Seniors over 70 may find it especially difficult to navigate the life insurance market. Their demands and available options frequently diverge greatly from those of younger customers. Health changes, financial security, and the need to leave a legacy for loved ones are some of the special factors that come with growing older.
Do Seniors Over 70 Need Life Insurance?
Most definitely! Life insurance for seniors provides adequate protection and financial security for your loved ones if you were to pass away. The death benefits that would be paid to your beneficiaries can be sued to cover medical bills, funeral costs, and other outstanding debts you left behind.
Aside from this, the death benefit on your policy can help to enhance your estate planning, ultimately giving you peace of mind, knowing fully well that your legacy is passed on to your loved ones.
Best Life Insurance for Seniors Over 70
There are several life insurance policies available for seniors who are above the age of 70. Peradventure, you are on the lookout for detailed information on types of life insurance policies; we’ve got you covered. We would be explaining in detail major life insurance policies that seniors should consider:
• Term life insurance
Seniors between the ages of 70 and 80 can get term life insurance. It’s important to note that as you grow older, your insurer will offer a shorter term period.
Typically, the coverage provided in a term life insurance policy is fixed and temporary. If you outlive your policy, you can either renew it or buy a new policy. The premiums for term life insurance are reasonable and affordable compared to other types of policies.
• Whole life insurance
Whole life insurance is a permanent type of policy that provides lifelong coverage, unlike term life insurance. This policy has a cash value component that grows overtime and can be used to cover significant bills, if any.
Let’s say you have a major expense you need to offset. You can borrow against the cash value of your whole life insurance policy or withdraw the entire proceeds. The cash value is usually tax-deferred, making it a viable option for seniors over 70.
• Guaranteed issue life insurance
Guaranteed issue life insurance is a type of policy essentially designed for seniors who find it difficult qualifying for traditional life insurance due to a medical condition.
This type of policy does not require applicants to undergo a medical exam, and for this reason, it is more sought after by seniors, especially those who wish to avoid medical exams and lengthy application processes. Be aware that guaranteed-issue life insurance does not offer high death benefits to beneficiaries.
• Final expense insurance
Final expense insurance is specifically for seniors who want to cover end-of-life expenses without having to bother their loved ones. When buying final expense insurance, you need not worry about taking a medical examination.
In the event of your passing, your insurance provider will pay the death benefits on the policy to your beneficiaries, and this can be used to cover medical bills and burial costs. While the final expenses insurance premium is relatively low, the death benefit that goes to your beneficiaries will be little compared to other types of policies.
Best Life Insurance Companies for Seniors Over 70
Many insurance companies offer life insurance policies to seniors over 70, but there are some top contenders in the insurance market today. Here are the top-ranking life insurance companies we highly recommend for seniors over 70.
- Protective: Best known for its cost effectiveness.
- Pacific Life: Remarkable for offering term life renewal for older individuals.
- Equitable: Best known for reliable policy illustrations for seniors.
- Corebridge: Stands out for its high maximum issue age for term life insurance.
- State Farm: Best known for its flexible term life insurance.
In the process of finding and comparing quotes from different insurance companies, it is advisable to pay attention to each insurer’s financial ratings and customer reviews. In the addendum, factor in your needs and financial situation before deciding on the company to opt for.
How Much Does Life Insurance for Seniors Cost?
Generally, the cost of life insurance for seniors is greatly influenced by the age and health condition of the individual at the time of applying for the policy. Other factors also play a crucial role in determining your insurance costs. These include the type of coverage you buy and lifestyle habits.
However, for healthy, nonsmoking 70-year-olds, a 10-year, $500,000 term life insurance policy typically costs $351 per month for males and $233 per month for females. The cost of whole life insurance will most likely be higher than term life insurance.
Why Is Life Insurance More Expensive for Seniors?
Most insurance companies assess several factors when determining the cost of coverage. This includes the age of the applicant. They also consider the type of risk the applicant poses. As you grow older, there is a greater tendency for you to file a claim due to a health issue.
Insurance companies perceive the risks associated with old age. They are more likely to pay out a death benefit as you continue to grow older. So, in order to make up for the risk, insurance companies charge higher premiums for seniors.
