While some people may argue that the need for life insurance is only for those who are younger and have others who are counting on them for income, there are others who would argue that there is a need for seniors to have life insurance protection, too.
For example, there are many seniors who may need the income replacement that life insurance proceeds can provide should the death of one spouse cause the cancellation of pension income. In cases such as this, a surviving spouse could go from having a livable retirement income to having no income at all in an instant – essentially rendering him or her destitute, during an already difficult time.
With that in mind, life insurance is an important financial product for those of many different ages. Which leads to the important question – how old is too old to purchase this type of protection?
Life Insurance Throughout the Ages
When it comes to the insurance companies that offer life insurance, there typically is an upper age limit – but this age is oftentimes higher than most people might think. In fact, in many instances, life insurers will offer coverage to individuals who are up to age 85 – and in some cases, even older – depending on their health.
However, there are several important criteria to keep in mind when applying for coverage at this age. First, can an individual qualify based on his or her current health condition? Oftentimes, once a person is in the older age ranges, it is more likely that they will be afflicted with certain types of health related challenges.
If these issues are not serious, they may still be able to qualify for coverage. If, however, they have more adverse conditions such as cancer or heart disease, it is not likely that they will be admitted for the policy.
Those who do qualify for coverage may do so at a higher premium rate, in order to compensate for the insurance company taking them on at a higher risk. In these cases, the applicant will need to determine if the higher premium payment is worth the ultimate death benefit payout in the future. In many cases, the costs could outweigh the benefits.
Also, because the amount of premium based on a person’s higher age – and oftentimes adverse health condition – is usually quite high, the other criteria to consider is whether or not the premium is affordable from a budgetary standpoint.
Many retirees today are on a fixed income – and, because life insurance can be quite expensive the older that you are, the high premiums could become cost prohibitive. So, it will also be important to determine if there are other items in your budget that you would have to forgo if you purchased the life insurance policy.
What Other Potential Strategies Are Available?
If health is an issue, there are other potential options for life insurance coverage. For example, while some applicants may not qualify for a traditionally underwritten life insurance policy, a guaranteed issue plan could be a good alternative. These policies do not require that the applicant take a medical exam, and they usually only ask one or two questions on the application for coverage.
In addition, because there is no medical exam required, the coverage can usually be issued relatively quickly. The applicant can typically have his or her policy in place within a week or less.
It is important to note that because these types of plans are typically written on those who are the most “risky” in the eyes of the life insurance company, the premium will typically be higher than those of a comparable policy that is traditionally underwritten.
In addition, in many instances, the death benefits may also be paid out differently with a guaranteed issue policy. For example, it could be that if the insured dies within the first two or three years of policy ownership, the named beneficiary will only receive a return of the policy’s premiums rather than the stated death benefit amount. Therefore, in order for the beneficiary to receive the entire amount of the policy’s death benefit, the insured will need to have owned the policy for more than just a few years.
The Many Reasons to Consider Life Insurance Coverage
While there may not be anyone counting on you for income, there are still numerous reasons to have life insurance protection at an older age. These can include the payment of loans or debts such as a mortgage balance, credit cards, and / or car loans, as well as any business loans that you may have outstanding.
You may also want to leave a legacy. As one gets older, creating a legacy for a loved one or a charity that is close to your heart becomes more and more important. The purchase of life insurance can allow you to leave so much more than is otherwise possible by donating directly. For literally pennies on the dollar, a life insurance policy can allow you to donate exponentially to an important cause – and be remembered for many years to come.
Life insurance can also help you to keep certain promises. For example, by providing coverage that can fund a child or grandchild’s future college education, or pay for a grandchild’s future wedding, you will be able to follow through on promises that you’ve made to the people you care about most.
Going without life insurance at any age – young or old – can be a serious financial decision, and it is one that everyone should consider carefully. Therefore, it is important to review your overall financial plan, and to determine where life insurance fits and what gaps this protection can fill with regard to you and your family’s specific goals and needs.
How to Compare and Find the Right Life Insurance Policy and Premium for You
In order to compare and find the right life insurance policy and premium for you – regardless of your age or your current health condition, the best way to go about it is to work with a company that has access to more than just one insurer. This way, you will be able to pick and choose from a number of different options.
When you’re ready to begin the comparison process, we can help. At InsureNow365 with many of the top rated life insurance companies in the market place today, and we can get you all of the pertinent information that you need – quickly and easily – directly from your home computer. You won’t need to meet in person with a life insurance agent, and you can have the data that you need within seconds, not days or weeks. You won’t need to sift through endless or confusing piles of paperwork, but rather we provide you with easy to read, side by side policy and benefit comparisons. When you’re ready to begin, just simply use the form on this page to get started.
If you should happen to have any questions at all along the way, please feel free to give us a call, toll-free, at 888-229-7522. We understand that purchasing life insurance can at times seem overwhelming, so we want to ensure that you have all of the information that you need to make a well informed choice. Contact us today – we’re here to help.
Perhaps you’re concerned because of health conditions such as someone needing life insurance with lupus; we can answer your questions and help you get the coverage you deserve.