How Old is Too Old for Life Insurance?
When considering life insurance, many people wonder, “How old is too old?” It’s often perceived that certain ages render it too late to benefit from life insurance, but this isn’t necessarily the case! Many individuals, including those in their 70’s and 80’s, up to age 85 having average health, are in fact insurable and can find coverage, with our help, that meets their needs.
Yes, as we age, life insurance premiums increase due to higher mortality risks. However, there are still highly beneficial options for older adults and fortunately there are strategic ways to lower the cost of coverage.
- Joint-Last-to-Die Policies
One of the strategic options available is the joint-last-to-die policy, which covers two lives under one policy. This policy pays out on the death of the second insured individual. From an underwriting perspective, this means that the health and life expectancy of both individuals are considered. For example, a wife and husband each 75 years old will typically pay the premium that a single male aged about 10 years younger, so age 65 in this case. The resulting lower joint age equivalent lowers the premiums for the couple.
Also, this can sometimes allow an individual who may be otherwise uninsurable at standard rates to obtain coverage at standard rates when paired with another, usually their spouse.
Joint-last-to-die policies are particularly advantageous in the right set of circumstances because the capital payout coincides with major taxable events, such as the transfer of a large estate, thereby helping beneficiaries manage tax liabilities effectively with instant liquidity.
2. Expert Assistance
For those considering life insurance later in life, it’s crucial to seek expert advice. Leyland & Matters offers Underwriting and Advanced Case consultants with decades of industry experience who are equipped to assist with obtaining the most favourable (lowest cost) policy selection and underwriting outcome, whether on a single life or joint life basis depending on what is best for the client.
Conclusion
In summary, while many believe that older age makes life insurance unfeasible, the reality is that there are viable options available. Permanent life insurance, whether it’s Whole Life or Universal Life, can provide substantial benefits and financial protection for older individuals. With the support of Leyland & Matters’ Underwriting and Advanced Case consultants, you can explore your options and secure peace of mind for you and your loved ones, no matter your age.
We’re here to help you provide the very best in estate planning advise to your clients. Reach out to us anytime at 905-331-2885.