It was not all that long ago that life insurance for people over 90 was not practical. What few insurance companies that would have offered such plans would have been exorbitantly expensive or never would have paid out the full premium. However, thanks to longer life spans and healthier living, more insurance companies are now offering this type of coverage for those 90 years old and older.
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Life Insurance for 90-Year Old Men & Women
Today, there are over a half-million people in the US who have reached the age of 90. With people born today having a 1 in 3 chance of living to be 90, today’s seniors are living in a world that provides better medical care, nutrition, and exercise opportunities designed to have you living longer and healthier than ever before.
This is the main reason why insurance companies are now willing to provide life insurance coverage to seniors over 90. However, the type of insurance that you choose will dictate how much you will pay for the policy over its lifetime.
Why Purchase Life Insurance?
For many seniors who have reached the age of 90, it may seem that life insurance is not a necessity. And for many seniors of that age who have saved up their money getting a policy may not be the right financial decision. However, there are good reasons why seniors should consider getting a good policy.
Financial Protection: For older adults who do not have the resources to cover funeral expenses, this is the perfect way to protect the finances of your spouse and family. The insurance will cover burial expenses which will not put your family’s finances in a hole.
Leaving a Legacy: You can choose a policy with benefits large enough to leave behind a legacy that can pay for college or act as a fund that helps get the first home. It’s a way to give the next generation a leg up on the world.
Best Types of Insurance for Seniors Over 90
The two basic types of insurance are whole and term. Whole or permanent life insurance is designed to last the rest of your life, and the benefit level can grow thanks to the interest rates that are applied. However, if you are just acquiring a policy whole life can be very expensive and frankly impractical because the added interest is simply not worth the investment.
Term life insurance is better suited for seniors over 90 because it is far less expensive and can be tailored to cover specific expenses. For example, a ten-year term life policy with benefit levels that cover burial expenses which on average reach $9,000 is well-suited to covering the needs of the policyholder.
Subsets of life insurance include normal, no medical exam, and guaranteed. If you are in good health, you may want to consider getting a policy that requires an exam because it will provide the lowest rates. However, you can choose one with no medical exam or a guaranteed version that means automatic approval.
The term coverage is the least expensive type of life insurance for seniors over 90. It is what you should consider if you want to have the right financial protection.