Life insurance policies have different maximum age limits depending upon the terms of the issuing company.
While most of the policies have a maximum age for life insurance up to 89, yet many of them have come forward to give a life insurance cover to the senior citizens over the age of 90. The maximum age in such policies remains as a term until death.
These policies can benefit the dependents of such senior citizens who have a recurring salary or earning even at a later age for example through some business or rent from tenants etc.
Such policies enable the dependents with assurance as well as cover the medical benefits, if needed, for the aged people too.
How to Get Information on Policies that Offer Life Insurance Over 90?
An insurance policy can be availed directly through the companies or by contacting some insurance agents.
While former can be chosen if one is quite sure about the policy plan and the issuing company’s brand name but in order to compare the benefits and terms of different policies being offered by a number of companies in the market.
It is best to contact an insurance agent who is working with multiple insurance companies.
As it must be known that not many companies offer policies with maximum age beyond 85, such agents will be a good source of knowledge. They can provide a comparative analysis in terms of the benefits and other term advantages.
Key points to enquire from the insurance agent:
- How old is the company (of which the policy is being offered)?
- What are the terms for claiming the money back?
- Seek referrals from their previous clients including their address as well as phone numbers.
Such information will be helpful in deciding upon the best policy for the clients.
Why There are Only Fewer Policies for Elderly People?
It is a challenging task to provide a life insurance policy over the age of 80-85. Mostly the human life survival tendency is expected to end at this stage of life.
The companies suspect a higher chance of facing the expenses for the medical claims of the person (the claimant) or the termination of the policy. Diseases or health problems tend to become common after the age of 80.
Another reason that can be considered as for why there is a levied maximum age is that the companies want to reduce their database maintaining and paperwork.
As there are higher chances of the death of the claimants at such a peak age, the companies often doubt about the profitability in terms of revenue collection while it leads to a lot of paperwork and database management of the entries.
In addition, they need more staff to deal with such clients who provide very little business to their profit portion.
What are the Benefits?
With the companies looking at a larger picture where they extend the maximum age not only for the profit earning but also for resolving the financial worries of most experienced and prized possessions of our society, there are a lot of benefits they both can avail.
The benefits to senior citizens:
Considering the aspect of senior citizens over 85, some of them have financial responsibilities that they fear not being fulfilled in the case of death. Such policies ensure that their monetary issues will be taken care of! Their dependents will be able to get the money for living a peaceful life even after the demise of their elderly beloved.
There are some people at a very senior age who have continuous income through some source while their family is not in the need of their financial help. Such people can use these insurance policies as a saving account. The fund after their death can be used in their burial and other expenses as well as used in the charitable funds and trusts for the benefit of the deprived section of society.
The life insurance policies can be used as an asset and can be used to avail loans. Thus, for living a life of dignity, these policies often help the people who have reached an advanced age and do not want to borrow money from other sources.
The “contentment” that elderly people often derive by being able to be in a giving position to their younger ones is impeccable. The policies that have no maximum age are very much useful for them. The assurance that they will leave a good sum of money for their family makes not only their life peaceful but helps them to live with proud for having done the most righteous things in their lifetime.
The gain of issuing companies is manifold in providing such policies that offer a permanent policy until death with no maximum age:
They get an increased customer base. No doubt the expectancy of life of these customers is less, but dwelling on hope, some of the customers give them good business.
It offers them an extensive network which is the backbone of life insurance companies. This is one reason some of them even employee their senior citizen customers in their companies. Mostly it is understood that a senior citizen is often the head of the family and can always encourage all the other members of the far and near family to get their insurance done.
They earn a good market reputation and in some cases suffice to fulfill corporate social responsibilities too. People tend to spend more money on brand names that are trustworthy and have a good social character.
Thus extending the maximum age for life insurance is a good business for not only the clients but also the companies. In this case, when the clients are senior citizens, they should do thorough market research before putting the final savings of their lives in a life insurance term.