Senior Citizens and Life Insurance: An Essential Guide for Those Over 70
Carrying life insurance becomes less necessary as you age. If you have retirement and mortgage payments, that could mean considerable financial strain on your funds, making you think it’s better to skip the insurance. Here’s why you still need life insurance even when you’re over 70.
- Final Expenses: Even after paying off all debts and mortgages, loved ones will still need financial resources for funeral and medical costs after your death. Life insurance provides them with this financial security.
- Legacy Planning: Life insurance can be an invaluable tool in planning for legacy, providing the means to leave a financial gift or charitable donation behind for loved ones or make charitable donations.
- Estate Taxes: Your beneficiaries could be responsible for estate taxes after your death; life insurance can provide the funds to cover these taxes so they receive their inheritance in full value.
Types of Life Insurance for Seniors over 70
Seniors over 70 should carefully consider two forms of life insurance: term life and permanent life policies.
Term Life Insurance: Term life insurance offers coverage for a fixed timeframe, such as 10, 20, or 30 years. This form of protection tends to be less costly than permanent policies, making them an appealing option for seniors on a tight budget. Keep in mind, however, that once its term has ended it must be renewed or replaced; premiums may increase as you age.
Permanent Life Insurance: Permanent life insurance offers coverage throughout your lifetime as long as premiums are paid on time. While more expensive than term life, permanent insurance provides a guaranteed death benefit and cash value component that may help finance retirement or other expenses. Factors to Consider When Selecting Life Insurance Coverage
Purchasing life insurance for seniors over 70 requires careful consideration. Consider the following factors when exploring life coverage options:
Your Health: Health will play a critical role in determining both the cost and availability of life insurance policies, so if you have preexisting medical conditions, it’s wise to look around for providers offering coverage at affordable rates.
Your Budget
Consider how much premiums you can afford each month. Choose a policy within your price range. As a senior over 70 purchasing life insurance, here are a few key points to remember when searching for policies:
Do Your Research: Don’t settle for the first policy that comes your way – compare quotes from multiple providers until you find one offering great coverage at an affordable price.
Undergo a Medical Exam: Certain providers require medical exams before providing coverage, which can be an inconvenience but could ultimately help you qualify for lower premiums if you are healthy.
Seek Advice from Financial Advisors: Seeking advice from an independent financial advisor can assist in making sure that any decisions about life insurance purchased are informed ones.
Read the Terms Carefully: Before agreeing to a policy, always take time to carefully read through its terms and conditions, including any exclusions or limits on coverage.
Reevaluate Your Coverage Regularly: Your financial and health needs may change over time, so it is wise to regularly evaluate your coverage to make sure it still fits.
