Contrary to perception, it is very much possible to obtain life insurance coverage regardless of one’s age or underlying medical condition. While there are limited insurance options for people above 70 years, one can still end up with an ideal policy that is not only affordable but also addresses all the underlying needs.
However, it is essential to note that there are pieces of information that insurance companies like to hide when it comes to insuring seniors above 70 years of age. They do so as a way of protecting themselves from what they perceive as a significant risk. Therefore, it is important to understand some of the factors that insurance companies take into consideration prior to approving life insurance coverage for seniors above age 70.
Factors That Affect Senior’s Life Insurance Options
Health and age are the key factors taken into consideration when formulating the kind of life insurance policy a company is to offer a senior. For instance, the older one gets, the shorter, the term life policies are likely to get.
Premiums also tend to edge higher in instances where one’s age and medical conditions continue to affect their quality of life. For this reason, most insurance companies require medical underwriting to determine the kind of premiums they would have to charge, based upon the assume risk.
Seniors are required to fill a health questionnaire and may have to complete a medical exam if the policy they are applying for requires one . They may also have to consent to insurance companies obtaining their medical records.
It is very much possible to find the right life insurance coverage at an affordable rate regardless of your age.
How To Get Life Insurance At 70
Once you decide to get life insurance or wish to get coverage for a loved one, speaking with an insurance professional should be a top priority. Working with insurance agents that deal with people above the age of 70 would be a smart move, as a way of ensuring one covers all the details pertaining to life insurance for seniors.
Working with an independent agent that has the expertise to help you find the right coverage won’t cost you anything extra. Independent agents are paid by the insurance company that your policy is placed with as a commission.
Independent agents are the best as they help people compare rates from different companies without bias. The fact that they don’t work with any company means they are well suited to guide in the right direction without prejudice.
The fact that such experts can explain everything should make it easy for one to navigate the tricky world of insurance with ease.
Things to keep in mind while looking for Life Insurance for 70-year-olds and above
When over 70, you may be looking for a more permanent solution, without necessarily needing it as an investment vehicle. Let’s talk about some permanent insurance products that won’t break the bank.
Guaranteed Universal Life Insurance is a Good Option
No other life insurance policy stands out for seniors above 70 years like Guaranteed Universal Life (GUL). These life insurance policies act as a bridge between term life policies and whole life policies. GUL offer policyholders coverage as long as they are alive, but without cash value building up as is the case with other policies.
Independent insurance agents recommend it in numbers for people above 70, given the benefit of the low premium. The guaranteed age in which the policy offers coverage also makes it stand out as compared to other policies that have age restrictions.
While Guaranteed Life Insurance operates like term life, it provides coverage for many years, to as much as 121 years. The fact that these insurance options offer guaranteed level premiums for life is one of the reasons to consider them. They also stand out on the fact that the face value which is the death benefit of the policy never decreases and it can cost almost half of what whole life insurance policies cost.
Guaranteed Universal Life insurance is ideal for seniors who want to leave a legacy fund to their dependents or charity. The payout made when one is gone can also be used to offset any taxes that may be due or pay for final expenses.
- Premiums remain level throughout the policy payment period
- Permanent coverage to age 90 up to age 121, depending on product
Term Life Insurance
Term life insurance products are the easiest to understand and some of the cheapest on the market. This is in part because they provide coverage for a certain period. These types of policies seek to protect dependents in case of premature death of the insured. Common insurable terms are five, ten, and twenty years. It is also common for insurance companies to stop offering 30-year term policies once someone reaches the 55 year age mark.
Even though it is the cheapest and the most popular, term life insurance is not ideal for people above 70 years. Term life insurance can become extremely expensive as one ages, given the ever-rising premiums.
In addition, most insurance companies only agree to renew after every five or ten years when it comes to people above the age of 60. Seniors above 70 years might struggle to find a term life insurance policy offering coverage for more than ten years. Companies shy away from offering long-term limits, as most people are less likely to live past the 80-year mark.
While it can be affordable for a ten-year limit, premiums tend to rise dramatically upon any attempt to increase the term limit upon expiry.
Whole Life Insurance
Whole Life Insurance is a popular life insurance option for seniors, given that its premiums are always guaranteed to remain the same, for the term of the policy. The coverage also stands out because, in addition to the guaranteed payout, it also offers cash value that one can potentially borrow against. However, we typically don’t recommend whole life for seniors over the age of 60. Usually a universal or guaranteed universal life policy would be a better fit.
Whole Life can be a good fit if you are over 50 if you are just needing a smaller policy to help pay for final expenses. If all you need is about 40,000 or less of coverage then a whole life policy can be a great choice even up to age 85.
No Exam Life Insurance
In your 70’s you can still get up to $150,000 of life insurance without having to complete a medical exam. Policies can be issued an put in force in as little as a 1-3 days.
We are not aware of any policies that allow for more than $150,000 of coverage in your 70’s without completing a medical exam. If you needed more coverage and did not want to do a medical exam you could always have two policies from two different insurance companies.
Know that premiums will be higher for no medical exam life insurance especially after age 70. If you want to keep costs down you may want to opt to complete a medical exam. Either way, it makes sense to look at the choices available to you for both no exam and for policies that require an exam so that you can make an informed decision.
Consider Your Circumstance
Not everyone above 70 years should buy a life insurance policy. It is important to consider one’s circumstance before getting coverage. Understand why you are seeking coverage specifically. Does someone depend on your income? Are you concerned about what will happen when you are gone and potential burden that could be placed on your loved ones? Life insurance is very personal. Understand why you want. Then consider whether the cost you’ll have to pay for coverage makes sense for you.
How To Determine The Best Life Insurance Policy For Seniors
Different life insurance policies serve different purposes and are ideal for different situations. For this reason, it is important to consider various factors when purchasing life insurance for seniors.
Below are some of the guiding principles of selecting life insurance for seniors.
A term policy would be an ideal pick when one needs to settle some debts. By taking a term life insurance policy, one should be able to set the term limit for the life insurance to coincide with when the underlying debt needs to be paid in full.
For instance, seniors who have ten years remaining on their mortgage might consider taking a term life policy with a ten-year term limit. In this case, the beneficiary would still be able to pay out the mortgage in the event of any scary event.
Taking Care of Dependents
If a senior still have dependents on his or her ranks, then a term life insurance policy would be ideal as opposed to a whole life policy, which can be expensive in some scenarios. Guaranteed universal life insurance would also be ideal, as they would ensure the beneficiaries get to walk away with some benefit regardless of when the policyholder passes on.
Want to Leave Behind a Big Gift
For seniors who wish to leave behind a big gift to their loved ones, guaranteed universal life insurance would be an ideal pick. The fact that these policies last for the rest of life ensures that beneficiaries get to walk away with payouts regardless of when the insured dies.
Guaranteed Universal Life Insurance comes with benefits of $25,000 on up, making them ideal for leaving behind something big that would take care of the beneficiaries. The lower premiums with GUL is the main reason to consider it as opposed to a Whole Life Insurance.
While life insurance for 70-year-olds is very much possible, one must be ready to contend with higher costs.
While looking for life insurance policies above 70 years, it is essential to go with policies whose payouts can be accessed in advance, be it in portions. Such policies would come in handy in catering for any medical bills or other expenses that might come into being while one is alive.
While seeking life insurance for seniors above 70, it is also vital to seek professional help. There are many confusing terms that insurance companies use to hide, valuable information, which could pose a significant burden if one is not careful. With the help of an insurance expert, the process of acquiring life insurance for seniors should be smooth while increasing the chances of one ending up with the right and affordable life insurance policy for seniors.
The good news for you is you’re at the right place. We’re experts in providing life insurance for seniors over 70 years of age and can consult with you, and shop around with dozens of life insurance companies on the market, at no extra cost to you! Give us a call today or use our quoter here to learn more.