It’s obvious that countless baby-boomers and golden-agers are discovering they are in the undesirable position of not owning any final expense life insurance coverage that will deal with the costs related to a burial or funeral services. Most men and women were subject to considerable financial challenges after the market tanked in 2007, and found they are needing to choose between keeping things like cable TV, laundry services, and life insurance coverage, or be without prescription drugs and in some cases, even food.
Those retirees who were on rigid retirement incomes encountered an unexpected decrease in monthly retirement income as their accounts that had been earning considerable interest started decreasing due to market volatility. Lots of retirees were compelled to cash in life insurance policies they had paid for regularly and used the funds to make ends meet until finally, the market came ultimately back to some type of normalcy.
Now, unfortunately, those very same retirees that cashed in their policies or took out policy loans find themselves in a situation of buying life insurance after getting older and developing health problems. Can you buy final expense or burial insurance for retirees over age 80? Indeed, you can, and it’s much easier than you might think.
The Current Cost of Funerals
If you are like the majority of retirees, the very last thing you wish to do is leave behind a financial obligation to your remaining loved ones. The price of a funeral and burial service has gone up continuously over the previous twenty years precisely like every other needed service. This buildup in costs is the result of various aspects such as increasing labor costs, increased costs for burial plots, and increased costs in utilities that funeral homes and church buildings encounter just like other businesses.
According to Parting.Com, a very useful organization that offers important information about the pricing of funerals and related services, a reasonably priced funeral presently costs about $8,000 and this rate doesn’t include the cost of a cemetery burial plot. The company is also publishing that these expenses are predicted to multiply about 25 to 50 percent over the subsequent ten years.
This suggests that if you choose just enough life insurance coverage to pay for final expenses today, it will potentially fall short of covering those very same costs if you die ten years from now. This could possibly end up in a burden on your remaining loved ones who will most likely have to save as much cash as feasible on your funeral and burial arrangements.
Final Expense Life Insurance for Seniors
There is very good news for seniors with health concerns shopping for life insurance. There are numerous life insurers available who will offer conventional life insurance coverage for retirees up to age 85 if they are in suitable health. There are additionally plenty of insurance companies that will provide you with guaranteed issue life insurance up to age 85 and a handful that will go as high as 90.
Conventional Life Insurance for Seniors Over 80
Traditional or conventional final expense life insurance is usually completely underwritten, and if the individual is found to not have any significant health issues, an insurance policy can be issued at very affordable rates. Seniors need to realize that insurance rates are most impacted by the applicant’s age, lifestyle, and overall health condition. These insurance policies traditionally require the applicant to give detailed health information and to take an insurance medical exam
If the applicant’s overall health does not include major health issues and any lesser issues are under control, the individual will most likely be rewarded with a very budget friendly insurance rate. If, however, the individual has numerous minor health issues or any significant health problems, they will have to apply with an insurance company that has guaranteed issue life insurance.
Guaranteed Issue Life Insurance for Seniors Over 80
- Normally, the highest death benefit permitted for guaranteed issue life insurance is $25,000 and can be reduced for people over age 80.
- Guaranteed issue policies also include a waiting period of two or three years in which the insurer will not pay the whole death benefit if the insured persons die from natural causes. Generally, the death benefit is reduced to the entire amount of premium you’ve paid into the insurance policy plus an additional 5 or 10 percent. Some policies, however, will pay the whole benefit from day one as long as the death of the insured person is the result of an accident.
- Because the life insurance company has consented to accept an undetermined health risk, the insurer will require a significantly higher premium than you would have paid in a conventional life insurance policy.
Life Insurers that Offer Final Expense and Burial Insurance
If you are a retired senior and over 80 without final expense life insurance or not enough life insurance, there are many final expense life insurance companies out there that will issue a life insurance policy for under the right circumstances.
- Security National Life Insurance: Security National is a highly rated life insurer that offers Final Expense (burial insurance) for applicants over age 80. The policies are issued as whole life with lifetime guaranteed coverage as long as the periodic premiums are paid.
- American Amicable Life Insurance: Although American Amicable does consider health history as part of the underwriting process, the company will issue a whole life insurance policy for applicants up to 85 depending on your state of residence. The policy is a standard life insurance policy and contains all the benefits of whole life insurance.
- American General Life Insurance: The guaranteed issued policy offered by American General does not require any medical underwriting or medical tests, is available with a death benefit of up to $25,000, and applicants up to 85 years old are eligible for coverage.
- United of Omaha Life Insurance Company: United of Omaha, a subsidiary of Mutual of Omaha, offers guaranteed issue whole life coverage for applicants aged 45 – 85 years old. There are no medical exams, and coverage remains in force for a lifetime as long as the periodic premiums are paid.
The insurance carriers listed above represent only a portion of the life insurers that will be happy to offer valuable life insurance coverage for seniors and retirees over the age of 80.