Is 70 too old for life insurance?
Life insurance can be useful at any age. People over 65 who have others relying on their income or who want life insurance to cover burial expenses may benefit from coverage.
The bottom line
Life insurance is a smart idea for most seniors. That's especially the case if you have a spouse, lack plans to cover end-of-life costs or don't have a long-term care insurance policy.
Life insurance can provide peace of mind at any age, but isn't always necessary after age 60. To see if you need life insurance, assess your family's needs, your financial resources and assets, your outstanding debts and your long-term financial goals.
Whole life insurance policies may be easier to obtain than term life insurance, even when you're older. Many life insurance companies sell new policies to applicants up to age 85 or 90. Your need for life insurance may be less if you don't have any debt or dependents who rely on your income.
The best senior life insurance company of 2024 is Protective, based on our analysis of rates, historical performance, cost competitiveness, financial strength and other key factors. Pacific Life is also a top-scoring life insurance company for seniors.
But it's always a good idea to have life insurance, no matter your age. It will enable you to leave something behind to your loved ones and make sure they aren't stuck with your outstanding medical bills, income taxes, utility payments, and burial expenses.
A unit of Colonial Penn coverage is the life insurance benefit amount you receive for $9.95 per month. Your age and gender determine the exact amount of insurance coverage a single unit provides. The older you are, the more units you will need to purchase in order to get an adequate death benefit.
Human Life Value*
Based on the value of your future earnings, a simple way to estimate this is to consider 30X your income between the ages of 18 and 40; 20X income for age 41-50; 15X income for age 51-60; and 10X income for age 61-65. After age 65, coverage is based on net worth instead of income.
| Age | Coverage amount: $35,000 |
|---|---|
| 50 years old | Coverage amount: $35,000Male: $125.18 | Female: $94.54 |
| 60 years old | Coverage amount: $35,000Male: $174.17 | Female: $135.68 |
| 70 years old | Coverage amount: $35,000Male: $263.42 | Female: $209.16 |
Not everyone needs life insurance. People who've accumulated enough wealth to cover their final expenses and who don't have dependents can usually forgo paying for life insurance.
What happens to life insurance after age 80?
While seniors can typically buy any policy they'd like up until age 85 or 90, popular choices are guaranteed issue, simplified issue and burial insurance. These policies typically have lower death benefit amounts and higher premiums relative to the death benefit.
After the 20-year level term ends, your coverage expires.
Some insurers write policies for people up to the age of 80. Financial advisors will often recommend you research the available policies for older consumers to find the best term life policy.
AARP Life Insurance Review: A Good Option for No Medical Exam Coverage. AARP is a good life insurance option for seniors with pre-existing conditions, but rates are high for healthy seniors.
Although term life insurance might make sense for younger seniors who only want short-term coverage—for instance, until their homes are paid off—whole life insurance may be a better fit for a senior's financial plan. A financial advisor can recommend the best policy for your needs.
How much is AARP life insurance per month? AARP life insurance can cost as little as $11 monthly or as high as $900. The final price depends on the type of policy (whole, term, or guaranteed acceptance), product, age, gender, state of residence, and health.
- Fidelity Life: Our top pick for seniors.
- MassMutual: Our pick for guaranteed issue coverage for seniors.
- State Farm: Our pick for customer satisfaction.
- Northwestern Mutual: Our pick for a personalized experience.
- Mutual of Omaha: Our pick for accelerated death benefits.
If you die during the first two years, Colonial Penn will only pay your beneficiaries a refund of your premiums plus roughly 10% interest. It's permanent whole life insurance, so the premiums will never increase, the death benefit won't decrease in value, and it builds cash value.
For example, a woman who purchases $50,000 of coverage would pay: $35.21/month between the ages of 41 and 45. $45.21/month between the ages of 46 and 50. $56.46/month between the ages of 51 and 55.
Remember the 3 P's of life insurance: purchase, payout and price.
What is the 7 year rule for life insurance?
The IRS uses the “seven-pay” test to determine whether to convert a life insurance policy into a MEC. If you put too much money into your policy in the first seven years, it becomes a modified endowment contract.
The life insurance contestability period typically lasts two years from the date of policy approval. During this time, an insurer has the right to investigate any aspect of a policyholder's health that could have been misrepresented on their application.
Generally, life insurance proceeds you receive as a beneficiary due to the death of the insured person, aren't includable in gross income and you don't have to report them. However, any interest you receive is taxable and you should report it as interest received. See Topic 403 for more information about interest.
Mutual of Omaha burial insurance is generally the best final expense insurance for seniors over 70. In most cases, Mutual of Omaha's rates are lower than those of other providers. They call their policy “Living Promise,” and you buy up to $50,000 in coverage.
If you die without life insurance, any assets you left behind will be distributed to your heirs, but your loved ones won't receive an insurance payout. That may leave them to cover your funeral costs and unpaid debts on their own.
