If you are under the age of 80 and in good health, you should be able to qualify for term or guaranteed universal life insurance policies with low rates for the elderly. If you have certain pre-existing medical conditions, however, guaranteed whole life insurance may be your best option for coverage.

No matter your age, you should still evaluate life insurance policies based on your goals and the financial needs of your family, as these are critical in determining your best coverage.

Life Insurance for Seniors Over 70

As a senior over the age of 70, you have very few restrictions on the types of life insurance policies available to you. The only limitation is that you won't be able to find a term life insurance policy that lasts more than 20 years. As a result, your decision on which policy to purchase should be based primarily on your financial goals and the cost of coverage.

If you want coverage for a set period of time, such as 10 or 15 years, term life insurance is the least expensive option, and you can purchase coverage worth hundreds of thousands of dollars. If you need coverage for a mortgage or to replace your income until retirement, term life insurance is usually the best option because these financial obligations will be reduced or eliminated over time. Just make sure that the term policy will cover the entire term of a financial obligation, as you will have a more difficult time finding coverage and will have to pay higher rates if you need life insurance at the age of 80 or 90.

If you want coverage that will last your entire life, you should look into permanent life insurance. Some of the reasons you might want permanent life insurance coverage include:

• Funeral and bereavement expenses - The average funeral and burial cost around $10,000, and cremation costs typically exceed $2,000 per person. If you haven't saved enough money to cover these expenses, they will be borne by your family regardless of when you die.

• Medical expenses - Unless you die unexpectedly, you are likely to accrue medical expenses that will have an impact on your family. This can be especially challenging if you require full-time care or assistance in a nursing home.

• Pension replacement - If your spouse relies on your pension income to cover expenses, you may need enough coverage to ensure they can maintain their standard of living after you die.

• Estate taxes - Whether your family needs help paying estate or inheritance taxes is determined by the value and type of assets being passed down. If you have a significant illiquid asset, such as a piece of property, that you want your family to keep, life insurance can cover the estate taxes without forcing your family to sell.

However, because a portion of the premium is applied to the cash value, whole life insurance is significantly more expensive. The cash value of whole life insurance is less valuable for seniors because there are fewer years for it to grow with inter While whole life insurance is the most common type of permanent coverage, guaranteed universal life insurance is usually a better choice for seniors. Whole life insurance policies have the advantage of accruing cash value over time, which can be borrowed against or withdrawn. est.

Guaranteed universal life insurance, on the other hand, is essentially a term life insurance policy that lasts until a specified age (such as 90, 100 or 121). As a result, guaranteed universal policies provide lifelong coverage at a lower cost.

Seniors' Life Insurance Living Benefits

Depending on the insurer, some life insurance policies either include “living benefits” or allow you to add them via riders. Living benefits are policy features that provide financial assistance while you are still alive. The following are some of the most common living benefits:

• Accelerated death benefit

• Accidental death and dismemberment

• Waiver of premium

If you are diagnosed with a qualifying illness, an accelerated death benefit rider simply allows you to receive a portion of your death benefit sooner. As a senior, this option can be extremely beneficial if you are concerned about your ability to cover medical expenses that are common later in life. Just make sure that the insurer will accelerate the death benefit for a variety of illnesses, not just terminal ones.

The amount of money you can receive as an accelerated death benefit is limited to a percentage of the death benefit or a fixed dollar amount. When you die, this amount will be deducted from the death benefit your family receives. So, if you had a $500,000 death benefit and your insurer limited your ability to accelerate it to "the lesser of $250,000 or 75 percent of the policy's face value," you could request up to $250,000 while still alive.

Accidental death and dismemberment coverage can also serve as a living benefit because the dismemberment coverage pays out if you sustain certain injuries in an accident. Each insurer covers a different set of injuries, such as blindness, limb loss, hand loss, or paralysis. Depending on the nature of the injury, you may be entitled to a percentage of the death benefit as compensation.

A waiver of premium rider allows you to stop paying premiums while still maintaining coverage. This option, however, is usually only available if you become completely disabled and usually expires when you reach a certain age (such as 80).