As we age, the need for insurance becomes more important. In our 70s, we may be more prone to health issues and our financial situation may have changed due to retirement.
In this article, we will discuss the cost of insurance at 72 and what to expect when it comes to types of insurance and how to mitigate the costs.
Health Insurance
At 72 years old, health insurance is an essential coverage to have as it covers medical expenses when you get sick. The cost of health insurance for seniors varies depending on the type of coverage and your age.
Medicare is the government-provided health insurance for people over 65, and individuals can have private Medicare Supplement Insurance (Medigap) policies to fill in the gaps of Medicare coverage. Medicare premiums are based on your income, and the average cost for Medicare Part B at age 72 is around $148 per month. However, if your income is higher, you may need to pay more.
Most Medicare Supplement Insurance policies are priced between $50-$300 per month, depending on the state and the level of coverage.
Another option for health insurance is Medicare Advantage, which is a private alternative to traditional Medicare. These plans often have lower premiums but may have higher out-of-pocket costs for medical services.
The cost of Medicare Advantage plans varies depending on the plan you choose and your location.
Life Insurance
Life insurance is an important coverage to have in case of unexpected death, but the costs for seniors are generally quite high. As we age, the chances of dying increase, which means the premiums for life insurance increase too.
For example, a healthy 72-year-old man can expect to pay around $600-$700 per month for a $500,000 term life insurance policy. However, if you have health issues, the cost can be much higher or you may be declined for coverage altogether.
Long-Term Care Insurance
Long-term care insurance covers the cost of care in the event that you become unable to take care of yourself due to physical or mental limitations.
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When should you get insurance at age 72?
This type of insurance is becoming increasingly important as people are living longer and may require more care in their later years. The cost of long-term care insurance varies based on your age, health, and the level of coverage you choose.
According to the American Association for Long-Term Care Insurance, the average cost of long-term care insurance at age 65 is around $2,000 per year.
Auto Insurance
Auto insurance is necessary for drivers of all ages, but the cost may decrease for seniors as older drivers are generally viewed to be less risky.
However, the cost of auto insurance depends on several factors, such as the type of car, your location, and driving record. Seniors may be eligible for discounts on their auto insurance if they complete a driving safety course or have low mileage on their car.
Homeowners Insurance
Homeowners insurance is essential to protect your home and possessions from damage or loss. The cost of homeowners insurance varies depending on the type of coverage and your location.
Seniors may be eligible for discounts on their homeowners insurance if they have upgraded safety features in their home or have a good claims history.
Ways to Reduce Insurance Costs
There are several ways to reduce insurance costs at age 72:.
- Shop around: Get quotes from multiple insurance providers to find the best price.
- Bundling: Consider bundling your insurance policies (such as auto and homeowners) with one provider to save money.
- Compare coverage levels: Make sure you compare policies with similar coverage levels to ensure you’re getting the best value.
- Reduce coverage: For some policies, such as life insurance, reducing coverage may reduce the cost.
- Stay healthy: Maintaining a healthy lifestyle can help reduce the cost of health insurance and long-term care insurance.
Conclusion
At 72 years old, insurance is an essential coverage to have, but the cost may be higher than when you were younger. Health insurance is an important coverage to have and Medicare and Medicare Supplement Insurance can help mitigate the costs.
Life insurance can be expensive for seniors, and long-term care insurance is becoming increasingly important for people living longer. Auto and homeowners insurance costs may decrease for seniors, but it depends on various factors. By shopping around, comparing coverage levels, bundling policies, and maintaining a healthy lifestyle, seniors can help reduce their insurance costs.
