As a senior, your life insurance needs may differ slightly from your 40s and 50s. While middle-aged adults typically buy life insurance to cover outstanding debts and replace their income in the event of their death, seniors may want life insurance to pay for funeral expenses or leave a little extra money in their estate.
Whatever your reasons for buying life insurance in your 80s, know that options are available. While it may cost a little more than it did in your younger years, finding a policy that fits your goals is still entirely possible. In some cases, you may not even need a medical exam. Consider this article your guide to the best life insurance for seniors over 85.
Types of Life Insurance Policies for Seniors Over 85
Several different types of life insurance policies are available to seniors. Here are a few of your options and the coverage they provide.
Whole Life Insurance
A whole life insurance policy lasts your entire lifetime as long as you continue to make your premium payments. It’s a form of permanent life insurance that accrues cash value at a set interest rate designated by your insurance company.
There are two components to a whole life policy — the death benefit and its cash value. When you purchase your policy, you decide on the death benefit amount and name a beneficiary to receive it when you die. The cash value component of your policy grows over time, and you may borrow against it or withdraw it once it reaches a level stipulated in your insurance contract.
Guaranteed Issue Life Insurance
Guaranteed issue life insurance is another type of permanent life insurance policy. It covers you over your entire lifetime as long as you keep up with your payments. Unlike other types of life insurance policies, you don’t need a medical exam to qualify for guaranteed issue life insurance. Coverage is assured if you meet the insurance company’s eligibility requirements, which may include age restrictions.
With a guaranteed issue life insurance policy, your beneficiary receives a death benefit, which can be used for funeral expenses, medical bills, or other costs when you die. However, some insurance companies include a graded period that lasts several years upon issuing your policy. If you die during the graded period, your beneficiaries may not receive the full death benefit payout.
Simplified Issue Life Insurance
A simplified issue life insurance policy provides immediate life insurance coverage. Instead of submitting to a medical exam, you’ll complete a short health questionnaire that helps the insurance company assess the risk of issuing a policy and decide on an appropriate premium amount. A simplified issue life insurance policy may be issued as term or permanent coverage.
In many cases, coverage under a simplified issue life insurance policy starts immediately after the insurer accepts your application, with no grace period. However, because there is no medical exam, life insurance companies will factor additional risk into your policy cost, which may result in higher premiums than you’d find under a typical term life or whole life policy.
Final Expense Insurance
Final expense insurance is a form of permanent life insurance that lasts your lifetime so long as you maintain your payments. It’s intended to cover your final expenses, including funeral, burial, or cremation. However, your beneficiaries may use it for other things, such as medical expenses or outstanding debt.
Final expense insurance typically has a lower death benefit than other forms of life insurance. However, it doesn’t require a medical exam, and the approval process is usually quick. Seniors in their 80s can easily find final expense policies through many insurers, including Fidelity Life.
Key Factors to Consider When Choosing a Policy
Buying a life insurance policy in your 80s is a big decision. Keep these considerations in mind when selecting your policy.
Coverage Amount
Your coverage amount equals the total benefits paid to your designated beneficiaries upon your death. To decide how much coverage you need, consider the people who rely on you for income. For instance, if your pension covers much of your and your spouse’s retirement, you probably want a higher coverage amount so they won’t financially struggle if you die before them. However, you may not need as much coverage if you’ve built a healthy retirement savings and most of your debts are paid off.
Seniors in their 80s often buy life insurance to cover funeral and burial expenses. With life insurance for over 85-year-olds, you won’t need to worry about burdening your family with paying for your funeral. They can use the death benefits to pay for it without dipping into their own savings. Other expenses that life insurance may help pay for include hospice and nursing home care, outstanding debts, or an inheritance for children and other relatives.
Once you decide on how much coverage you need, you can select a policy that aligns with your objectives.
Premium Costs
With life insurance for seniors over 85, costs tend to increase as you age. That’s due to a few factors. For one, your risk of developing serious medical conditions increases as you grow older. Your life insurance policy is more likely to result in a payout, and if you purchase it in your later years, there’s less time for the insurer to collect your premium payments that offset their risk.
To mitigate life insurance costs, you’ll want to find a policy that provides the coverage you need with a premium you can afford. If you’re on a strict budget, you may need to choose a policy with less coverage than you’d like so you can maintain your premium payments.
Health Requirements and Medical Exams
Finding coverage in your 80s may be more challenging if you have a serious health condition. However, it’s certainly not impossible. Some policies don’t require a medical exam and won’t deny you if you have a health condition. Guaranteed issue life insurance, simplified issue life insurance, and final expense insurance usually don’t require any medical exam. You can easily get coverage if you meet their other eligibility criteria.
However, just because you’re in your 80s doesn’t necessarily mean you’re unhealthy. Many people live vibrant, active lives into their 80s and 90s. If that’s you, you may qualify for whole life insurance for seniors over 85 that offers more coverage, as long as you’re willing to undergo the medical exam.
Payout Benefits and Beneficiaries
Another factor to consider when buying over 85 life insurance is who will be the beneficiary. You can name any beneficiary you like, including your spouse, partner, child, relative, or even a charitable organization. When deciding on a beneficiary, think about what you hope to achieve through your life insurance policy. If you want to support your spouse’s or partner’s retirement, naming them the beneficiary makes sense. However, if you’re single, appointing a child or another relative to receive the life insurance benefits might be the right decision.
Ultimately, you’re in total control over who you designate as your life insurance beneficiary. It’s a personal decision to think about before finalizing your policy.
Explore life insurance for seniors
There are a range of affordable Fidelity Life products to choose from based on your situation and financial responsibilities.
Comparing Life Insurance Policies
There are many options for senior life insurance for people 85 and older. Deciding which one is right for you comes down to a few factors: cost, coverage, and benefits.
Cost Comparison
The cost of life insurance for seniors over 85 tends to be much more expensive than for middle-aged adults. For that reason, it’s a good idea to define how much you can afford for your policy before beginning the application process. Remember, your policy only stays in place if you continue making payments. If you can’t afford the policy, you’ll lose your coverage.
Consider obtaining life insurance quotes from several providers. That way, you can compare the costs and benefits of each policy before making a decision.
Coverage Comparison
Finding life insurance with extensive coverage options after age 85 can be an uphill battle. Most providers don’t offer term life insurance for seniors over 85, so you’ll need to buy permanent or final expense coverage. The death benefits available under those plans may be limited to final expenses, such as funeral and burial.
If comprehensive coverage is essential to you, look for a provider that offers a whole life permanent policy. Some whole life policies, such as Fidelity Life’s RAPIDecision Senior Whole Life policy, offer more extensive benefits.
Benefit Comparison
Life insurance for 85 year olds typically provides fewer benefits than for younger individuals. However, you should be able to find a policy that doesn’t require a medical exam and offers level premiums that stay the same throughout your lifetime. Carefully review each policy and consider its length, whether it’s graded or becomes immediately effective, and if premiums remain constant. You might also compare death benefits and any restrictions to ensure you get a policy that aligns with your needs.
Tips for Seniors Over 85 When Applying for Life Insurance
As you start the application process, keep these tips in mind.
1. Decide How Much Life Insurance You Need
Your financial situation probably looks a little different than when you were younger. If you have children, they may be fully independent, and you may no longer be working. However, if you’re on a pension or receive Social Security, your spouse or partner may not receive the same amount of benefits if you die. Plus, the cost of your funeral and burial may be an expense your family isn’t prepared for.
Determine how much life insurance you think you need, and keep that amount in mind when searching for a policy. Remember that your benefit options may not be as significant as when you were younger, but you may still be able to find a policy that allows you to leave a legacy for your loved ones.
2. Determine Your Beneficiary
Your beneficiary will receive the death payout of your life insurance policy when you die. You’re in complete control of who you name as your beneficiary, so think about who you want the money to go to before applying for a policy. Some options include your spouse, partner, children, extended family, or a charitable organization.
3. Start Shopping for Life Insurance
Some life insurance companies don’t provide much information about their policies for people over 85 online. You may find it easier to call insurance companies directly to find out about their offerings or to work with a life insurance agent. An agent will know exactly what policies you may qualify for and their limitations. However, agents can only provide quotes for the companies they represent.
Before you ask for a life insurance quote, prepare a list of questions to ask insurance providers. Some examples of questions you may have include:
- What types of life insurance policies can you offer for people over 85?
- What are the coverage and benefit limitations for seniors over 85?
- Is any medical exam required, and are there any restrictions for medical conditions?
- Does coverage last throughout life, or does it expire at a certain age?
- Do premiums remain the same throughout the policy?
- Is the life insurance policy graded? If so, for how long?
- Is there a waiting period before coverage begins?
Sometimes, adult children can help find life insurance for elderly parents over 85. If you have adult children, consider asking them to assist, especially if you’re unsure where to start.
4. Find the Best Rates and Coverage
Getting at least three quotes from different providers is a good idea. That way, you can compare the options available and choose the policy that best suits your needs.
Fidelity Life Offers Many Life Insurance Options for Seniors Who Are 85
When deciding on life insurance, look for a policy that suits your budget and has the coverage you need. Even if you have a pre-existing medical condition, you may be able to find adequate coverage that provides you and your loved ones peace of mind.
Fidelity Life offers whole life, guaranteed issue life, and final expense life insurance for 85-year-olds. You can choose the policy that best suits your coverage needs.
The RAPIDecision® Senior Whole Life Policy is made for seniors between 50 and 85 and offers coverage of up to $150,000. As a permanent policy, your benefits never expire, so you can count on coverage as long as you pay your premiums. In most cases, there’s no need for a medical exam, and you’ll simply fill out a questionnaire.
The Fidelity Life RAPIDecision® Guaranteed Issue policy is available for seniors between 50 and 85. It provides permanent coverage with a death benefit of up to $25,000 and guaranteed-level premiums that won’t change. Even if you have a pre-existing health condition, you can qualify for a RAPIDecision Guaranteed Issue policy with no medical exam. Like other guaranteed issue plans, RAPIDecision Guaranteed Issue is graded with reduced death benefits in years one through three, meaning the full death benefits of the policy become available after four years of acquiring it.
Fidelity Life’s RAPIDecision® Final Expense insurance is available for individuals between 50 and 85, offering coverage ranging from $5,000 to $40,000. There’s no need for a medical exam, and coverage starts immediately after approval. The death benefits from your policy can cover your funeral and burial and other expenses like debts and medical bills. The RAPIDecision® Final Expense policy accumulates cash value and provides affordable premiums.
Pros:
- Several different policies to choose from
- No medical exam required
- Speak with a knowledgeable agent on the phone or get an online quote
- Offers more coverage than most other providers
Cons:
- Not available after age 85
Finding life insurance at 85 years old with no medical exam is entirely possible through Fidelity Life. We offer three plans for seniors, including whole life, guaranteed issue life, and final expense life. Each policy has different coverage and benefits you can customize to suit your needs. To learn more, start your quote with Fidelity Life today.
