As people get older, it is thought by some that that life insurance coverage is no longer needed. However, that is oftentimes not the case at all. In fact, for people over age 70, life insurance can be a very important financial planning tool.
This type of coverage is used in numerous ways, such as the payment of estate taxes, income replacement for a surviving spouse or loved ones, making charitable contributions, business continuation, and the paying of costly final expenses.
Depending on one’s age and the amount of coverage that is being sought, there are many different options to choose from in terms of the types of life insurance coverage that is available to people who are in this particular age category as well.
Types of Life Insurance for People Over 70
At age 70 and over, both term and permanent life insurance policies are available. Term life insurance consists of just pure death benefit protection. While this coverage is typically not available in the longer policy durations such as 20 and 30-year term, there are many 10 and 15-year term life insurance options to choose from.
Term life insurance is often thought of as “temporary” life insurance coverage. This is because the coverage will expire after the duration of time on the policy has expired. At that time, the insured will need to re-qualify at his or her then-current age and health condition if they wish to continue being insured. Because of their higher age, the premium will then be higher. The insured also runs the risk of being uninsurable at that time due to the possibility of contracting an adverse health condition.
With permanent life insurance, the policy holder will have both death benefit coverage, as well as a cash value build up. Here, they can build up a considerable amount of tax deferred savings over time. These funds may be withdrawn or borrowed in the future for any need that the policy holder sees fit, so these plans are oftentimes used in retirement planning as well as insurance planning.
Regarding permanent life insurance for people over 70, there are several types of whole life and universal life policies that may be purchased. Whole life insurance is considered to be the most basic form of permanent life insurance. With this type of insurance, the cash value grows based upon a set, fixed and guaranteed interest rate, and the premiums are guaranteed for the life of the policy.
Universal life insurance is a more flexible type of insurance than whole life. This is because the death benefit, the savings component, and the premiums can all be altered as the policy holder’s circumstances change over time. Also, the interest from the savings component of a universal life insurance policy can also be used to help the policy holder pay his or her policy’s premium.
While there are several types of policies that are available to those age 70 and over, there are also some considerations that need to be factored in when applying for life insurance coverage. This is primarily due to the fact that most applicants who are in their 70s may have at least some types of medical conditions, or may be taking certain medications. Because of this, the life insurance underwriters will need to know more details regarding these issues.
In addition, it is also likely that a medical exam will be required as a part of the policy application process. This exam will consist of submitting a blood and urine sample. These will be reviewed by the insurance company for certain health conditions that could pose a higher risk of claim.
Once all of the information has been reviewed by the insurer, a determination will be made as to whether or not they are accepted for coverage. Oftentimes, if an applicant simply submits an application directly to just one insurance carrier, their odds of rejection for coverage could be high – especially if they have certain adverse health issues.
If, however, an applicant is working with a company that specializes in higher risk cases or that has access to a number of life insurance carriers, their odds of approval for coverage can improve substantially.
Where to Find Life Insurance for People Over 70
While some may think that it is difficult to find life insurance for people over 70, the truth is that you just need to know where to look, as there are certain life insurance companies that will place coverage on individuals who are in this age bracket.
If you or someone you know is seeking life insurance for someone over 70, our team at Life Insurance for Seniors 360 can help. We work with many of the top rated life insurance companies in the marketplace today – and we are familiar with which companies are more likely to approve coverage for people over 70. Therefore, we can point you in the right direction. This can help to save you countless hours of both time and frustration in the underwriting process – and essentially get you and your loved ones the insurance coverage, and the peace of mind you seek, much faster.
To start the process, fill out the form on this page and one of our specialists will be in touch shortly to help you to compare life insurance quotes – and we can also help to answer any of the questions or concerns that you may have going forward. Feel free to contact us directly, toll-free, at 888-229-7522 and we will be happy to help.