Elderly Insurance: What You Need To Know

There are various insurance options available for elderly people, including health, life, travel, and car insurance. In the US, Medicare is a federal health insurance program for people aged 65 and over, as well as certain people with disabilities and those with end-stage renal disease. Medicaid is another federal program that provides free or low-cost health coverage to Americans, including the elderly, with varying names and eligibility across different states. For elderly people with pre-existing medical conditions, specialist travel insurance is available, although prices tend to increase with age. Car insurance costs are also higher for senior drivers due to the elevated risk they pose as their skills decline. Life insurance is another option for elderly people, with companies such as Fidelity Life and MassMutual offering coverage past the age of 60.

Medicare and Medicaid

• Part A: Hospitalization Coverage
• Part B: Medical Insurance
• Part C: Medicare Advantage Plans
• Part D: Prescription Drug Coverage

Part A covers inpatient hospital care, while Part B covers outpatient care, durable medical equipment, and home health services. Part C, or Medicare Advantage, is offered by private companies approved by Medicare and often includes additional benefits such as dental, vision, and hearing coverage. Part D helps with the cost of prescription drugs.

Medicare has an annual open enrollment period from October 15 to December 7. While eligibility for Medicare is based on age or disability, it is not means-tested. Most people aged 65 and over qualify for Medicare regardless of their income.

Medicaid, on the other hand, is a joint federal and state program that provides health coverage for low-income Americans of all ages. It is state-specific, with different eligibility requirements and benefits in each state. While it is primarily designed for individuals with limited incomes, it also covers other special circumstances. Medicaid generally covers medical care, such as physician visits, and non-medical support services, such as in-home personal care assistance. It also pays for long-term nursing home care and some assisted living fees.

Medicaid's eligibility requirements vary by state, but they generally consider both income and assets. Some states have an income cap, while others are non-income cap/medically needy states, allowing applicants with high medical bills relative to their income to qualify. Additionally, Medicaid has different names in different states, such as Medi-Cal in California and MassHealth in Massachusetts.

It is important to note that an individual can have dual eligibility for both Medicare and Medicaid, and they are not mutually exclusive programs. In such cases, Medicare is the primary payer, while Medicaid acts as the secondary payer, covering any remaining costs.

Life insurance

Term Life Insurance

Term life insurance is a great option for seniors if you know how long you may want coverage for because you can choose the specific length of your plan. Typically, term life insurance plans can be 10, 20, or 30 years long. With this type of plan, the policyholders must pass away within the chosen period for beneficiaries to receive benefits. The older you are, the less variety there may be in term lengths, and fees will likely rise as you age. However, term life insurance is still a popular choice for those looking for a policy that can still provide benefits for loved ones.

Whole Life Insurance

As you age, providing security for your loved ones can become more pressing. Whole life insurance is another great option for seniors and will provide coverage for the entire life of a policyholder. Unlike term life insurance, whole life insurance benefits will typically be payable to your beneficiary, no matter when you pass away. Whole life insurance can be a good option if you want to be certain that your family will receive benefits upon your death.

Final Expense Insurance

Final expense insurance is a permanent life insurance policy that offers a small death benefit when you pass away. Your beneficiaries can use the payout to cover your funeral, burial costs, and other end-of-life expenses. Since final expense insurance is a smaller type of plan, it typically comes with lower premiums than other permanent life insurance policies.

Benefits of Senior Life Insurance

• Many policies offer reasonable premiums that can fit your budget.
• There is coverage tailored to your needs. From term life insurance to permanent policies, there are plenty of life insurance options at your disposal.
• Having a senior life insurance policy can give you peace of mind knowing your loved ones will have financial support in your absence. They can use the death benefit payout to cover any expenses after your passing.

When choosing a life insurance company, it is important to consider how much coverage you need and how much money you want to spend. It is also important to find a company with good financial strength ratings and few consumer complaints. Here are some of the best life insurance companies for seniors:

• Guardian Life: Best for payment flexibility.
• MassMutual: Best for elderly applicants.
• Northwestern Mutual: Best for the potential to earn dividends.
• New York Life: Best coverage range.
• State Farm: Best for customer satisfaction.
• USAA: Best for coverage flexibility.

Car insurance

Best Car Insurance for Seniors

According to Forbes, Nationwide is the best car insurance company for seniors overall, with USAA, Travelers and Erie also excelling. Nationwide impressed Forbes with its budget-friendly rates for seniors, low level of complaints, and many helpful add-on coverage features.

WalletHub, meanwhile, found that Geico, USAA, and Esurance are the best auto insurance companies for seniors, thanks to their low premiums, strong customer service, and high ratings.

How to Get the Best Car Insurance Rates for Seniors

• Take a defensive driving course: Seniors who take a defensive driving course may earn a discount on their auto policy.
• Choose a car that’s cheap to insure: The cheapest cars to insure are those that don’t cost a lot to repair and replace, and are built to protect drivers and passengers in crashes.
• Get credit for driving less: If you’re retired and driving less, let your insurer know, as your premium should go down if you no longer commute to work every day.
• Raise your deductible: If you can afford to pay more out-of-pocket in the event of a claim, consider choosing a higher deductible to reduce your premium.
• Drop coverage you no longer need: If you drive less frequently, you may no longer need coverage for a rental car when yours is in the shop for repairs. Similarly, if you don’t owe much on your car loan, you won’t need gap insurance.
• Consider bundling your insurance policies: If you have other insurance policies, such as for your home, boat, or RV, consider bundling them with your car insurance, as companies often give discounts for buying multiple policies from the same insurer.
• Shop around for coverage: Car insurance rates tend to increase as you get older, so shop around yearly for better options. Compare multiple quotes to make sure you’re getting the best rate possible.

Travel insurance

Inclusions and Exclusions

When choosing travel insurance, it is essential to consider the inclusions and exclusions of the policy. Look for a policy that covers overseas medical expenses, evacuation, trip cancellation, lost luggage, personal liability, and rental car excess. Some policies may also offer additional benefits such as cruise cover, golf cover, and adventure sports protection. It is also important to declare any pre-existing medical conditions, as this may affect your coverage.

Age Considerations

While there is no specific travel insurance for seniors, most insurers provide coverage for elderly travellers up to the age of 99. However, age limits may vary across insurers, and the cost of the policy may increase with age. It is important to read the Product Disclosure Statement (PDS) to understand the age limits and coverage restrictions.

Pre-existing Medical Conditions

Pre-existing medical conditions can be covered by travel insurance, but it is crucial to declare them to your insurer during the screening process. Some common pre-existing conditions covered include diabetes, heart conditions, cancer, COPD, epilepsy, and mental illness. Seeking coverage for pre-existing conditions may increase the cost of your policy, so it is important to compare quotes from different insurers.

Choosing the Right Level of Cover

Consider the type of coverage you need based on your travel plans. If you want comprehensive coverage for medical expenses, cancellation fees, luggage, and rental vehicle excess, a comprehensive travel insurance policy is ideal. For elderly travellers who plan to travel multiple times a year, an annual multi-trip policy may offer better value than a single-trip policy.

Tips for Choosing Travel Insurance

• Compare different insurers and policies to find the best value and coverage for your needs.
• Start your insurance as soon as you book your trip to ensure coverage for unexpected cancellations.
• Research customer reviews and the quality of coverage to find reputable insurers.
• Check the coverage limits, as medical cover may be reduced for elderly travellers.
• Read the PDS carefully before purchasing to understand the inclusions, exclusions, limits, and sub-limits of the policy.

Health Insurance Programs

In addition to these programs, there are also state-specific initiatives. For example, Illinois has the Senior Health Insurance Program (SHIP), a free statewide health insurance counselling service for Medicare beneficiaries and their caregivers. Illinois also offers HFS Medical Benefits to individuals aged 65 or older, who are blind, or have a permanent disability, provided they meet income and asset limits and are US citizens or qualified immigrants.

Frequently asked questions