Despite popular opinion, there are a few available life insurance quotes for over 80.
Yes, they can be expensive because of the person’s advanced years, but they are possible. There are three things that determine whether a life insurance policy is issued: 1. health condition, 2. type of insurance and 3. amount of coverage. This article addresses ways to obtain insurance coverage for someone over 80.
In order for a life insurance company to offer a policy to a senior citizen, the person will need excellent health for their age. Someone with minor health issues such as occasional colds, headaches or any other condition treatable with over-the-counter medications may also be considered for coverage.
Major health issues will limit the number of life insurance plans available and raise rates significantly. Conditions considered to be serious require prescription medications for control and regular monitoring by a physician such as heart disease, diabetes and cancer.
Generally, a senior who is within a normal weight range with no history of major accidents or illnesses and who is able to perform his or her own personal care needs such as bathing and dressing, has the best chance of obtaining life insurance.
Types of Insurance
Some life insurance plans are easier to obtain for seniors than others. Many believe that the only available insurance for 80-year-olds is term life insurance. An examination of the different types of insurance will show that there are other options if all conditions meet minimum standards.
No Exam Life Insurance Plan
This plan is the most popular among seniors simply because no health exam is necessary. A few health questions may be asked on the application, but if the answers to these questions are negative, the policy is issued. A son or daughter may purchase the policy in order to qualify.
Coverage is generally limited to $25,000. A fast answer is the rule since there is no medical exam or underwriting. This plan remains the fastest way to obtain a life insurance quote for seniors over 80.
Exam Required Life Insurance Plan
This plan offers the best coverage for the least price; however, it is harder to qualify and may take several weeks before you get an answer. Sometimes the physical exam can uncover a health problem you weren’t aware of which will work against obtaining a policy. If a plan is needed immediately, you may want to purchase a no exam plan to cover your needs while you pursue the exam required plan which takes longer.
Graded Life Insurance Plan
This is the only insurance available to seniors with major health issues. A graded life insurance means that the full death benefit isn’t available for the first two or three years. If death occurs within this time period, the beneficiary is entitled to the premiums paid plus interest rates from 4% to 10% depending on the plan.
Some people think that buying a graded life policy is not worth the cost especially for someone over 80 years old. If this is the only type of insurance a senior qualifies for, then graded insurance is better than nothing. If a senior dies within the first few years and the premium payment is kept current, you won’t find a better return on your money than the 4% to 10% interest earned.
The average cost of a funeral is over $10,000 when you add in floral arrangements, programs and family transportation. If a senior has only $7,000 in coverage, find a plan for $3,000 to $5,000 as additional death benefits. Don’t cancel the $7,000 policy and buy one for $10,000 especially if the new policy is a graded policy.
Term Life Insurance Plan
A term life insurance plan is possible if the senior has good health. These policies generally last for 10 years and premiums are cheaper than other types. It’s possible to find a $50,000 to $100,000 term life policy that will offer coverage to seniors.
Your final costs for life insurance depend on three main factors: health, type of insurance and how much insurance you want to purchase. Relatively good health with no major negative conditions is the main factor important to life insurance companies especially when the insured is 80 plus years old.
Most companies will take a chance on smaller amounts of insurance. A small policy purchased to supplement another policy is easier to be approved than a larger policy. When most of the risk is taken out of the transaction, life insurance quotes for over 80 are easier to find.