Thinking about your own death or the death of a loved one is not easy. However, when it actually happens and you are unprepared, an extra burden is added to your loved ones. Leaving behind financial debts and uncovered death expenses can compound the situation even more.
Most seniors over 80 begin to consider planning for their death and funeral planning and “final expenses” are often at the top of the list.
No one wants to leave things unfinished, which can potentially cause a significant financial burden for your loved ones. If you are the head of your family, or you have people that depend on you, your responsibility is to make sure that they will be financially secure before you pass away.
Do I Even Need Life Insurance If I’m over 80?
Let me be the first to say that if you have no debt, none is depending on your income and have enough money for burial expenses you may not need life insurance – spend your time, money, and days with your family instead of on an unnecessary policy.
Life insurance isn’t an investment or a plan to leave a marvelous lifestyle for my children after I’m gone. Life insurance is a temporary protection I need to make sure my loved ones aren’t left with my debts.
Is It Possible to Get Life Insurance over 80?
A lot of people think that it is impossible to get life insurance if you are a senior over 80. While getting an insurance plan for seniors over 80 may be a little more difficult or expensive than if you were 40, it certainly can still be done, especially if your overall health is good.
As with a consumer of any age, shopping around between different insurance companies is an important part of the process.
There are certain companies that have lower premiums for seniors over 80 or look more favorably at certain health conditions you may have. Make sure to work with a broker that works with all insurance companies, so that he or she can help you find the best rate possible given your individual needs.
Which Types of Life Insurance Is Available for Seniors over 80?
These types of plans can help cover the cost of a funeral service, burial, and other expenses associated with your “final expenses.” The Federal Trade Commission estimates that many funerals can cost well over $12,000. If you don’t have the prepared cash to pay for your burial or don’t want your estate to be taken up with fees incurred by your death, a final expense insurance plan may be for you.
The face amount of this coverage isn’t high, with benefits usually varying between $5,000 and $50,000 per policy. Final expense policies are a permanent plan, which means it will build cash value over time.
It is often the last resort for those who can’t qualify for other kinds of life insurance policies due to their medical issues. A graded benefit policy is actually one that pays a reduced benefit if death takes place during the first few years (usually 2-3 years) after the policy is obtained.
Once coverage has been in force for a few years, the death benefit increased to the one that was purchased for. Graded benefits reduce the risk taken on by insurance companies who accept terminally ill buyers. If the individual dies in the first 2-3 years, the beneficiary gets the premium paid plus interest, usually 10%.
This is a no brainer. If you are in a good health you can get a 10-year term policy. Term policy would be the best choice because of their lowest costs when compared to a whole life policy.
Guaranteed Universal Life
Guaranteed universal life insurance or GUL is actually a term coverage providing guaranteed premiums and death benefit to a specific age rather than a term period. In short, GUL can last your entire life in most scenarios.
GUL doesn’t accumulate any cash value plus the longer the coverage the more expensive your premiums will be. The coverage can last to a range of ages such as 90, 95, 100, 105 or even 121.
What Should I Keep in Mind When Buying My Policy
Take your health into consideration. Make sure to discuss any health issues you may have with your broker, as some insurance companies have lower premiums than others do for certain conditions. Take a deep look at your overall financial picture, and assess the amount of coverage that you truly need.
Life insurance gives a continued income to your dependents to substitute yours upon your death until they can live comfortably without it. It can also supply a quick emergency fund for healthcare, legal, and funeral expenses, should family savings not be sufficient to cover them. At this age, if you have no debts (including a mortgage) and no one relies on your income, you may not really need a life insurance policy.
Buy a policy as early as possible. When you are over 30, 40, or 50, getting life insurance is much easier and much cheaper. Life insurance for seniors over 80 is more expensive and a little more challenging. The sooner you buy a policy, the lower your premium will be because, over time, you will continue to age, which drives premiums up. Also, the longer you wait, the more likely you are to develop a potential health condition or even risk passing away without a policy.