If you’re in your 70s and looking for life insurance, your options may be limited, especially if you aren’t in perfect health.
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Some insurance companies offer term life insurance for seniors, but you must undergo (and pass) a medical exam. If the medical exam determines you have chronic illnesses or factors that lead to chronic illnesses (such as high blood pressure), your premiums could be astronomical.
Fortunately, there’s a solution – guaranteed life insurance.
With guaranteed life insurance, everyone qualifies for coverage. Of course, it has higher premiums because it’s guaranteed, but there are benefits to consider.
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1. Perfect Health isn’t Required
This is the most significant benefit of guaranteed life insurance. You could have major health issues and still qualify.
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There is a catch, though.
It has a two-year waiting period. If you die in the first two years of buying the policy, your loved ones won’t get the full death benefit. Instead, they’ll only receive the equivalent of the premiums you paid plus a small percentage, usually 10 percent.
So it doesn’t work if you have a terminal illness but does if you have other issues that aren’t terminal.
2. It Covers Final Expenses
Most seniors need final expense insurance instead of coverage to leave money behind for loved ones.
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If you went through the money you had set aside for your loved ones because inflation caught you off guard or your expenses were higher than expected in retirement, a final expense policy can cover the difference.
You’ll need only an average of $25,000 for life insurance, which lowers your premiums and provides your loved ones with funds to cover your final expenses.
3. Guaranteed Life Insurance Doesn’t Expire
Even if you qualify for term life insurance (you must be younger than 80), it doesn’t last forever. Most companies allow seniors to secure coverage for up to 10 years. So if you buy a policy at 70 and are still alive at 80, you won’t have any coverage.
A guaranteed life insurance policy is a permeant insurance policy. As long as you pay the premiums, you have coverage for life. Using the same example, you’d still be covered if you buy the policy at 70 and live to 95.
4. You can get Coverage up to Age 85
Most insurance policies have a cutoff of 70 years old, some even younger. Guaranteed life insurance policies, however, are available for purchase up to age 85.
This offers options for seniors who outlive their expectations and spend more money than expected. If you don’t have money for your loved ones to cover your final expenses, you can take out a small guaranteed issue policy for peace of mind.
5. The Death Benefit Remains the Same
With a guaranteed life insurance policy, you don’t have to worry about the death benefit decreasing as you age. The amount of insurance you buy from day one is what your loved ones get when you die. It doesn’t matter how old you are when it happens.
The only reason your loved ones wouldn’t have coverage is if you missed premiums. Most policies have a grace period. You might lose coverage if you miss your payment after the grace period.
Make sure you can afford the policy before buying it so you don’t waste money on a policy you can’t afford long-term.
Guaranteed life insurance is suitable if you aren’t in perfect health but need life insurance.
You’ll get the coverage you need (up to age 85) and can ensure your loved ones can cover your final expenses. It’s slightly more expensive than other policies, but with the lower coverage amount and lack of need for a medical exam, the pros usually outweigh the cons for seniors.