You’ve seen the advertisements – life insurance for seniors over 75 years old. The commercials seem promising and even make the insurance seem inexpensive, but is it?
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The good news is…
There are great life insurance policies for seniors over 75, but many have exclusions that you’ll only know if you read the fine print. Before choosing a life insurance policy for seniors, it’s important to do your research and even talk to a financial advisor.
More positive news…
Life expectancies are increasing. Today’s seniors are healthier and more active than previous generations. Longer life spans make seniors a lower risk for life insurance companies, providing seniors with more opportunities.
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What chances are there to get an affordable plan?
Today, it’s easier to find the best life insurance for seniors over age 75. With more companies offering senior life insurance plans, you have more options.
The key is to know what you need. While you shouldn’t buy more life insurance than necessary, you also want to make sure you have enough coverage for your needs. Whether you’re looking for burial insurance or you want a policy that will leave behind a legacy for your loved ones, there are many senior life insurance options today.
With more options available today, you’ll find more plans, more pricing options, and term or whole life insurance for seniors you can afford.
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Table of Content
What to Consider When Purchasing Life Insurance for People Over Age 75?
If you’re over 75, it’s guaranteed you’ll pay higher premiums than someone in their 30s. It just makes financial sense. You are at a higher risk of death than someone younger than you.
But, that doesn’t mean you have to take premiums you can barely afford. A senior in good health and with few chronic conditions can often find very affordable life insurance.
The most suitable type of policy:
No two seniors have the same life insurance needs. Understanding your options is the key. You can choose a term life policy, covering yourself for a set term. This works well for seniors with debts with a specific end date or other expenses they want to be covered for their loved ones.
A whole life policy is an option for those who want coverage for their entire life and/or want to build a cash value.
Most life insurance for seniors over 75 feature graded coverage. With this coverage, seniors have a waiting period, usually up to 2 years. If you die within that period, your loved ones receive a return of premium plus a small percentage. This is the insurance company’s way of protecting themselves should you die shortly after buying a policy.
Most life insurance policies for seniors require a health exam before they will issue a policy. But, some policies offer benefits without the physical exam; you’ll pay higher premiums, though. Keep in mind, even when there is no exam requirement, you may still be asked specific health-related questions.
If you’re in poor health, a Guaranteed Acceptance Plan may be a better option. It doesn’t require a health exam or any health-related questions. A senior is guaranteed coverage under this kind of life insurance but usually pays higher premiums for limited coverage.
Most Affordable Life Insurance Plans for Seniors over 75
So what’s the best life insurance for seniors over 75? You have many options, but here’s what you should consider.
Term Life Insurance
If you’re in good health, you know how long you need coverage (to cover specific debts typically), and you can undergo a medical exam; term life insurance is a great option.
If you’re in your 70s, you may secure a 10-year term policy (sometimes more). A term policy lasts for the specified term. If you die within that period, your loved ones receive the death benefits. If you outlive it, the policy expires.
|Least expensive insurance option||If you outlive it, the policy expires|
|Straightforward and easy to understand||Doesn’t accumulate a cash value|
|Offered by many companies|
Whole Life Insurance
If you’re looking for a policy that provides more peace of mind, whole life insurance is an excellent option. It protects seniors over 75 for the rest of their life. Your loved ones will receive a death benefit no matter when you die.
Whole life policies also accumulate a cash value. You can use this cash value to supplement your retirement income, cover medical expenses or other personal uses.
Because of its cash value, though, whole life insurance is more expensive than term life insurance.
|You get coverage for your lifetime||Much more expensive than term life insurance|
|The cash value is like an investment that helps you in your time of need||You may not live long enough to use the cash value|
|Can be great for burial expenses|
Simplified Issue Life Insurance
Suppose you have medical issues that would make it hard to get traditional life insurance, but you can answer simple health questions about your overall health. In that case, you may qualify for this no-medical exam policy.
Simplified issue life insurance is the least expensive option among no-medical exam life insurance policies because it rules out significant issues, such as heart issues, major disabilities, HIV, and kidney disease.
Guaranteed Issue Life Insurance
If you can’t answer the questions for simplified life insurance, a guaranteed issue policy is the best life insurance for elderly people over 75. Everyone is guaranteed a policy, making the premiums higher, but you have the coverage you need.
Many seniors use this policy to cover their burial expenses rather than leaving the burden on their loved ones.
Burial insurance of end-of-life expenses insurance covers just what it says – the cost to bury you and/or cover your final medical expenses. If you aren’t worried about leaving a legacy or you’ve already set that up in your trust with other investments, a burial insurance policy ensures your loved ones have the money to bury you. These policies usually are worth $10,000 – $25,000 at the most.
Seniors With Health Issues
If you have health issues, it isn’t easy to find decent life insurance. Guaranteed life insurance for seniors is often the best option since there is no health exam.
This is important…
Most life insurance companies understand that seniors usually have chronic health conditions. Many companies accept diabetes, high blood pressure, and even some cardiac health conditions. If you have one or more chronic health conditions, it is best to discuss your health conditions with an insurance agent to find the best policy.
Selecting A Life Insurance Policy For an Elderly Over 75
Seniors have many decisions to make when choosing the best life coverage. Ask yourself:
- Do you need money for funeral costs?
- Do you have debts to pay off?
- Do you need to supplement your family’s income?
- Are you trying to leave a legacy?
You may find you don’t need as much coverage as you thought which can help keep the premiums down.
Do you Need Health Insurance Riders?
Seniors should always determine if they need insurance riders too. Riders are optional and each company offers different options, but a few riders to consider include:
- Accelerated death benefit – If you become terminally ill or disabled, you may need the assistance of your insurance policy to cover your financial needs.
- Long-term care rider – If you need to live in a nursing home or have skilled nursing care at home, a long-term care rider can help offset the expenses.
- Child rider – If you care for your grandchildren financially, you can add a child rider to cover them should they unexpectedly die.
How much does funeral cost today?
Depending on the type of funeral you want, burial costs can start at $500 and go up. The average cost of a traditional funeral today is $10,000. It may be possible to purchase a funeral expenses life insurance plan that will cover most of the funeral and burial expenses. It is recommended that the minimum amount of coverage for this type of plan be no less than $9,000.
What to do when you have debt?
If you have any debt, factor this amount into your life insurance coverage amount. You don’t want to leave your debt for your family to pay. You may have a mortgage, car loan, or other types of debt. Purchase a life insurance policy with a payout large enough to cover any debts you owe. If you live a long time and your debts decrease, any excess life insurance monies will be passed to your designated beneficiaries.
Calculating the face value or death benefit…
Once you have a total amount that includes both funeral costs and debt owed, double that amount in life insurance coverage. This should be the minimum amount you purchase.
Term life insurance is a good choice if you need to keep premiums down. If the policy’s coverage amount is less than $50,000, it is usually relatively easy for a senior over age 75 to find an affordable policy.
Choosing An Insurance Provider
When it comes to choosing an insurance company, most people go with the company that provides their home or car insurance. While you should certainly get a quote from them, it is also a good idea to shop around.
It is important to choose a life insurance company that has good standing in terms of the following:
- Quality & Coverage
- Good Customer Reviews
- Compliance with State Regulations
- Customer Support both Online and Offline
Get several quotes and then compare coverage. This will help you determine which life insurance policy is the best for your situation.
How Can I Get Life Insurance Quotes at 75?
We make it easy to find the best life insurance over 75. You can reach our instant life insurance quotes by clicking here and requesting quotes from multiple sources. You’ll receive quotes right away for you to compare and determine which one is right for you.