Life insurance for seniors over age 70 is affordable and quite easy to sign up for especially if you have a broker guiding you and your loved ones which insurance to choose. If you are over age 70, you can still find the right life insurance coverage that can keep you protected as you live through your golden years.
Kinds of Life Insurance for Seniors Over Age 70
There are different kinds of life insurance and choosing only one to invest in can be quite difficult especially for a first-time shopper of life insurance coverage. This should not prevent you from protecting yourself. The policies that you will most likely come across to are the term life insurance and the whole life insurance. Let’s differentiate.
The Difference Between “Term Life Insurance” and “Whole Life Insurance”
You can say that term life insurance is ‘pure protection.’ It provides a death benefit to your spouse or surviving family members so that they can cover the funeral and burial expenses but these are at fixed premiums and for a term, which is the set period that you signed up for.
Term Life insurance are usually available in increments of 5 years and it ranges from 10 years to 30 years after the policy has become renewable on annual basis. This is the most affordable and an option that is the most cost-effective for most seniors if they are under age 65.
Whereas a whole life insurance offers permanent lifetime protection and at fixed premiums. These are built on the cash value that is added to your death benefit. This life insurance pays a benefit on your death and also accumulates a certain cash value over time.
What To Remember When Buying Life Insurance Over Age 70
The truth is buying life insurance over age 70 is limited because a number of life insurance companies no longer offer the affordable term life insurance for that age group. In fact, they even stopped offering policies for term insurance after age 65 years old. Whole life insurance in this case is the only option.
The difference between an agent and a broker is that the former only sells the products of their employers. They are limited to one insurance provider. Whereas brokers can assist seniors to go through different life insurance over age 70 from different issuers.
Calling one agent may seem to be the quick fix and solution to figuring out how to go about the right life insurance coverage but understand that this greatly limits your options and chances are you will be spending 25 to 30% than what you could have spent had you gone to a broker instead.
This is the very reason why there are a number of seniors who have no idea that term life insurance is available for them. This is because they approach agents and of course, these agents will recommend that they purchase a whole life insurance instead.
Here is an example of life insurance pricing from different companies for age 75 female no smoking with no major health conditions:
Getting Life Insurance to Leave Inheritance to Loved Ones
If you are 70 years old or older and you are looking for life insurance for over age 70 that is longer than 10 years then you need to purchase a whole life policy insurance that already locks in the rates and the coverage while you are alive. These life insurance policies are referred to as whole life insurance or burial insurance.” – there are coverage and rates that are guaranteed at specified ages.
Another reason why seniors invest in life insurance is because they want to leave an inheritance to their loved ones. With the guaranteed policies for age 90 or even older, you can spend retirement savings and at the same time still leave something to your family and it is tax-free.
Final expense policies like funeral insurance and burial insurance can carry the death benefits between the amount of $5,000 to $25,000. Like any other life insurance policies, this money is paid to your surviving family members in a tax-free manner and in a lump sum that they wish. They can also acquire this in monthly installments if they choose to do so. When looking for final expense policies, there are two things to consider. It’s the fixed rate and the length coverage for your lifetime.
Life Insurance Can Maximize Pension
Pension maximization is a strategy that is used to supplement your pension with your life insurance in order to accept the full payout and at the same time providing financial protection for your loved ones. Let’s say that your full pension is $4,500 every month. When you take the spousal benefit, then you have $3,700 left.
On the other hand, life insurance provides you with the peace of mind that even if there is a larger death benefit of for example $200 every month, you can still accept your $4,500 every month and buy the life insurance separately which means you can put $600 more every month.
Some Life Insurance Companies Requires Medical Exam
Life insurance policies require you to take a free medical exam. This is paid by the insurance company. A nurse administers an in-home test, if you request this, or arrangements can also be made to an approved laboratory by the provider.
Medical exams take note of your height, weight, blood pressure, blood sample and urine sample. Have your appropriate check ups updated before your exam. The insurance underwriter then reviews your results and your records. You do not have to pay for any of these.
As for life insurance for seniors over age 70, you can still obtain this and skip the medical exam but your death benefit is capped at $25,000 to $45,000 and you will incur higher rates. The insurance company may declare and treat you as high risk even if you’re not so it’s best to still take the medical exam.
Opting for a life insurance is one of the smartest decisions you can make in your life. A broker can help you choose wisely because he has access to many different companies. This affects what you have to pay and also the benefits that your loved ones will receive when you eventually pass away. A life insurance can cover you through life and even in death.