Life insurance is a boon to the aged who can provide for their loved ones after they pass. With so many policies available, it is quite challenging to select the one that suits you best. What life insurance plan will work best for you? What’s the best amount? What’s the best insurance for you at this age?
Life Insurance for Seniors Varies
Life insurance for a senior over 70 is different and varies from company to company. If you plan to leave a substantial amount to take care of funeral expenses, you may want to check out options like Globe Life Burial Insurance, which has many choices. Besides having various insurance policies, they have whole life policies to cover children and term and whole life insurance for adults.
The premiums can range from mere $15 to $2,000 per month, and the proceeds can be used to clear mortgages or cover burial or funeral expenses.
What Is Best For Seniors At 70?
While considering insurance, there are a few questions you need to ask yourself:
- How much coverage do you want?
- Which policy suits your family best?
- How much insurance premium can you afford to pay?
- Is getting approved for a policy difficult?
You need first to take stock of your financial situation before you can answer these questions. How many dependents do you have? Are there any ongoing mortgages or car payments that will go on after you are gone?
If you have anyone in the family who is financially dependent on you, it is advisable to include them as beneficiaries. With medical bills and estate taxes to be taken care of, and final expenses (burial expenses) costing anywhere around $9,000 or more, you need to decide which policy suits you best.
How Much Coverage Is Ideal?
Calculating how much coverage you need depends on several factors like whether you have a spouse, your family’s size, your assets, and debts. Financial experts recommend having an insurance policy valued at least ten times your annual income. People have insurance coverage provided by their employers; however, these policies terminate after retirement, though you still have bills to pay.
While considering an insurance policy, you need to include debt repayment, medical bills, and final expenses. Some people prefer to leave behind financial gifts for their loved ones or to charity. As needs keep changing with time, you need to consider all the factors before deciding how much coverage you need.
Besides the above, you have different types of policies to consider:
Term Life or Whole – Which is better?
Your age, gender, and budget are the things to consider when deciding between Term Life and Whole. If you go for a Term Life policy, renewals become a problem as you age. Comparatively, a Whole Life policy is a smarter choice for seniors pushing 70.
Term Life for seniors
Term life insurance benefits are paid when death occurs when the policy is still valid. The average period for a term life insurance policy is between one and 30 years. Such policies do not have any additional benefits. If you opt for a level term policy, the benefits do not change throughout the tenure.
If you prefer a decreasing-term, the benefits decrease with each passing year. You can check the options like Global Life Burial Insurance for premiums based on your age and gender.
Whole Life for Seniors
These insurance policies are permanent life policies, entitling the beneficiaries to benefits regardless of when the insured dies, provided the policy is live.
Policies like these are referred to as ‘burial insurance’ or ‘final expense insurance’ policies. Many people simply take out a policy like this, to address their final expenses and funeral costs. As a consumer, you’d be able to choose from well known companies such as Colonial Life, Lincoln Heritage, or AARP final expense insurance.
Most whole life policies last until the death of the insured, and if there is sufficient cash accumulation, you are entitled to take loans against that. If the loan is not paid at the time of death, the amount is deducted before disbursement.
Summing it Up
Insurance policies are undoubtedly a boon to seniors who are 70+. However, the trick lies in selecting the right type of policy, which depends on various factors detailed above.