Every day, seniors over 75 years old see life insurance offers on television, online and in the newspaper and magazines. This is a booming industry, but these policies are not all alike. Most of these policies promise significant benefits for very little money.
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The good news is…
While some actually do this, there are often exclusions that are only found in the fine print. Before signing up for a new life insurance policy for seniors over 75, it is best to do some research and perhaps discuss the decision with your family or your financial advisor.
More positive news…
As people live longer, the life insurance industry is targeting older individuals. Today’s seniors are healthier and more active than any in history. Medical research has also made significant strides in extending longevity. These make most of the current older population a safe bet when it comes to life insurance.
What chances are there to get an affordable plan?
Remember that the insurance market is very competitive. One company may offer a benefits package, and another may offer a better one. This competition for a senior’s money makes it easier than ever to get life insurance. The life insurance companies are continually updating and improving their policies as they try and attract healthy seniors who are financially stable.
One of the other benefits of this industry competition is lower rates and expanded coverage.
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What To Consider When Purchasing Life Insurance For People Over Age 75?
The first thing you need to understand is that even though life insurance policies for this age group are gaining in popularity, you’ll still pay more than a person who is 30. However, a senior in good health and with few chronic conditions can often find very affordable life insurance.
The most suitable type of policy:
A term life insurance for seniors over 75 is an affordable option. You can cover yourself for up to 30 years with such plan. There is whole life policy also that builds cash value over the period until you die as this type of policy expires as the policyholder dies.
Most of these life insurance policies feature graded coverage. This means the coverage gradually expands for up to two years following the initial purchase. This is the insurance industry’s way of hedging their bets in case a senior doesn’t survive for two more years. If this happens, many life insurance policies will only pay out the premiums paid up to that point.
Most good life insurance policies require a health exam before they will issue a policy. There are some that provide limited benefits without the physical exam, but the plans with decent coverage almost always require an exam. The cost for these types of policies is usually less expensive than one that doesn’t require a health exam. Even when there is no exam requirement, you may still be asked certain health-related questions.
A Guaranteed Acceptance Plan doesn’t require any type of health exam or any health-related questions. A senior is guaranteed some type of coverage under this kind of life insurance, but usually, pay higher premiums for limited coverage.
Seniors With Health Issues
If a senior has certain health issues, it can be difficult to find a decent life insurance. It may be best for a senior with health problems to apply for guaranteed life insurance since there is no health exam. They may be eligible for a policy that doesn’t require an exam but just asks some health-related questions. These types of plans may be the only options for a senior with serious health problems.
This is important…
Most life insurance companies understand that anyone over the age of 75 will probably have some chronic health condition. These companies are typically willing to 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 Elderly Over 75
This is why it is important to discuss your life insurance amounts with your family members before purchasing a policy.
You may discover you don’t need as much coverage as you thought which can help keep the premiums down. There are some common costs to consider when choosing a coverage amount.
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 full funeral today is almost $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 completely pay off 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 coverage amount of the policy is less than $50,000 it is usually quite easy for a senior over age 75 to find an affordable policy.
The next consideration is finding the right insurance company.
Choosing An Insurance Provider
When it comes to choosing an insurance company, most people go with the company that provides their homeowners 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 offer instant life quotes for you. All you need is clicking here and request quotes from multiple sources. Once this step is done and the providers return a quote, you need to compare and choose the best market rate. This way you ensure the lowest possible rate as well.