There is a notion that a policy like term life insurance is not available for elderly people. While age does play a factor in determining the kind of package you can buy, term life insurance can be definitely bought by people in their sixties or early seventies.
Most of the top insurance companies in the US provide term life insurance to seniors until the age of 70. The limit can extend up to 75 years in some states. However it is unlikely seniors can avail insurance on a permanent basis once you have reached retirement age.
Still term life insurance can be a good option to cover for the expenses in the event of you death
Assess the period of time until which your children would be dependent on your income.
Also calculate the length of duration until which your spouse will be dependent on your income until his or her own social security and retirement benefits kick in.
Estimate the duration by which the mortgage for your home would be paid off. Ideally it would be wise to have a policy that provides cover until the mortgage expenses are well taken care off.
A term life insurance policy can come in handy in variety of ways. These include
- Coverage of expenses in the event of death
- Transfer of business to next of kin
- Tax coverage of estate owned
- Mortgage expenses
Some of the considerations that go into determining the kind of term life insurance you are eligible for depend on the following
- Overall health
- Blood pressure
- Levels of cholesterol
- History of disease
- Usage of prescription medications
- Medical history of your family
- Existing medical conditions (Such as diabetes, heart disease)
Most companies subject their clients to a medical exam where the investor is checked for over all health. Doctors normally subject the seniors to the same medical tests they use for younger applicants. Senior citizens can also go in for a plan that requires no medical examination. These kinds of policies ideally range any where between $3000-$15000 and you can choose one that you think suits you best.
How much you need to spend on a monthly basis?
The rates for term life insurance for seniors are evaluated after taking into consideration a lot of factors such as age, gender, type of package and overall health of the applicant. For instance an elderly gentleman of 60 years who is in very good health might have to pay around $70 on a monthly basis over a period of ten years for a 250,000 insurance policy. On the other hand, a 65 year old man might have to pay $120 dollars for a similar duration and type of policy. At the age of 70 the monthly premium could stand at $250 and could increase substantially if you apply for it when you are older.
Selecting the right kind of term life insurance policy for seniors
It would be prudent to seek the services of an insurance agent who specializes in this kind of insurance. There are several different types of policies available in the market and picking the right one can be a little overwhelming. However every investor must look in to all plans to develop a better understanding of their own requirements. With the help of a certified agent it also becomes possible for you to acquire the best kind of policy that is available in the market.
One of the benefits to this is that you do not have to cough up more than what is necessary to pay for your insurance. And with term life insurance being brought for a specific period of time, it allows the investor greater control over how they allocate their funds on their insurance plan.