Life Insurance For 92-Year-Old Women: Is It Possible?

Life insurance for seniors over 90 years of age is possible but challenging to find. While many believe that life insurance for this age group is unattainable or excessively expensive, some options are available with moderate expenses. The primary purpose of life insurance for individuals over 90 is to ensure their funeral or burial expenses are covered, so their families are not burdened with the costs. Seniors at this age typically seek small coverage policies to pay off any remaining debts. Whole life insurance policies are more likely to be available to this age group than term life insurance. Guaranteed issue life insurance is another option but tends to be very costly. For those over 90, it is recommended to consult with a financial advisor to navigate the limited options and high costs of life insurance.

What are the different types of life insurance for 92-year-olds?

While it may be difficult for a 92-year-old woman to obtain life insurance, it is not impossible. The options are limited, and the policies available are generally designed to cover funeral or burial costs. Here are some of the different types of life insurance available for 92-year-olds:

Final Expense or Burial Insurance

Final expense insurance, also known as burial insurance or funeral insurance, is a type of whole life insurance policy designed to cover end-of-life expenses such as funeral or burial costs. These policies often have a limited death benefit, typically up to $25,000, and do not require a medical exam. They are designed to be easy to qualify for, with few or no health questions. According to one source, final expense insurance is the only type of policy available to seniors over 85, with 90 being the maximum age limit for new applicants.

Guaranteed Issue Life Insurance

Guaranteed issue life insurance is another option for seniors who are unable to qualify for traditional life insurance policies due to health issues. This type of policy does not require a medical exam or health questions, but it comes with higher premiums and a lower death benefit.

Simplified Issue Life Insurance

Simplified issue life insurance is similar to guaranteed issue life insurance, but it usually involves a short health questionnaire, and the premiums are typically lower.

Term Life Insurance

Term life insurance provides coverage for a specific period, such as 10, 15, or 20 years. While it may be challenging to obtain a term life insurance policy at 92, it is not impossible. Some companies, like John Hancock, offer term policies to applicants up to 80 years old.

Whole Life Insurance

Whole life insurance is a type of permanent life insurance that lasts for the insured's entire life and builds cash value over time. Some companies, like New York Life and Guardian Life, offer whole life insurance to applicants up to 90 years old.

How much does life insurance cost for a 92-year-old woman?

The cost of life insurance for a 92-year-old woman will depend on several factors, including her health, lifestyle, and the type of policy she chooses.

Life insurance premiums are primarily based on life expectancy. The older you are, the more your life insurance costs. Women typically pay less than men of the same age and health because they have longer life expectancies. For example, according to the latest data from the CDC, life expectancy in the US is 79.3 years for women and 73.5 years for men.

At 92, a woman's life expectancy is significantly lower than that of a 30-year-old woman, who, according to Forbes Advisor, pays an average of $12-$14 per month for a 20-year, $250,000 term life insurance policy.

The type of life insurance policy will also impact the cost. Term life insurance is generally the cheapest option as it lasts for a set number of years and does not build cash value. Permanent life insurance, on the other hand, typically lasts a lifetime and includes a cash value component, making it more expensive.

For seniors over 85, final expense life insurance is the only type of policy available, and the maximum life insurance age limit for new applicants is 90. Burial insurance, which is a type of life insurance, is also an option for those over 85.

The cost of life insurance for seniors over 80 could be as low as $80 per month or as high as $800, depending on age, gender, health, state of residence, tobacco usage, and coverage amount.

While it may be challenging to find life insurance for a 92-year-old woman, consulting with an insurance broker or agent can help determine the specific costs based on individual circumstances.

What factors affect the cost of life insurance for a 92-year-old?

A 92-year-old woman can get life insurance, but her options will be limited. Final expense life insurance is the only type of policy available to seniors over 85, and 90 is the maximum age limit for new applicants.

Age

Age is one of the primary factors influencing life insurance premium rates, regardless of whether an individual is seeking a term or permanent policy. The older someone is when they purchase life insurance, the more expensive the premiums will be. This is because the cost of life insurance is based on actuarial life tables that assign a likelihood of dying while the policy is in force. The premium amount typically increases by about 8% to 10% for every year of age, and this can be as high as 12% annually for those over 50.

Gender

Women tend to pay lower life insurance premiums than men because, on average, women tend to live longer than men.

Health

The insurance company will review an applicant's health through a process called underwriting, which involves checking medical records, collecting blood and urine samples for lab testing, or requesting a medical exam. The healthier the applicant, the lower the premium will be. If an applicant has a serious, life-threatening condition, the insurance company may deny their application altogether.

Tobacco Use

Tobacco use can drastically increase life insurance costs due to the associated health risks.

Family History

A history of hereditary diseases in the family can affect the insurance premium.

Lifestyle and Occupation

High-risk jobs or hobbies can lead to higher insurance costs. The insurance company may also check an applicant's driving and criminal records, which could lead to a higher cost or outright denial of coverage.

Type of Policy

Term life insurance is usually less expensive than permanent life insurance, which offers lifelong coverage and a savings component that can grow over time.

Riders

Enhancing a policy with riders, such as critical illness coverage, accidental death benefit, and disability income protection, offers additional protection but will increase the premium.

Death Benefit Amount

Larger coverage amounts typically lead to higher premiums because they provide more financial protection.

What is the process of applying for life insurance at this age?

Applying for life insurance at 92 is a similar process to applying for life insurance at any other age. However, it's important to note that there are fewer options available for people over 85, and even fewer for people over 90.

The first step in the process is to determine what type of life insurance you are looking for. For people over 85, the only type of policy available is final expense life insurance, which is a type of whole life insurance that covers funeral and burial costs, as well as any remaining debts. This type of insurance is available for people up to the age of 90, with a maximum coverage of $25,000.

Once you have determined the type of insurance you need, the next step is to find an insurance provider that offers this type of policy. It's important to note that not all insurance companies offer life insurance to people over 85, and those that do usually require you to buy the policy through an insurance broker. You cannot buy directly from the insurance company.

After finding a suitable insurance provider, you will need to contact them, either through an agent or by calling them directly. Some companies may require you to verbally speak with an agent, while others may offer an online application process. During this process, you will need to provide information such as your age, health status, and the desired coverage amount.

It's important to note that, for people over 85, there is no medical exam required to qualify for final expense life insurance. However, you will need to answer health questions, and your application will be subject to approval.

If your application is approved, you will receive the physical policy document via mail within a few weeks. Your insurance will be effective from the date of your first payment.

What are the alternatives to life insurance for a 92-year-old?

While it is possible for a 92-year-old woman to get life insurance, the options are limited. Here are some alternatives to life insurance for a 92-year-old:

Burial Insurance or Final Expense Insurance

Final expense insurance, also known as burial insurance, is intended to cover end-of-life expenses, including funeral and burial costs. These are small whole life policies that are often available to high-risk seniors with pre-existing health conditions. The death benefit is typically $50,000 or lower, and there is usually no medical exam required.

Guaranteed Issue Life Insurance

Guaranteed issue life insurance is another option for seniors who may have been denied coverage in the past due to health issues. This type of policy does not require a medical exam or answers to health questions, and coverage is guaranteed regardless of health conditions. The death benefit is usually capped at $25,000, and the premiums tend to be higher relative to the benefit amount.

Second-to-Die Insurance or Survivorship Life Insurance

This type of insurance is ideal for couples looking to pass on death benefits to beneficiaries. It is a joint policy, and the benefit is paid out when the second person on the policy dies. Survivorship policies are usually cheaper than individual policies for each insured person.

Long-Term Care Insurance

If you are concerned about long-term care expenses, such as home health care or living in a care facility, you may want to consider long-term care insurance. This type of insurance will help cover these costs.

Single-Premium Life Insurance

Single-premium life insurance requires a large upfront payment and typically a minimum investment in a cash value account instead of monthly premiums. These policies tend to have different tax implications than standard policies.

Riders

You may also consider adding riders to your existing life insurance policy or that of your spouse. Riders are add-ons that provide extra benefits and can make it easier to access affordable life insurance or allow access to the death benefit in certain situations. Some relevant riders for seniors include:

• Term conversion rider: Allows you to convert a term life policy to a permanent life policy without a medical exam.
• Guaranteed renewability rider: Allows you to automatically renew your policy after the term expires, possibly with higher premiums.
• Accelerated death benefit rider: Allows you to access the death benefit early if you are diagnosed with a terminal, critical, or chronic illness, or need money for long-term care.
• Accidental death benefit rider: Increases the size of the death benefit if your death is the result of an accident.

Frequently asked questions