Are you too old for life insurance? An older man entered an insurance office and wanted to purchase a life insurance policy. The young saleswoman, taken aback, asked, “Sir, how old are you?” The elderly man, very lucid, proudly replied, “Miss, I am 82 years old, born on February 18, 1942.” Without skipping a beat, the young woman apologized, “I’m sorry, but you are too old to be eligible for a life insurance policy.” Slightly disappointed, the elderly man muttered, “That’s what my father and grandfather told me before coming here, that trying to buy a life insurance policy at this age was a waste of time, and I’d be better off staying with them playing tennis.”
This humorous scene illustrates that being “too old” is relative. How old were the father and grandfather of the older man in the joke, still playing tennis? This is an extreme scenario. It’s no secret that many insurance companies refuse to issue life insurance policies to clients above a certain age or impose significant hurdles. However, there are elderly individuals who, due to their family circumstances, seek to have a life insurance policy. Some may wish to spare their loved ones the burden of covering funeral expenses. In contrast, others have dependents, such as children or relatives who rely on their income due to illness, disability, or being minors.
If you find yourself in such a situation, you might wonder: When is one too old to have a life insurance policy?
Before addressing this question, it’s essential to reiterate that insurance companies assess risk. The greater the risk, the higher the premium. Based on statistics, seniors have a higher risk of passing away sooner, resulting in higher premiums for life insurance policies.
Most life insurance policies require a medical examination as a prerequisite for selling a policy to seniors. However, most companies won’t sell a typical term life insurance policy to individuals over 65 or 70. Nonetheless, permanent life insurance policies are available for clients up to 90 years old. These are guaranteed issue policies, with the main difference from other permanent life insurance policies being that they do not require medical exams and have a waiting period of one or two years. In other words, if the policyholder passes away during the waiting period, their beneficiaries won’t receive the full death benefit or will be compensated for only a fraction of the benefit outlined in the contract. If the policyholder surpasses the waiting period, their beneficiaries will receive the full death benefit.
In conclusion, seniors can indeed have life insurance, although the monthly premium tends to be higher. The best way to protect loved ones is to start young with a life insurance policy, which generally costs less than $30 monthly.
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