Getting a life insurance policy for someone over the age of 70
was difficult in the past, but it has begun to become a possibility for
many of the elderly living in the United States, especially those who
have not been able to save up in their younger years. Purchasing a life
insurance policy at such an age is quite different from getting one at
the age of 30. Although these policies are difficult to find and more
expensive, they are not unheard of, as many insurance companies these
days have begun to offer policies to seniors.
Why should seniors over 70 buy life insurance?
Aside from the most obvious reason that they want to acquire protection for their families, there can be many other reasons for acquiring a policy at that age. Some reasons for wanting a life insurance policy would be for a family business, to leave a legacy for their children/grandchildren, for estate settlements, and to give money to charity. Since insurance money is normally not taxed, some seniors also decide to pay off their debts, taxes, medical bills and funeral costs to prevent being a burden to their families.
Types of life insurances for seniors
Seniors have the option to choose from a few types of life insurances and pick one that would be the best for them. The options include:
• Term insurance:
This is a very common type of policy even among younger people. This is a short term insurance policy that will expire within a few years, depending on the term length that one chooses. Although it can be renewed, often until the age of 90, it might be more difficult and more expensive for a senior to reapply for it. That is because the premium payments of this insurance are based on a person's health status and age, (along with other requirements) and a senior might have a hard time qualifying for it.
• Guaranteed life insurance:
This policy could be a good idea for older seniors with health issues, as it does not take the age or health conditions of a person into consideration. However, these policies usually tend to be more expensive, and most do not pay out for the first 2 years after the policy has been purchased. That said, it does refund the paid amount and cancel the policy if the policy holder dies within these 2 years.
• Burial insurance:
This policy is generally a popular choice among seniors because of its many advantages and suitability to the needs of the elderly. Some companies specializing in burial insurances do not require a waiting period and pay off the coverage immediately upon death. However, it usually provides just enough support to cover a funeral and a few other expenses, but not enough to support a family or to pay off large debts.
Why should seniors over 70 buy life insurance?
Aside from the most obvious reason that they want to acquire protection for their families, there can be many other reasons for acquiring a policy at that age. Some reasons for wanting a life insurance policy would be for a family business, to leave a legacy for their children/grandchildren, for estate settlements, and to give money to charity. Since insurance money is normally not taxed, some seniors also decide to pay off their debts, taxes, medical bills and funeral costs to prevent being a burden to their families.
Types of life insurances for seniors
Seniors have the option to choose from a few types of life insurances and pick one that would be the best for them. The options include:
• Term insurance:
This is a very common type of policy even among younger people. This is a short term insurance policy that will expire within a few years, depending on the term length that one chooses. Although it can be renewed, often until the age of 90, it might be more difficult and more expensive for a senior to reapply for it. That is because the premium payments of this insurance are based on a person's health status and age, (along with other requirements) and a senior might have a hard time qualifying for it.
• Guaranteed life insurance:
This policy could be a good idea for older seniors with health issues, as it does not take the age or health conditions of a person into consideration. However, these policies usually tend to be more expensive, and most do not pay out for the first 2 years after the policy has been purchased. That said, it does refund the paid amount and cancel the policy if the policy holder dies within these 2 years.
• Burial insurance:
This policy is generally a popular choice among seniors because of its many advantages and suitability to the needs of the elderly. Some companies specializing in burial insurances do not require a waiting period and pay off the coverage immediately upon death. However, it usually provides just enough support to cover a funeral and a few other expenses, but not enough to support a family or to pay off large debts.
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