Most people think of life insurance as a young person's thing. Something you buy to make sure you can support your children through their childhood. But there are other important reasons to get life insurance for a 70 year old.
It could be supporting a spouse or just making sure your estate has the money to pay for your burial. Adult children are buying life insurance for their parents in increasing numbers too. They know that they will likely have to shoulder the financial burden of paying for a memorial service if their parent's estate can't afford it.
You can check potential rates for term life insurance for seniors over 70 by using the Instant Quotes tool on the left. (Top if you're on mobile.) It will show you an instant comparison between top-rated companies who have been insuring families for generations.
Steps to Saving Money on Life Insurance for a 70 Year Old
There are a few ways to save money on life insurance for seniors. Not all of these will be right for every situation, so it's best to speak with an agent and your financial advisor about your options.
Get Quotes from an Independent Agent
There are two types of agents in the life insurance world. The first group is captive agents. Captive meaning they can only represent one life insurance company. The other group is independent agents. They can represent as many companies as they want.
When an agent only represents one company, they can offer many products. But all those product rates are determined by the underwriting health classes. The health class will be the same for a company no matter what product you choose.
The best way to make sure you're getting the best rates is to find a company who gives you the best health class possible. Independent agents compare different companies for you. They can use their experience to seek out the companies that offer the best rates for specific medical conditions.
Even if a captive agent has the best policy for your family, you cut down the work considerably by getting quotes from an agent who can look at several companies at once.
Re-qualify Instead of Renew
Sometimes your health improves. However, it's more likely that enough time has passed since a severe medical issue that the underwriters no longer worry about it as much.
If your term life insurance policy is about to expire and you have the option to renew, call up your agent. They may be able to find you lower rates somewhere else.
Layer Policies Instead of Getting a Big One
This one depends on your reasons for getting life insurance. If you need to cover several costs like a mortgage, supporting your spouse, and burial expenses, then it might be cheaper to get several smaller policies. You could get a decreasing term policy to cover the remainder of your mortgage. Then a little whole life policy will meet any needs your spouse may have.
You could also look into a second to die policy where it only pays out after both spouses pass. It's cheaper than buying two policies independently.
Layering policies allows you to get exactly what you need without overpaying. You won't have to overspend on an enormous policy.
Take the Medical Exam
Insurance companies aren't dumb. They know that if you are looking to skip the medical exam portion of a life insurance application, there is a probably a reason. That reason could be something as innocent as someone just feeling faint at the sight of a needle.
It's the life insurance company's responsibility to its clients to make sure it doesn't go bankrupt. So when lots of people are trying to hide or avoid medical issues, they try to get no medical policies. It makes sense. They pay less for better coverage than they otherwise might have gotten.
The life insurance companies have adjusted accordingly. They charge more for no medical policies. So if you are relatively healthy, it's worth it to spend the 45 minutes doing the medical exam to pay less for your policy.
Term Life Insurance Quotes for Seniors Over 70
Some companies offer surprisingly low rates for 10 and 20-year terms. The rates below are for 70 year olds in relatively good health who do not smoke.
Life Insurance Rates for a 70 Year Old Man
Life Insurance Rates for a 70 Year Old Woman
Permanent Life Insurance
Permanent life insurance for a 70 year old is one of the only options at many companies. Because the average life expectancy in the US for both men and women is in their 70s, options for term life insurance are getting a little scarce.
That's not to say that it can't be done, but permanent life insurance is often a more practical solution for why people buy life insurance in their 70s anyway.
Permanent life insurance is a more complicated product than term insurance. In addition to the death benefit (aka face value), there are things like the cash value accumulation feature and annuity products that can get rolled in. (Keep in mind that the US government forbids people from advertising life insurance as an investment product.)
The main difference is that with permanent life insurance, your beneficiaries will receive the payout at some point. Hopefully later rather than sooner.
Life Insurance Over 70 with No Medical Exam
You can save money on life insurance through taking the medical exam. But if you have an intense dislike for needles, then the no exam option may be worth the extra cost.
In recent years no exam products have plummeted in price because of the popularity of the option. After all, the exam takes time out of your day whether you drive down to the medical examiner yourself or have them meet you at your home. You also ought to prepare for it a week in advance to give yourself the best rates.
This leaves most people with a natural inclination to skip the extra work, if possible.
There is a second type of no exam product called guaranteed issue that asks next to no medical questions. These policies are best for people with serious medical concerns who might not otherwise qualify for traditional life insurance.
Life Insurance for Parents Over 70
You can buy life insurance for your parents. The catch is you must be a blood relative with a financial interest in their well-being (i.e., son or daughter.)
Your parents must also consent to the policy in writing by signing a couple of forms on the application. Some policies require a medical exam, and some won't.
The main pitfall to watch out for is to avoid making the policy owner, the insured person, and the beneficiary three different people. It can cause issues with taxes because the government thinks you're trying to find a tax loophole.
The most common case is when someone takes out and pays for a life insurance policy on their parent, then makes their child (the grandchild of the insured) the beneficiary. Avoid this by making yourself or the family trust the beneficiary.
How Abrams Insurance Solutions Can Help
At Abrams Insurance Solutions we work for our clients, not the insurance company. As independent agents, we focus on finding the best product at the lowest price for each family's unique situation.
Not every insurance company charges people the same. One company may charge more for high blood pressure whereas another may not care at all about it. It takes years of experience to best match the company to the family, especially with pre-existing medical conditions. Years of experience which we put to work for you.
The Bottom Line
As independent agents, we save you time and money by shopping the market for you. By working with over 70 of the best-rated companies in the nation, we can find affordable life insurance for nearly everyone.
Whether there is an adverse health condition or you're looking for a low-cost life insurance policy in your 70s, we can find it for you. Give us a call today at 858-703-6178.