Available insurance options
You're probably already aware of the fact that the younger and healthier you are, generally the less expensive life insurance will be. However, there can be many reasons for buying new or additional life insurance coverage later in life, say, after the age of 50. For many, that reason may be to cover burial and other end of life expenses, or perhaps to leave money to a specific charity or a special needs child/grandchild.
If you're considering life insurance and are over the age of 50, you may be wondering if there is a maximum age at which a life insurance company will issue you a policy. Typically, the maximum age at which life insurance policies are issued depends on the individual life insurance company, so there really isn't a universal set limit. However, you may not find a lot of companies willing to issue you a policy if you're age 85 or older. In general, many insurers tend to set their maximum age to issue a policy at 75 or 80, but again, that's up to the insurer.
Life insurance considerations for seniors
Fortunately, there are several types of life insurance that may be a good fit for people over age 50 and for seniors who haven't reached a carrier's maximum age.
Term life insurance for seniors
For example, depending on the amount of coverage and length of the term, a term life policy can be an affordable way to cover things such as final expenses. Permanent policies (such as whole or universal life) can also be good choices because as long as you make your premium payments, the policy will remain in force until you die.
Whole life insurance for seniors
If you're over age 50, having permanent life insurance (provided timely premium payments are made) means that you won't have to worry about the policy expiring (as with term), and then find yourself looking for a replacement policy as you approach the maximum issue age.
Guaranteed issue life insurance for seniors
Another option could be guaranteed issue life insurance. With guaranteed life, typically no medical exam or health questionnaire is required and you won't be turned away for coverage. However, because there may not be any qualifications to receive this type of policy, premiums tend to be substantially higher, benefit limits are lower, and there is generally a limited benefit for the first two years that the policy is in force. These policies might be an option if you're older and have developed health issues. Keep in mind that life insurance companies may also put a maximum age limit on their guaranteed issue life policies.
Don't let the fact that you're over 50 prevent you from getting life insurance. The key is to buy it as early as you think you need it and consult a reputable life insurance company. A qualified agent or company representative can help you compare several different types of policies to find the one that best fits your individual needs and budget.
Learn more about life insurance for seniors.
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