Life insurance is an important part of any financial plan, regardless of one’s age or net worth. This tool can help to replace income so that survivors do not need to drastically alter their lifestyle upon the death of a breadwinner or the primary recipient of a pension plan.
It can also help to avoid the need for depleting savings, selling off financial assets, or selling precious family heirlooms in the quest to obtain cash for the payment of final expenses, estate taxes, medical or hospice costs, or other related debts of the decedent.
While those who are young and healthy may find it relatively easy to qualify for coverage, life insurance for people over 80 may take a bit more time and effort to obtain. Working with the right company – and especially one that specializes in higher risk cases – however, can help to ease the process, while at the same time cut back on both the time and frustration that may otherwise ensue throughout the underwriting process.
Is Life Insurance Available for People Over 80?
Even those who have an ample amount of income and assets should consider having life insurance coverage. On average, today’s funeral expenses can run in the range of $10,000 or more – especially when factoring in the cost of a headstone, a burial plot, and the actual service funeral itself. Many families just simply don’t have this kind of cash readily available. Therefore, even a small life insurance policy could help in easing the financial burden for loved ones in an already stressful time.
There are several types of life insurance coverage that is available to people over age 80. These include both term and permanent policies. With term life insurance, an individual will purchase a pure death benefit only. There is no additional savings or investment build up with term life insurance.
In most cases, term life insurance for people over 80 can be purchased for no longer than 10 year increments – and, once the policy has expired, the insured will not likely be able to renew his or her coverage. With this in mind, a permanent form of life insurance coverage may be the better option.
Permanent life insurance policies provide both death benefit protection along with a cash value component. The cash inside of the permanent life insurance policy is allowed to grow on a tax deferred basis. This means that no tax is due on the growth of this cash until the time of withdrawal.
Should the policy holder need the cash for various needs, he or she can either borrow or withdraw it. It is important to note, however, that any unpaid cash balance will be deducted from the policy’s death benefit.
What to Expect When Applying for Coverage
The actual application process with life insurance for people over 80 is fairly similar to that with younger applicants. Basic information such as age, gender, smoking habits, alcohol usage, marital status, health condition, and hobbies will be required.
However, for individuals in this particular age category, it is more likely that an applicant will have either some type of health condition or that they will be taking certain types of medication.
With that in mind, the life insurance underwriters will also need to know more details regarding the person’s health and / or medications that are being taken in order to determine what type of additional risk – if any – may be presented to the insurance company if the applicant is to be accepted for coverage.
Typically, additional questions will be asked regarding one’s particular health condition such as:
- When the condition was initially diagnosed;
- What limitations that the applicant has because of the condition;
- Whether the applicant has had any surgical procedures performed because of the condition;
- The result of any testing that has been performed due to the condition;
- The names and dosages of any medications that are taken for the condition.
It is also helpful to note on the insurance application any positive factors that help to control the particular health condition. For example, if an applicant takes part in regular exercise or controls his or her condition through a healthy diet, this would be seen in a positive light on the application for coverage, as it is contributing to better health – and ultimately a longer potential life expectancy – for the applicant.
In addition, it is also probable that a medical exam will be required by the life insurance underwriters. This exam generally entails the submission of a blood and urine sample by the applicant. These samples are reviewed by the insurance company for certain health conditions in order to decipher any particular risk factors. In many cases, the applicant’s medical records may also be required for review before a decision can regarding coverage can be made.
While this may seem like a lot of detail, we can help you make the process much easier. We have worked with numerous life insurance applicants over age 80, so we are familiar with the process – and can point you in the right direction for getting your application completed quickly and easily.
Taking the Next Step
If you or someone you know is over 80 and in need of life insurance coverage, our specialist at Life Insurance for Seniors 360 can help. We work with many of the top rate life insurance carriers in the marketplace today, and we can help you in comparing policies, benefit offerings, and premium quotes.
In order to get the process started, simply fill out the form on this page. Should you have any additional questions, please feel free to contact us, toll-free, at 888-229-7522 and we will be happy to address any question or concern that you may have so that you can be on your way to obtaining the life insurance protection that you and your loved ones need.