Many people believe that life insurance for people over 70 is not needed, and those who believe that they would benefit from additional coverage may believe that life insurance policies for seniors are too expensive. However, life insurance offers individuals many different benefits that may be desired or even needed by those of all ages.
One of the primary reasons why individuals buy life insurance at any age is to provide financial benefits to loved ones after their passing. Nobody wants to think about their loved ones experiencing financial hardship after their death, and this is just one of the many ways that death benefits and coverage can be used.
A Common Misconception About Senior Life Insurance
Many people do not believe that a senior life insurance policy is needed or beneficial. Many seniors live on a fixed income, and some people think that the premium for life insurance over 70 years old is better spent on other expenses in a senior’s budget. More than that, some believe that a senior life insurance policy provides benefits that are simply no longer needed.
After all, most senior citizens will have their mortgage and other debts paid off. They will have retirement income in place from various sources that can be used to supplement lost wages. Their children may no longer be financially dependent on them. Most who think about purchasing life insurance think about how the death benefits will be used to financially provide for loved ones after their death, but not everyone is in the same place financially in their senior years.
More than that, death benefits can be used in many different ways.
First, many of today’s seniors are not in this desirable financial position. Some do have a mortgage debt, credit card debt and student loans. Some have retirement income sources that will not be available to their spouses. Some may have had children later in life who are still dependent on them, or they may be caring for their grandchildren.
The reality is that the death of many seniors will create a financial hardship for their loved ones, and this is one of the reasons why it may be beneficial to purchase senior life insurance over 70.
It is important for all seniors to carefully review their financial situation and to determine which debts will be passed on to their loved ones when they pass away. It is equally important to learn more about which of your income sources will continue to be provided to your spouse or dependents after your passing.
By reviewing this information, you can better determine if you need to purchase Senior Life Insurance Over 70.
Other Reasons Seniors Purchase Life Insurance
While many seniors who purchase life insurance will do so to provide for their loved ones financially after their death, there are other reasons why you may consider getting life insurance quotes over 70 today.
One reason is to pay for funeral expenses. Regardless of your current financial position, paying for funeral expenses can be burdensome on your loved ones. An average funeral in the United States may cost $10,000 or more, and this will include everything from the memorial service and flowers to the burial plot, transportation and other related expenses. In most cases, these expenses must be paid for within days of your passing, and the task of freeing up or locating this amount of money within a short period of time and while also mourning your loss can be stressful for your loved ones.
Many will need to sell assets or take on credit card debt in order to pay for these expenses, and this can create financial hardship for them in the future. Final expense insurance is available to pay for these expenses. The beneficiary can be named as a spouse or even as the funeral home where you have pre-arranged services scheduled.
Burial insurance for seniors is a type of policy that generally provides adequate funds to pay for the funeral but that does not provide for additional benefits. It also generally has a quick processing time so that it can pay for the expenses within a few days of the insured’s death.
Another reason why some seniors will purchase life insurance is to pay for estate taxes. Not all estates are subject to taxation, but those that are may lose up to half of their value or more because of estate taxes. In some cases, heirs are forced to sell assets, heirlooms and more that you have spent a lifetime amassing or collecting in order to pay the estate tax.
A senior life insurance policy can be purchased with benefits equivalent to the amount of the estate taxes. This is non-taxable money, so the benefits can be used to fully pay for the taxes. This will preserve the value of your estate. If you purchase a policy for this reason, it is important that the ownership of the policy remains in your name because of the taxation rules.
Some seniors will also purchase life insurance for people over 70 in order make a larger donation to charity after their passing. Seniors will purchase a policy with the charitable organization they want to support listed as the beneficiary. They simply make the small premium payments on the policy during their lifetime, and the policy will pay the death benefit to the charity when the insured passes away. The death benefits may be considerably more than the insured would otherwise be able to donate out of his or her own estate. Because of this, a life insurance used in this way can maximize the insured’s charitable donation.
Beyond Death Benefits: Other Uses of Coverage
Before you gather life insurance quotes over 70, it is important to note that there are other benefits associated with purchasing life insurance other than using death benefits in different ways. For example, a whole life or universal life policy will accumulate cash value over time. The cash value will grow based on a combination of premium payments and interest. The cash value can be used in a number of different ways, or it can remain in the policy as death benefits.
Whole or universal life is a type of permanent life policy, and this means that the policy will not expire. The benefits will remain in place for as long as the insured makes the payments. The cash value will continue to grow over time as well. The funds from the cash value account can be borrowed by the insured or withdrawn, and these are funds that can be used without limitations. Some will use the money to pay for a grandchild’s college expenses or to fix up the house. Others will use it to travel in retirement, to pay off debts or to purchase investments that can be used to supplement income in their retired years.
Making Senior Life Insurance Over 70 Affordable
There are many factors that affect the cost of life insurance, and two of the main factors are the insured’s age and health status. Generally, life insurance rates for those in their 70s may be much higher than if you purchased a policy in your younger years, and if you have health concerns or issues, the cost can be even higher. In some cases, some seniors may not qualify for a traditional life insurance policy at all. Other factors that will influence insurance rates include:
- Height and weight (weight as compared to height)
- Smoking status
- Health history
- Family health history
- Occupation and income
- Foreign travel frequency
- Amount of current life insurance in force
- Any dangerous or risky habits or hobbies
You will not know what the rates are for life insurance in your 70s unless you request a quote. Therefore, regardless of your age or health status, you can request a quote for the term life or permanent life policy that meets your needs. Term life may be available in lengths that range from 10 to 20 years, and the cost of the policy will also be dependent on the term length that you select. Shorter terms may be far more affordable than longer term lengths.
Another option to consider is a guaranteed life insurance policy. These will have a higher rate than other options, but they do not have a medical exam requirement or require you to complete a detailed health questionnaire as part of the application process. A smart idea is to apply for the term life or permanent life insurance policy that meets your needs initially. If you do not qualify for these policies, you can then apply for a guaranteed policy to obtain the coverage you desire.
Finding a great rate on the life insurance coverage you need can seem overwhelming and time-consuming, and you can save time and effort by requesting help from a life insurance broker. A broker can help you to determine the type of coverage you need and the amount of benefits that would help you to achieve your goals. In addition, he or she can help you to shop for the best rate on senior life insurance over 70.