If you are trying to take out a policy for yourself or for a loved one, getting life insurance for seniors over 80 years old might seem like it would be difficult, but in fact it is very common and many companies offer coverage to this age group. With funerals easily reaching costs of up to $10,000, it is a very sensible concern to not want to leave behind that much financial burden on your family and loved ones when they are already trying to cope with losing someone. Many people think that it is impossible to get good life insurance for seniors, but there are several different types of policies seniors can get to help give them the peace of mind they deserve.
Keep In Mind While Shopping for Senior Life Insurance
There are a few things you need to be aware of before you set out looking for the best life insurance policy for senior citizens. One big concern is how an individual's health can affect their policy coverage and prices. Generally, the better health you are in, the better premiums you will be entitled to. Another big thing that many people are concerned about is they think 80 is too old to get life insurance. While it is true that for certain types of coverage, some companies will not issue new coverage past a certain age. That does not however mean that there are not options for you, even if you are 150 years old.
Advantages and Disadvantages to Different Policy Types
Some companies may not issue term life insurance to seniors over 80 years old, depending on what their coverage age limit is. However, most do offer whole life insurance policies at any age. Term policies are for a certain period of time, and is a good idea to cover things that are specific to a time period, such as a mortgage. Term life policies are generally cheaper the younger the person is, increasing over time and each time you might renew them. Whole life usually does not come with age limits like term policies do, but the premiums are generally more expensive. They also carry a cash value over the length of the policy that you can even withdraw or borrow against. There are also things like graded life insurance, which gives you the full death benefit payout after a period of time, or burial insurance and final expense policies.
Comparing Term vs Whole for Seniors
|Term Life||Whole Life|
|Cost||Less expensive||More expensive|
|Coverage||Specified time period, renewable||For life|
How a Senior's Health Affects Life Insurance
Earlier we mentioned that the better health you are in, in general you can expect better premium prices. There are several other things that go into this as well, such as what medications you are currently on and have been prescribed to in recent years, any recent severe medical issues, surgeries or hospitalizations, as well as personal habits like tobacco or alcohol usage. Quitting these substances for up to a year can get you a better premium with some companies as well. Minor medical issues generally do not affect your policy. If you would rather not go through the process of getting a bunch of tests ran on you, you can even get life insurance for seniors with no medical exams as well.
Reasons Why Seniors Over 80 Might Want Life Insurance
- Covering funeral / burial expenses
- Covering outstanding debts
- Leaving some financial security behind