Life insurance policies have become a need today; it is important for policyholders to think about their families and secure their financial position decades from now. This is the main motivation that policyholders have today as their reason for buying life insurance policies.
A person who is young and healthy will definitely find a better life insurance deal and on lower premiums, as compared to an older person who has a history of health issues. And sometimes, because of health, most people are rejected life insurance.
But why? Why is being healthy so important for a life insurance policy?
The science is simple; insurance companies will invest in a person who is healthy and is likely to live a long life so that they pay premiums for a longer time too. And the sooner a person dies, the sooner the insurance company will have to pay the death benefit before they earn a handful from the policyholder.
The bottom line is that an unhealthy senior may be rejected an insurance policy based on their health and the results of the medical exam.
You’re probably wondering as to what even happens in a medical exam? Why are people so scared of it and would rather opt for a policy that doesn’t require health questions or an exam?
Well, this is exactly what happens.
A policyholder is given 1-2 weeks to ‘prepare’ for the exam and is given a date. They are required to fast the day before but be hydrated by drinking lots of water. A medical exam includes blood tests which indicate if you have drugs or nicotine in your system and a pulse check to see if there is blood pressure. Moreover, extensive check of heart rate, collection of urine samples is all done.
It is advised to not smoke at least 8 hours before the test because it could indicate high blood pressure and reduce your chances of qualifying.
Other than all these samples, they collect your personal information such as your identification, measurements of your weight and height and may ask questions about your lifestyle, eating habits, hobbies etc.
A typical medical exam is of 20-30 minutes, and the insurance company gives your tests to the underwriter who then thoroughly checks and determines the results. It is often your insurance company that pays for the medical exam, so if you’re not too scared of needles and clinics, it is always better to have an exam so that you can be charged just the right amount of premiums on your policy.
If you missed your chance for life insurance when you were healthy and young, there is a chance that your age and health will be a barrier in getting a reasonable policy.
So is there life insurance for seniors over 70 with no medical exam? Absolutely! There is one life insurance policy that is specifically designed for seniors and requires no medical exam.
Whole life insurance policies provide lifelong protection to policyholders, so your beneficiaries will get a guaranteed death benefit whenever you die. Whole life also has a cash value component that grows over time, and this accumulated cash value can also be used during the policyholder’s life if they choose to borrow or withdraw it.
With premiums paid to keep the policy in force, whole life insurance gives permanent coverage.
Among whole life, there is a type called Guaranteed issue life insurance, which is a lifelong coverage with no medical exam! Seniors usually use this type of policy because they can’t be denied the plan based on their health because of no medical exam.
Sounds fascinating, right?
But there’s another side of the coin too.
Guaranteed issue life insurance policies ALWAYS have a waiting period, sometimes even more than 24 months. If a policyholder dies during that waiting period, there is no death benefit given to the beneficiaries. However, the premiums you had paid throughout the policy are returned- often with 10% interest- to your recipients.
It is not that a person receives nothing when they sign up for the policy and die during the waiting period; their beneficiaries don’t get the desired death benefit. The overall payout is meager than you would expect it to be.
Here is a typical example with sample rates:
| Applicant for $20,000 in coverage | Guaranteed issue life insurance | Whole life insurance |
| Female, age 70 | $156/month | $103/month |
| Female, age 80 | $349/month | $194/month |
Many seniors often find their health deteriorating over time, because of the age factor, they aren’t as strong and healthy as they were in their 40s. Many seniors are denied other life insurance policies because of their health, as it is a risk to invest in them.
This is where guaranteed issue life insurance policy steps in. Having the option of no medical exam or no health questions, this policy is not denied to any senior based on their health.
Here are some of the best-guaranteed acceptance life insurance companies that benefit not only seniors, but also middle-aged people too.
| AAA | AIG | Gerber Life Insurance | Mutual of Omaha | New York Life | |
| Age Availability | 45-85 | 50-85 | 50-80 | 45-85 | 50-80 |
| Waiting Period | 2 years | 2 years | 2 years | 2 years | 2 years |
| Payout During Waiting Period | Premiums paid + 30% interest | Premiums paid + 10% interest | Premiums paid + 10% interest | Premiums paid + 20% interest | Premiums paid + 10% interest |
| Minimum Coverage | $5,000 | $5,000 | $5,000 | $2,000 | $2,500 |
| Maximum Coverage | $25,000 | $25,000 | $25,000 | $25,000 | $15,000 |
Note: Sample rates have been extracted online, courtesy of ValuePenguin.
There are certain term life insurance policies that do NOT require a medical exam. A term life policy- unlike whole life policy- is only eligible for a specific term of 10-20 years and only gives a death benefit.
Term life insurance without a medical exam can be a convenient option for those who prefer a straightforward application. With this type of policy, you skip the blood tests and urine samples. No one will come to your home, and your privacy stays intact. But keep in mind, even without an exam, you’ll still answer a few health questions. While the questions won’t be exhaustive, insurers still need some basic information to determine the right plan.
Typically, coverage caps out around $1 million, though limits can vary depending on the policy and your needs. However, those with specific health conditions or who smoke might still face coverage limits or potential denial based on their responses in the medical questionnaire.
Guaranteed issue policies, like Gerber Life’s plan, offer another path for seniors or individuals with health concerns. These plans cater to people of all ages and offer coverage without any medical exams. This option is ideal for those with pre-existing conditions who may otherwise struggle to get approved for traditional term life insurance.
When it comes to life insurance, and who has the cheapest life insurance for seniors, there are a lot of companies that fit the mark. However, not every insurance company may suit the needs of every senior.
Here is a list of the 5 best life insurance companies for seniors in 2020, based on their unique qualities and of course, budget friendly policies.
When you’re 70 and already a senior, buying a whole life insurance policy may seem a little absurd. You would get an expensive policy on a higher rate of premiums and that too to build cash value- which won’t mature by the time you want to cash it out.
At age 70, you should go for a guaranteed universal life insurance policy if you don’t want a medical exam- this is best for seniors who are diagnosed with a medical condition that would make it hard for them to get some other policy.
Moreover, it is still advisable for a person of 70 years of age to get a term life policy which would relatively be cheaper and will get them a death benefit which would help their family with future finances, or even with funeral and burial costs.
Guaranteed issue life insurance isn’t exclusively for seniors, but its no-medical-exam feature appeals to many older adults. Typically, it’s available for those aged 40-80.
Options for seniors over 70 can be limited, especially if a no-medical-exam policy is required. However, don’t let this discourage you.
Start by contacting your insurance provider to explore what’s available. Sometimes, factors other than age may impact eligibility for a guaranteed issue policy. Stay connected with a knowledgeable agent who can help guide your choices and recommend a policy that’s right for the long term. Don’t assume—shop around for the best options.
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