Elderly Insurance: Options For Over-85S

Life insurance for people over 85 is available, but options are limited. While most companies do not offer life insurance to people over 85, a few companies provide specific life insurance options for this age group. The most common type of life insurance available for seniors over 85 is guaranteed issue life insurance, which offers guaranteed acceptance regardless of health conditions and does not require a medical exam or health questions. However, these policies tend to have higher premiums and lower coverage amounts compared to traditional life insurance policies. Additionally, some policies may have a waiting period before the full death benefit is payable. Burial insurance, also known as final expense insurance, is another option for seniors over 85. It is designed to cover funeral, burial, and medical bills, with the maximum death benefit amount typically ranging from $25,000 to $40,000. When considering life insurance for people over 85, it is important to work with insurance companies or independent agents specializing in this market to find suitable options.

What types of insurance are available for people over 85?

When it comes to insurance for people over 85, the options become more limited, and the focus shifts primarily to life insurance policies. Here are the types of insurance available for individuals in this age group:

Final Expense or Burial Insurance

Final expense insurance, also known as burial or funeral insurance, is one of the most common and affordable options for people over 85. This type of policy is designed to cover the costs associated with end-of-life expenses, such as funeral, burial or cremation, and medical bills. The maximum death benefit amount available is typically $25,000, although some companies may offer up to $40,000. These policies are considered simplified issue, meaning there is no medical exam required, only a few health questions to answer. The premium payments remain fixed, and the coverage lasts as long as the premiums are paid.

Whole Life Insurance

Whole life insurance is another option for people over 85, although it tends to be more expensive and may not be available to those over 80. It is a form of permanent coverage that builds cash value over time, which can be borrowed against or used to supplement retirement income. There are different types of whole life insurance plans, including level benefit, graded benefit, and modified death benefit plans, each with varying eligibility requirements and waiting periods.

Guaranteed Issue Life Insurance

Guaranteed issue life insurance is a type of policy that offers guaranteed acceptance, usually up to age 90, regardless of health conditions. It does not require a medical exam or health questions, making it accessible to individuals with pre-existing health issues. However, the coverage amounts are generally lower, and the premiums are typically higher compared to other types of life insurance. Some policies may have a waiting period of two years, after which the full death benefit is payable.

Long-Term Care Insurance

While less common, long-term care insurance may be available to individuals over 85, although the options are limited. According to the American Association for Long-Term Care Insurance, a single individual over 85 can expect to pay around $11,000 per year for an average plan. This type of insurance is designed to cover the costs associated with long-term care, such as in-home care or nursing home expenses.

It is important to note that the availability and specifics of these insurance policies may vary by state and insurance provider. Working with an independent insurance agent who specializes in senior life insurance can help individuals over 85 find the most suitable options for their needs.

What is the cost of insurance for people over 85?

The cost of insurance for people over 85 varies depending on several factors, including age, gender, health, state of residence, tobacco usage, and the coverage amount. For seniors over 80, the cost of life insurance could range from as low as $80 per month to as high as $800 per month.

For people over 85, final expense life insurance, also known as burial or funeral insurance, is one of the most affordable plans available. This type of insurance is designed to cover funeral costs, burial or cremation expenses, and other final expenses such as medical bills. The coverage amount for final expense insurance is typically between $5,000 and $10,000, which is sufficient for most seniors in this age group. The premiums for these plans are lower compared to whole or term policies, which can be very expensive for individuals in their 80s and may not even be available.

When it comes to car insurance for seniors, the cost tends to increase with age. For example, 75-year-old drivers pay 13% more than 65-year-old drivers for full-coverage car insurance, while 85-year-old drivers pay 44% more on average. Defensive driving courses and low-mileage discounts can help seniors reduce their car insurance costs.

What is the process of applying for insurance over 85?

The process of applying for insurance over 85 will depend on the type of insurance you are seeking. For instance, if you are looking for life insurance, you will likely be restricted to burial or funeral expense insurance.

• Find an insurance broker: Only a few insurance providers will issue a new policy to people over 85, and you are required to buy through an insurance broker. You cannot buy directly from the insurance companies.
• Speak with an agent: You must verbally speak with an agent over the phone. There is no way to apply via mail or entirely online.
• Answer health questions: The agent will ask you health questions to determine your eligibility for the type of plan you can qualify for. No medical exam is required, but you will need to answer questions about your medical history.
• Complete the application: The agent will help gather the necessary information to complete the application, which you will then sign either verbally or electronically.
• Submit the application: Once signed, the application is submitted to underwriting, and a decision is typically received within 15 minutes to 24 hours.
• Receive the policy: If your application is approved, you will receive the physical paper policy via mail within two to three weeks.
• Make the first payment: Your insurance will be effective on the day of your first payment.

It is important to note that the specific steps may vary depending on the insurance company and your individual circumstances. It is always best to consult with a licensed insurance agent or broker to guide you through the process of applying for insurance over 85.

What are the best insurance companies for people over 85?

Yes, there are insurance options for people over 85. However, the options are limited, and the cost of coverage can be high. Final expense or burial insurance is the most common type of insurance for this age group, as it helps cover funeral and burial costs, as well as any remaining debts. Here are some of the best insurance companies for people over 85:

• Mutual of Omaha: Mutual of Omaha offers final expense insurance with no medical exam required and coverage available up to $40,000. They have few health questions and have an A+ financial strength rating.
• New York Life: New York Life provides term and whole life insurance policies with coverage ranging from $25,000 to over $1 million. They have an A++ financial strength rating and offer policies up to age 90.
• MassMutual: MassMutual offers term and whole life insurance policies with no cap on term insurance coverage. They issue coverage up to age 75 for term insurance and up to age 90 for whole life insurance. They have an A++ financial strength rating.
• Guardian: Guardian offers whole life and term life insurance policies with coverage up to age 90 and 75, respectively. They have an A++ financial strength rating and have flexible payment options.
• Northwestern Mutual: Northwestern Mutual provides term and whole life insurance with coverage up to age 70 and 85, respectively. They consistently pay dividends to eligible customers and have high customer satisfaction scores.
• State Farm: State Farm offers term life insurance up to age 75 and has excellent customer satisfaction ratings. They provide customizable coverage and have a broad range of term products.
• USAA: USAA offers term and whole life insurance with coverage up to age 70 and 85, respectively. They allow for the conversion of term policies to permanent coverage and have guaranteed issue policies with no health questionnaire or medical exam required.

What are the pros and cons of insurance for people over 85?

While insurance for people over 85 is available, the options are limited. Here are some pros and cons of insurance for people over 85:

Pros

• Peace of mind: Having insurance can provide peace of mind and confidence, especially when travelling or facing health issues.
• Coverage for pre-existing conditions: Some insurers specialise in covering pre-existing medical conditions, which is common among older individuals.
• No upper age limit: Certain insurers offer travel insurance with no upper age limit, ensuring that older individuals can still obtain necessary coverage.
• Specialist policies: There are specialist insurance providers that cater specifically to the needs of older individuals, offering tailored policies.
• Additional benefits: Travel insurance for older individuals may include extra emergency and medical cover, providing comprehensive protection.

Cons

• Limited options: Only a few insurance providers offer new policies to people over 85, and the availability of certain types of insurance, such as term life insurance, becomes very limited.
• Higher costs: Insurance for older individuals tends to be more expensive due to the increased risks associated with age.
• Medical exams and health questions: While some policies only require answering health questions, others mandate a medical exam, which can be cumbersome and invasive.
• Ineligibility: In some cases, individuals over 85 may be ineligible for certain types of insurance or face strict requirements, such as a two-year waiting period for benefits.
• Difficulty obtaining coverage: Older individuals may struggle to obtain coverage, especially for travel insurance, and may have to shop around for suitable policies.

Frequently asked questions