If you are past the age of 50, you may not know that you can still apply for a term life insurance policy. As time passes, it’s natural to think about the financial future of the people you cherish most. Term life insurance for senior citizens may help address some of these needs.
Life insurance for seniors may help compensate for future expenses that your retirement savings may not cover.
You can also use term life insurance to help beneficiaries:
• pay off a mortgage
• cover estate taxes
• afford payment of final expenses
• transfer a business
“Health is an important factor in evaluating people for life insurance,” says Roger Wohlner, Chicago-based Certified Financial Planner and prominent financial blogger. “Providers become more stringent when you’re in poor health as you age.”
All life insurance companies may evaluate your physical health when quoting you for a term life insurance policy. Age, gender, height, weight, blood pressure, cholesterol, history of family illnesses and prescription medications may be considered when evaluating life insurance for senior citizens. Physicians may generally administer the same paramedical exam they might perform on a younger life insurance candidate. If you’re concerned that your general health condition could prevent you from being approved, some providers (such as Gerber Life) may offer an option to insure people ages sixty and over with no medical exam. These policies generally range from $3000 to $15,000 in value and may be marketed for use by seniors.
It could be a rare event that insurance providers will issue a permanent life insurance policy to senior citizens over sixty. However, you may be issued a term life insurance policy for up to ten years from some of the leading providers as a senior citizen. You may be able to receive a 10-year term life insurance policy until the age of 70; in some states, like Arizona, seniors may be issued a policy until age 75.
When you’re a senior, it is important to consider the benefits of purchasing a term life insurance policy as soon as possible. Monthly rates for term life insurance policies may increase significantly on an annual basis. For example, a person at age 60 in great health and no history of family illness might pay $68.76 monthly whereas someone with the same medical standing at age 65 may expect to pay $117.37 for a 10-year $250,000 life insurance policy with MetLife. At 70, the same person might pay $223.56 monthly and at 75 could pay $431.91/month for the same policy.*
“Too much life insurance is sold rather than bought,” says Wohlner. His best advice: “Seniors should first determine what it is they want to insure against and figure out what type of protection makes sense for them.”
In other words, you might want to figure out what your beneficiaries’ financial needs will be. Then, you may want to determine how much insurance you’ll need to provide for their financial future. If you do decide that life insurance for seniors may help cover your needs best, you should ask around and find a good professional that will not “sell” you on policies.
*Policies based on a 6’, 190-pound male for a 10-year $250,000 term policy at the ages described. Quotes are based on MetLife rates as of October 11, 2011. Rates are subject to change.
Related Articles:
