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Most likely you’re here in search on information on getting life insurance as a senior over 70 years old.
If that’s the case, you have arrived at the right place!
My article will go into great detail discussing the various types of options seniors 70 and older have when searching for life insurance.
My goal is for you to fully understand what life insurance options you have, and help you feel comfortable making a decision as to which life insurance coverage works best.
NOTE: Would you prefer me to present this information to you in video format? Watch the video below for the compete presentation on life insurance for seniors over 70. Enjoy!
Here’s An Overview Of Our Discussion On Life Insurance For Seniors Over 70:
- Best Life Insurance For Seniors Over 70
- Available Life Insurance To Seniors Over 70
- How Much Life Insurance Should I Have?
- How To Get Affordable Rates For Seniors
- Examples Of Possible Rates
- Should You Get The Cheapest Life Insurance Available?
- Qualifying For Life Insurance As A Senior Over 70
- Exam Or No Exam?
How To Figure Out What Life Insurance Option Is Best
Ever wonder what the best life insurance is for seniors 70 and older?
Here’s the thing… there’s no such thing as a “best” all-around life insurance plan.
The truth is that each of us has a different definition of “best.” Best is always a relative term because what’s best for you may not be for someone else.
Everyone has unique reasons why they purchase life insurance.
Have you ever worried about your surviving spouse having enough money when you pass away?
If so, you’re not alone. Many want to replace lost pension income for their spouse when they pass away.
Or are you only worried about paying your funeral expenses?
Determine your insurance goals
My point is this. We all have different motivators, and my mission in this article is to help explain what life insurance types are best depending on your personal insurance goals.
The main question you want to ask is…
What do you want your life insurance policy to do for you?
This comes down clearly elaborating WHY you want life insurance, and matching the appropriate policy to your goal.
Life Insurance Options
There are different types of life insurance to seniors 70 and older.
You may have heard of all sorts of different types life insurance such as:
- Guaranteed acceptance life insurance
- Term insurance
- Whole life insurance (or burial insurance)
- Universal life insurance.
All these options pay a death benefit when you pass away. But all 4 policy types are uniquely designed and operate differently from each other.
My goal in this section is to describe in detail how each life insurance type works, so you can determine which program is most appropriate to your goals.
The good news is that there’s really only 3 different types of life insurance policies available, so explaining the details shouldn’t be too difficult to understand.
It’s likely one type of life insurance policy will suit you better than another. Either way, you’ll arrive at a more sound conclusion as to which type is best after taking time to understand how all 3 programs work.
So, let’s get started!
Term Life Insurance
The most common life insurance product sold is term life insurance.
Odds are high you’ve owned a term life insurance policy, and have seen ads on TV and in the mail for term life insurance many times.
Term life insurance is simple to understand.
If you die while the policy is in force, term life insurance pays a cash death benefit to your beneficiary.
Simple enough, right?
However, as with all things in life, there are pros and cons. Let’s cover those now.
The main attraction of term insurance is its lower premiums.
Term insurance is known as “pure insurance.”
Since there is no cash-value component, and with term only lasting a temporary amount of time (more on that later) compared to permanent coverage lasting a lifetime, term typically comes in at lower premiums.
Seniors over 70 who owe money on a mortgage or other financial obligation may find term insurance most attractive.
Here’s the perfect example.
Let’s say you have 10 years left on your mortgage, and you’re 70 years old.
You want to make sure that mortgage is paid off if you die before the 10 years are up.
A 10-year term life insurance product is a great idea. It’s the cheapest way to get coverage for a short period of time.
Term is the best bang for your buck when used to cover larger debts.
My experience is covering the mortgage is the most common reason seniors over 70 buy term life insurance. They want their loved one protected and living in their home if he dies before paying off the mortgage.
Term with a conversion option
One REALLY important option to include on your term life insurance if you’re 70 or older is a conversion option.
A conversion option converts some or all of your term insurance coverage into a permanent policy. Permanent policies don’t cancel because of age or health.
Conversion options allow you to have a solid back-up plan if you outlive your term life insurance.
You may still need coverage at the end of your term, and the conversion option allows for you to get permanent coverage without evidence of insurability.
In laymen’s terms, this means if your health has gone south, no worries. You are not required to answer health questions to convert your term insurance to permanent protection.
Even if you reach the end of the term and are on your death bed… no problem. You can convert coverage and have peace of mind knowing you have life insurance.
Watch out for the conversion deadline
Be aware of what your conversion deadline is.
Many term life insurance products have conversion deadlines before the policy ends. Meaning you have to decide to convert well in advance of the term ending.
For example, I tried helping a 73-year old client in South Carolina convert her term insurance policy she purchased through another agent.
Unfortunately, her term insurance conversion option canceled at 70, so the only option to get permanent coverage was to apply for a new life insurance program.
The good news is that there are term life insurance policies that allow conversion at any time while the policy is in force.
This is something we at Buy Life Insurance For Burial can definitely help you with.
Now we’ve covered the pros, let’s detail the drawbacks to term life insurance for seniors over 70.
Term life insurance is temporary life insurance. In short, term is terminating coverage.
Bottom line, if you outlive your term life insurance coverage, you don’t have life insurance.
You must ask yourself this very important question…
If I outlive my term life policy, will I still need life insurance coverage?
If your answer is “no”… term insurance may NOT be the best choice.
I was working with an agent in Florida who came across a couple near Titusville and Port Orange.
The husband made $3,000 monthly from his government pension plan.
Unfortunately, his pension is not transferable to his spouse when he dies. To make matters worse, his wife only makes around $1,000 a month in retirement. Neither have much savings.
When he dies, his wife will only live on $1,000 a month. That’s tough to do when your accustomed to living on a combined income of $4,000 monthly, right?
He figured life insurance would be a good idea in helping replace his income.
Here’s the problem…
Because his budget was tight, he had the opt for a term life insurance plan last into his mid-80s.
But if he outlived the term life cancellation date, he’s still facing the EXACT problem he is today.
Moral of the story…
This gentleman would’ve done MUCH better buying a permanent life insurance plan he couldn’t outlive.
But since he lived on a fixed income, he had to compromise and buy term life insurance.
It’s certainly better than nothing! But this is one of those situations where you REALLY have to think hard if a term insurance plan is appropriate or not.
It certainly might not be, and it may be more sensible to have a permanent plan in place to protect.
More difficult to qualify for
The last drawback to term life insurance is the difficulty to qualify for it as a senior in your 70s.
I’ve worked with large life insurance agencies that routinely help older populations with term life insurance. And their experience is that 7 out of 10 term life insurance cases of people 60 and older are declined or withdrawn!
That means only 30% of applicants get term life insurance coverage.
Why is this the case? Chiefly because term life insurance underwriters look at your entire health history to determine insurability. They take a very-detailed look at every aspect of your health.
As folks age, there tend to be more health issues. And even minor health issues may have a substantial impact on your eligibility to apply for term life insurance coverage.
The good news is that there are other life insurance options with easier underwriting criteria if you find yourself in this situation. More on this later.
Universal life has a couple of different names.
You’ll hear agents refer to it as flexible premium life insurance or also adjustable premium life insurance.
Basically, universal life is a “hybrid” between permanent life insurance and term insurance.
Universal life has a lot of moving parts that can put an insured person in a bad spot if not designed correctly. More on this later.
Like term life insurance, you can custom-tailor the length of time your universal life insurance policy lasts.
You can design it to last to age 80, 90, or 121 years old.
The other benefit is that you are not locked in to a fixed premium.
Ever have a rough month financially? If you have universal life insurance, you can lower you premium without losing the coverage as a temporary measure to keep the policy.
When a universal life plan is appropriately designed, it provides substantial coverage over a predetermined amount of time and can give more coverage per dollar of premium than other permanent products like whole life burial insurance.
Guaranteed Universal Life Case Study
I have a senior couple whose main insurance goal is to get the large death benefit payout possible.
Both are in very good health. They want their life insurance policy to last as long they live and not cancel at a future date.
I proposed what’s called a guaranteed universal life insurance policy.
Here’s how the policy works.
Guaranteed universal life (also called no-lapse universal life) provides the most permanent protection for the least amount per month.
As long as the policyholder pays the premium in a timely manner, they will not experience a premium increase.
The good news is that no-lapse universal life insurance plans are not the junk plans peddled back in the day.
These plans did not have a premium guarantee, and were poorly designed. Lots of seniors who purchased these plans the ’70s and ’80s are losing their coverage today because of these two issues.
A lot people in their late 60s and beyond are feeling the burn. They’ve had these universal life insurance plans for 20 to 30 years or longer without issue. And suddenly they are experiencing premium increases they thought would never happen.
Understandably, they’re very angry. All because these plans were poorly designed.
This is why I’m a HUGE advocate of the guaranteed universal life insurance policy. As long as you make your premium payments, the risk of lapsing is eliminated. And you can rest easy knowing your coverage will pay out at any point you pass away.
First, a poorly designed universal life plan can cancel prior to you passing away.
For example, it’s may work fine for a number of years, but then you suddenly see a rate increase letter in the mail.
I’ve met countless people with poorly designed universal life insurance where the premium was skyrocketing.
There’s someone in my neighborhood in Tennessee in his late seventies that this was happening to.
There was no way he could qualify for anything remotely similar at his age. He had severe rheumatoid arthritis, and required assistance doing activities of daily living.
Bottom line, be very careful with universal life. Make sure you understand how the policy works before jumping in.
Whole Life Insurance
Let’s switch gears and discuss whole life insurance for seniors over 70.
Whole life insurance provides lifetime protection with a fixed premium.
That means is that you cannot outlive your coverage as long as you pay for it, and the premium is fixed.
You pay the same price every month. It can’t go up or down.
You cannot be canceled due to age.
The biggest advantage of whole life burial insurance is that’s a no-hassle way to own life insurance without the worry for price increases or future coverage cancellation.
And because of that, whole life insurance is perfect for funeral expenses or any expense that must be paid upon passing.
More flexible coverage options
Whole life insurance is available in smaller coverage amounts than term life or universal life.
If you’re like most seniors I deal with looking for a simple burial insurance policy for $10,000 to $15,000 in coverage, whole life insurance does the trick.
Certainly, you can purchase more than $15,000 in whole life coverage. But, if all you want is a simple burial insurance policy, whole life insurance in that coverage range will take care of most of the cost of your funeral.
Have you experienced health issues?
Perhaps you’re a senior 70 or older and you have diabetes, cancer, or heart history. You worry that life insurance companies may decline you for less-than-perfect health.
The good news is that we have access to easier-underwriting products called simplified issue whole life.
In many cases, simplified issue whole life insurance is the perfect solution to getting quality life insurance that lasts your whole life without your health history getting in the way.
I’ve gotten hundreds of people approved for life insurance with a history of COPD, diabetes who take insulin, mental health problems, and even cardiac health history issues.
Many of these people were convinced they couldn’t qualify for coverage… until they met me and my team at Buy Life Insurance For Burial!
Naturally, I can’t tell you your exact options for life insurance coverage until we speak with you.
But hopefully this gives you hope that you DO have options as a senior 70 and older looking for life insurance, despite any health issues you have had.
If there are any drawbacks to whole life insurance, it’s that you pay more for less coverage when compared to term life insurance.
Why is this the case? Because you are buying the guarantees whole life insurance provides that term life does not.
Think of it this way.
When you buy a car with an extended, bumper-to-bumper warranty versus the same car that doesn’t, it only makes sense you’d pay more for the warranty, correct?
Same idea when comparing whole life to term life insurance.
And those guarantees count for a lot when you primary goal is to pay off funeral expenses.
Term insurance is designed to be temporary. It goes away at a certain point or it goes up so much that you can’t afford it.
Whereas whole life GUARANTEES your protection. You pay the premium, and you have coverage. The rates never go up, and it cannot be canceled.
How Much Life Insurance Should I Get?
Now you’re convinced that life insurance is important to you.
The next question you want to answer is, “How much coverage should I purchase as a senior 70 or older?”
Understand that you have TOTAL decision-making power on how much life insurance coverage you want.
I’ve seen people who literally just buy a $1,000 life insurance policy. Why? Because all they want is an affordable direct cremation plan.
In contrast, I’ve seen multi-million dollar life insurance policies purchased to solve estate problems like tax concerns and liquidity issues.
Bottom line, my clients purchase the amount of coverage that matches their needs and budget.
The policy that stays, pays!
I teach insurance agents who work with me that the policy that stays on the books, is the one that does the job for the client.
Budget is a HUGE issue with me. I want my clients to easily afford my life insurance coverage.
Nothing is more of a WASTE than dropping your overpriced life insurance policy after a short period of time.
So, the best thing you can do is work towards making sure ANY life insurance policy you purchase will fit your budget. Now and FOREVER.
Much of this process comes down to analyzing your insurance goals.
What obligations do you actually want covered? What financial problems do you want taken care of?
Those 2 questions are a good starting point to figuring out how much insurance you need and why you need life insurance.
Finding The Best-Priced Life Insurance Plan
There are actually two types of insurance agents you can work with. I’ll describe how they work, what they offer, as well as the pros and cons of working with either type.
A captive agent is a one-company insurance agent.
Here’s why this is a big deal.
Captive agents offer an extremely limited selection of life insurance options.
With limited options comes problems to the consumer. Odds are higher you’ll pay MORE in premium and NOT get the best life insurance package available.
Since captive agents are married to one company, they push that company on consumers without regard to better alternatives.
In short, captive agents may not give you the best value of coverage.
Instead, investigate working with an independent agent.
At Buy Life Insurance For Burial, we operate as independent agents. How is that different from captive agents?
We shop the major life insurance carriers for our clients to see who offers the best combination of competitive pricing and comprehensive value. That way you have the best odds of getting a better deal.
In many cases we can get superior life insurance coverage for our clients compared to captive agents. And at better rates, too.
Life Insurance Rates
We’re going to look at term life, universal life and whole life, and start with male and female, 70 years old, nonsmoker, preferred plus health quotes.
What you’re looking at here is the quoter software in my website. We have a 70 year old, male, nonsmoker, Preferred plus, and we’re just looking at some basic prices here.
This is a 10-year, $100,000 term life insurance plan.
Premiums are between upper $70s to lower $90s on a preferred health basis. Of course, we can do more than 10 years in some circumstances, but again, just a basic starting point.
Now we’re looking at a 70-year-old female, nonsmoker, $100,000 in coverage for 10 years for a term insurance plan.
Again, low $50s, mid $50s to mid $60s for preferred plus basis.
You’re looking at Sagicor here. This is usually who I do my business with for a no-lapse universal life plans.
This is an annual premium, but to give you a rough estimate, about $2,000 a year broken down on a monthly basis is roughly about $160 to $170 a month. That would be for a male who’s 70 years old for $50,000 in permanent protection through a universal life plan with no lapse guaranteed.
Now we’re looking at a 70-year-old nonsmoker, female, preferred for a no-lapse universal life guaranteed plan.
Again, Sagicor has really good rates. You’re looking at approximately about $130 to $145 a month for this particular type of plan.
And again, this is when you need the most death protection you can get and you don’t care about cash values or possibly taking a loan from your policy. You just want leave the most behind to your beneficiary. Sagicor is a really good option for that kind of coverage.
Now we’re looking at a $25,000 benefit for a male, 70 years old, nonsmoker for whole life insurance coverage.
You can see there’s a pretty big price increase. It’s almost the same price for $25,000 for many of these companies as it is for $50,000 through Sagicor.
So again, the reason we look at this particular type of plan is usually because of health issues. It’s better flexibility here, but $150 to $175 is what you’re looking at for a whole life simplified issue for a male, 70 years old, nonsmoker.
Then for a female, $25,000, age 70, nonsmoker, whole life insurance premiums, you’re looking at about $110 to $130. Again, depending on the company, depending on the underwriting.
Same situation here. Much more expensive relative to double the coverage for a no-lapse universal life guaranteed program.
Bottom line, people go with this because their health is just not the greatest.
We can go lower than $25,000. Remember, we can go down to even $1,000 in some circumstances, although most people get $10,000 to 15,000.
Is The Cheapest Life Insurance ALWAYS The Best?
Have you ever heard the term, “You get what you pay for?”
Perhaps you wonder if getting low-priced life insurance as a senior 70 or older is really a good idea?
Further, reviewing the premiums above, maybe that term life insurance premium is much more attractive than the guaranteed universal life or whole life insurance rate?
Here’s the truth. The price you pay IS important. But it isn’t the whole picture.
You also want to take my teaching earlier to help you match your goals with the most appropriate life insurance policy.
THEN… within that framework… work to find the most competitively-priced life insurance available.
Does that make sense?
Basically, I wouldn’t want you to jump at the $70 term life insurance policy without considering the consequences of outliving the coverage.
If you outlived the term life insurance, would you still need coverage? If so, the term insurance may not be the best choice.
Because… if you make the WRONG life insurance choice… you could waste thousands of dollars unnecessarily.
Moral of the story…
Don’t be cheap for the sake of being cheap.
Establish your reason why you need life insurance first. THEN find a competitively priced plan that matches your goals.
There are always exceptions to rules.
If you are extremely budget-restrictive and cannot afford what you want, consider a compromise on coverage amount or product selection.
The worst thing you could do is nothing when you KNOW you need life insurance coverage.
Some life insurance is ALWAYS better than NO life insurance!
Let’s talk about what you can expect moving forward with taking out life insurance.
First, find an agent or a company that you can trust. Someone that understands what you’re trying to accomplish.
Next, complete the application to see what you may qualify for.
Then, complete any supplementary underwriting requirements such as an exam or physical.
At this point, it usually takes several days to several weeks, even months (only in worst-case scenarios) for a final decision.
Again, it just depends on the complexity and the size and scope of what it is you’re trying to accomplish. The smaller policies are usually approved faster than the larger ones. Then ultimately you receive you’re underwriting decision.
Exam Or No Exam?
Many seniors 70 and older wonder if they’ll have to take an exam when applying for life insurance coverage.
Maybe you’re asking because you’d rather avoid getting poked and prodded.
If that’s the case, that’s fine. May life insurance companies will not require an exam.
However, some will.
So let’s discuss the pros and cons of taking an underwriting exam to qualify for life insurance coverage.
For the healthiest of seniors 70 and older, opting for an exam allows for more competitive life insurance premium pricing.
Seniors have two life insurance underwriting choices. They can opt for either non-medical policies that rely on historical medical records and no exam to determine insurability. Or they can opt for a fully underwritten application requiring an exam.
If I am dealing with an extremely fit and health senior 70 and, I commonly recommend an exam-based life insurance application to lock in the potential for better premiums.
As you can imagine, life insurance rates are higher in your 70s than they are any age prior, so opting for an exam can save significant sums of money.
Why are premiums potentially better-priced with an exam than without?
The more up-to-date information an insurance company analyzes, the better the underwriters feel in extending preferred rates to healthy people.
Non-medical applications only rely on historical medical information. This information may be incomplete and out-of-date. Plus, it may not accurately reflect what’s going on inside you right at this moment.
If you’re in healthy shape, I recommend getting an exam to lock in a better premium.
Understand that you may be REQUIRED to take an exam whether you like it or not. Typically this is the case when applying for large amounts of life insurance coverage. When we talk, I’ll let you know what you can expect.
Let’s go over the cons of doing an exam.
Exams extend the approval process, stretching approval from days to potentially weeks to months.
Simply put, there’s more moving parts. You have to schedule the exam, complete the exam, and underwriters must process the results. All that adds time to getting a policy issued.
And coverage may come back different than what you applied for.
For example, you may apply for preferred rates, but something unexpected from your exam comes back, and you’re either rated up or even potentially declined.
The good news is examinations are optional in most cases.
Most seniors I deal with aren’t looking for an enormous life insurance policy that requires the applicant to take an exam. Most companies are quite fine depending on your historical medical information only.
Either way, the option for an exam is YOUR choice in most cases. I want my clients to know their options and make a choice that best fits them.
If I were in your shoes, I’d want an agent telling me how to potentially save money on life insurance coverage. I think that’s the only right course of action.
Let’s recap how to qualify for life insurance for seniors over 70.
If you’re interested in qualifying for life insurance, whether its burial insurance, term insurance, or universal life, and you’re over 70 years old, call 888-626-0439 to speak with a live representative.
Please leave a voicemail if we don’t pick up. We are very busy daily working with seniors across the country. We’ll call back as soon as possible.
Otherwise, you can request a quote online by going here.
We deal with people all over the country from Hawaii to South Carolina, and we all do it electronically, over the phone, and through the mail.
Thanks for reading!