When insurance coverage is most needed, this is when it ends for seniors.
At age 70, we can no longer buy coverage for disability/life insurance coverage if we choose to purchase an item through a loan given by the lender or credit unions; it’s their policy. This leaves me uncertain at this time about their policies.
Seniors become hesitant in buying when it comes time for newly needed costly items like household appliances, home repairs, or a vehicle. Not every individual has a cash flow to go and make an out of pocket new purchase on any given item.
By stopping disability/life insurance at age 70 on new loans, lender policies are not weighing all the facts. Seniors 70 years and over are in dire need of insurance coverage now.
It is true that we can get a new loan carrying no insurance coverage after age 70. But if I pass away before my new loan is paid in full, this leaves my spouse to pay the remaining balance of this loan if she signs on the dotted line. This leaves a high end cost to my spouse and a great deal of uncertainty while living on a senior’s yearly income.
It would be nice to see a new loan at age 70 carry at least a life insurance coverage policy paid by the borrower, and reset the age change to be covered up to the age of 90. Seniors are given government seniors grants to help live in their own homes for as long as possible, now it’s time for lenders to step in and help their long-time and loyal members by granting them an extension to life insurance coverage for people 70 and over.
Seniors still need insurance coverage when needing a new loan.
Clarence Landry
Seaview