Life Insurance for Over 65
- 1 Is it possible to buy life insurance when you are 65 or older?
- 2 Does it cost more to buy life insurance for over 65?
- 3 Should you buy life insurance when you are 65 or older?
- 4 What kinds of life insurance should you buy at age 65 or older?
- 5 How much life insurance should you buy if you are 65 and up?
- 6 How can I shop for life insurance for those over 65?
When you are older, there is a statistically greater likelihood you will develop conditions like cancer or that you will have a heart attack. There is also a greater likelihood you will pass away as a result of natural causes. While no one likes to think about the realities of aging, the fact is you need to ensure that you are protected in case of critical illness and that your family members are protected in case you pass away.
One of the best ways to get protection for yourself and those you love is to purchase life insurance. Ideally, life insurance should be purchased when you are younger. However, if you do not have a policy or if you have allowed your policy to lapse, it is still possible to get coverage when you are 65 or older. Buying a policy at any age is a smart choice for a more secure future but you may need to shop around more when you are 65 and up to find an insurer that will offer you reasonable coverage at a price you can afford.
Is it possible to buy life insurance when you are 65 or older?
Minimum and maximum age requirements vary from one life insurance provider to another. While some life insurers stop selling policies to people at age 65, others will sell policies through age 69 or through age 75. When you have purchased a policy, most insurers will allow you to keep it in effect until the policy anniversary before your 100th birthday.
Does it cost more to buy life insurance for over 65?
Life insurance premiums are based on the risk of death during the policy term. Since seniors are more likely to pass away, there is a higher cost associated with buying life insurance for over 65 as compared with buying insurance for people who are a younger age. You can expect to pay an added cost for your policy premiums, but it is still worth getting coverage if you have family members or loved ones who depend upon you.
Should you buy life insurance when you are 65 or older?
You should buy life insurance at any age if you have people depending upon you or if you have concerns about being able to afford to do the things you want and need when you develop a critical illness. A life insurance policy with a death benefit means that your family will get the necessary funds to continue to live a reasonable quality of life and enjoy their customary standard of living even if you are not bringing income in to your family any longer. If you can obtain critical illness cover, you will get a lump sum payout when you develop a covered medical condition so you will have the funds you need in case you get badly sick.
What kinds of life insurance should you buy at age 65 or older?
The types of life insurance you will need vary depending upon your situation. If you have a standard life insurance policy with a death benefit, then your family members will be taken care of if you pass away while the policy remains in effect. Most seniors age 65 and up are no longer dependent upon job income because they are retired, so income replacement insurance may not be necessary (and may not be available). Critical illness coverage can provide you with significant peace of mind in case you get sick, but many insurers will not sell critical illness coverage to people age 65 and up. Funeral insurance is also an option if you already have pre-existing conditions and if you cannot qualify for or afford a standard life insurance policy.
How much life insurance should you buy if you are 65 and up?
The more coverage you buy, the higher the premium costs will be. You need to carefully weigh the upfront costs of paying premiums versus the coverage your family will need when you pass away. Think about the debts you want to ensure your dependents can pay off, as well as other bills and expenses you want to take care of. You may wish to leave behind a large enough policy to pay off your remaining mortgage balance and to continue to find education for your children or your grandchildren. Your needs are very personal when it comes to choosing a coverage amount and you may wish to speak with a financial advisor or with an insurance expert to determine exactly how large of a policy you require.
How can I shop for life insurance for those over 65?
Some insurance providers specifically target their policies towards seniors while others will allow you to buy a standard life insurance policy available to younger people as well. You can expect to pay higher costs because of your advanced age, so you should ensure that you shop around carefully to find the best deal. This does not necessarily mean the cheapest coverage- you need to compare the cost, the coverage, and the benefits provided by different policies to ensure the insurance you get is the best overall for your specific needs.
You may also like...
Life Insurance Through an SMSF:
Understanding Your Options
If you have a self-managed super fund (SMSF), you’re not requir...
Life Insurance Trends in Australia
Family is the most important thing in life. Making sure your fami...