Life insurance is not just for young people. In fact, as we grow older, we may have more we need to protect with life insurance. While age is a major factor in the cost of life insurance premiums, it is possible for life insurance for seniors over 70 to be a good value.
Why Seniors Over 70 Still Need Life Insurance
These days, with seniors living longer and healthier, many seniors are still working at 70 and retirement may not be in their near future. There are many reasons baby boomers and seniors may need life insurance. Here are some of the more common ones:
- Provide income replacement.
- Provide an income for a special needs child.
- Protect a spouse and/or family.
- Protect children or grandchildren financially.
- To pay estate taxes.
- For a buy sell agreement for business.
- To make sure there is money to keep a family business running.
- To maximize retirement income.
- Charitable giving.
What is the Best Life Insurance for Baby Boomers and Seniors?
For younger people, term life insurance is often the best option. However, insurance for people over 70 is different. At this age, term and permanent coverage are often very close in price.
In fact, sometimes permanent coverage costs less. This is particularly true with table shaving programs. Table shaving means that the life insurance company gives you a better rating than you would normally get based on your health history. They "shave" off 2, or sometimes 3 tables, so that you end up with a better underwriting rating and pay less premium. Table shaving programs are only available on permanent coverage, and not all carriers and policies have this program.
How Affordable is this Coverage?
Many baby boomers and seniors who are 70 and older can get affordable life insurance coverage. Of course, your health history impacts the bottom line.
If you are in good health, lead an active lifestyle and don't smoke, you have a better chance of getting affordable life insurance than if not.
What makes the most difference in getting affordable insurance is using an independent agent, who can help you find the right company to get the most best pricing possible. The independent agent will know which company(s) will underwrite your application most favorably and therefore give you the best rating/pricing. They should have an in house underwriter to be of assistance in getting you the best rating as well.
The Bottom Line
Just because you are 70 or older doesn't mean you can't get affordable life insurance. It is especially important to go to the right carrier when you are applying for life insurance and you are 70 or older. We recommend you talk with an independent agent who has experience with Baby Boomers and seniors. They can help you decide what type(s) of life insurance you need as well as help you get the best value for your money.
Photo credit: Kirsty Hall