Finding the best life insurance for over 75-year-old people might seem like a pointless endeavour at first. While it’s true that getting life insurance while you’re younger is usually going to be the best option it doesn’t mean that older people can’t get insurance.
That’s a common misconception and while it might sound cliché it’s true that it’s never too late to get life insurance. And although there is in general fewer options available for people aged 75 and over competition between insurers is still rife so you could get a good price on your policy if you shop around.
Don’t be afraid to get quotes from a lot of different insurance provides and remember don’t fall into the trap of overbuying. Anyone regardless of age can fall into this trap so make sure you know exactly what you want cover for and don’t get caught up getting insurance for things you don’t need.
So, while it’s true that there are more policy options now for people aged 75 and over that does mean it can’t be tricky finding out what insurance policy is best for you. You won’t have all the options a younger person would have but there are still quite a few different options available to you.
To help you find out what the best insurance plan/ policy is for you let’s take a look at the main options you have in more detail. Remember this is just a general look at the policy types every insurer will have their own premium prices, but this will give you a better idea of what type of life insurance would be best for you.
Whole and Term Life Insurance
Life insurance comes in two main variants, whole life insurance, and term life insurance, these policies have very different criteria to how they work. Let’s take a closer look at how they work and compare their differences.
Whole Life Insurance
As the name probably makes clear this type of insurance will cover you for your whole life and while this is generally the type of life insurance you should get while you’re younger it is still a viable option for older people as well. So, how does this type of life insurance work?
Whole life insurance is designed to accumulate in value which is why it’s ideal for you to get it while you’re younger. So, because you’re getting it when you’re older it will usually have higher premiums, but on the positive side you won’t need to renew the policy (in the majority of cases) and it offers larger coverage.
Whole life insurance is also seen as the safer option for many people because it covers you for your whole life as long as you pay your premiums. This means that you aren’t boxed into a time-frame like with term life insurance and if you are willing to pay extra you can sometimes get this insurance without a medical examination.
Term Life Insurance
The main alternative to whole life insurance is term life insurance this is generally seen as the more attractive option at first because its premiums are much cheaper than whole life insurances. However, while term life insurance is the cheaper option it does have some downsides that you need to consider.
Term life insurance can only be bought for a specific length of time like say 5, 10 or 15 years. And it will only provide death benefits if you die while the policy is still in effect now the policy can be renewed and extended but this will cost extra.
And while term life insurance is cheaper it does become more expensive the older you are so that’s why scouting different insurers for quotes is so important. If you do want term life insurance, then you will almost always need to submit to a medical examination as well.
Universal Life Insurance
Universal life insurance may not be one of the two main types of life insurance, but it is a popular alternative and one that I believe is worth mentioning. This type of insurance can be thought of as a hybrid of whole life and term insurance. It offers the lower premiums of the latter and the whole life coverage of the former.
With universal life insurance, you get death benefits as standard but can also build-up more cash value over time. It’s slightly more complex and getting it once you’re older can be difficult but it is still available and worth considering. The more flexible design of this type of life insurance makes it very appealing especially to people aged 75 and over.
Which Is Best?
There’s no easy answer to that question it all really depends on what you’re looking for and your own individual circumstances. In general term life insurance is easier to get if you’re elderly but that doesn’t mean getting whole life insurance is impossible you might just have to shop around a bit more.
Whole life insurance is more expensive in the short-term but offers more money. Whereas term life insurance is usually cheaper in the short-term but offers less in the long-term and some people find the “ticking clock” nature of it a little morbid.
However, if you do try term life insurance many insurers do offer the option to convert it to a whole life policy instead, they may not do this straight away though, so you may need to wait a while. And while these are the main two types of policy don’t worry if neither seems like great options to you because there are other variants available and policies can be altered.
If you’re still unsure what type of insurance is best for you then talk with an advisor or insurance agent because they’ll be able to help you break down what you need and explain what you can afford. Don’t rush into getting insurance if you’re unsure about something take your time so you can be sure you get the policy that is right for you.