Life Insurance For The Elderly: Options At 84 Years Old

Life insurance for the elderly is a topic that many people are curious about, especially those who are approaching their golden years and want to ensure their loved ones are financially protected after they pass away. While it is true that the cost of life insurance tends to increase with age, there are still options available for seniors over 80 years old. Final expense life insurance, also known as burial or funeral insurance, is a common choice for individuals in this age group as it covers funeral costs and other end-of-life expenses. Additionally, some companies offer term life insurance and universal life insurance to seniors over 80, but these options are typically more limited and may require a medical exam. It's important to note that life insurance needs can vary depending on factors such as outstanding debt, dependents, and desired inheritance amount. When considering life insurance for an 84-year-old, it's advisable to consult with a professional insurance agent to navigate the available options and choose the most suitable plan.

What types of life insurance are available to 84-year-olds?

When it comes to life insurance for 84-year-olds, there are a few options available, although they are more limited than for younger people. Here are the types of life insurance that are typically offered to those in this age group:

Final Expense or Burial Insurance

Final expense insurance, also known as burial or funeral insurance, is a common option for seniors over 80. It is designed to cover end-of-life expenses such as funeral costs, medical bills, and other debts. This type of insurance usually provides a smaller death benefit, typically ranging from $5,000 to $50,000. It is meant to ensure that your loved ones have the financial means to cover your final arrangements without incurring a significant financial burden. Final expense insurance policies are often whole life insurance policies, which means they last for your entire life as long as premiums are paid, and they may also build cash value over time. One of the advantages of final expense insurance is that it is more affordable compared to other types of life insurance for this age group, and the application process is usually simpler, sometimes only requiring answers to a few health questions rather than a full medical exam.

Guaranteed Universal Life Insurance (GUL)

Guaranteed Universal Life Insurance (GUL) is another option for 84-year-olds. This type of insurance provides a guaranteed death benefit, hence the name. However, it tends to be more expensive than other forms of life insurance due to the guaranteed nature of the coverage. The coverage amount for GUL policies at this age is usually limited to $25,000 or less, and there may be a waiting period of up to two years before the full benefit is payable. GUL policies are often available up to age 85, making them a viable option for those in their mid-80s.

Term Life Insurance

While term life insurance options are quite limited for 84-year-olds and may be very expensive, it is still possible to find some companies that offer them. Term life insurance provides coverage for a specific period, such as 10 years, after which the policy ends, and the death benefit is not payable if the insured outlives the policy. A medical exam is typically required for term life insurance at this age, and the availability of such policies may be restricted to those who are exactly 80 or 81 years old.

Whole Life Insurance

Whole life insurance is a type of permanent life insurance that lasts for your entire life, as long as premiums are paid. It also includes a cash value component that can grow over time. While whole life insurance is an option for 84-year-olds, it tends to be very expensive, and the availability of such policies may be limited to those who are 85 or younger. Traditional whole life insurance policies often have minimum coverage amounts, such as $50,000, which may be higher than what seniors in this age group require.

In summary, while the options for life insurance at age 84 are more restricted and costly, final expense insurance or burial insurance is typically the most accessible and affordable choice. Guaranteed universal life insurance and, to a lesser extent, term life insurance and whole life insurance, are also possibilities, depending on the individual's specific circumstances and needs. It is important to consult with insurance experts or independent brokers to find the most suitable option.

How much does life insurance for 84-year-olds cost?

The cost of life insurance for 84-year-olds depends on several factors, including age, gender, health, and the desired coverage amount. While it is challenging to provide an exact figure, we can examine the available plans and their general costs for individuals in this age group.

At 84, individuals have limited life insurance options. Final expense insurance, also known as burial or funeral insurance, is the most common and affordable choice for seniors in this age group. This type of policy is designed to cover funeral costs and other final expenses, such as medical bills. The coverage amount for final expense insurance typically ranges from $5,000 to $25,000, with some providers offering up to $50,000. The monthly cost for this type of policy can vary from $100 to $200 or more, depending on the coverage amount and other factors.

In addition to final expense insurance, guaranteed universal life insurance (GUL) is another option for 84-year-olds. GUL policies are more expensive and typically have a maximum coverage amount of $25,000 for this age group. The cost of GUL can be in the range of $1,430 to $1,800 or more annually for men and $1,060 to $1,235 or more annually for women, according to one source. However, it's important to note that these estimates may not reflect the rates of specific insurance companies.

When considering life insurance at 84, it's essential to keep in mind that the options are limited, and the costs can be relatively high compared to policies purchased at younger ages. Additionally, the availability of policies and the application process may vary depending on the specific insurance provider.

What factors influence the cost of life insurance for 84-year-olds?

The cost of life insurance for an 84-year-old is influenced by several factors, some of which are controllable, while others are not. Here are the key factors that can impact the cost of life insurance for 84-year-olds:

Age

Age is a significant factor in determining life insurance costs, and it is one of the uncontrollable factors. Generally, the older you are, the higher the cost of life insurance. This is because older individuals are considered higher-risk due to their shorter life expectancy and increased likelihood of health problems. As a result, 84-year-olds can expect to pay more for life insurance compared to younger individuals.

Gender

Gender also plays a role in determining life insurance costs, with men typically paying more than women. This is because women, on average, live longer than men, resulting in lower rates for women.

Health

An individual's health status, including pre-existing conditions, can significantly impact life insurance premiums. Insurers will consider factors such as height, weight, and medical history when determining eligibility and cost. The healthier an individual is, the lower their life insurance cost is likely to be.

Tobacco Use

Tobacco use, including smoking cigarettes, cigars, or vaping, can drastically increase life insurance costs. This is because tobacco use is associated with various medical conditions and increases the risk of health problems.

Family History

A family history of hereditary or serious medical conditions can also affect life insurance costs. If an individual's family has a history of diseases such as diabetes or cancer, it may result in higher premiums.

Lifestyle and Occupation

High-risk jobs or hobbies can lead to higher insurance costs. Occupations such as police officers, firefighters, or construction workers may result in higher premiums due to the inherent risks associated with these professions. Similarly, dangerous hobbies like skydiving or racing cars can also increase insurance costs.

Type of Policy

The type of policy chosen, such as term life insurance or whole life insurance, can impact the cost. Term life insurance is typically less expensive and covers a set period, while whole life insurance offers lifelong coverage and a savings component, making it more costly.

Death Benefit Amount

The death benefit amount, or the coverage amount, also influences the cost of life insurance. Larger coverage amounts will lead to higher premiums as they provide more financial protection in the event of a claim.

It is important to note that the availability of life insurance options for individuals over 80 is limited, and the focus is typically on final expense insurance or burial insurance to cover funeral and other end-of-life expenses.

What is the maximum coverage available to 84-year-olds?

The maximum coverage available to 84-year-olds depends on the type of life insurance policy they are looking for. For term life insurance, the longest term available to 80-year-olds is usually 10 years, and the coverage ends if the policyholder outlives the policy. For whole life insurance, the maximum coverage available depends on the insurance provider and the policyholder's age and health. Some providers offer whole life insurance policies with coverage of up to $50,000 for 80-year-olds, while others offer coverage of up to $100,000. For guaranteed universal life insurance (GUL), the maximum coverage available to 80-year-olds is usually $25,000.

It is important to note that the options for life insurance policies are limited for seniors over 80, and the coverage amounts and availability vary depending on the age and health of the policyholder. Final expense insurance, also known as burial or funeral insurance, is generally the only option available to seniors over 80. This type of policy is designed to cover funeral costs and other final expenses, such as medical bills, and typically offers coverage of up to $50,000.

While the coverage amounts may vary, life insurance for seniors over 80 is generally more expensive due to the higher risk associated with insuring individuals at this age. Additionally, most policies at this age require the policyholder to answer health questions, and some may require a medical exam. It is always advisable to speak to an insurance representative to understand the specific coverage options and requirements for 84-year-olds.

Which companies offer life insurance to 84-year-olds?

When looking for life insurance at 84, your options are limited. Final expense life insurance is generally the only option available. However, there are still a few companies that offer life insurance to 84-year-olds.

Mutual of Omaha

Mutual of Omaha offers a no-medical-exam option for older applicants, which is ideal for those who are 84. They have strong financial and customer ratings, but their policies are more expensive than average, and they have a slow turnaround time. Mutual of Omaha offers both simplified and guaranteed issue policies, with coverage amounts that are more flexible and available in more states than competitors.

MassMutual

MassMutual offers whole life insurance plans with lifetime coverage and the potential to earn dividends. They have strong financial stability ratings, but their term life insurance is not available through Policygenius, and their premiums are high.

Protective

Protective offers affordable and comprehensive life insurance options, with competitive rates for all ages and health classifications. They have flexible financial guidelines regarding unearned income, but they are not available in New York, and their policies are not great for those who have had bankruptcy or are visa holders.

New York Life

New York Life offers term and whole life policies with a significant range of coverage. They rank above average in J.D. Power's latest customer satisfaction study for life insurance and have fewer complaints than expected for a company of its size. However, quotes are not available online.

State Farm

State Farm ranked first out of 22 companies for overall customer satisfaction in J.D. Power's 2023 U.S. Individual Life Insurance Study. They offer broad, customisable coverage, but their life insurance policies are not available in Massachusetts, and there are some restrictions for Android smartphone users when accessing policy details through the online portal.

Northwestern Mutual

Northwestern Mutual is a trustworthy choice, with far fewer complaints than expected for a company of its size. Their whole life policyholders may be eligible to receive dividends, which the company has paid out consistently since 1872. However, the company website doesn’t give specifics about coverage amounts or riders, and there are limited riders available.

Guardian

Guardian offers whole life policies that can be paid up by age 65, 95, 99, or 121. They also offer universal and variable universal life products, which are issued up to age 85. They have unique coverage options, such as survivorship insurance and policies for HIV-positive applicants, but there are minimal policy details on the site.

TruStage

TruStage offers life insurance products for those over 80, but their prices are not very competitive, and they only offer up to $25,000 in coverage.

AARP

AARP offers life insurance to seniors up to 80 years old, but cheaper rates and coverage without a waiting period are available from other providers.

Frequently asked questions