Some elderly people are discovering that they have not yet outlived their use for life insurance. In some cases, seniors might wish to purchase a policy in order to be certain that their family has enough money to pay for a funeral and other end-of-life expenses. Alternatively, they may want to buy coverage to pass on money to their children and grandchildren after they pass away. The good news is that the average life expectancy of Americans has increased over the last few decades. Insurance companies recognize this fact, and some are now offering cheap life insurance for seniors over 80.
Understanding Life Insurance for Seniors Over 80
Of course, rates tend to increase by age. If you look at a chart of whole life or term insurance rates by age, you will see that older people are more expensive to cover than younger people. Typically, elderly people purchase fairly small life insurance policies in order to keep rates affordable. You may have already seen some advertisements for burial plans or senior life policies on TV.
Senior life policies are usually whole life insurance policies with a death benefit from about $5,000 to $25,000. You might have an option of selecting a simplified or guaranteed issue policy. The choice you make will probably depend upon your health. Insurers understand that elderly people may have developed some health issues, and they offer different benefits in order to develop plans that they can offer to a variety of different clients.
This describe two common types of applications that elderly people might consider:
The advantage of simplified issue policies is that they will be somewhat cheaper, and they also offer an immediate and full death benefit. Guaranteed issue policies cost a bit more, and full benefits might not be payable until after a waiting period has ended. These waiting periods are usually a couple of years, and the plans might refund premiums with interest or pay part of the death benefit before it has elapsed.
How to Find Life Insurance for Seniors Over 80
If you would like to find insurance for yourself or an elderly family member, it is a good idea to shop around for the right type of coverage at the best possible rate. If you shop around, you may be surprised to find out how affordable life insurance can be. If you plan to live a long time and pay premiums for several years, even a small difference can add up.