Best Life Insurance for Seniors Over 70
When you attain your senior years, you are most likely set for your demise and do not want to burden your loved ones with the cost of burials arrangements. Therefore, life insurance for seniors over 70 is still extremely relevant and necessary.
In this article, we will help you to find the best plan.
Most of us think about ensuring our property and health but forget to take up life insurance. Getting insurance, no matter which kind, goes a long way in offering financial support.
When it comes to life insurance, insurance providers have specific criteria for setting premiums, and some even have a maximum age limit.
At the age of 70, you may think you are too old to find an insurer, but there are still insurance policies available for you.
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- Why is Life Insurance for Seniors Over 70 Important?
- Types of Policies Available for You
- How Much Will Life Insurance Cost at Age of 70 Years?
- What Factors Do Underwriters Consider When Setting Premium Amounts?
- Is Life Insurance a Must?
- Which is the Best Insurance Cover for Seniors Over 70 Years?
- What if You Want to Leave an Inheritance for Your Beneficiaries?
- What are the Benefits You Accrue from a Policy?
Why is Life Insurance for Seniors Over 70 Important?
Gone are the days when life expectancy stood at a youthful age of 50 years or less. With the breakthrough in medicine and technology, so much has been done to ensure that people can live longer while imparting critical knowledge about health issues. The price you will get now will increase dramatically when you will become over 85 years.
Besides, with the internet, we have information in the palms of our hands regarding proper nutrition, disease symptoms, and others, which influence the decisions that affect our lifespans.
However, no matter how good you maintain your health through exercise and eating a proper diet, age will eventually catch up with you.
You will start falling sick more often, and if you are not well prepared for such incidences, anxiety will get a hold of you as you begin to wonder how to cater for the medical bills.
Moreover, do you have money to pay for your funeral expenses when that inevitable time comes? With families busy raising their kids and laying down a good foundation for them, their budgets might be too limited to accommodate your expenses.
When you realize the burden you will lay on your family members; it will occur to you just how important a life insurance policy is. You will afford your beneficiaries the peace of not having to seek loans and other financial difficulties as they plan your funeral.
You should not wait any longer to reach your age 80’s. Buy the right policy now or you may have face the price hike.
Types of Policies Available for You
Term Insurance – Great Option but It Expires
It provides benefits for a certain period of time, and before you decide to go for it, you should consider your health and age.
Usually, at the age of 70 years, the term limit is 20 years which declines as you age such that by the time you hit 80 years, you can only have a limit of 10 years.
Your health will also determine the limit, and if you have chronic conditions such as high blood pressure or heart disease, you should be ready to pay higher premiums.
If you think you a 20 years term is perfect for you and you can have a sufficient amount of money from the policy within this time frame, you should definitely go for a term plan.
Whole Life Insurance – Has Death Benefit & Cash Value
It affords you a death benefit covering the rest of your life while accumulating cash value.
The upside of whole life insurance is that you will pay the same amount of premiums for the entire time it is in effect.
Unfortunately, it only stays effective if you pay your premiums, which are usually higher compared to those of term insurance.
One can take it up if they wish to leave some amount to a beneficiary, reduce estate taxes or use the cash value as collateral for a loan.
It combines the advantages of whole and term life insurance implying it is not as expensive as whole life but more expensive than term life. You can also use it to minimize your estate taxes, but it does not accumulate cash benefit.
However, you have the luxury of choosing the length of your policy; therefore, it can outlast your life.
Universal Life Insurance
Just like the guaranteed universal policy, it lasts a lifetime but also accumulates a cash benefit.
Since you can link the cash value to your policy investments, you may have to increase your premiums to cater for the savings component or to maintain the policy. Most seniors avoid it due to the risks involved, read more here.
Final Expense – A Popular One
As the name suggests, the final expense is for catering to your final journey’s costs. It is permanent, lasting a lifetime, usually for covering the medical bills and funeral arrangements cost incurred.
It has the advantage of instant approval after passing the health questionnaire. Its policies range from $50,000 to $100,000, making it a popular choice for seniors.
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How Much Will Life Insurance Cost at Age of 70 Years?
It would be convenient if there were a specific amount for taking up a policy. Unfortunately, each insurance provider has different factors to consider when setting your premium.
However, it is common knowledge that you will pay higher premiums than if you had taken the insurance at a much younger age.
Besides, the type of coverage you specifically want will determine the premiums you pay.
As mentioned above, whole insurance will have you digging deeper into your pockets than final expense or term life.
We recommend using our Comparison Tool to find the exact price.
What Factors Do Underwriters Consider When Setting Premium Amounts?
You can apply for a policy but still have your application turned down, though you are well within the age limits.
Further, the cover you want may not be available to you due to your health conditions; some covers exclude certain diseases.
Or, you may have to apply a higher premium than you are ready for because of the risk your illness carries. All in all, the primary factors insurers take into consideration are;
The fact that you are a heavy smoker will skyrocket your premiums. Therefore if you can give up bad habits such as drinking alcohol or smoking, the chances of paying a lower premium will go up significantly.
Poor lifestyle habits predispose you to diseases such as cancer which will increase your chances of dying earlier, hence the higher premiums.
Type of Job/Hobbies
You may have risky hobbies that expose you to life-threatening environments. If you do, then your insurer may have to ask that you pay a higher premium.
Pre-existing Medical Conditions
Seniors over 70 are most likely to be suffering from certain medical diseases such as diabetes that makes them risky applicants.
If a policy does not cover certain pre-existing conditions, then you will have to undergo a medical underwriting that can involve a checkup, and questionnaires to detail your medical history.
Is Medical Exam a Must?
Now that you are 70 years and considering a life insurance policy, chances of you taking a medical exam are high before an insurer can give you that insurance.
However, the fact that you do not take that medical exam means you will have to pay higher premiums than if you did.
Failure to take the exam translates to high risk for the insurer since they will be providing a cover for someone they think could be dying the next day.
As a senior, you, therefore, should take the medical exam to avoid the insurers from terming you as a high risk even when your health is not so much of a threat.
Is Life Insurance a Must?
Life insurance for seniors is not essential unless you have property or debt.
However, for some, it may apply to them because they may want to leave an inheritance or for some other reason.
Therefore, if you do not have any reason that may require taking up life insurance, then there is no need to do so.
Insurers charge high premiums for the seniors so if there will be no benefit accruing after the person dies, then why take up a cover?
If you take up a policy in your younger days, you might question yourself on the need for upping your policy or paying more for it.
For instance, when you have outstanding debts, a term life insurance cover that matches the due date of your payment installments is a prudent move.
Otherwise, if you take up larger term policies, then you will have over-insured, which will be a waste of resources.
An insurance provider may leave out some of the critical details regarding an insurance policy in a bid to avoid taking on too much risk with you.
However, being over 70 does not cut you out from others who can get a life cover. You should, therefore, explore all the options available, and make an informed decision depending on your circumstances.
Seeking help from the professionals who will lay out the technical jargon in layman terms will help you decide.
Which is the Best Insurance Cover for Seniors Over 70 Years?
The guaranteed age that guaranteed universal life is valid for makes it the best option for anyone over the age of 70.
Even though it will not build up cash value as you advance in age, it will not put the burden of exorbitant management fees on your shoulders as other policies will.
This policy permits you to have the security you require while ensuring that you do not have to drain your savings through the low premiums you will pay.
Matter of fact is it offers you a guarantee of security until you attain the age of 120 years.
What if You Want to Leave an Inheritance for Your Beneficiaries?
Leaving behind a small token for your loved ones is something that most of us want to do. We all want to have our families comfortable even after we are gone. It is the most comforting thought that will enable us to rest in peace.
So, what happens when you reach the age of 70 but have nothing to leave to your family? There are insurance covers that enable you to leave an inheritance.
One of which is Guarantee Universal Life. All that you need is to purchase this particular policy and have a certain age limit.
By doing so, you will be in apposition to enjoy your golden years while also having the soothing knowledge that your family will have something to make their lives comfortable. The best thing about the inheritance is that it is tax-free.
What are the Benefits You Accrue from a Policy?
No one likes to part with their cash even when it is the government demanding that you do, hence the high number of cases of tax evasion.
The good news is when a senior takes up a life insurance policy, the beneficiaries will not pay a dime as a tax on the death benefits.
Moreover, when you need to supplement your retirement income by withdrawing your policy funds, the tax rate will be low.
Affordable Long-Term Care
As you age, you will experience more health issues that can drain the pockets of your family since it can be quite expensive. With a policy, you get the assurance of long-term care while affording you the luxury of aging gracefully and comfortably.
Supplementing Your Retirement Funds
If you saved up for your retirement or have some funds through your social security scheme, you can have your policy doubling up as an investment.
Through the cash value that some covers provide, you can supplement your retirement funds with your guaranteed cash benefits.
There is no better feeling than knowing your family will not face any financial struggles once you are gone. When you take a cover such as whole life, you will have the guaranteed cash payments and the best part is that they will not attract any tax liability.
Covering Funeral and Medical Expenses
Calling on your friends to cover funeral expenses for you when you pass on can be a bit embarrassing.
Why put others through the stress of dealing with something you knew would come eventually?
A payout from your insurance policy can help cover the expenses that you incur when you fall ill and pass away.
Burial arrangements can be expensive; catering to flowers, and other costs that will go to ensure a smooth journey for you.
You can have a passion for a specific cause, and you can display that by leaving a legacy behind for it. For instance, supporting a charity or leaving the benefits to a hospital for them to build a wing can help aid the cause you hold in high regard.