When you’re over 70, it’s tough to find an affordable life insurance policy – at least that’s what your local agent would have you believe.
While companies that specialize in auto insurance might turn you away, affordable life insurance is available after retirement age, even if you have a few health issues.
Here are some of the myths that we found on the internet about getting life insurance, and what the real truth about them is.
Myth #1: Applying for insurance at 70 is unnecessary
Some people will tell you that you don’t need life insurance after you retire, but if can prevent your loved ones from getting stuck with unforeseen medical bills or allow you to leave some money behind for them. For applicants in good health, term life insurance for seniors over 70 typically runs about $80 to $125 per month for a 10-year term and $100,000 of coverage.
If you still have some outstanding debts, financial dependents, or a mortgage, you might want to consider getting as much as $250,000 of coverage depending on your needs and your budget. However, it’s important to note that most companies will limit your coverage to five times your current income.
Myth #2: You have to choose between a retirement fund and leaving an inheritance
Term and some forms of permanent life insurance are extremely affordable, and they shouldn’t prevent you from being able to set aside money for retirement. To keep your insurance costs down, take a medical exam and avoid any life insurance policy that offers an investment component.
A GUL, or guaranteed universal life insurance policy, works just like term insurance and it can provide affordable coverage and level rates to age 120. These policies do not require an investment, and they are ideal for leaving an inheritance, estate planning, or pension maximization.
Myth #3: You will be denied because of your family’s medical records
Many people never even apply for life insurance because they are concerned that they will be considered as a “high-risk”. It’s important to note that in the insurance industry, “high-risk” clients are usually those with life-threatening jobs or people who have a terminal illness.
If you have a few health issues like high cholesterol, diabetes, or elevated blood pressure, don’t worry. Minor health issues like these should not prevent you from qualifying for an afforable life insurance policy. The same is true with family health history.
After the age of 60, most companies ignore your family history and instead focus on your current health. Having periodical physicals and keeping your weight within a reasonable range can help reduce your insurance costs as well. You may also consider layering more than one policy to save on future premiums.
Life insurance is available to most people until the age of 79, but some companies may have additional options to age 85. If you’re looking to get insurance this late in life, you’ll want to work with an independent insurance agent who can shop the market to find your best option.