As you grow older, your life insurance options change. Policies may offer less coverage or go up in cost. Fortunately, your financial responsibilities change too. In your 80s, you might not have to worry about paying off your mortgage or supporting any dependents. However, many older adults underestimate end-of-life expenses.

Final expense insurance provides enough coverage to pay for funeral and burial costs, outstanding medical debts, and more so that your loved ones won’t find themselves with a sudden financial burden. You should be able to spend your 80s enjoying retirement or spending time with the people you love the most. Final expense insurance offers you peace of mind so you can spend quality time now instead of worrying about how your loved ones will cover expenses after you pass.

In this guide, we’ll take a closer look at final expense insurance for seniors, including the benefits, types of policies available, and what to consider to ensure that your coverage meets your specific needs and budget.

What is burial insurance and what does it cover?

Burial insurance, also known as final expense or funeral insurance, is a type of permanent life insurance policy designed to cover the various costs that emerge at the end of one’s life. Family members are often unprepared for the sudden cost of funeral services, cremation, burial and other rituals. In addition, your loved ones may experience the stress of struggling to pay as they also deal with the grief and shock of losing someone they love. Final expense insurance beneficiaries receive a death benefit right after you pass away, which can help them navigate that challenging time.

Despite its name, burial insurance can help with more than just funerals. If anyone still relies on a portion of your income, the death benefit from your insurance policy can help with their daily expenses. Likewise, if you know you’ll leave some debts behind, your final expense insurance can help cover them so they don’t come out of your estate or your family’s pockets. Your final expense policy can also help alleviate any legal fees associated with your estate. Beneficiaries are free to use the funds however they choose, so let them know if you have specific wishes for the death benefit.

Types of Final Expense Insurance Policies

There are two main types of final expense insurance policies available for seniors over 80: simplified issue and guaranteed issue.

Simplified Issue Final Expense Insurance

This policy type is accessible without a medical exam; instead, applicants answer a few health questions. These policies can provide a quick and less invasive route to securing life insurance, offering up to $40,000 in coverage, which can accumulate cash value over time.

Guaranteed Issue Final Expense Insurance

For seniors with significant health issues, guaranteed issue policies are often the right option. These policies require no health questions or medical exams, making them accessible but typically at higher premium rates. Benefits are usually capped at lower amounts, like $25,000, which can be enough to cover basic end-of-life expenses.

While simplified issue policies are less expensive and offer higher coverage limits, they do require answering health-related questions, which could disqualify some applicants with serious health issues. On the other hand, guaranteed issue policies accept all applicants but come at a higher cost and with lower coverage limits. Both types offer the key benefit of not increasing premiums over time, which is crucial for seniors managing fixed incomes.

Benefits of Final Expense Insurance

One of the primary advantages of final expense insurance is that it provides financial protection for loved ones. The costs associated with end-of-life expenses can be substantial, with the average funeral cost in America nearing $8,000. Life insurance policies for Americans over 80 can make sure that these costs will not create an undue burden on families during a difficult time.

Peace of Mind for Policyholders

Securing a policy offers peace of mind to individuals who do not want to leave their loved ones with financial stress as their legacy. It’s good to know that funeral and associated costs are covered and will not be a cause for worry for anyone.

Final expense insurance typically does not restrict how beneficiaries can use the death benefits. This means that the money can be used for funeral expenses, outstanding debts or any other expenses that your loved ones will need help with.

Can you get final expense insurance after 80?

It’s a common misconception that older adults, especially seniors over 80, no longer qualify for life insurance. On the contrary, several types of final expense insurance for seniors over 80 can help support your loved ones after you’re gone. In addition to helping your loved ones lay you to rest, burial insurance policies can help with a variety of other costs, like celebrations of life and transportation for people who want to attend your services. Your death benefit can also be a gift to the people you love; they can put it toward their homes, daily expenses, childcare, education or travel.

A permanent policy like Fidelity Life’s RAPIDecision^® Senior Whole Life insurance might be a better option than burial insurance if you have more extensive financial needs. Whole life policies may be more expensive but also offer a more considerable death benefit than final expense insurance, up to $150,000 with RAPIDecision^® Senior Whole Life.

If your income still provides for a spouse or children or if anyone will rely on your finances indefinitely, a whole life policy can provide them with more comprehensive support. Likewise, if you’re still paying for a mortgage, a whole life policy can go further in terms of paying it down.

Yet some people may find that final expense insurance fits more easily into their financial plan. Serious health issues also make qualifying for permanent policies more difficult than qualifying for burial insurance.

If you’re unsure of the best fit for you, getting a quote online or speaking to a licensed agent are great ways to start the process of finding the right senior life insurance.

Eligibility and Application Process

When seniors over 80 consider applying for final expense insurance, they might not be sure whether they are even eligible or have the necessary documents. Here’s what you should know in order to understand the application process, eligibility criteria and required documentation.

Eligibility for final expense insurance typically hinges on the following criteria:

• Age: Many policies may specify an age range, with life insurance products specifically for seniors over 75 or 80 years old.
• Health Status: While guaranteed issue policies do not require medical exams, simplified issue policies might exclude applicants with certain severe chronic conditions or those who have been advised terminal by a medical professional.
• Residency: Applicants must typically be legal residents or citizens of the country in which they are applying for insurance.

The documentation required during the application process typically includes:

• Proof of Age and Identity: Government-issued identification such as a driver’s license or passport.
• Residency Documentation: Documents like utility bills or bank statements to verify the applicant’s address.
• Financial Information: Some policies may require proof of income or financial statements, especially if the premium is influenced by the applicant’s financial status.
• Medical Records: For simplified issue policies, access to medical records or a health questionnaire might be required.

Here’s how the application process usually works:

• Initial Consultation: Once a suitable provider has been found, the first step involves an initial consultation, often done over the phone or in person, where the insurance agent discusses the policy details, costs, benefits and any specific requirements unique to the policy.
• Completing the Application: The application for final expense insurance typically requires personal information, health history and any specific coverage options. For policies like guaranteed issue final expense coverage, this form may not require health details as eligibility does not depend on medical history.
• Submitting Documents: Applicants need to submit certain documents along with their application. This generally includes identification to verify age and residency and possibly financial documentation if the policy requires proof of income or financial status.
• Underwriting Process: For simplified issue policies, the underwriting process involves reviewing the health information provided and possibly verifying this information through medical records. This process determines if the applicant meets the health criteria of the policy.
• Approval and Policy Issuance: Once the underwriting process is complete and the application is approved, the policy is issued. The applicant is then required to sign the policy agreement and set up payment for the premiums.

Is it harder to get burial insurance for seniors over 80?

Adults over 80 usually have fewer life insurance options and pay higher premiums than younger people. Fortunately, you can still get great, affordable coverage. Age is just one factor that affects your eligibility for life insurance. If you’re over 80 and considering a policy, you should act quickly because rates increase as you grow older and you may become ineligible for certain life insurance options after age 85.

What is the maximum age to apply for final expense insurance?

You can qualify for final expense life insurance through Fidelity Life through age 85. If you’re nearing your mid-80s, applying soon is important so you can still receive coverage. If you’re an older adult and think you want life insurance, but final expense coverage doesn’t seem like the right fit, you can check out some of Fidelity Life’s other life insurance options for seniors.

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How much does burial insurance cost?

Several factors determine your burial insurance costs, including your age, gender, lifestyle and the type of final expense insurance policy you choose.

Age

Age is the primary factor affecting premium costs in life insurance policies. Generally, the older you are, the higher the premium, because the insurance risk increases with age. Life insurance policies for individuals over 80 will typically have higher premiums than those for younger seniors.

Gender

Statistically, women tend to live longer than men, which often results in slightly lower premiums for women when all other factors are equal. This difference in life expectancy is reflected in the pricing models of most insurance companies.

Lifestyle

Lifestyle factors, including smoking status, alcohol consumption and general health, can significantly impact premium costs. Smokers, for instance, will almost always face higher premiums due to the increased health risks associated with tobacco use.

Policy Type

The type of policy chosen also affects the premium. Guaranteed issue policies, which do not require a medical exam and accept all applicants, typically have higher premiums compared to simplified issue policies where health screenings can play a role in mitigating risk for the insurer.

Fidelity Life offers adults over 80 two options for burial insurance, usually at different price points. Simplified issue final expense insurance has a streamlined application process. Instead of going to a physician to complete a medical exam, you can answer some questions about your health history. The deliberation process takes a few days instead of a few weeks and coverage starts right away. Fidelity Life’s RAPIDecision^® Final Expense plans are simplified issue policies. These provide up to $40,000 in coverage and accumulate cash value.

Guaranteed issue final expense coverage also has a streamlined application process. However, you don’t need to provide any health information to apply for guaranteed issue insurance. In fact, your health has no impact on your eligibility. Fidelity Life offers RAPIDecision^® Guaranteed Issue insurance specifically for older adults with health issues, as a history of severe health conditions could disqualify you from buying other types of life insurance. Death benefits for RAPIDecision^® Guaranteed Issue policies are up to $25,000.

While final expense insurance can be expensive compared to some other types of policies, they typically cost less than most American funerals, which are $8000 on average. With Fidelity Life’s plans, premiums also remain the same throughout the lifetime of your policy, so you don’t have to worry about unexpected rate changes.

How to Choose the Right Final Expense Insurance Policy

The right final expense life insurance policy for you and your loved ones will depend on your specific situation and needs. It’s important to carefully consider several factors before you decide to sign up for a life insurance policy.

Financial Needs

The primary consideration is understanding the financial needs that the policy needs to cover. This includes estimating the costs of a funeral and any debts or expenses that will not disappear after the policyholder’s death:

• Estimating Funeral Costs: The first step involves estimating funeral costs, which can vary significantly based on personal preferences and regional differences. Funeral expenses typically include fees for the funeral service, burial or cremation, a casket or urn and other related costs such as transportation, flowers and obituaries. If they are unsure, seniors can get quotes from local services to understand the likely expenses in their area and decide what arrangements they would want.
• Accounting for Outstanding Debts: Beyond funeral expenses, seniors should consider any outstanding debts they may leave behind. This might include credit card balances, personal loans, medical bills or a remaining mortgage. The goal of final expense insurance in covering these debts is to prevent them from becoming a burden to the bereaved family, potentially consuming other assets that the senior might wish to pass on to heirs.
• Ongoing Household Expenses: It’s also sensible to account for ongoing household expenses that might continue for some time after the policyholder’s death. These could include utility bills, property taxes and maintenance costs, which may be incurred while settling the estate or preparing a home for sale. Providing for these expenses can help ensure that the senior’s estate is managed smoothly without financial strain or the need for urgent liquidation of assets.

While it might be tempting to opt for a higher coverage amount for extra security, over-insurance can lead to unnecessarily high premium costs. Seniors should balance comprehensive coverage with the reality of their budget constraints, especially since they are likely managing fixed retirement incomes. The key is to choose a policy that provides peace of mind without imposing a significant financial burden.

Health Status

For seniors over 80, health status can significantly affect eligibility and premium costs, particularly for simplified issue policies. Assessing one’s health honestly helps in choosing between a guaranteed issue policy (no health questions asked) and a simplified issue policy (which involves health questions but typically offers higher coverage amounts and lower premiums).

Policy Features and Benefits

Look for features that match your priorities, such as policies that accumulate cash value, offer fixed premiums or include specific riders like accelerated death benefits, which can be beneficial if the insured becomes terminally ill.

Alternatives to Final Expense Insurance

While final expense insurance is a popular choice, it’s not the only option available to seniors over 80 looking to manage their financial legacy. Alternatives such as term life insurance, whole life insurance and annuities can also be suitable, depending on the individual’s financial situation and coverage needs. Whole life insurance, for example, offers permanent coverage and includes a savings component, which builds cash value over time. Although more expensive, it can be a worthwhile investment if started earlier in life.

Annuities are another alternative, offering a guaranteed income stream until death, which can be particularly appealing for seniors seeking financial security through steady income. Annuities can be set aside specifically for final expenses or to cover ongoing living expenses.

However, each alternative comes with its own set of pros and cons. Term life insurance, for instance, may expire without benefiting the policyholder if they outlive the policy term, which can make it less appealing for seniors over 80. Whole life insurance and annuities, while providing more comprehensive benefits, are generally more expensive and may not be financially practical to initiate at an older age due to high premium costs.

Comparing Different Policies and Providers

Here are a few tips to keep in mind when comparing policies and insurance providers:

• Provider Reputation and Stability: Research the financial stability and customer service reputation of the insurance company. Organizations like A.M. Best, Moody’s and the Better Business Bureau provide ratings and insights into the insurer’s ability to pay claims.
• Cost Comparisons: Compare premium costs across several insurance providers for the same level of coverage. Utilize online comparison tools or consult with insurance brokers who specialize in life insurance for seniors.
• Terms and Conditions: Carefully review the terms and conditions of each policy. Pay attention to the fine print regarding premium escalations, policy lapse conditions and the claims process.
• Consult with Professionals: Speaking with a financial advisor or an insurance agent can provide personalized insights based on individual circumstances and needs. They can help navigate the complex landscape of final expense insurance and suggest the best options available.

Learn More

Final expense insurance can empower you to care for your loved ones even after you’re gone. With the right coverage, you can help them avoid financial distress and set them up for success in the future. To learn more about final expense life insurance for people over 80, you can get a quote online or speak to a licensed life insurance agent today.

FAQs

What is final expense insurance?

Final expense insurance, also known as burial insurance or funeral insurance, is a type of whole life insurance designed to cover the costs associated with end-of-life expenses such as funeral services, burial, cremation and outstanding debts. It provides a death benefit directly to beneficiaries, who can use the funds as they see fit to handle these costs.

Why do seniors over 80 need final expense insurance?

Many seniors find that as they age, their financial responsibilities change, but the need for a financial safety net remains, particularly to avoid burdening loved ones with funeral expenses and debts after their passing. Final expense insurance helps ensure that these costs are covered without impacting the family’s finances.

How much does final expense insurance cost?

The cost of final expense insurance varies depending on several factors, including the age and health of the applicant, the coverage amount and the specific policy terms. Generally, premiums are higher for seniors over 80 due to the increased risk to insurers. However, the premiums are designed to be manageable with fixed incomes and remain constant throughout the policy term.

Can seniors over 80 with health issues qualify for final expense insurance?

Yes, there are final expense insurance policies available that do not require a medical exam and ask minimal health questions. These are known as guaranteed issue life insurance policies. While these policies are more inclusive for those with health issues, they might come with higher premiums and typically lower death benefits.

Is there a waiting period for final expense insurance benefits?

Many final expense insurance policies have a graded death benefit, meaning there is a waiting period (usually two to three years) before the full death benefit is payable. If the insured passes away during this period, the beneficiary may receive a return of the premiums paid plus interest rather than the full death benefit.

What happens if a senior over 80 outlives their final expense policy?

Final expense insurance is a type of whole life insurance, which means it does not expire as long as premiums are paid. The policyholder is covered for life and the policy will pay out the death benefit when they pass away, regardless of age.

How should beneficiaries be chosen for final expense insurance?

Beneficiaries should be chosen based on who the policyholder wishes to handle the financial responsibilities after their death. Often, these will be close family members who will oversee funeral arrangements and settle any final expenses. It’s important to discuss these plans with chosen beneficiaries so they understand their roles and the policy details.

Can final expense insurance cover more than just funeral costs?

Absolutely. While the primary purpose is to cover funeral-related expenses, the death benefit can be used by beneficiaries for any purpose. This includes settling debts, covering living expenses or even a financial gift.

At Fidelity Life, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed, and updated regularly to ensure the information is as relevant as possible. We encourage you to speak with your insurance representative if you have additional questions and make sure you read your policy contract to fully understand your coverage.