Seniors Over 70 Years Need to Consider Many Things Before Buying Life Insurance
Life insurance is crucial for retirement and estate planning, especially when you are over 70 years. Life insurance providers earn money by taking more than they reimburse. This is done carefully after considering each policy’s risk or you can say the possibility of policy holder dying during the policy period. Senior citizens over 70 years are regarded as high-risk carriers according to life insurance companies.
photo/Steve Buissinne via pixabay
Why life insurance carriers are wary in approving policies to seniors over 70 years?
According to a survey, the average life expectancy of people in the US is over 78 years. Insurance providers make use of advanced statistical analysis, so as to decide the possibility of potential consumers dying in the desired policy term period. It is even surveyed that healthy 65-year senior has 50% chance to live over 85 years. Besides certain other factors are considered for life insurance policy but as senior over 70 years, age is crucial.
Insurance company considers the following factors
Age
Age is the biggest determining factor regarding the possibility of reimbursing money for an insured. Risks with seniors aged 70 years and above is more than an adult 30 year of age. Therefore, premium for people growing old are high.
Habits
The possibility of cigarette smokers or tobacco users getting cancer is high along with other fatal illnesses, which decreases their lifespan. As the consumers age these risks increase, so insurance provider finds it hard to approve their policy but if they do then the premiums are high.
photo courtesy of Greenberg Health
Fitness level & weight
Insurance premium even considers BMI and weight, especially if you are over 70 years and more. Age is one determining factor to decide your premium but weight and fitness can be controlled. Maintain a healthy way of living, which includes workouts and balanced diet, so as to enhance your chance of grabbing good life insurance deals.
Health conditions
Obesity, diabetes, heart issues, HBP, high cholesterol, Alzheimer’s, etc. are common disease but for senior citizens these are regarded as fatal. Life insurance provider check your comprehensive medical history. If you suffer from some chronic condition then the insurer will consider your profile to be risky and accordingly determine your premium.
Occupation
People having career in high risk sector like firefighting then life insurance companies find it risky to sell policy.
Driving record
Due to age, response time and coordination suffer. Life insurance provider carefully reviews your driving records. They look for signs of reckless or risky driving and make suppositions about your temperament to take risks. In case, you hold serious violations like speeding or irresponsible driving behavior then these increase your insurance premiums.
There are many life insurance options for senior citizens. Term life insurance is very economical option but is it viable for seniors over 70 years. In some scenarios, it doesn’t make sense for seniors over 70 years to buy term life insurance policy.
Reasons for seniors over 70 years to avoid term life insurance
If you –
- Paid off all your mortgage
- Have no major financial obligations like cars, boats, and properties
- Have sufficient savings for burial expense coverage
- Have teenagers not dependent on your income
- Already have an appropriate policy
If you still feel the need to buy life insurance then make sure to get best premium rates.
Valuable tips for senior over 70 years
- Work with broker representing multiple insurance criteria, so that you can get familiar with each insurance carriers underwriting criteria.
- Research online about premium rates, so that you get an idea of premium rates prior discussing with insurance agent.
- Stay healthy to get better rates.
- Every year of delay costs you more and long waiting means less term. For example, at 70 years you get to buy 20 years policy but at 72 years you can get 15-year policy and you pay more.
- Never compromise on death benefits, stay on budget. No one desires a policy to expire in 5 years because you cannot afford it.
- Avoid companies that change their terms every 5 years, as you grow old.
If you desire to buy life insurance from LifeNet Insurance Solutions and are over 70 years then act fast because passage of each year means extra premium.
Author: Aalia Ray
