Finally Life Insurance for Seniors Over 70 Problems Solved

Lenny Robbins
Oct 6, 2015 4:30:00 AM
seniors-over-70-life-insurance-problems-solved-2018There are many factors to consider when buying life insurance for seniors over 70. Researching this can seem very complicated, so we have created a step by step guide for you answering 6 simple questions. Who? Why? What? Where? When? and How much?
 
 
 
 
 
 
 Who? and Why?

Is life insurance for seniors over 70 necessary?  Very possibly! Seniors have different needs than when we were younger. However, if you have a family or a business you would like to protect, then life insurance is a necessity. Here are some reasons you may still need coverage:
  • Your spouse would have difficulty living without your income
  • You have a special needs adult child who will need care when you are gone
  • You have a business that will suffer when you are not at the helm
  • You want to cover estate taxes so your heirs will not have to liquidate any assets
  • Charitable giving
  • Paying off a mortgage
  • Final expense coverage (funeral, debts, etc.)

What?

What kind of policy is best for me?  There are two types of life insurance policies- term and permanent (universal or whole life). 

 
Term policies last for a specific time period, 10 years, 20 years, 30 years. However, at age 70 you are limited to 10-15 years only. Some companies stop term coverage at age 70. There are less choices, and usually term is not the best option at this age unless you need coverage for a specific time period (like collateral for a loan).

Permanent insurance lasts for your entire life.  Permanent coverage is usually the right type of life insurance for seniors over 70. There are universal life and whole life insurance policies available. The amount of coverage, your health, and if you do or don't want a medical exam will help determine what coverage you consider.
  • Universal life insurance- is very flexible and can be structured many different ways to help fulfill your goals. This type of policy requires complete underwriting including a medical exam (with blood and urine samples) and ordering your medical records. If you want $25,000 or more coverage, this is the least expensive option. It will take anywhere from 6-8 weeks or longer (depending how quickly your medical records are received).
  • Whole life insurance- includes final expense coverage and guaranteed issue coverage.
  • Final expense coverage- is a simplified underwriting policy. No medical exam, no blood and urine testing and no doctor records. You have to answer a number of health questions. A drug database will be checked to confirm that you aren't taking medication for a disease that will cause you to be declined coverage. These policies are available with face amounts of $2,000 up to $40,000. This coverage can be in place in just a few days. It's easy and competitively priced.
Download Final Expense Life Insurance Handbook
  • Guaranteed issue coverage- is available if you cannot qualify for any other type of insurance. There are no medical questions at all. The first two years you are covered for accidental death. If you pass away from illness, your beneficiary will receive the premiums you paid plus interest. After 2 years the face amount is payable for death from any cause. Face amounts range from $2,000 up to $10,000. The coverage can be in place in 1-2 days. 

Where?
 

Where do I purchase a life insurance policy? If you are reading this, you are probably ready to find an agent online. Although you can get some quotes by yourself online, its best to work with an agent because:
  • They have access to many more companies than you can find online
  • They can help you find the lease expensive policy that you can actually qualify for
  • They know the slight differences from one company to another that can mean the difference between an application being approved or declined
  • There is no cost to you for using the agent's services
  • The agent will fill out the application with you and make sure all of the necessary details are taken care of. In short, they are your advocate.

When?
 

When is the best time to purchase life insurance?  Today!

You are as healthy today as you are ever going to be! Rates get higher as you get older. For many companies when you pass your half birthday they consider you a year older. 

How much?
 

How much insurance you need will be determined by what you are trying to achieve and ultimately what you can afford. We have clients looking at anywhere from $2,000 up to $500,000. It's as individual as the many reasons you need insurance. If you are not sure how much coverage you want, talk to your agent, they will be able to give you the cost for different face amounts which can help you decide.

The Bottom Line

Buying life insurance for seniors over 70 can be a painless process. Think about the options discussed here. Then find yourself a good independent agent to work with. Having the help of an agent experienced in the senior market will make your purchase easy.
 
 
Free eBook Final Expense Life Insurance Handbook