There are some key pieces of information that most insurance companies won’t share with you because they might not want to insure someone who has health issues that they would bring with them to the table. However,
there are in fact many options of life insurance for seniors.
When a senior, nearing the age of 70 or older, starts to explore their options for life insurance, they can seem limited and may come with very high price tags. It does not have to be this way, however. There are independent agencies out there that represent insurance companies that are willing to help you find the right coverage for you at a more affordable price, regardless of your age. With different options for life insurance, it is important to go into your search with specific guidelines and needs in order to make the search easier for all parties involved.
Obtaining life insurance over 70 doesn’t have to be hard work or bank draining. If you’re not sure exactly what you’re looking for, you should seek out professional guidance. Life insurance professionals (independent agents or companies) are there to help you along your journey to provide you with the assistance you may need throughout your search. There are confusing terms and varying premium rates that are out there regarding life insurances. So, if you’re looking for life insurance for seniors over 70 and don’t want to go at it alone, you should consider employing a life insurance professional to help you!
Here are the top 6 things they don’t tell you when you’re 70+ years old looking for life insurance:
Can I Obtain Health Insurance if I’m 70+ Years Old? (Even With Health Concerns)
There is a myth that surrounds the life insurance world that says seniors of the age 70 or older cannot obtain new life insurance coverage from any insurance company due to their age and/or decreasing health with pre-existing conditions. This is not the truth whatsoever. Life insurance for any senior over the age of 70 is obtainable and affordable, as long as they know how and what to look for.
Obtaining life insurance for seniors over 70 doesn’t have to be hard work or bank draining.
Working on your own to find the right life insurance for seniors over 70 can be quite difficult (and not recommended). If you’re thinking of looking into life insurance and you’re over the age of 70, find an independent agent who can help you find the right policy for you!
Avoid Term Life Insurance
While term life insurance is the most common life insurance on the market today, it is not the best option for seniors over the age of 70. When you obtain the term life insurance policy at 70 years old, you will inevitably pay a premium that will increase dramatically over the next 10 years. It is likely that you may only need the term for the next 10–15 years, but if you needed it longer, the term would run out and your rate would increase tremendously upon your attempts to get back in with a term life policy. From the surface, it can seem like the term life insurance policy is the most cost-effective, but you should look at the long-term rates available and the increase in premium over the term’s life to determine if it is, indeed, the right fit for you.
While term life insurance is the most common life insurance on the market today, it is not the best option for seniors over the age of 70.
Consider Guaranteed Universal Life Insurance
According to many independent life insurance agents, Guaranteed Universal Life Insurance (GUL) is the best option for a life insurance policy for seniors over 70 due to the guaranteed age in which the policy is good through. While this policy does not build any cash value as you age, it does not carry the expensive management fees that other policies do. This allows you to keep your premiums low while still giving you the security that you need. In essence, a GUL acts like a term life policy, but it is guaranteed to you until a specific age (reaching all the way to 121 years old). This is a great option for life insurance for seniors over 70.
While this policy does not build any cash value as you age, it does not carry the expensive management fees that other policies do.
Leaving an Inheritance for Your Loved Ones
It is everyone’s hopes and dreams to leave an inheritance for their loved ones when they pass away. Knowing that their family is taken care of when they’re gone is by far the most sought-after goal of an aging person. However, there is a way for you to obtain life insurance if you are over the age of 70 and looking to leave an inheritance behind. Purchasing a GUL policy (as discussed in number 3) until the age of 90, 95, or 100 (or whatever age you choose), you will be able to leave an inheritance for your family while also being able to spend your hard-earned retirement money you saved to enjoy during your golden years.
You Might not Need a Medical Exam
If you’re looking for life insurance for seniors over 70, you should absolutely expect to have a medical exam performed prior to being given life insurance. This is a free service regardless of approval or denial. However, what they don’t tell you is if you’re over the age of 70, you may be able to purchase life insurance without actually having a medical exam. What this means is that your death benefit will be capped at around $25,000 and your rates will be much higher. Basically, when you’re obtaining life insurance for a senior over 70, you’re telling the insurance company it is a risk-taking you on without knowing your medical history and current condition. This means you’ll be marked as “high-risk” even though you really are nothing of the sort.
You May Not Need Senior Life Insurance
After considering your circumstances, you may decide you do not have to carry life insurance. Premiums are very high for life insurance for seniors over 70 and, if there is nothing to pay for after the person is longer around, then the life insurance policy is not needed. Be careful when renewing or upping your policies as you get older: evaluate if you really need the life insurance. If you do still have outstanding debts, you can purchase a smaller term life insurance policy that will end when your payments are due to end. This will keep you from being “over-insured”.
There is really no reason for seniors over 70 years old to have life insurance unless they still own property, have debt, or are still working and must replace their incomes for their families.
There are many things life insurance agencies will not tell you regarding your ability to obtain life insurance after the age of 70 simply because they do not want to take a “risk” on you. However, you have the right to obtain life insurance even if you’re over 70, so it is important to know your options so that you can get the coverage you need.
If you’re a loved one of a senior over 70, you can help them by pointing them in the right direction towards the policies that are right for them. There are many terms and policies out there that can be quite confusing for many people.
If you’re the person looking for life insurance for seniors over 70, seek out professional help to increase your chances of finding the right life insurance policy for you. You could definitely do it alone, but the process would be easier and much smoother if you sought out the help from professionals who could explain terms that were unfamiliar along the way.
Life insurance for seniors over 70 can be difficult to obtain, but it is definitely not impossible. And, it doesn’t have to cost you a fortune to maintain, either. Make sure that you know what you are looking for, what you’re willing to pay, and what your options are regarding policies.
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