Life Insurance for Seniors over 70
It is curious that lots of seniors presume that life insurance may no longer be an option once they’re over age 70 years old. Many believe the cost will be unaffordable or that medical problems will prevent them from being approved for a policy.
In this guide, we will expose the myth that quality life insurance for seniors over 70 is out of reach and also demonstrate how cheap life insurance for seniors over 70 may actually be.
Although seniors are aware they have numerous forms of insurance to consider, they’re just not certain of the kind that will best fulfill their requirements and price range. The kind of life insurance policy you need to buy will always depend on your need for insurance in the first place. The price that you pay for a policy is irrelevant if the policy won’t be the solution to your unique needs.
Why would Seniors Over 70 Need Life Insurance?
Believe it or not, there are lots of people out there who believe that once you’re a senior your requirement for life insurance is considerably increased due to the amount of your property. They wrongly think the longer you have been alive, the larger your insurance need becomes. Regretfully, that isn’t necessarily the situation.
Many seniors cashed in or sold their life insurance policies to be able to endure the industry crash in 2007 and then later discovered it would be too costly to replace it after the economy returned to normal.
Many believed that group term insurance through work would be sufficient coverage for a lifetime but then discovered if they retired, their term insurance policy was not portable and so they would need to seek out a new individual life insurance policy.
Oftentimes, uninsured seniors did not recognize their final expenses would be passed on to surviving loved ones to deal with when the eventually passed away.
Which kind of Life Insurance for Seniors over 70 is practical?
The insurance companies seem to be continuously innovating and bringing new products to the market. They do so to respond to the various and differing needs of consumers and to also compete with the insurance companies out there that are slow to come up with new products.
- Term Life Insurance — Term life insurance is the cheapest kind of life insurance but is typically not the ideal solution for seniors because it’s not permanent and builds no cash value. Even though most insurers will provide renewals of a term policy, the renewal duration is typically for a calendar year only. Then, every year you renew your term insurance the prices will go up based on your age and can readily become unaffordable once you’re over 70.
- Universal Life Insurance — Though universal life is considered permanent insurance, the required premiums aren’t guaranteed because the policy utilizes a portion of the cash value in the subsequent years to cover the rising cost of their life insurance.
You can select a Guaranteed Universal Life insurance policy that’s very similar to whole life however, the policy doesn’t build cash value over the years because all of the money is used to pay the rising cost of your life insurance plan.
- Final Expense Insurance – If your primary goal is to deliver the funds necessary for your surviving loved ones to cover your funeral costs and other final expenses such as outstanding medical bills or unpaid nursing home costs, final expense insurance is the best life insurance solution for seniors over 70 years old. Companies offering final expense Insurance have liberal underwriting rules, don’t order a medical examination or blood/urine evaluations and will accept seniors that have common health problems like diabetes or blood pressure problems without needing a waiting interval.
How Much Life Insurance do Seniors over 70 Need?
If you’re considering final expense insurance, it’s important that the death benefit is sufficient to pay funeral and burial costs which could be passed on to surviving family members. If your insurance budget will allow for additional coverage, then, by all means, consider adding additional coverage to pay for unpaid medical costs or nursing home costs which weren’t covered by Medicare.
Funeral and burial costs are based on different things such as where you live, the kind of funeral you desire, the size of the memorial service, and other bells and whistles which funeral directors use to beef up the burial and funeral statement. According to published reports from funeral research services such as Parting.com, Funeralwise.com, you can anticipate an ordinary funeral to cost between $8,000 and $12,000. Additionally, it is important to be aware that the longer you live, the more it will likely cost to bury you when you pass away.
There are various steps you can take to reduce your funeral costs but if you do so, be sure and share your wishes with your beneficiary. Many seniors assume their beneficiaries will know how to keep funeral costs moderate when in fact it’s very difficult to negotiate the funeral costs of a loved one when you are grieving the loss of the loved one.
How much is Final Expense Life Insurance for Seniors over 70?
The rates for all types of life insurance are based on three primary things: your age, your health, and the face amount (death benefit) of the policy. Knowing this, it is logical to assume that life insurance for seniors over 70 who are in good health will typically get the best rates on their final expense life insurance.
Here are actual rates for a $15,000 Final Expense Insurance policy for a healthy male and female non-smoker:
|Age of Applicant||Male Non-Smoker||Female Non-Smoker|
It’s interesting to note that the life insurance rates for women are much lower than the rates for men. This is because typically women live longer than men and therefore the insurance company can expect to collect premiums for women longer than they would for men.
Where can I get the Best Deal on Life Insurance for Seniors Over 70?
In order to get the best deal on life insurance for seniors over 70, always do business with an independent agent who represents all of the highly rated carriers that offer Final Expense Life Insurance and specialize in life insurance for seniors. You should shy away from company (captured) agents because they typically only represent one or maybe two companies and the policies they offer are usually cookie-cutter policies with very conservative underwriting rules. Independent agents are self-employed insurance professionals and will always put the needs of their clients and prospective clients first and foremost. If you have any questions or comments please give us a call.