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Life Insurance for Seniors over 70 Years

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For seniors aged 70 and above, life insurance takes on a renewed significance as a crucial safeguard for their loved ones and estate planning. However, navigating the realm of life insurance options at this stage of life can be daunting.

In this comprehensive article, we will find out more about life insurance for seniors over the age of 70 years and the benefits and tips to choose the right plan. We will also explore the factors that influence policy eligibility, premiums, and coverage considerations.

With this write-up, a senior or a person purchasing a plan for their ageing parents or grandparents can make an informed decision for a financially secure future.

Why is Life Insurance for Seniors over 70 Years Important?

There are several reasons as to why seniors find life insurance plans essential, the primary purpose being to provide a replacement for their income and support their family. Once seniors retire, their income ceases - this sudden financial shift can be challenging for their loved ones if something happens to them.

Life insurance for seniors over 70 years old plays a crucial role in preventing such financial hardships by acting as a savings channel and a source of income at the end of the policy term. Moreover, the funds received from these policies can be utilised to settle any outstanding debts, such as loans or medical expenses.

The other reasons why life insurance for 70 plus is important are as follows -

  • Life insurance for seniors over 70 years of age provides a reliable income after retirement, promoting financial independence for senior citizens.
  • Life insurance plans serve as a means of saving and generating income once the policy term ends.
  • The payout from a life insurance policy can be utilised by the policyholder's family to settle debts, educational expenses, medical bills, and more.
  • By having life insurance for 70 plus, the policyholder can ensure a substantial inheritance for their children.
  • If the policyholder is unable to provide care for their spouse, their life insurance policy offers financial benefits to support them.
  • The funds obtained from an insurance policy can be used to cover property taxes and other legal expenses incurred by the policyholder's family.

Benefits of Life Insurance for 70 Plus

Life insurance for seniors over the age of 70 years old ensures financial stability and independence even after their retirement. Several other benefits are associated with life insurance for seniors over 70 years old as well -

  • Income Replacement - Once an individual retires, the income narrows down which can affect the family’s overall financial health. A life insurance plan for seniors over the age of 70 years can prove to be a resourceful income alternative in such a situation. 
  • Financial Security for Spouse - In case of their unfortunate demise, an elderly individual would want to ensure that their spouse can lead a financially stable life. A life insurance policy for seniors over 70 years old would provide a handsome amount to the spouse and allow them to financially sustain themselves in the event of the elderly individual's unfortunate demise.
  • Building Inheritance - With life insurance for seniors over 70 years old in place, individuals get the opportunity to create a lasting inheritance for their children or grandchildren, providing them with a financial safety net to achieve both short-term and long-term life goals.
  • Multiple Options -  Different life insurance providers offer different types of life insurance for seniors over 70 years old. Thus, from a pool of options, a potential buyer has the flexibility to choose a plan that works in their favour and allows them to get higher returns on investment.
  • Additional Benefits - Due to their age, life insurance for seniors over the age of 70 years is going to incorporate death benefits by default. Under such plans, the insurance provider even ends up paying for medical expenses, death-associated expenses including the funeral, and the sum assured to the beneficiary. Such plans also offer riders like waiver of premium, accidental death benefit, critical illness rider, and more. 

Different Types of Life Insurance for Seniors over 70 Years of Age

Discussed below are the two major types of life insurance for seniors over 70 years old -

  • Whole Life Insurance - This comprehensive life insurance for 70 plus offers coverage for the policyholder's entire life or up to the age of 100. In addition to providing insurance protection, the plan includes a savings component, resulting in a relatively higher premium rate compared to other life insurance products. These plans come with a guaranteed cash value, allowing policyholders to access cash through loans or other withdrawal options.
  • Immediate annuity plan - Retirement policies provided by life insurance companies are known as immediate annuity plans. These plans are most suitable for individuals who are either already retired or are approaching retirement and have a lump sum amount to invest.

These plans operate on a single premium payment basis, and the policyholder receives the benefits immediately. The policyholder here has the option to receive the payment as a lump sum amount or to choose a regular monthly income in the form of an annuity.

Know the Factors to Consider When Applying for Life Insurance for Seniors over 70 Years Old

Take the following factors into consideration when applying for life insurance for seniors over 70 years old -

  • Medical History - Seniors often remain unaware of potential ailments that they might be experiencing. So if you are considering purchasing life insurance for your parents or elderly family members, it becomes crucial to investigate their medical history thoroughly and ensure accurate details in the application. Additionally, opting for regular medical check-ups is highly advisable, not only to assess your own health condition but also to determine if you qualify for lower insurance premiums by demonstrating good health.
  • Premium Rates - Premiums for life insurance policies for seniors over 70 years old are higher compared to those for younger individuals. While acquiring a life insurance policy at an early stage is advisable, it's never too late to consider one. By maintaining a healthy lifestyle, senior citizens can effectively lower their premium costs.

With that said, senior citizens should be cautious when considering extremely inexpensive plans, as they might not offer sufficient coverage. The idea here is to seek plans that offer good coverage at affordable premiums.

Tips to Choose Life Insurance for Seniors over 70 Years of Age

Without proper knowledge of life insurance for seniors of 70 years old, opting for the right plan can be an extremely tedious task. Thus, it’s pretty important to know the ins and outs of the plans that you have shortlisted.

Here are some things to check for when choosing life insurance for seniors over 70 years of age -

  • Policy type
  • Health condition
  • Riders
  • Policy tenure
  • Premium amount
  • Coverage
  • Claim settlement ratio of the insurer 
  • Income source
  • Number of dependents

Find out more about life insurance for seniors over 70 years old in the following FAQ section.

FAQ's

Q1. Do the benefits of life insurance for 70 plus extend to their spouses too?

Ans: Yes, several life insurance policies provide death benefits to the surviving partner in case of the policyholder's unexpected demise.

Q2. What is the maximum age to buy a life insurance plan?

Ans: The maximum age bracket to buy a life insurance plan is usually between 75 years and 85 years.

Q3. What are the major benefits of a life insurance plan?

Ans: A life insurance plan primarily offers death and maturity benefits. The former is paid to the beneficiary in case the policyholder passes away during the policy tenure. The maturity benefit, on the other hand, is paid if the life assured survives the policy tenure.

Q4. Can you get life insurance for your 77 year old parent?

Ans: Yes, you can get life insurance for your 77 year old parent as the maximum age bracket for most insurance providers generally lies between 75 years and 85 years.

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