If you are looking for a term life insurance policy for your elderly parents then this article will give you more information about purchasing term coverage for older seniors. You’ll learn about the maximum age to purchase a term life insurance policy on an elderly person, what the qualifications are, and some sample rates to consider.
Term Insurance for Older Seniors
A term life insurance policy is a great way to provide temporary coverage for a senior who is concerned about bills, debts, and other expenses that they might leave behind to their family members. Term policies range in length from one year (annual term insurance) to thirty years (30 year term policy). The length of term that an elderly person will qualify for will depend on the age of the senior. Most companies will not insure a senior past the age of 90 or 95, depending on the company that is chosen. For example, if the insured is 80 years old at the time of the application, the maximum term to qualify for will be 15 years. If the senior is 70 years old at the time of application, then the maximum term policy obtainable is a 25 year term.
Qualifying for Term Insurance as an Elderly Person
Term insurance is very affordable because you can obtain a large amount of coverage for a reasonable amount of premium. That is one of the advantages of this type of policy, but it also comes with some caveats for seniors. In order to qualify for the lowest rates, the insured’s health needs to be pretty good. This is called a preferred health rating (some companies call it preferred plus). If the insured has excellent health and doesn’t smoke, then that is great. There will be no problems in qualifying for a term policy with a low rate. But what if your parents are like most seniors and elderly and have some health issues? Life insurance companies charge a premium based on the applicant’s risk profile so the more health issues your parents have or the more serious their health issue is, the riskier they are to insure and they will be charged a higher rate because of that.
Health Issues and Premium
Health problems are classified differently by all insurance companies. For example, company A may view diabetes as very serious and very risky and charge a much higher premium because of it, while company B only bumps up the premium a little bit if you have diabetes. That is why it is very important to rate shop multiple companies because you could end up paying much more with company A than company B. What about other health issues? Many seniors and elderly have high blood pressure, hypertension, as well as a history of heart attack, stroke, or even cancer. It is possible to be insured with each of these health issues as well as others, but the rate will be higher. Again, it is very important to shop around for the best rates and the best company for your parents’ situation, especially if they have some health issues.
How Much Will a Term Policy Cost for an Elderly Person?
Term policies are less expensive than permanent coverage, such as a final expense policy or burial insurance, because the coverage only lasts for a certain number of years. As I said earlier, the cost of a policy will also depend on your parents’ health status. Other factors that will affect the premium are age (the older the applicant, the higher your premium will be, the amount of coverage needed, and even gender – a policy for an elderly man costs more than a policy for an elderly woman because a man’s life expectancy is generally shorter.
Here are a few sample rates to give you a general idea of what a $100,000 10 year term life insurance for an elderly man and woman will cost. These sample rates are based on a health, non-smoking man and woman.
70 Year Old Man – $1,042 Per Year
70 Year Old Woman – $684 Per Year
75 Year Old Man – $1,830 Per Year
75 Year Old Woman – $1,282 Per Year
80 Year Old Man- $3,992 Per Year
80 Year Old Woman – $2,836
Keep in mind that these are sample rates. The rate may be higher or lower depending on the situation.
Get a Free Quote Today for Accurate Rates
The first step when shopping for term life insurance for an elderly parent is to do some rate shopping. You can compare multiple rates from several companies that offer term life insurance to elderly at affordable rates. Get started now and get a free quote to compare rates from the comfort of your home.