Getting life insurance for over 80 years of age is easy to do. Here's the scoop:
There are three different types of permanent coverage available to seniors over 80: universal life insurance, simplified issue whole life insurance and guaranteed issue life insurance.
- The amount of insurance you want will help determine which type of policy(s) you may consider.
- Your health will help decide which underwriting requirements you can meet.
- Your independent life insurance agent is the best one to help find the right policy for you.
So all you have to do is find an independent life insurance agent you are comfortable working with and the rest will follow!Where Do I Begin?
Did you know that the average funeral in the US costs more than $7000? Who will pay for your funeral? Or perhaps you are wondering who will pay for your parents' funerals? Or your grandparents! If you don't want to burden your family, life insurance is an easy solution.
There are typically three different types of policies available when buying life insurance over age 80. You cannot get quotes on line by yourself for these types of insurance. Talking to an independent agent will help you decide which policy is the best type for your needs. More importantly there are different qualifications for each type of policy and you may not qualify to purchase all of them.
Our suggestion is to speak with your agent to learn your different choices. After discussing your situation they will be able to tell you the best type of coverage for you and then they can help you find the best pricing.
We suggest an independent agent rather than going to one insurance carrier or a captive agent. When you talk with one company, your only choices are the few policies they offer. The same is true with a captive agent, they work for one company. There is no competition. An independent agent has many companies to choose from and as you will see later, this can mean the difference between being approved for a policy or not.
What are the Different Types of Insurance Available?
When you are looking for final expense insurance you want a policy that will last for your lifetime. That means a universal policy or a whole life insurance policy. Over age 80 there are restrictions about the amount of coverage available to you for each type of insurance.
- Universal Life Over Age 80- Depending on the carrier, coverage amounts will begin with either $25,000, $50,000 or $100,000. The state you reside in may also determine the minimum amount you can apply for. We suggest you purchase a guaranteed premium universal life policy if they are available where you live. As it sounds, the premium is guaranteed to remain level as long as you pay in a timely manner.
- Whole Life Over Age 80- If you want less than $25,000 of coverage this is your only choice. Some carriers offer up to $40,000 of coverage. These are final expense policies and the premium remains level for the life of the policy providing you pay your premiums on time.
What About Price?
The answer depends on several things.
- First- How old are you?
- Second- What amount of coverage do you want.
- Third-Can an you qualify for both types of coverage?
- Fourth- Can you afford as much insurance as you want? (If not, how much coverage can you afford)?
The two kinds of life insurance policies available over age 80 are priced as follows:
- Universal Life will give you the most coverage for your premium dollars.
- Whole Life Insurance final expense coverage is more expensive.
While we all want the least expensive option available, you may not be able to get a universal life insurance policy if you want less than $25,000 of coverage or if you cannot qualify.
How Do I Qualify?
The requirements for each type of policy are as follows:
- A Universal Life Insurance Policy- This is a fully underwritten policy. You will have to take a paramedical exam. This will include a full medical history, blood and urine collection, blood pressure reading, height and weight, a cognitive exam and perhaps an EKG (there is no disrobing). The examiner will come to your home and there is no cost to you. The insurance carrier will order your doctor records. This process can take anywhere from 4-8 weeks (and occasionally longer) before your policy is approved and put in force.
- A Final Expense Life Insurance Policy- This is a simplified issue whole life insurance policy. There is no exam needed. You have to be able to answer "no" to a number of health questions to qualify. Here is one important reason to use an independent agent: each insurance company has minor differences in their questions, so while you may be approved by one company, you may be declined by another. Your agent should be able to direct you to the correct company the first time.
- Guaranteed Issue Life Insurance Policy- This is a whole life insurance policy with no medical requirements. All applicants are accepted for insurance. There is a 2 year wait period for loss from a medical reason. The policy pays for accidental death on day one. If the insured passes from medical reasons, premiums are returned with interest during the first two years.
The Bottom Line
Getting life Insurance when you or a loved one is over 80 years of age will give you and your family peace of mind. Work with an independent agent with experience in the senior market. They will help you know what policies you can get, what your best options are, and which company will give you the best price.