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How much does a $50,000 life insurance policy cost?
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.
Finding out how much $50,000 of life insurance 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.
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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 |
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 $50,000.
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 $50,000 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 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.
READ MORE – find out how much other policies cost:
- 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.
