At IBUSA, we understand that most people in their 70s are not looking for a multi-million dollar life insurance policy. Instead, they often face the decision of what to do with an expiring policy or whether to purchase a small policy to cover final expenses and burial costs.
That’s why we want to take a moment to discuss the issues that someone in their 70s might encounter when trying to answer these questions. We also want to provide valuable advice for those who choose to purchase a new life insurance policy at this stage in life.
In this article, we will address several key questions, including:
- What types of life insurance policies are available to 70-year-olds?
- How much does life insurance cost for ages 70-79?
- How much life insurance can I qualify for?
- What are the pros and cons of purchasing a burial life insurance policy?
- How can I improve my chances of finding the best life insurance policy for me?
So, without further ado, let’s dive right in! We are committed to helping our clients make informed decisions about their life insurance options and finding the right solution for their individual needs.
What type of life insurance policies are available to 70-year-olds?
If you’re 70 years old, you are still eligible for different types of life insurance policies available in the marketplace. However, certain products may not be available to you, and you may need to meet specific requirements to qualify for coverage.
For instance, while you may qualify for a traditional term life insurance policy, insurance companies may not offer you a 30-year term policy. Instead, you may only be eligible for 10, 15, or 20-year terms.
Moreover, most insurance companies will not offer any no-medical-exam life insurance options above $50,000. If you are looking for more coverage, you will likely need to have had a recent physical exam with your primary care physician within the last six months, and an EKG may also be required during the application process.
Final expense insurance is a popular option among many 70-year-olds who want to leave a little something behind to their family to cover their final expenses and burial costs. The good news is that we work with some of the best final expense insurance companies and can help you compare policies and quotes from each.
At IBUSA, we are committed to helping our clients find the right life insurance solutions to meet their unique needs, and we can guide you through the process of choosing the most suitable policy for you.
Life Insurance Rates Ages 70-79
The following term life insurance rates are for 70 year olds. One thing to take notice of is that the term lengths available for 70 year olds is limited to 15 year term life insurance or less.
So, now you have seen term life rates, but what about smaller whole life insurance policies for final expenses and burial costs?
The following table shows whole life rates for ages 70-79. All whole life insurance quotes shown below are guaranteed to stay the same for your lifetime.
How much life insurance can I qualify for?
Qualifying for coverage beyond $50,000 can be challenging for those in their 70s, especially if they are retired and not earning any “active” income that would disappear at the time of their death.
Most life insurance companies use a formula to determine how much coverage one can purchase based on their age. For those up to 70 years of age, this formula generally allows them to buy up to five times their annual “active” income.
However, beyond 70 years of age, this number drops to zero and is decided on a case-by-case basis. This approach considers how much insurance would be required to make your family “financially whole” if you passed away, rather than how much insurance you can afford.
You can use our life insurance calculator to get an idea of how much coverage you ideally need. At IBUSA, we can help you navigate the process of determining the most appropriate coverage amount for you and guide you in finding the best policy to meet your unique needs.
Your total cost for years of retirement at per year is:
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Now, the good news is that income from pensions or retirement benefits that would disappear at the time of your death is likely to be considered as “active” income and could be used to determine the amount of coverage you can qualify for.
However, it is important to make this clear to the insurance company you’re applying with, as it may not be automatically included. Working with an experienced agent can help avoid any unnecessary delays or denials.
What are the pros and cons of purchasing a burial life insurance policy?
Now that we’ve established that individuals in their 70s can still theoretically qualify for a traditional term or whole life insurance policy, it’s important to focus on those who can’t qualify and instead need to consider final expense insurance. These individuals are likely to have been diagnosed with a pre-existing medical condition that prohibits them from qualifying for traditional coverage.
The good news is that there may still be a type of life insurance policy they can qualify for. However, this type of policy may not be exactly what they’re looking for. That’s why it’s important to discuss Guaranteed Issue Life Insurance Policy, its pros, and cons.
Guaranteed Issue Life Insurance Policy Pros:
The main advantage of a guaranteed issue or final expense life insurance policy is that it is a life insurance policy that just about anyone can qualify for, regardless of their past or present health condition. This means that even if you currently have cancer, heart disease, or other chronic and/or life-threatening medical conditions, you still have a chance to qualify.
The requirements are simple. To qualify for a guaranteed issue life insurance policy, you need to be a US citizen, live in a state where guaranteed issue life insurance policies are offered, and meet the required age limits when applying (typically 45-85 years of age, with some exceptions). This is great news for those who cannot qualify for any other type of life insurance policy.
Guaranteed Issue Life Insurance Policy Cons:
When advising clients about the potential “cons” or “weaknesses” of a guaranteed issue life insurance policy, we generally focus on three main points.
The first weakness is that these types of life insurance policies only offer a limited amount of insurance coverage, usually $25,000 or less. If you’re looking for more coverage, a guaranteed issue life insurance policy may not be a good fit for you. It may be possible to purchase several different guaranteed issue life insurance policies from several different life insurance companies to increase your total coverage, but this leads us to the second potential weakness of a guaranteed issue life insurance policy: cost.
Guaranteed issue life insurance policies tend to cost more for the amount of coverage they offer than other types of life insurance policies. However, if you’re not able to qualify for other policies, it probably doesn’t matter.
The last weakness is a specific “clause” written into every guaranteed issue life insurance policy that limits when the policy will cover an insured for natural causes of death such as heart attack, stroke, diabetes, and Covid19. This clause is commonly referred to as a Graded Death Benefit and will usually last for the first two to three years, depending on the insurance company.
While some may view the graded death benefit as a scam, it’s important to remember that this clause protects insurance companies from insuring someone who is really sick. There is no underwriting with a guaranteed issue life insurance policy, and insurance companies won’t require an applicant to take a medical exam or answer any health-related questions. The graded death benefit is the only way for the company to financially protect itself.
If you die from a natural cause during the graded death benefit period, most companies will return all of the premiums paid, sometimes even a percentage more, to your beneficiary. Additionally, these types of life insurance policies provide immediate coverage in the event of an accidental death, so at least you’ll have some protection once you’re insured.
What can I do to improve my chances in finding the best life insurance policy for me?
Here are some tips to improve your chances of finding the best life insurance policy for you if you’re applying for life insurance in your 70s:
- Work with an experienced agent: It’s important to work with an experienced agent who specializes in helping seniors find life insurance policies. They will be able to help you navigate the process, answer any questions you may have, and find the best policy to meet your specific needs.
- Consider all options: Don’t limit yourself to just one type of policy. Explore all available options, including term, whole life, and final expense policies. Each has its own pros and cons, and you may find that a combination of policies is the best solution for your needs.
- Be honest about your health: When applying for life insurance, it’s important to be honest about your health history. This will help ensure that you are getting the right policy for your needs and that you won’t be denied coverage or have your policy cancelled later on.
- Understand the policy terms: Make sure you understand the terms of the policy you are considering, including the premiums, coverage limits, and any exclusions or limitations. This will help you make an informed decision and avoid any surprises down the road.
- Compare quotes: Get quotes from several different insurance companies and compare them to find the best policy for your needs. Don’t just go with the first policy you are offered, as you may be able to find a better deal elsewhere.