Life insurance is a crucial part of end-of-life financial planning, but can you get life insurance at age 85? The answer is yes, but only with final expense whole life insurance, which is a small whole life insurance plan that doesn’t require a medical exam to qualify. Traditional life insurance policies like term life, universal life, or any other type of life insurance do not exist at age 86+. Below are some essential points to keep in mind about life insurance at age 85:

Life insurance for seniors over 85 is expensive because of age, and the higher the risk, the higher the cost. However, it is still possible to get life insurance for your elderly parents over 85, but they must participate in the application process and answer health questions. The incontestability clause is present in every life insurance contract, and it entitles the insurance company to investigate any death during the first 24 months of the policy. So, answering the health questions honestly is critical to ensure that your claim would be paid even if you died the next day.

While some seniors may not qualify for coverage or may feel the insurance is not worth it due to the cost, there are other end-of-life financial preparations they can make outside of insurance. Planning their own funeral ahead of time is one such option that will ensure their loved ones don’t have to make tough decisions when they pass away.

Life insurance policies can end due to various reasons, such as the policyholder deciding to cancel the policy or non-payment of premiums. While the types of permanent life insurance policies are designed to last a lifetime, for legal reasons, a maturity date is also set. However, the expiration or maturity date of a life insurance policy varies based on the type of policy selected.

Term Life Insurance

Term life insurance does not have a maturity date, but instead has an expiration date. The policyholder selects the term length when signing up for a policy, usually between five to thirty years. If the insured is still alive at the end of the term, the policy will expire, or the policyholder may renew or purchase another policy for future financial protection if they were to pass away during the next term.

Permanent Life Insurance

Permanent life insurance is designed to last for the policyholder’s entire life, as long as they continue to pay the premiums. However, even these types of policies have a maturity date, usually when the policyholder is between 100 and 121 years old. If a permanent life insurance policyholder lives to the maturity date as stated in the policy contract, the policy value will be paid to the insured.

Conclusion

Term life insurance policies can provide financial protection if the policyholder dies within the term length they selected. With premiums starting at $11 per month, a death benefit could go towards significant expenses such as mortgages or college tuition. On the other hand, permanent life insurance policies can provide lifelong financial protection. However, even these policies have a maturity date, and if the policyholder is still alive, the policy value will be paid to them. Therefore, it is essential to understand the differences between the two types of policies and choose the right one based on your needs and financial goals.

Age can impact the availability of life insurance policies, but the age limit depends on the insurance company and the type of policy. While some companies restrict coverage for older adults, others offer policies with higher age limits. For instance, whole life insurance policies usually have higher age limits than term life policies.

Whole life insurance policies tend to be a better option for older adults, as they offer lifelong coverage and have a permanent death benefit for beneficiaries. These policies may also be a favourable choice if you have pre-existing health conditions since they are less likely to require a medical exam. However, the fewer years the insurer expects you to pay premiums, the more expensive the policy is likely to be. Universal life insurance policies are similar to whole life policies, but with flexible premiums and death benefits. Guaranteed universal life insurance policies have fixed premiums, but also offer flexibility with death benefits.

Choosing the right policy depends on factors such as the level of coverage you need, how much you can afford, and your health status. Consult with a financial advisor to determine which policy is best for you, and consider the length of time you expect to live before making a final decision.

When looking for the best life insurance for seniors, it’s important to ask the following questions:

Determining how much coverage you need depends on a variety of personal factors, including your marital status, the size of your family, your debts, assets, and your end-of-life goals. As a rule of thumb, the Wall Street Journal recommends purchasing coverage equal to 8 to 10 times your annual income. If you have life insurance through your employer, the coverage may not be enough and may terminate when you retire.

Don’t forget to factor in other costs as well: funeral expenses, debt repayment (such as your mortgage, car loans, and credit card debt), and any medical bills associated with your passing. You may also want to leave a financial gift for your spouse, children, or to charity. Your needs will change as time goes by, so periodically review your policy and check that it meets your financial needs.

When thinking about whether you should buy term vs whole life insurance, you need to keep two things in mind: your age and your budget. Keep in mind that as you age, renewing a term life insurance policy will become more difficult which is why whole life insurance may be a smarter choice for seniors.

Although you can still find insurance for people over 75, your options are fewer — and more expensive. But it’s always a good idea to have life insurance, no matter your age. It will enable you to leave something behind to your loved ones and make sure they aren’t stuck with your outstanding medical bills, income taxes, utility payments, and burial expenses.

Once you reach 90, most insurance companies won’t issue you a life insurance policy. You may be able to find a life insurance company who will insure you, but be prepared to pay a very high premium.

If you have a term life insurance policy, you already know that it provides coverage for a specific term or period of time, usually between 10 and 30 years. But what happens when the term of your policy comes to an end? You have three basic choices: extend your current term policy, convert your term policy to a permanent policy, or get a different life insurance policy.

If you choose to extend your current term policy, keep in mind that the insurance company will change your premium. If you choose to convert your term policy to a permanent policy, make sure to begin the conversion process well before your term expires. If you choose to get a different life insurance policy, shop around for the best option that fits your current needs.

When choosing a life insurance policy, it’s important to assess who is relying on you for protection. Guardian can help you calculate how much coverage you may need and give you an instant quote online – or we can put you in touch with a financial professional who can provide a more detailed estimate of your needs.