Life insurance is typically purchased by younger individuals with people who depend on them in order to provide a safety net for the unexpected. However, with life expectancies increasing and the economy in question worldwide, more people are choosing to look into a policy later in life…but can it ever be too late? Is it possible to be too old for life insurance?
The bad news is that age is not just a number where an insurance provider is concerned. The number of candles on your most recent birthday cake has a significant impact on your chances of finding sufficient coverage, and although your fitness and activity level can play a part in keeping your premium low, a 55 year old man will pay more for a policy than a 35 year old man even if they are in the same relative health. Some insurance companies will not even issue policies to applicants over a certain age which varies by provider, but typically hovers around 80.
However, the good news is that it is possible for many senior citizens to get life insurance coverage. There are two basic policy types commonly available to seniors. One of these is whole life insurance, which is permanent and builds cash value that can be borrowed against, but can be prohibitive for people of an advanced age, particularly those living on a fixed income.
A more affordable option is term life insurance, which provides coverage for a predetermined period at a lower cost. Many seniors purchase small, inexpensive life insurance policies to defray their final expenses. You can check out AAMI for a life insurance quote, regardless of your age, you will be able to find coverage for you & your partner.
There are also insurance products available to enhance your autumn years while you are still alive. Longevity insurance protects you from outliving your retirement savings by collecting a premium from you until a predefined age, then issuing regular payments back to you for the rest of your life from investment proceeds.
Long term care insurance guarantees that you will get the assistance you need when you are no longer in a condition to live alone. While these are not strictly life insurance products, they share the benefit of safeguarding a family from an undue financial burden.
For most seniors, insurance options are limited only by disposable income, not age. Older people purchase insurance policies for the same reasons that young people do: to protect their families from the consequences of their loss. There is a time when a person is too old for a policy, but that time comes much later than most people think.