Does Life Insurance Still Make Sense After 70?

Although life insurance coverage is often an essential purchase for those who are young and have dependents, it can also make sense to carry life insurance coverage after the age of 70 – as well as for the remainder of your life.

In fact, while age can sometimes be one of the determining criteria for purchasing this type of financial protection, it should not be the only factor. Rather, other financial related needs should also be considered, as well as potential gifting intentions, and keeping promises.

Why Should People Have Life Insurance After Age 70?

over 50 life insuranceThere are many reasons why someone should consider having life insurance after age 70 – regardless of whether or not you still have any dependents who are counting on you financially for their ongoing support. Just some of these reasons can include the following:

  • Funeral / Final Expenses – One of the biggest reasons that life insurance still makes sense after age 70 is to ensure that funeral and other final expenses will be paid – and that these costs won’t require your loved ones to take money out of their savings that may have been earmarked for other needs. Today, the average cost of final expenses can range from $7,000 to $10,000, depending on the type of service that you have. The memorial service and flowers, as well as the purchase of a burial plot and a headstone can all quickly add up. It can provide your loved ones with peace of mind, knowing that they will be able to use life insurance proceeds for taking care of these costs and that they won’t be put into financial difficulty – especially at an already emotional and sad time in their lives.  The fact is that many people don’t just have this kind of money laying around.  This is where a final expense burial life insurance policy can help.
  • Income and Estate Taxes – If you are in your 70s and you have a substantial amount of assets, then it may be possible that when you pass away, your survivors will owe income and/or estate taxes. These taxes can often take a considerable amount from your estate – in some instances 40-50 percent or more. Many people forget that the money in their IRA accounts and 401k accounts, that was funded on a pre-tax basis, hasn’t been taxed yet. When the children receive this money and start withdrawing it they will have to pay the tax.  Unfortunately, when someone is subject to these types of taxes, there can be a lot less left for their loved ones. So, rather than giving what you have worked for to Uncle Sam, life insurance proceeds can instead be used for paying off these tax obligations.
  • Charitable Giving – You may also have a particular charitable organization that you would like to provide a donation to. While you may give lovingly to this entity while you are alive, by making the organization a beneficiary of a life insurance policy, you will also be able to provide them with so much more – literally for pennies on the dollar.
  • Keeping Promises – Many people who are in their 70s may have grandchildren that they love – and who they want to help out financially when they can. Having life insurance in place can help you to keep your promises to these loved ones, by ensuring that they will still have funds to attend college, and/or for making a down payment on their first home.  We have helped many people in their 70s that were concerned about the escalating costs of healthcare, the national debt, and the potential for higher taxes in the future.  Some that have extra money have bought life insurance to help create a legacy and provide extra money for their children and grandchildren to lead a more financially secure life.  The nice thing about life insurance is that for pennies you can create dollars for your family after you have past on.

The Types of Life Insurance Available to Over Age 70 Applicants

There are still several options for getting that are available for those even in their 70s. These can include both term and permanent coverage alternatives.

However, as a person gets older, the premium price for these will be higher than comparable coverage for applicants in their 50s or 60.

For example, while the age cutoffs can vary from one insurance company to another, you may often times find that when you are in your 70s, you may be able to get a 10 or a 15-year term policy.

However, to obtain term insurance for a longer period, you usually will need to be 70 or younger for a traditional 20-year term policy.

In your 70s, you may also be able to obtain a permanent life insurance policy. Certain types of coverage can be designed to last for the rest of  your life.

For instance a guaranteed universal life policy can be designed to last until you are 121 years old.

As long as you pay the premium the policy will continue to stay in force.

You can also get even more creative with a guaranteed universal life policy.  Some policies will allow you to pick a certain age that you want your policy to be guaranteed to assuming you pay the premium required of course.

You could have a policy that will last until you are age 90, 95, 100, 105, or 110 for example.

Know that generally speaking the longer a life insurance policy is guaranteed to stay in force for, the more it will cost.

This can come in handy in a number of different situations.  Here’s one.

I helped a 71 year old woman who was very healthy.  She was active and in great shape. She wanted to make sure that her mortgage would be paid off if she were to pass away before she finished paying it off.

She still had 22 years of paying the mortgage payments before the house was going to be completely paid for.

She was looking for a 20 year term policy that would cover the mortgage balance.

She figured that if she lived past age 91 there would only be 2 more years left on her mortgage.  At that point the mortgage would be almost completely paid.

There were no 20 year term policies that were available for a 71 year old.  However, I explained that she could get a guaranteed universal life policy that was guaranteed until she was 91 instead.

i could even have it structured to last until age 93 when the mortgage balance would be completely paid for.

With a guaranteed universal life policy, the policy can be structured so that it would look a lot like a term policy in that it would be guaranteed to stay in force for a certain amount of years.

She ended up choosing to have the guaranteed universal life policy go just until age 90.

Having it guaranteed until 90 cost a little less than having it guaranteed to 93.

This way she could save a little money on the monthly premium and she figured if she lived past age 90 the mortgage balance would be almost paid off by that time anyway.

What To Do If You Do Not Qualify for Medically Underwritten Life Insurance?

There are cases where someone who is in their 70s won’t be able to qualify for a traditional, medically underwritten life insurance policy.

This could be due to having an adverse health condition.

The good news is, though, that you may still be able to qualify for coverage through a guarantee issue life insurance policy.

There are no health questions on the application and coverage is guaranteed to be approved – even in light of age or health related issues.

And, while the premium that is charged for  guaranteed issue  coverage is  higher than that of a traditional policy, it can provide you with the protection, and the peace of mind, that you deserve.

How to Get the Best Premium Rates on Life Insurance for People Who Are Over 70

If you are in your 70s and you are looking for a good, quality life insurance policy, I can help.

I work with many of the top life insurance providers in the industry, and can work with you in determining the policy, the insurance carrier, and the premium price that can work for you.

When you are ready to proceed, simply take a quick moment to fill out the quote form on this pageOr better you can just give me call.

Should you still have any additional questions regarding being approved for life insurance in your 70s – or even if you just have a question about life insurance in general – I will be happy to assist you.  Just give me a call.

While getting life insurance in your 70s can be challenging, by having an ally on your side, the process can be much more seamless.

The better I understand the reason why you want to purchase life insurance the better I can help you find the right policy for you.

So, contact us today – I’m here to help.