There are various reasons for which a person might want to buy a $50,000 Life Insurance Policy. Burial insurance generally accounts for as low as only $10,000; for holding a presentable funeral ceremony for the deceased individual.
The remaining $40,000 can be used by the dependents according to their will, this amount can be used for paying off any small credit card loans. Similarly, this amount can be used for paying off the pre-hospitalization or post-hospitalization charges of the policyholder.
More often than not, policyholders buy a $50,000 life insurance policy in the form of layers with many other life insurance policies. They keep this for its own purpose, and as an asset that they can liquidate in time of dire need, if necessary.
Also Read: $100,000 Life Insurance Policy Â
There are generally two types of $50,000 life insurance policies that a person can buy:
- Term Life $50,000 Life Insurance Policy
- Whole Life $50,000 Insurance Policy
1.Term Life $50,000 Life Insurance Policy
Obviously term life is specified to pay the death benefit after a certain specified time period. It can range from 10, 15, 20, 25, 30, 35, to 40 years of time span generally. When a person chooses a term life policy, he is opting for:
- Term Life ranging from 10-40 years for policy to mature.
- He is choosing lower monthly premiums because the policy has a temporary nature.
- Term life insurance policies do not offer any cash value component.
Cost of $50,000 Term Life Insurance Policy for 10 Years Term:
When you buy a term life $50,000 policy, it is very cheap mostly. For healthy and non-smoking people aged 30-45 years it is approximately $11 per month. Whereas for a healthy, non-smoker of 65 years, it is around $50 only.
Cost of $50,000 Term Life Policy for 20 Years Term:
It is still very economical compared to any permanent life insurance policy of similar coverage. For instance, for a $50,000 term life policy, the monthly premium for a healthy, non-smoker guy of age 30-45 is $14 while for a guy of age 65, it would be around $100.
2.Whole Life $50,000 Insurance Policy
A whole life insurance policy is a type of permanent life insurance policy, which offers:
- Leveled monthly premiums
- Peace of mind
- Everlasting nature
- Cash value component
- Growth of this cash value component based on the interest upon it
Compared to any temporary life insurance policy the premiums for whole life policy are always considerably higher. Though they show no increment for life but since monthly premium is split 3 ways:
- Death benefit payout
- Cash value component
- Insurance firm overheads and operating expenses
How much does a $50000 whole life insurance policy cost?
For a whole life $50,000 policy, the cash value builds up and requires an individual to pay relatively huge premiums every month. For example, a healthy and non-smoker aged 30-45 years would pay $46 whereas a 65 years old healthy, non-smoker would pay $172.
Another benefit we need to mention is that a policyholder can borrow against the accrued cash value, in the form of an insurance policy loan. This can give him a one-time lump sum cash for any emergency before his own death.Â
Why do you need a $50,000 life insurance policy?
Honestly, it is not practical and people either buy separate burial insurance for far less than a $20,000 policy. Or they go for a permanent life insurance policy that can account for their loved ones for real, like $400,000 policies.
$50,000 life insurance policy, whether it is term of whole life, can account for:
- Presentable funeral ceremony and all costs associated with it.
- For paying off any pending pre-hospitalization or post-hospitalization charges.
- For paying off small credit card loans.
Can I sell a $50000 Life Insurance Policy?
We have mentioned many a times before too that usually there are 3 types of conditions which increase the probability of selling your life insurance policy:
- If the policyholder is more than 65 years old, has less life expectancy.
- If his policy has coverage of at least $100,000.
- If he is formally diagnosed with a terminal illness.
For selling any $100,000 policy, you’d be getting $20,000 cash after you transfer its ownership to another person, the buyer. Selling a policy is called life settlement and for a $50,000 life insurance policy, it would be a very unwise decision.
And it would be really difficult to sell it anyway, the process of getting your medical records and consulting brokers will cost you way more than what you can get from liquidating it! It’s better to cancel it if it’s a ROP Return on Premiums Term life, or surrender it if it is a whole life insurance policy.
 [/vc_column_text][/vc_column][/vc_row]