Losing a dear loved one is a difficult loss that leaves a void. With that loss, comes the responsibility of bearing certain expenses. As the head of the family, it is your responsibility to secure your family’s financial future before taking your leave from this world. A secure and common practice by which to do that is life insurance. As you get older, complex life insurance options become more difficult to understand. However, to simplify, if you are 80 and over, there are options for you.
When looking at life insurance options for older people, it will be found that there are several options available. From there, it just becomes a matter of comparing the different policies for whole life insurance over 80 years and choosing the one that suits you best.
Why does an 80 year old senior require a life insurance policy?
At certain stages of each individual’s life, we begin to think about ensuring a peaceful departure and wiping all the red from our ledgers. With a life insurance policy, the senior members of a family will be more relaxed about how to settle their debts, mortgages after they are gone. They will also have peace of mind knowing that they will leave behind money for their family. However, it is best to get a life insurance policy as early as possible. The longer the wait, the more the cost of the policy.
Is a medical exam mandatory for 80 years old who wishes to apply for life insurance?
Medical exams are a part of standard policies. One can choose burial, whole life or term life insurance options. Many companies don’t offer the medical plan for anyone 80 and above, but to know for sure, you need to compare the rates to find a option suitable for you. Life insurance policies for seniors are specially arranged. Thus with a little research, you can definitely find one.
Basic Questions about Health
An insurance provider will ask a series of basic health questions. These will be about major surgery and major diseases like cardiac issues, cancer, strokes, diabetes or HIV/AIDS. There will also be questions about smoking and drinking habits. Questions like this may or may not have an impact on the policy.
Options Available After 80 Years
Whole Life Insurance
Whole of life policies are much rarer than term options and are more expensive as they offer a guaranteed payout after your death. If you look to arrange such a policy when you’re young, you may find the premiums affordable; this is because insurers may expect you to live for a long time and you’ll have to keep paying the premiums until you die.
Regular whole of life policies may be extremely difficult to find for the older age group, but they are out there. The main selling points – guaranteed acceptance and payouts with no medical checks – are likely to appear attractive, but make sure you know what you’re getting into with such a product. Therefore, do your research carefully.
Dedicated funeral cover plans are available, designed to cover the costs of your burial and sold on the belief that they reduce the burden on your loved ones after you’ve gone.
You should be aware that the standard of these plans can vary widely and there have been criticisms of the way they operate, with many failing to cover the funeral expenses they were intended for. Beyond that, funeral insurance can share many of the same benefits and pitfalls as over 80s lifelong protection policies.
You need to set the comfort of having a guaranteed payout against the fact that inflation will work against you, and you need to realise that your estate may not get out as much as you’ve paid in.
Term Life Insurance
Term life insurance is the most common type of life cover arranged by younger age groups, but if you’re aged 80 or over, it might not be the best policy for you. Term policies only cover a set period and do not pay out if you die after the policy expires. For this reason, you should find that term policies are cheaper than whole life options.
Advantages of Life Insurance for Seniors Over 80
- Life insurance provides an infusion of cash for dealing with any adverse financial consequences coming about as the result of the insured’s death.
- Life insurance enjoys more favourable tax treatment then other financial instruments. What this means is that death benefits are income tax free for the beneficiary.
- Loans taken out against the policy are interest free
- A life insurance policy can be exchanged for another without incurring any extra taxes
- It is a long term investment that creates cash value
Cost of a Policy?
The reality is, each company charges a different rate or premium. It comes down to many factors such as the county you’re living in, the type of plan you apply for and at what stage of your life you are applying. On average, a senior community member over 80 pays about GBP 100 for a life insurance plan. However, this varies. Gender can also play a big role in determining final cost to the policy holder. An exact cost cannot be written. The best way to determine is to visit the different insurance providers closest to you and ask for quotes. Then sit down and list those quotes together for comparison. This way, you can make the best informed decision possible.