policy riders and options can also increase the cost.
Is $50,000 of life insurance enough coverage?
Whether $50000 life insurance policy is enough coverage depends on an individual’s financial situation and goals. This amount may be sufficient to cover final expenses, such as funeral costs and outstanding debts, or to provide a modest financial cushion for loved ones.
However, if an individual has dependents, a mortgage, or significant financial obligations, they might need a higher coverage amount to adequately protect their family’s financial future.
How does an individual’s age affect the cost of their $50,000 life insurance policy?
An individual’s age significantly affects the cost of a $50000 life insurance policy. Generally, the younger you are when you purchase the policy, the lower your premiums will be. This is because younger individuals are typically at lower risk of health issues and death.
As individuals age, premiums increase due to the higher risk of health problems, making it more expensive to obtain the same coverage.
- A $50,000 life insurance policy will vary in cost depending on the insured’s age, gender, health, smoking status, and policy type.
- A term life insurance policy worth $50,000 will generally cost less than a whole insurance policy worth the same amount.
- A 40-year-old non-smoking male can pay less than $12/month for a 20-year term life insurance policy with a death benefit of $50,000. A whole life insurance policy can cost closer to $14/month.
