Why Do People Over 70 Need Life Insurance?

A lot of people associate life policies with younger adults. They think about needing to protect a growing family and home mortgage in case one of the breadwinner passes away. And so, many popular policies, are marketed to people who thirty to forty years old. But just because somebody has reached middle age, or even retirement age, does not mean they have outlived their need for life insurance.

Before we discuss ways to find a policy for an older person, let us look at some types of life insurance that an older person may want to buy.

Final Expense Policies

This is one type of coverage that is common associated with seniors who are already retired. It is actually a whole life policy that has been designed for an easier application process so people from about 50 to about 70 (sometimes 80) years of age can be issued a policy.

Keep in mind that when we discuss final expense (burial policies) we are talking about smaller face values from about $2,500 - $25,000. This is an amount of money that is usually meant to settle debts, pay for a funeral, and other things that are considered final expenses.

Simplified Issue

Some of these have a simplified application process, and this means that the applicant does not have to answer many health questions. Most people should be accepted because they only have to answer a few heath questions. In general, only those who already have a terminal illness or are in a nursing home would be declined. Death benefits should be immediate too, so this means that as soon as the policy as issued, the insured person is covered for the full value of the death benefit.

Guaranteed Issue

Another final expense policy asks no health questions at all, and it is always issued. How can insurers do this? Well, these policies are usually a bit more expensive than simplified issue policies. But the main difference is they do not have an immediate death benefit. In other words, the insured person must survive for an elimination period, which may be 2 or 3 years, before the full death benefit will paid. This is how insurers can offer to cover everybody.

These policies differ, but most of the time they will pay refund premiums, or sometimes pay a partial benefit, if the insured person passes away before the time period is up. Having to wait for the full benefit is a drawback, but since premiums are refunded, this may be a good option for some applicants. In fact, it may be the only option for some.

Business Insurance

Here is another common reason why older people need life insurance. They need it for their business. They may need to transfer an estate or guarantee financing. See, these days, many people are redefining the traditional retirement age. In my experience, almost anybody can find an insurer who will write a policy they need, if that person is willing to pay the premiums.

Finding Life Insurance For 70 Year Olds

If you need to find coverage for an older person to fund some sort of business transaction, it may be helpful to find an expert in the field who is used to working in the field of high risk policies. There are insurance agents who specialize in finding policies for older or less healthy people. These professionals can help you find the most affordable premiums, solve some tough problems, and make sure you are working with a top quality insurer.