Life insurance is a crucial tool for securing the financial well-being of your loved ones after you’re gone. When you’re 81 years old, it’s still possible to obtain a policy that will provide coverage and protection tailored to your specific needs. This article delves into various life insurance options and rates available to 81-year-olds, helping you make an informed decision.
Navigating the world of life insurance at this age might seem overwhelming, but with the right information, you can find coverage that aligns with your unique circumstances. Whether you’re looking to cover your final expenses, leave a legacy for your loved ones, or ensure their financial stability, the options outlined in this article will guide you towards the perfect policy for you.
- Life insurance is still accessible and beneficial for 81-year-olds seeking financial security
- A range of life insurance options exists to cater to specific needs and situations
- Comparing rates and understanding underwriting standards can help you find the ideal policy
Can An 81 Year Old Get Life Insurance?
At 81 years old, seniors have limited options when it comes to life insurance. Term life insurance is not available for individuals over 80 years old, and although traditional whole life insurance may be available, many seniors will prefer not to deal with medical examinations. As a result, final expense insurance (also known as “burial insurance”) will be your best choice.
Some benefits of burial insurance include:
- No medical exams: Seniors can avoid lengthy waiting times for coverage approval.
- Permanent coverage: As a form of whole life insurance, Final Expense insurance lasts for the insured’s entire life and builds cash value. This allows policyholders to borrow against the policy for unexpected expenses, a feature many seniors value.
- Customizable policies: Additional benefits, also known as riders, can be added to tailor the policy to the insured’s needs.
Final expense insurance, with its relaxed underwriting standards and smaller policy size, is ideal for seniors seeking to protect their loved ones from end-of-life expenses. Since it accommodates various health issues, such as diabetes and previous smoking habits, it offers an accessible and valuable life insurance option for those aged 81 and beyond.
Life Insurance Rates For 81 Year Olds
Whole Life Insurance Rates For 81 Year Old Male
|Coverage||Male (Non-Smoker)||Male (Smoker)|
Monthly premium costs for a final expense policy for an 81-year-old man, broken down by whether the individual is a non-smoker or a smoker.
The first column represents the death benefit or the amount paid to your loved ones upon the policyholder’s death. The columns to the right represent the monthly premium cost for a non-smoker and a smoker, respectively.
Coverage amounts in this table range from $2,000 to $25,000, and monthly premiums range from $33 to $618. While the monthly premiums vary significantly, one thing to note is that for every $5,000 of coverage you would buy or consider adding, expect the rates to go up by $74 for a non-smoker and $123 for smokers.
Remember that the rates for an 81-year-old male may be relatively high compared to those for younger individuals.
As we age, the likelihood of death increases, making it more expensive for insurance companies to provide coverage. Additionally, as we age, we may be more likely to have health issues that could make us a higher risk for the insurance company.
Waiting until you are 82 years old to buy insurance is not recommended.
The average increase in monthly rates between 81 and 82 years old is around 7.5% for non-smokers and 8.6% for smokers. For example, your monthly rate of $10,000 of coverage can go up from $151 to $163 by holding off for a year.
How Much Is Life Insurance For An 81 Year Old Female?
|Coverage||Female (Non-Smoker)||Female (Smoker)|
Rates for women are lower than those for men of the same age.
This is because, on average, women have a longer life expectancy than men, so insurance companies may consider them less risky and therefore charge lower rates.
The coverage amounts range from $2,000 to $25,000, and because women typically live longer than men, rates do not increase as considerably. For example, for every $5,000 of coverage you add, you can expect the rates to increase by about $53 for non-smokers and $83 for smokers.
This table shows women’s final expense insurance coverage ranges from $2,000 to $25,000.
One thing to note is that Non-smokers have much lower rates than smokers, which is another benefit of quitting smoking. For example, a non-smoker would pay $25 for a $2,000 policy, while a smoker would pay $37.
Holding off on buying life insurance comes at a cost.
Waiting until your next birthday will increase your rates by almost 7%. For the same $10,000 of coverage, rates will jump from $109 to $116 if you push out until your next birthday. That’s an extra $84 per year.
Top Life Insurance Companies for an 81 Year Old
Aetna, Mutual of Omaha, and Transamerica are the three top insurance companies for 81 year olds. Below, you’ll find an overview of each carrier’s final expense plan as well as a downloadable brochure.
Aetna Protection Series
Aetna provides coverage for individuals between the ages of 40 and 89, ranging from $2,000 to $25,000. Additionally, Aetna has an ‘A’ rating from AM Best.
Mutual of Omaha Living Promise Whole Life Insurance
Mutual of Omaha provides coverage for people 45-85, with face amounts from $2,000 to $50,000. Furthermore, this insurer has an A.M. Best rating of “A+”.
Transamerica Immediate Solution Final Expense Insurance
Transamerica’s burial insurance plan is offered to individuals between 0-85 years old. For 76 to 85-year-olds, coverage amounts range from $1,000 to $25,000. AM Best gives Transamerica an “A” rating.
- Investopedia. Investopedia
- Investopedia. Whole Life Insurance Definition: How It Works, With Examples
- Forbes. Cash Value Life Insurance Explained
- Aetna. Aetna Product Overview