Aging brings some questions to the fore of our mind that we ask ourselves. Questions like should I get Life insurance. Can a 77-year-old be approved for Life insurance, and many other questions? These questions will be answered as we progress in this article.
In short brief, you can and you should get life insurance for 77 years old senior because it gives you options to prepare for the later stages of life.
However, there are things you should know about getting life insurance as well as the process it entails. Some of these things we will be sharing with you in this article.
The Options You Have at 77 Years
As you approach the twilight of your life cycle, it is time you start exploring your options for a suitable life insurance policy. At the ripe age of 77, the options available to you might appear limited and quite expensive.
However, it is not always like that, there are insurance firms and licensed agencies representing insurance companies that can help you discover the suitable life insurance coverage at a modest price, irrespective of your age. As there are several options out there, it is crucial that you are specific with your search and need to make it easier to get the coverage you desire.
In this article, we will be looking at the term insurance policy and permanent insurance policy options available to a senior like you.
Often dubbed the low-cost type of life insurance, however that title can be misleading as they become more costly as time progresses and you get older. As a 77-year-old senior, you can buy term life policy from insurers; however, the price may be exorbitant. At the same time, it is vital to pay attention to some restrictions that come with getting this type of coverage at your age.
The advantage of purchasing term insurance at the age of 77 is simply because it is accessible. Term insurance will be approved up until the age of 85 for seniors. Provided you can pay for the monthly premiums, you can definitely get this insurance policy. Note that the life insurance coverage will depend on your health and age at the time of buying the policy.
The demerit of getting this type of policy at your age is the cost involved. Given that you are close to the end of what insurers deem the limit for insurable age, you are most likely to get very high premiums.
Likewise, the insurer mostly will offer you a five-year term at most due to the inability of the firms to go above the 85 years limit of the term life policy. On the other hand, if you are seeking to push to 85 on dot, you can go for the yearly renewable term life policy.
Are You Better Off Avoiding Term Life Insurance
Even though term life insurance is quite sought after in the market. However, it might not be the best choice for adults at the age of 77 years.
Buying a term life coverage at the age of 77 means that you expose yourself to unavoidably high monthly rates that increase as time goes on. Add that to the fact you can’t be issued term life insurance policy beyond the insurable age limit of 85 years old.
Although looking at is from the surface, people often think it saves cost, however, a look at the long term premiums rates as well as the increase in this rate means you will need to carefully consider if it is the best thing for you.
Consider a Permanent Life Insurance
Another alternative to term life policy is permanent life insurance coverage. Although on the surface, permanent life insurance for over 75 might seem costlier. However, considering your age, it might not be so.
Given that the rates of both types of policies are linked to your age, you may discover that the premium rates of some permanent life insurance policy mirror that of term life insurance policy.
Furthermore, the permanent policy has two edges over the term life insurance coverage. The first edge is that permanent life has cash value, which you can utilize any time you wish, as you like.
The second edge is that permanent life insurance offers lifetime coverage instead of the limited coverage of the term life insurance that stops at 85 years of age. Whole life insurance is also available for seniors over 90.
Permanent Vs. Term Life Insurance
The core of having a life insurance policy is the death benefit, which is the money paid to your listed beneficiaries after your passing. This is based on your policy been active as at the time of your passing.
As for term life insurance policy, it is sometimes called the pure life insurance policy due to the reason that it is pretty much just about death benefit and that is all.
For this reason, the contract is straightforward and the premiums rate comes down in contrast to permanent life insurance coverage that has the same amount of death benefit. The duration of the life insurance contract is what we can call the “Term” in the term insurance.
On the other hand, a permanent life policy is not restricted to a specific number of years. It will not be stopped neither does it elapse provided your monthly rates are taken care of. This type of life insurance coverage lets you leave behind an inheritance for your loved ones for them to remember you by. It can also serve charitable causes or even cover your funeral expenses.
The next huge difference between the two is the cash value that is included in the permanent life insurance policy, which is not found in the term insurance policy. This added benefit produce tax-deferred interest on your policy as well as extending the features of your insurance policy outside the principal death benefit.
The monetary value accumulated in your permanent life insurance plan can be easily used all through the policy life cycle on any expense you want like medical fees, pension funds, or children’s tuition fees. All these extra packages are what we call Living benefits.
Is It Possible to Get A Policy at 77 Years?
The common fable about life insurance is that they can’t get a new life policy from insurance firms because of their advancing age or/and their deteriorating health.
This is so far from the truth. Life insurance is accessible and reasonable budget-wise, provided you know what you are looking for and how to look for it.
It could prove quite difficult doing all that alone, which is not recommendable. You could seek the help of professionals instead to make the process easier for you.
Why Do You Need A Policy at This Age?
A plethora of motives exists as to why you will want to seek out insurance plans but mostly the decision to go for it is centered around your loved ones. Part of the reasons involves income replacement, which mostly is the main aim of the life insurance plan.
Although not as important when you are already 77 years of age, nevertheless, the salary you earn can be a significant factor to demand careful deliberation as you make up your mind on the face value of your insurance plan.
Life insurance at 77 Years of Age
Saving towards retirement is a typical concern for those in their active years for their later life. In case you are not at that stage yet, a life insurance policy can give you rest of mind that in the event that you die suddenly, your loved ones or spouse can go on and live the kind of life you had planned for the later years.
For those in a small business enterprise, most times they use utilize life insurance plan to safeguard their involvement in the company.
The sudden demise of a business partner can cause chaos in the budget of the business for the partner left behind, the business, and even the departed member’s loved ones. Life insurance can serve as a safeguard against such unforeseen circumstances.
Life insurance policy is mostly seen as the instrument to savor the reward of your lives hard work pass your death. A kind of legacy left behind for your loved ones or as a gift to your preferred charity organization.
Furthermore, unclear debt can also be paid with life insurance benefits to prevent leaving a burden behind for the family if you die before clearing the debt. Life insurance policy can safeguard your loved ones from bearing the burden of unclear liabilities after you are gone.
Irrespective of the type of life insurance policy you are buying, you should bear in mind the cost relating to what you going for.
Given that premiums at your age are high, you have to go for no medical senior life insurance. Hence, you must make careful deliberations before spending on the life insurance you want to go for. You don’t want to end up paying more for an insurance policy where you will not get the equivalent value of what you paid for in death benefit.