Q: Who will have life insurance for someone over 80 years of age?
Asked by Anonymous from Minnesota
A: The good news: more and more insurance companies
offer short- and medium-term life insurance for senior citizens. But there are a
few important things to consider.
For one thing, older applicants are more likely
to fall into the ‘standard’ and ‘substandard’ risk categories. Rates are higher
for these risk types.
Also, for older applicants, many policies will not
provide a death benefit for the first couple years. If you die in this time,
your designated beneficiary will receive the total of your premium payments plus
interest. If you die after this initial period, your beneficiary will receive
the full face value amount of the policy. Note: You probably won't be eligible
for a policy with a large face value amount unless you're prepared to pay an
Another policy option: Final expense insurance.
Final expense insurance can pay for burial expenses, as well as outstanding
debts and estate-related expenses. The beneficiary has discretion in terms using
the funds; pre-need insurance, on the other hand, cannot be used for anything
besides funeral expenses.
At 80+, you may have difficulty finding life
insurance, but it’s certainly worth a shot. Many insurers have found a niche by
catering to older applicants.
Fill out our quote box on the left to connect with
life insurance agents from your area. Even if they cannot insure you, they may
be able to steer you toward a company that can.