Life insurance for 70 year olds

Why final expense is the usual choice at 70

At 70, most people want coverage that lasts for life and pays for a funeral, medical bills or a small gift. Final expense whole life does that: premiums stay level and coverage does not end at a set age. A 10-year term bought at 70 ends at 80, when many people still need the money.

Coverage is small by design. The NFDA's 2023 median for a funeral with viewing and burial was $8,300, and $6,280 with cremation, not counting cemetery charges. Policygenius says final expense policies typically top out between $20,000 and $40,000. See final expense over 70.

Final expense policies pay your named beneficiary, not the funeral home. Mutual of Omaha notes the beneficiary may use the money for any purpose, so it can cover medical bills or debts too.

When term still makes sense at 70

Term can still fit if you have a mortgage, a business loan or a spouse who depends on your income. It gives much more coverage per dollar than whole life for those 10 or 15 years.

Several carriers still issue term at 70. American Amicable's Term Made Simple offers 10-year terms through 75. Americo's Term 125 offers 15 years through 75, and Transamerica's Trendsetter Super accepts issue ages up to 80. See the 10-year table above for estimates.

No-exam options and graded benefits

Most final expense policies use health questions instead of an exam. Mutual of Omaha's Living Promise and American Amicable's final expense plans both decide based on your answers and record checks. Your answers determine whether you get a level or graded benefit.

With a graded benefit, the full payout is delayed for natural-cause deaths. Living Promise's graded plan pays premiums plus 10% in the first two years, then the full benefit. Accidental deaths are paid in full from day one. Read more on waiting periods.

Health factors at 70

At 70, insurers focus on recent diagnoses, hospital stays, oxygen use, and conditions like heart disease, COPD, cancer and kidney disease. Policygenius notes applicants over 70 without a regular doctor may find term harder to qualify for.

Many conditions still allow level coverage if they are stable. We have guides for heart disease, COPD, cancer and kidney disease.

Answer every health question accurately. Insurers check prescription and MIB records, and a wrong answer can cause problems with a claim later.

Estate and legacy planning

Some people at 70 use life insurance to leave money to children or grandchildren, or to cover estate costs.

Mutual of Omaha notes Living Promise benefits are paid income tax-free to the beneficiary under current federal law. For larger legacy goals, compare whole life and guaranteed universal life with a licensed agent.

Your spouse may lose part of a pension or Social Security income when you die. A policy can help replace it. Decide how many years of that income you want to cover, then compare term and whole life for that need.

Living benefits on smaller policies

Some final expense plans include a way to access the benefit early. Mutual of Omaha's Living Promise includes an accelerated death benefit for terminal illness or nursing home confinement where available. American Amicable lists a terminal illness rider on its final expense plans.

These riders cost nothing extra on many plans, but terms vary by state. Ask how much you could access and what remains for your family.

Guaranteed issue and graded plans if health is a concern

If you cannot answer the health questions on a level plan, graded and guaranteed issue plans are the fallback. They cost more per dollar of coverage and delay the full benefit.

Americo's Eagle Select 3, for example, issues at ages 40 to 75 for up to $25,000. It pays a graded benefit in years one and two and full coverage from year three. American Amicable's graded and return-of-premium final expense plan goes to $25,000 at ages 50 to 85.

Apply for a level plan first if you might qualify. An agent can check your history against several carriers' questions before you apply.