The elderly need more life insurance coverage than young people. In old age, they become vulnerable and susceptible to ailments. It necessitates that they get adequate coverage.
Unfortunately, they may not see the need for a cover. They often assume that the savings they accumulated over the years could be sufficient to cater for all they need. At times, this may not be the case. So it is necessary for seniors aged above 76 years to consider life insurance coverage.
Can One Obtain Life Insurance When at 76 Years?
Yes, you can obtain a life insurance cover even when you are more than 76 years. Even though, life insurance for seniors aged over 75 years is shrouded with myths. One of the myths is that such seniors are always considered too old to obtain insurance coverage.
Also, the elderly may be advanced in age. So chances are high that their health condition is likely to start deteriorating at any time. Besides, the elders may likely have pre-existing conditions that are risky. However, this is not always true. Senior aged over 76 can obtain a life insurance policy if they know what they are looking for.
What May Make Life Insurance Necessary?
Well, there are plenty of reasons for this. Some of them include:
Renewing the expired cover
First, there is a need for those whose term insurance has ended to either renew it or get a new cover altogether.
Still paying debts
If the senior owns property or still has debts, they may need a life insurance cover.
To replace income
Working seniors may want a life insurance cover to replace the income.
When the Policy is Not Necessary
Some seniors may find it unnecessary to have a life insurance cover. Here are the cases when it may not be worthy for over 76 years to buy a life insurance cover.
When the senior has no dependent and has settled all his debts. Besides, they should have enough assets to provide a steady stream of income. The income should be enough to cater for emergencies such as medical needs.
But, if there is an outstanding payment to be made, the senior may need a shorter life term insurance cover. Such a cover should run-up to the time they clear the debt.
When Insurers Refuse to Offer a Plan?
Life insurance agencies may refuse to grant a 76-year-old senior a chance to take a cover. There are many reasons why they may do this. The main reason is when the risk is too high. So, what happens in this case? First such seniors need to know the options available to them.
What you will need to do
If you are seeking a cover for the senior, check whether it is the right one for them. There are plenty of policies out there but they can be very confusing. So seeking the right one for the elderly could be necessary. Perhaps it may be necessary to talk to a professional. They can make the process easier by explaining the terms that may sound unfamiliar.
Besides, it may be necessary to determine in advance what you want and what you are willing to pay. Also, know the options you have regarding the policy you are considering taking.
Best Life Insurance Policies for 76 Years Olds
Guaranteed Life Insurance
Studies show that it is the best cover for seniors aged 76 and above. The cover does not build cash value as one age but it does not come with the costly management fees. It gives the holder the security they need while it keeps the premiums low. The policy guarantees that the elderly will leave some inheritance to their beneficiaries when they die.
This is the policy seniors should get. It allows them to leave some inheritance to your loved ones. The policy can allow them to spend their retirement money without worrying.
It covers the senior for the rest of their remaining life. But it does not build cash value as it is the case with a whole life policy.
It only offers a face value that will be paid to the beneficiary upon the demise of the insured. In most cases, the total amount paid could be half of the cost of the whole life policy.
Term Life Insurance
It is one of the options you may need to consider. It is available for the elderly who want to replace their income. At 76, one may need a short term of about 10 to 15 years.
Generally, a term policy bestows more value to the elderly than any other policy. Some of the benefits of the policy include:
It is a straightforward coverage with no cash investment or cash value component. The cover will remain active as long as you submit the payments on time. Also, the premiums will remain fixed during the term you have selected.
A term life policy costs less. It usually costs half the amount of money you would pay for a lifetime policy.
Note that the traditional term life policy was available to the elderly above 76 years. But things have changed a little bit so the elderly may not have access to the policy. However, the elderly may be entitled to guarantee a universal life insurance policy. Such policies offer coverage up to the age of 95 years.
What term life is available?
The elderly aged over 76 years can obtain a term life cover of about 10-15 years. However, if they need a longer-term, it may be availed at an additional cost. Also, when such elderly get a contract of 10 or 15 years, they can renew it when it expires at an additional fee. The other good thing about the policy is that it does not carry expensive management fees.
Facts to Consider
- Providers of life insurance may deny seniors coverage without disclosing the reasons. They base their actions on the risks they think they run. To them, age increases the risks. So, they may not be willing to take such risks. Here are a few of the things that you should know.
- The elderly need life insurance. Taking a life cover if you are over 76 years is a worthwhile course. With the cost of funerals rising to more than 76 years, it ensures that your family is covered. It protects them from possible financial constraints when you are gone.
- It can help to protect what the elderly would love to pass to their loved ones when they die.
- It helps to mitigate financial stress when the elderly die.
- The elderly too need a term life insurance. The over 76 years old need life insurance coverage. They have the option to choose either the whole life or term life insurance. Whole life policies are a little bit expensive yet they offer more value than the term life. Term life policies are cheaper. Even though, they may not have more benefits associated with whole life policies. As the name suggests, whole life policies will last for the entire life. It has pay-outs and the cash value will continue to accumulate.
- An insurance cover should be treated as a product and not an investment. Although some policies have a cash value that grows over time, it is wrong for the elderly to treat them as a means of accumulating wealth. So don’t buy a policy with the hope of making money out of it.
- You can Use DIME to calculate how much policy you need. When seeking for an insurance policy for the elderly, estimate how much you need by assessing several factors. Look at their debt level, educational needs and the income of the senior.
- Life insurance is cheaper- contrary to what some people think and say, life insurance is much cheaper compared to other covers in the market.
- The best time to buy the policy when you are young. Buying life insurance policies when still young is the best thing to do. The premiums are low and there are few huddles. But if you are already a senior, you can still get an affordable term life cover.
- Naming more than one beneficiary is recommended. There are many unclaimed pay-outs of life insurance. So when the elderly take the policy, they should name more than one beneficiary. In some cases, the named beneficiaries die before or immediately after the senior passes on. When it happens, it becomes difficult for the family to claim payments.
- The elderly should always check on the policy- after purchasing a life insurance cover, a few seniors forget all about it. They faithfully continue to pay the premiums without checking on the policy status. The rule of thumb is that the policyholder should check the policy at least once a year.
Circumstances change. So checking the policy regularly ensures that there is adequate coverage. It allows them to make the necessary adjustments if the coverage is not enough.