Life insurance is closely linked to the age of the policyholder, the older the person, the more expensive the policy will be since the insurer will have to take a greater risk to be able to provide certain guarantees. That’s why life insurance for young people is less expensive than life insurance for seniors.
Securing in the third age: An impossible mission?
Basically, life insurance is designed so that the person can safeguard the economic stability of his family in case of death or if he suffers from an illness that prevents him from working. That is why the most common are life insurance for young people, since these are the ones who are forming a new family and have small children under their responsibility.
It is assumed that retirees no longer have anyone in their charge and that they receive a pension that allows them to meet their basic needs. If we add to this that the risk of suffering from degenerative diseases is high, then we can understand why it is difficult to find life insurance for people over 70 years of age.
In fact, many insurers carry out life insurance up to 65 years. That is, they do not accept new policies for people over this age. Other companies foresee a contract in which life insurance is automatically canceled when it reaches 65 years of age. That’s why it’s so important to read the fine print of the policy.
Not everything is lost
Although most insurers do not carry out life insurance for retirees, some do. Obviously, the person must undergo a series of medical exams in order to establish the real risk to which the insurer faces and, if it considers that it is not excessive, they can sign the contract. However, as the premiums are usually very high, it would be advisable to analyze if it is really worth subscribing this type of insurance when you are 55 to 80 years old.
Actually, there are other options much more interesting, such as life insurance for people over 50 in the form of annuity. That is, the premiums that have been paid are recovered as a periodic income that will supplement the pension. It is a policy that provides some economic stability to the elderly, especially if you have paid premiums for 15 or 20 years.
Another particularly convenient alternative for people from 55 to 80 years old is dependency insurance. They are not life insurance per se, but provide for the reduction of personal autonomy, whether due to age, accident or illness. In these cases, the insurer covers the expenses that the dependence entails.