Finding affordable term life insurance for seniors over 70 can be challenging, but it’s far from impossible.
As an independent agency known for providing patient, personalized service, we’ve helped thousands of clients in their 70’s with affordable life insurance coverage from a reliable provider.
In this article, we have answered the most common questions we hear from our clients to help you gain a better idea of how to move forward with shopping for life insurance. We have also provided some links to other helpful resources on specific topics.
Quick Article Guide:
1. Is Coverage Still Available after Age 70?
2. Can I Find Coverage Lasting Longer Than 10 Years?
3. What is Term Life Insurance?
4. Is Term Life Insurance for Seniors over 70 Wise?
5. What is Whole Life Insurance?
6. What is Guaranteed Universal Life Insurance?
7. Can Life Insurance Protect My Estate?
8. What is Pension Maximization?
9. Can I Use Life Insurance to Leave an Inheritance?
10. Will Life Insurance Cover Medical or Final Expenses?
11. Where Do I Start?
Despite what your local auto insurance agent may tell you, affordable term life insurance for seniors over age 70 is offered by dozens of highly-rated insurers. Even if you are in less-than perfect health, most companies will offer you $100,000 or more of coverage, depending on your budget and your needs.
As we get older, the cost of a new life insurance can increase by much as 15 to 20% per year, so it’s important to lock in your coverage as soon as you realize you need it.
While some insurance companies will limit you to a 10-year term after the age of 70, longer options may be available. Before you settling for a policy that will expire in your 80’s we recommend comparing your options.
Some insurers will offer a 15-year term to applicants in their early 70’s, but if you don’t want to risk outliving your policy, you’ll want to consider a policy that is commonly referred to as “term-for-life.” These policies allow you to lock in your rates and your death benefit until age 90, 95, 100, 105, 110, or even 120, and they do not require any risky investing.
Term life insurance provides a set amount of life insurance protection for a fixed number of years. These policies are usually sold in 5-year increments for 10 to 30 years. If the insured passes away during this period, the insurer will pay a tax-free death benefit to the beneficiary or beneficiaries listed on your policy.
Most financial advisers recommend term insurance because it is less expensive than other types of life insurance, and you don’t have to worry about paying additional fees down the road if the market doesn’t perform well.
Below we have included sample 10-year and 15-year term life rates for a male in excellent health between the ages of 70 and 79.
If you have no debt and no one depends on you for an income, life insurance might be something you can do without, especially if you already have something set aside for your final expenses. However, if you have any outstanding debt, or if your spouse still relies on you for an income, you should probably consider buying some coverage.
Term insurance is the least expensive way to provide $100,000 or more in coverage to your family, but if you need less than $50,000 of coverage, whole life insurance may be a better option. We’ve explained more about whole life insurance in the next section.
Whole life insurance provides lifetime protection at fixed a cost. These policies do not require an exam for approval and they usually offer a death benefit of up to $50,000 until the age of 100.
If you only need a small amount of coverage and don’t want to take an exam, whole life insurance is the easiest way to secure a policy. Some whole life policies even build a small cash value overtime, but important to note that this takes decades to grow into anything sizable.
Besides the low coverage amounts, the major downside to whole life insurance is the cost. A whole life insurance policy can be two to three times more than a comparable policy with an equivalent death benefit like a GUL policy.
Guaranteed universal life insurance (GUL) is usually the best option for those in need of more than $50,000 of “permanent” life insurance. A GUL gives you the peace of mind that a traditional permanent policy can offer, but without the bells and whistles that typically over-complicate these policies.
With guaranteed universal life insurance, there is no required investing, no cash accumulation, no management fees, no stipulations, and no fine print. A GUL functions just like a term policy, except your “term” lasts to a specified age (90, 95, 100, 105, 110, or 120) instead of a set number of years.
The key benefit to guaranteed universal life is that your rates are fixed, and they will not increase as you get older, regardless of how well the stock market does or what the interest rates will be in 15 or 20 years. However, unlike whole life insurance, guaranteed universal life insurance requires a medical exam for approval.
While some people are reluctant to complete a free in-home exam, it’s important to note that even whole life insurance providers review your medical records before they approve your policy. If you have a few minor health issues like diabetes, high cholesterol, or even a history of cancer, don’t worry, they shouldn’t prevent you from qualifying for an affordable life insurance policy.
When the Federal Estate Tax exemption was raised to $11.18 million in 2018, it prevented the vast majority of Americans from ever having to worry about their heirs paying estate taxes. However, if your assets exceed this value, or if you live in a state with it’s own estate taxes, your loved one’s may still be subject to taxes.
To shield their heirs from this potential tax burden, many high net worth families purchase life insurance to fund an irrevocable life insurance trust which can be used to avoid or reduce estate taxes for future generations. To learn more about estate planning, please see our list of states with an inheritance tax.
If you are approaching retirement and deciding whether to accept your full pension or the reduced joint pension plan from your employer. Many people accept a reduced monthly pension to ensure that their spouse is protected, but this reduced monthly payment can really put a damper on your retirement plans.
Depending on your age and health, buying life insurance could allow you to take your entire pension and provide equivalent income protection for your spouse.
To make the process easier for you, we have created a simple 5-step guide for pension maximization. Click over to that article for a detailed explanation on how pension maximization works with sample calculations and pro tips.
Yes! The death benefit in a life insurance policy can act as an inheritance, allowing you to spend your retirement savings and still leave a legacy. Even better, life insurance proceeds are tax-free, making life insurance a financially savvy inheritance mechanism. Guaranteed universal life insurance is especially effective as an inheritance because it allows you to lock in coverage to age 90 or later.
Final expense policies usually carry a death benefit of $5,000 and $25,000, and just like all other life insurance policies, the money is paid to your beneficiaries tax-free. Final expense insurance is very expensive most people will pay more in premiums than the policy will pay out when they pass away. This is why we if usually recommend a GUL insurance instead, but some coverage is always better than none.
A final expense policy can be used to cover the costs of end-of-life care and any medical bills that you may leave behind. During an already upsetting time, many families are overwhelmed to find that their loved one’s medical insurance does not cover hospice or palliative care. A final expense policy can make it a little easier for your family to cope knowing they have a means to pay your end-of-life medical expenses.
We understand the comfort in going to a local agent, especially if you have been a customer of their’s for other types of insurance. But, understand that agents at these companies will not be as thorough in meeting your life insurance needs. These agents specialize with home insurance and auto insurance because these are the main “money makers” for them and their company.
At JRC, we specialize in life insurance and life insurance only. We do not work for just one provider; instead, we shop 50 top-rated companies to find the best rates and coverage available. Our agents will walk you through the entire process from start to finish, with no obligations and no sales pressure. Call us toll-free at 855-247-9555, or get a free quote online using the button below.
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