Life insurance is a useful tool for young and middle-aged individuals with a high burden of day-to-day expenses. There are two basic forms of this kind of insurance: term life and whole life. Whole life insurance is far more expensive than term life insurance and typically isn't suited to the needs of an older person. Meanwhile, term life insurance is quite affordable for individuals between the ages of 30 and 50.
Once a policyholder turns 50, his or her premiums will inevitably increase. The exact rate of this increase will depend upon several factors, including the policyholder's tobacco habits and pre-existing health conditions. A 60-year-old man in good health might still be able to procure an affordable term life insurance policy with a 10-year payout window. His eligibility for such a policy will hinge on his performance on a standard medical exam.
Unfortunately, a healthy 70-year-old man will have trouble finding an excellent life insurance policy with premiums of less than $100 per month. Although most life insurance companies issue 10-year term life insurance policies for males and females between the ages of 70 and 80, these policies typically come with death benefits worth less than $50,000.
Such policies may also come with mandatory probationary periods during which beneficiaries aren't entitled to receive death benefits. These periods may last up to three years. In essence, these "10-year" policies may only pay out during a seven-year window. In many cases, the premium payments on these policies may end up exceeding the total values of their death benefits.
If you're looking for a life insurance policy for someone who's over the age of 70, you'll need to talk to an insurance agent who specializes in selling high-risk policies. He or she may be able to identify relatively affordable policies that come with short probationary periods. Although the ever-changing life insurance industry offers few guarantees, it may be worthwhile to sit down with such an agent to discuss your options.
There aren't too many reasons to invest in a life insurance policy after turning 60. Once you've paid for your house and your kids' college tuition bills, you may have few major "overhead" obligations left on your financial plate. Although term life insurance policies typically produce high rates of return for younger policyholders, your expensive policy may produce sub-par returns relative to the stock or bond markets. Before opting to purchase a term life policy, consider whether your money could earn a better rate of return in another investment vehicle.