Alyssa Lane
Life insurance for seniors is a different ball game compared to younger individuals. There are fewer options available, and the cost of insurance increases as you get older. However, the good news is that at this stage in life, you may not need as much coverage as you used to. Most adults in their 80s have paid off large debts, have grown children who are no longer dependent on them, and have savings and assets to cover any remaining debt. So, while you can still get life insurance at 85, your options are limited, and it will likely be more expensive.
| Characteristics | Values |
|---|---|
| Options | Limited |
| Providers | Only a few providers will issue a new policy to people over 85 |
| Coverage | $25,000 is the maximum coverage available from any provider |
| Policy Type | Final expense life insurance is the only type of policy available |
| Purchase | Cannot buy directly from insurance companies; must be bought through an insurance broker |
| Medical Exam | Not required but must answer health questions |
| Waiting Period | No waiting period for most policies |
| Premium | Premium will not change once determined |
| Application Process | Must speak to an agent over the phone |
| Age Limit | 90 is the maximum age limit for new applicants |
| Cost | $80-$800 per month |
| States | New York is the only state with no life insurance options over 85 |
What You'll Learn
Whole life insurance
When it comes to whole life insurance for 85-year-old women, there are some specific considerations. At this age, the options are limited, and only a few insurance providers will issue a new policy. Final expense life insurance, also known as burial or funeral insurance, is the most common type of policy available for seniors over 85. This type of insurance is designed to cover funeral, burial, and other final expenses, such as medical bills. The coverage amount for final expense insurance is typically between $5,000 and $25,000. It's important to note that the cost of life insurance for seniors over 85 can be quite high, ranging from $80 to $800 per month, depending on various factors such as age, gender, health, and state of residence.
While whole life insurance is an option for 85-year-old women, it's important to consider the limited choices and potentially high costs. It may be worth exploring other end-of-life financial planning options, such as saving accounts, pre-paying for funeral plans, or relying on your estate to cover final expenses. Additionally, seeking advice from a licensed insurance agent or financial planner can help you navigate the available options and make the best decision for your specific circumstances.
In summary, while whole life insurance is available for 85-year-old women, the options are limited and the costs can be significant. Final expense insurance is the most common type of policy at this age, providing coverage for funeral and other final expenses. Exploring alternative financial planning options and seeking professional advice can help you make an informed decision.
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Burial insurance
How Burial Insurance Works
Cost of Burial Insurance
The cost of burial insurance depends on several factors, including age, sex, overall health, and the desired coverage amount. The amount you'll pay in premiums may be as low as $18 per month or as high as $286 per month. On average, women are cheaper to insure than men by about $5-$10 per month.
Options for Seniors Over 85
Seniors over 85 can obtain burial insurance, but the options are limited, and only a few insurance providers will issue a new policy to people over 85. 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.
Applying for Burial Insurance Over 85
To apply for burial insurance over 85, you must speak with a licensed insurance agent. You cannot apply via mail or entirely online. You will need to answer health questions, but you won't have to take a medical exam.
Alternatives to Burial Insurance
If you don't want burial insurance due to the cost or other reasons, there are a few alternative options for end-of-life financial planning:
- Put money into a savings account.
- Contact local funeral homes to pre-pay for a funeral plan.
- Rely on your estate to pay for final expenses by selling valuable assets.
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Universal life insurance
While universal life insurance is available to adults up to age 89, it is difficult to qualify for due to the requirement of a medical exam. The premiums are also high, especially if the policyholder has a health condition. There are many factors that determine the cost of this type of policy, so it is important to speak to an insurance representative to understand what you may qualify for.
For seniors over 80, guaranteed universal life insurance (GUL) is an option. GUL provides a guaranteed death benefit, regardless of the policyholder's health status. However, the coverage amount is limited to $25,000 for seniors over 80, and there is usually a two-year waiting period before the full benefit is paid out unless death occurs due to an accident. GUL policies are very expensive due to the guaranteed benefit.
When considering universal life insurance for an 85-year-old woman, it is important to keep in mind that the options are limited and the premiums will be high. The specific cost will depend on factors such as health, state of residence, and tobacco usage, among others. While universal life insurance may be an option, final expense insurance or burial insurance is typically a more affordable and suitable choice for seniors in this age group.
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Term life insurance
The cost of life insurance for women over 85 can range from $80 per month to $800 per month. The final price is determined by age, gender, health, state of residence, tobacco usage, and the coverage amount.
Final expense insurance, also known as burial or funeral insurance, is one of the most popular and affordable plans for women over 85. These policies are small whole life insurance plans that don't require a medical exam to qualify. For those over 85, $25,000 is the maximum coverage available from any insurance company. However, you can purchase multiple policies from different companies, which would allow you to get more than $25,000 in total coverage.
Burial insurance policies pay the death benefit as a tax-free cash payment upon the insured's death, and the money can be used for funeral costs, medical bills, debts, or anything else. The payments for these policies will never increase, and coverage will never decrease.
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Guaranteed universal life insurance
Benefits of Guaranteed Universal Life Insurance
GUL offers several advantages over other types of life insurance policies:
- Affordable premiums: GUL policies are more affordable than other permanent life insurance policies, such as whole life insurance, as they focus on the death benefit rather than growing cash value.
- Fixed premiums: GUL policies offer fixed premiums that remain the same throughout the policy period, making it easier to budget without worrying about price fluctuations.
- No-lapse guarantee: GUL policies will not lapse if premium payments are made on time and in full. They are not impacted by market conditions or inadequate funding, providing a guarantee of coverage.
- Age limit on premium guarantee: You can choose the policy maturity date, typically ranging from 90 to 121. While the longer guarantee period results in higher premiums, the policy maturity date is usually very late in life, making it a permanent coverage option.
- Customizable coverage: GUL policies allow you to modify the coverage amount, and some policies even offer the option to lower the death benefit if circumstances change.
Drawbacks of Guaranteed Universal Life Insurance
Despite its benefits, GUL also has some potential drawbacks to consider:
- Pricier than term life insurance: While GUL is more affordable than other permanent life insurance policies, it is still more expensive than temporary term life insurance options.
- Minimal cash value: GUL policies have minimal or no cash value, which means they are not a good investment vehicle and can result in quick lapse if premium payments are missed.
- Missed payments could lead to lapse: Since GUL policies have minimal cash value, missing premium payments could cause the policy to lapse, resulting in the loss of the death benefit for beneficiaries.
- No true guaranteed lifelong coverage: If you live past the GUL's maturity age, the coverage could end or result in significantly higher premiums to extend, which may be a concern for those with a long life expectancy.
Who is Guaranteed Universal Life Insurance Best For?
GUL is well-suited for individuals who need permanent coverage and have savings elsewhere. It is an affordable option for those seeking lifelong protection, especially for those who want a death benefit to help heirs with expenses like estate taxes or inherited debts. GUL can also be a good choice for individuals with special needs dependents who will require financial support indefinitely. Additionally, retirees who are unable to qualify for term life insurance due to age limits may find GUL to be a more accessible and affordable option.
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Frequently asked questions
Yes, it is possible for an 85-year-old woman to get life insurance. However, the options are limited, and the number of insurance providers issuing new policies to people aged 86 and above is very small.
Final expense life insurance, also known as burial or funeral insurance, is the only type of life insurance available to seniors over 85 years old. The coverage amount for these policies typically ranges from $10,000 to $25,000.
It depends on the insurance provider and the type of policy. Some policies may require you to answer health questions, while others may not require any medical underwriting at all.
