While it might seem like you’re out of options, over 70 is in no way too old to get life insurance. There might not be as much variety, but there is still plenty. This article will explore some different options. We will also offer some tips to help find what will work best for you.
In this article, we’ll be sharing ways to find the best and most affordable life insurance for you.
At any age, the key to finding the best life insurance is knowing all of your options. This especially applies once you reach your 70s. Use our Instant Quotes tool to get help with rates. Later on, we’ll share some sample rates for both men and women in their 70s.
How to Save Money on Life Insurance
Here we’ll share some tips on how to save money when buying life insurance. There are a lot of things you can do to lower your rates.
Explore all your options. In just a few steps you can find a policy that will work for you.
Know How Much Coverage You Need
One easy way to save money is to avoid buying more insurance than you need. You don’t want to overspend, but it’s also important to not get too little in death benefits.
There are different options for everything from comprehensive estate planning, to just covering funeral and burial costs. Knowing what you need is key.
Especially once you’ve retired, it’s not always sensible to base your insurance off of your income. By using a life insurance needs calculator, you can find out exactly how much you should be buying. This way you won’t pay a dollar more than necessary.
Consider Renewing or Converting
Just because you might currently have a life insurance policy, doesn’t mean it still fits your situation. For example, if your health isn’t as good as it once was, you might want to consider renewing or even converting your policy. (This only applies to policies that allow renewing.)
However, this is only a good option if you act before your current policy expires. If not, you will have to reapply completely.
Read through your contract or call your agent to find out if this will work with your policy.
Renewing your policy will allow you to extend your coverage while still staying in the same health class. This is good for situations where you still need the same coverage, but your health isn't as good at it used to be. This may cause your rates to increase, but it is cheaper than entering a lower health class.
On the other hand, if your health improved from when you took out your original policy, consider requalifying. This can improve your health class. It will mean talking to your insurance provider or even switching policies or companies. The extra effort is worth if you can enter a better health class.
Use an Independent Agent
Working with an independent agent versus a captive agent can make all the difference. An independent agent isn’t tied to any one company, so they can shop around for you and find the best rates between all of the different providers. A captive agent only sells from their company.
An independent agent can help you find all the options available to you. You don't have to do all the research yourself. They'll even comparison shop for you.
Do You Even Need Insurance In Your 70s?
Not everyone does. For people who do, the reasons and the type of insurance they should get will vary by their circumstances.
If You Have Dependents
If someone like a wife, child, or grandchild are depending on your income, life insurance is one way to ensure they’re taken care of.
A life insurance policy can cover their expenses and provide for them after you pass.
Some people choose to pass money on to their heirs to inherit family money without paying excessive estate taxes.
For high net worth families, there are ways to minimize estate tax burdens through life insurance. Premium financing is a particularly clever method if you have a net worth of over $5 million.
Live Off The Cash Value
There are types of policies that can augment your retirement income if appropriately structured. We recommend using an Indexed Universal Life policy.
Make sure you work with an agent who has experience customizing IUL policies. They need to be tailored to the person.
What Type Of Policy Is Best In Your 70s?
One of the most important things when purchasing life insurance is finding the kind of policy that fits your situation. The main decision is between term and permanent life insurance. Term is cheaper, but there are pros and cons to both types.
Term Life Insurance
In short, a term life insurance policy will provide a death benefit if the holder dies before their term expires. You can renew if you outlive your term and you're within the issued age range. However, there is no savings component with term life insurance. It is only a death benefit.
Term is also much cheaper than permanent life insurance. Because there is no guarantee the life insurance company will have to pay out, since you might outlive your term, they charge much less. Term usually costs 10% of what a permanent life insurance plan with the same benefits would cost.
Beyond age 70, you can no longer buy insurance with a 20-year term. Policies with 10 or 15-year terms are still available.
Term Life Insurance Rates for Men Age 70 to 79
These quotes are for a 70-79 year old non-smoker in moderately good health. If you are in excellent health, your prices may be even lower. Use our Instant Quotes tool to compare rates.
Term life insurance beyond 10 years is not available once you reach age 79.
20-year terms are only available at age 70. Beyond that you can only get shorter terms or whole life insurance.
Term Life Insurance Rates for Women Age 70 to 79
These quotes apply to a woman in moderately good health who doesn’t smoke. Rates will be different for everyone in regards to their own health. If you are in excellent health for your age, your rates could be lower.
Our Instant Quotes tool can help you compare costs and benefits between different insurance companies.
A 10-year term is the longest term you can get at age 79.
20-year terms are only available to 70-year-olds.
Permanent Life Insurance in your 70's
Permanent life insurance is currently the most popular type of life insurance in the U.S. Unlike term life insurance, permanent life insurance does not expire. A death benefit will be given no matter when the holder dies.
Another key difference is permanent life insurance may include a savings component. This builds cash value and can be borrowed against, or even in some cases, withdrawn and spent.
The biggest asset to permanent life insurance is estate planning. It can be used to leave money for family members, pay medical bills, or cover any final expenses among other things.
The universal life rates you see here are guaranteed to last all the way to age 121. A121 denotes to age 121 in the charts below. You can also get life insurance to age 90, 95 or 100 which will be slightly less than to age 121.
Universal Life Insurance Quotes for Men Age 70 to 79
The rates in the following tables represent men who don't smoke in relatively good health. If you're in great health for your age, your rates could be even lower. There are other types of permanent life insurance, but those need to be customized for the insured.
Universal Life Insurance Quotes for Women Age 70 to 79
These rates reflect women at different ages in their 70's in decent health who do not consume any tobacco products. Use the Instant Quotes tool on this page to compare rates for different health classes. You can get other types of permanent life insurance, but they're more specific to each individual.
Final Expense Life Insurance
The third type of life insurance to consider is final expense. These are smaller life policies that last for your whole life.
Think term life insurance pricing for a permanent policy.
The downside is the benefits are small compared to other types of insurance. Most companies cap the death benefits at $25,000 since it’s designed to cover funeral expenses. You'll notice a few that offer up to $50,000 that we've listed in the tables below.
This type of policy works best for people who might find traditional life insurance outside of their budget. It offers the peace of mind that a family member will not be stuck with the bill for any burial expenses.
Final Expense Life Insurance Rates for Men Age 70 to 79
Final Expense Life Insurance Rates for Women Age 70 to 79
What If I Have A Pre-Existing Condition?
While it might add a few extra hurdles, a pre-existing condition won’t make it impossible for you to get life insurance. Here are a few things to keep in mind when looking for life insurance with a pre-existing condition.
Let Your Agent Know
A pre-existing condition shouldn’t stop you from getting insured, but it is essential that your agent knows. Companies have different options and rates for various conditions. Some will charge more than others. An independent agent will be able to shop around and find the best prices for your situation.
This doesn’t just apply to conditions you currently have. Let your agent know about past medical problems. Anything that could influence your lifespan can affect your costs.
Independent agents can also do something called pre-screening for you. They approach insurance companies, while keeping you anonymous, to find out roughly what health class they would place you in.
This prevents underwriting surprises. You won’t have to deal with offers two or three times higher than what you should be paying.
Guaranteed Issue Life Insurance
Even with the best independent agent, there are just some conditions that are difficult to insure. For example, a terminal cancer patient won't find a traditional insurance policy. However, there are still options.
Guaranteed life insurance is an option available to anybody, regardless of their health. You can purchase this type of coverage up to age 85.
The downside to guaranteed life insurance is, the premiums are higher in comparison to the benefits. This is the trade-off for not having health as a factor anymore. And, like term insurance, it does not include a savings component.
Another thing to keep in mind with guaranteed issue life insurance is graded benefits. This means the longer you hold the policy, the more money you will get in the payout. Most don’t issue a full payout until after the first two years. Instead, the company will usually just refund the premiums.
Normally, graded benefits resemble the following structure.
110% of premiums paid
110% of premiums paid
100% of the death benefit
However, if death is from an accident, the full death benefit is paid out from day 1. The 'graded' aspect only applies to death from health issues. If you cannot be approved for traditional life insurance, guaranteed issue can be a great option. Not to mention peace of mind for you and your family.
Life Insurance for Parents Over 70
We get a lot of questions about whether someone can get a life insurance policy on their parents.
The follow-up question is almost always some form of “Can I get life insurance on my parents without their knowledge?”
You can’t. There is almost always some part of the application that the insured person needs to sign.
The most important thing to keep in mind about life insurance on your parents is the three people who can be involved:
- Insured - the person the policy covers
- Policy owner - the person who owns the contract and usually pays the premiums
- Beneficiary - the person who will receive the death benefits
When the insured and the policy owner are different people (like in a policy on your parents), DO NOT name a 3rd person as the beneficiary. This gets into a bad place legally and possibly with the IRS.
Whatever you do, put yourself as the beneficiary if you own the policy. If a family trust owns the policy, it also needs to be the beneficiary.
The type of policy you get at this age will entirely depend on why you’re buying life insurance.
A term or final expense policy will be the least costly. However, they can’t help with situations involved in passing on family wealth.
On the other hand, a permanent policy doesn’t make sense for a family who is only looking to cover burial expenses. Get a final expense policy in this situation.
Save money by talking through your options with an independent agent first. Use a calculator to figure out exactly how much you need so you don’t over-purchase.
If you are not in your 70's, view guides for other ages here.
How Abrams Insurance Solutions Can Help
We’re a small group of independent agents looking to connect people with the best and most affordable policies for their family.
We take pride in working closely with clients to avoid underwriting surprises where policies come back significantly more expensive than quoted. In the rare case that does happen, we work with other companies to see who can offer a more reasonable policy.
If we can answer any questions for you, give us a call at (888) 905-0333 today. We’re happy to help, and there is never any obligation to buy.