No matter what age you are in life, buying a life insurance policy is definitely something to add to your overall financial portfolio.
If you have reached age 75 it is definitely not too late to consider senior life insurance.
Despite what you may think, people at age 75 do not exhibit any additional health issues compared to that of the population in the age range 60 to 74.
What Should My Coverage Be If I am Over 70?
Unlike when seeking life insurance at 50 years old, at age 70, you might not need to have life insurance too much longer. That’s why buying a short term policy is going to be the best option. You can find a life insurance policy for 10 or 20 years, which should be long enough for your life insurance needs.
Because term life insurance has an expiration date on them, they tend to be much cheaper than the other coverage options. If you’re looking for the cheapest life insurance for seniors, term policies are the way to go.
Not all policies will offer this but it may also be a good idea to look for a terminal sickness driver when shopping for a policy. This provides the opportunity for the policyholder to benefit from coverage in the event of a terminal sickness.
An additional benefit that is worth considering is a long-term excellent care protection. This allows for the care (both medically and non-medically) of a person that is diagnosed with a chronic illness and can no longer care for themselves.
If you acquire a whole lifestyle plan after already being diagnosed with a chronic or terminal illness, there are some important points to keep in mind. Oftentimes, life insurance companies will not start protecting the covered for at least a few years. This equates to limited payouts for the covered in the event that they were to die within the first couple of years after initial coverage.
This is a great option for those who have otherwise been denied coverage. The plan allows for a 5-10 percent payout for the first couple of years to the beneficiary. This is a very generous payout for an otherwise normal policy on somewhat who is considered relatively risky.
What Are The Protections And Rates That I Can Expect Over The Age Of 70?
The best term and whole life insurance companies estimate that an average person will live to be at least ninety. The protection period offered to a mature of age 70 is typically 10 to 15 years. This hopefully will cover a policyholder for the remainder of their lifetime. A phrase protection policy at this age is typically used in order to cover the expenses of someone after death. The risky part of this is the case that you outlive the policy and need to reinstate it at a much higher premium.
Not only this but you may even be declined coverage which could be extremely detrimental on the finances of your family. It is highly recommended to for matures over the age of 70 to buy into a whole lifestyle strategy. This type of coverage lasts until age 100. There are other plans that extend to age 120 as well. These policies vary in the amount of premium but are most likely worth the extra expense as they provide peace of mind.
Should I Opt For A No Exam Policy Or Not?
The general rule of thumb is that if you only need protection of smaller amounts, you should probably opt for a no exam term life insurance policy. This dollar amount is typically considered to be less than $50,000. For larger policies, you should try to go through underwriting first and see if you can get approved, because the rates will be better.
There are several advantages and disadvantages. The advantages are that they are easy to apply for, and just about anyone can be approved for the policies. The disadvantages are that they are more expensive and the lower coverage limits. These no exam policies aren’t ideal for everyone, but they could be perfect for you depending on your situation. You’ll have to weigh all of the pros and cons.
What Type Of Life Insurance Is Available To Me At Age 75?
There is nothing keeping an older individual from applying for either a whole life or term life insurance plan. Depending on how long an individual needs coverage for has a lot to do with whether or not one would get whole life versus term life insurance. Term is best used for a short term need past the age of 75, like paying off a short debt that will be paid off within 5 or 10 years. However, whole life insurance is best suited for a more long term or permanent need.
Typically, seniors over 75 are looking for life insurance on a more permanent basis, such as to pay for final expense, or burial needs. Since this is generally an unknown date out in the future, a whole life, or permanent policy might be the best choice in this case. Once a consumer realizes this important fact – the time frame in which you want to keep the policy in force, then the mindset becomes one of looking for cheap whole life insurance for seniors.
Many times, due to being on a fixed income, older age consumers will look for term insurance for seniors. One of the best benefits of term life insurance is that the premium is almost always significantly less expensive than whole life insurance. Despite it being less expensive it is oftentimes not the best option for someone who is 75. If you buy a term life plan it is most likely for a ten year period, in which case there is a very good chance you will outlive it. However, this may be the best life insurance for some seniors only because it may be the only option that fits your budget, which is a major consideration in picking out a life insurance plan.
If you do choose a less expensive term life insurance policy and live past the initial term of the policy, you could find yourself without insurance as well as end up spending a lot more money in order to extend coverage, if that is even an option. It is for this reason that whole life insurance is generally the best life insurance program for someone at age 75. However everyone’s individual circumstances are different, so seeking the advice of an experienced life insurance agent is often advised.
What Is Better For Me, An Exam Policy Or No Exam Policy?
There are many instances in which you may not want to have an exam done in order to receive senior life insurance. One of the reasons could be that you just don’t like to get stuck with a needle in the arm to draw blood and you would rather not pee in a bottle to give a urine specimen. However, the general rule of thumb is that if you need under $25,000 of coverage then apply for a no exam whole life insurance plan. However, if your need is greater than this amount, submitting to a short medical exam prior to receiving a policy is the better option.
Opting for an exam if you are confident in your health can decrease the premiums on your policy by as much as 50 percent! Additionally, maybe the best reason to opt for this would be to now apply for a greater death benefit since your premium would be lower. This also opens the door for many different types of policies.
Do Health Issues Affect My Life Insurance Rates?
On the other hand, if you currently have some major health issues, and are not confident in your level of health, obtaining life insurance at age 75 can be a rather difficult process. There are a number of different health issues that increase in seriousness when you have them at an older age, such as seeking life insurance with diabetes. It is for this reason that you are considered much more risky to a life insurance company. They will definitely take a harder look at underwriting prior to issuing a life insurance policy to an elderly person who has various medical conditions.
If you’re concerned that you may be declined coverage, or already have been denied, it is probably in your best interest to consider guaranteed whole life insurance that doesn’t require a medical exam. This may be your absolute only option to find life insurance. It will not be cheap insurance, but it is better than having no life insurance.
In the event that you do not partake in an exam prior to receiving a policy, it is important to remember that you will be evaluated in other ways and that your premiums will be more expensive. You will generally always have to answer a few medical questions, and there are always the more serious issues that if you have them, you will not be able to buy any insurance. These type plans are called Graded Benefit plans because they don’t pay out their full death benefit for a few years. In other words, as time goes by the death benefit increases.
There are also different contingencies between the two types of policies and some are more lenient with the term life insurance policy. For example, one such difference may be that your beneficiaries may have to wait a couple of years before they are eligible for a full payout.
As is always the case, every person’s individual needs are going to differ based on a large variety of factors. It is for this reason that it is always a good idea to do thorough research as well as seek help if needed. Experienced life insurance agents are prevalent however make sure that you find one that is reputable and comes well recommended. It is also a good idea to find someone that you feel comfortable working with as they will need to get to know you in order to find the best type of insurance for your specific needs.
Life Insurance For Seniors – What You Need To Know
Even as an applicant who is over 60 or 70, there are still options. You aren’t limited to only one choice.
On one hand, these choices are great. Who wants to be restricted to one plan?
But all of those choices can make it difficult. Your life insurance needs are extremely different than all other kinds of applicants.
If you know you need life insurance, but you’re not sure what to do next, we have one suggestion – call us.
It is never a bad idea to call on an experienced life insurance agent who is knowledgeable in the senior life insurance market. If this is the route you take, make sure that they specialize in elderly life insurance policies, which we do. This can save you time and money because we already know which life insurance companies have easier underwriting standards for seniors.
If you’ve tried to get life insurance before, but they declined your application because of your age, don’t give up hope. Not only can we find a company to accept your plan, but we can get you a plan to fit in your budget and protect your loved ones.