Life insurance for seniors over 70 is a topic of interest to many as folks in that age bracket may incorrectly believe that they are not insurable. Please, read below.
Age And Life Insurance
Age is one of the elements that impacts the cost of life insurance. Everything else being equal, the older you are, the more expensive the policy will be. Consequently, the longer you wait to get life insurance the more expensive it will be. Even if you have waited this long to get life insurance, the good news is that it is still possible to get life insurance protection.
A Fully Underwritten Policy
First, you always need to consider a fully underwritten policy, which in many cases will be the least costly, and submit yourself to a medical exam. With the results of a medical exam the insurance company will have a better understanding of your health situation and thus be able to offer you the best possible premium based on your medical exam results. Or, for whatever reason, you may opt for a no-medical exam policy. What is important to know is that, depending on your health situation, you could still get life insurance even if you are 70, or even above 70 years of age.
What About Simplified Issue Life Insurance?
One possible answer for folks over 70 who are looking for life insurance is SIMPLIFIED ISSUE LIFE INSURANCE, which are whole life policies that do not require a medical exam but for the applicant to simply answer a few health questions. Your answers to these health questions will determine whether or not you qualify for a SIMPLIFIED ISSUE LIFE INSURANCE policy. After the death of a loved one, many families are faced with unexpected expenses, including medical bills, funeral expenses, legal fees and unpaid bills. There are a handful, or so, of life insurance companies that offer SIMPLIFIED ISSUE LIFE INSURANCE, which provide the funds to help the family with these expenses, if there are not enough resource in your estate.
If you qualify, you can have immediate protection or graded protection. On a typical policy, and as long as the required premium is paid on a timely basis, the insurance company cannot cancel the policy, cannot reduce your benefits and cannot increase your premium, regardless of the level of benefit approved. Immediate protection means exactly what it says, namely, the entire benefit is paid on day one if the insured dies. But, what if you do not qualify for immediate protection? For most individuals who do not qualify for immediate coverage, there is an alternative. You may qualify for a policy that provides GRADED BENEFITS. Under GRADED BENEFITS the policy will pay a fraction of the death benefit if the insured dies within the first year from the policy issue date (for instance, return of premium plus 5%); a greater fraction of the death benefit is paid if the insured dies on the second year of the policy(for instance, the greater of return of premium plus 10%, or 50% of the face amount); and, then, on year 3 and thereafter, 100% of the death benefit is paid. There are other variations of this formula, but not too different.
What Type Of Policy Do You Qualify For?
How do you know if you qualify for LEVEL (immediate) BENEFIT, or for GRADED BENEFITS? A typical SIMPLIFIED ISSUE LIFE INSURANCE policy contains a one-page (usually) questionnaire with health-related questions. It has either two parts of three parts. If you answer “NO” to any of the questions on the first part you will not qualify for any benefits under the policy. As an example of what the questions in part one are:
- Do you use a wheelchair, other than for a temporary impairment expected to last less than 2 months?
- Do you receive assistance with daily activities such as taking medications, bathing, dressing, eating or toileting? Home health care or hospice care?
- In the past 5 years – have you been diagnosed with, or received treatment for an organ or tissue transplant, Alzhemire’s disease, dementia, or amyotrophic lateral sclerosis (ALS)
- Have you tested positive to HIV, or been diagnosed with having ARC or AIDS caused by the HIV infection, or other sickness or disease derived from such infection?
- In the last 12 months – have you used oxygen to assist with breathing? Received kidney dialysis?
If you answered “NO” to all of the above (typical) questions (they vary from insurance company to insurance company), then you will move to Part 2 and sometimes Part 3, which will determine if you are eligible for LEVEL BENEFIT or GRADED BENEFITS.
At present, SIMPLIFIED ISSUE LIFE INSURANCE (sometimes referred to as “final expense insurance“) is issued up to age 85 and in amounts ranging from $2,000 to $75,000.
Can We Help?
We hope that this post has been helpful to you. If you have any questions, would like a life insurance quote, or would like to initiate the process of filing a life insurance application with one of the insurance companies that offer SIMPLIFIED ISSUE LIFE INSURANCE, please, e-mail us at firstname.lastname@example.org , or call us at our Toll Free Number (888) 950-8376.