Life insurance is a vital financial tool that helps seniors protect themselves and their families in the event of their passing. Many older adults wonder if it’s possible to secure life insurance coverage at an advanced age, such as 86. The good news is that an 86-year-old can indeed get life insurance, though options may be limited.
While term life insurance is generally unavailable for individuals over 80, whole life insurance policies are available for seniors up to age 90. These policies can provide valuable peace of mind for seniors seeking to cover their end-of-life expenses, including funeral costs and outstanding debts. As an 86-year-old considering life insurance, it’s crucial to research available options and understand factors affecting eligibility and premiums.
Luckily, several life insurance companies cater to seniors, offering tailored policies and simplified underwriting processes. These companies understand the unique needs of older adults and offer products designed with their financial protection in mind.
Key Takeaways
- An 86-year-old can get whole life insurance, but term life insurance is typically unavailable for those over 80.
- Life insurance at this age can be used to cover end-of-life expenses and provide financial security to family members.
- Specialized life insurance providers for seniors offer targeted policies and simpler application processes.
Purposes of Life Insurance for Seniors
Final Expenses
Life insurance for seniors often serves the purpose of covering final expenses such as funeral costs. Funeral expenses can be quite high, and many families find it difficult to bear the burden of these expenses on their own. Funeral or final expense insurance is designed to provide financial support to family members so they can arrange a dignified funeral for their loved ones without worrying about the costs. Here’s a breakdown of typical funeral costs:
| Funeral Expenses | Estimated Costs |
|---|---|
| Service | $2,000 – $10,000 |
| Burial plot | $2,000 – $4,000 |
| Headstone | $1,000 – $3,000 |
| Other expenses | $1,000 – $3,000 |
Debt and Loan
Another essential purpose of life insurance for seniors is to ensure their remaining debts or loans are settled after passing. Many seniors still have financial obligations like mortgages, credit card debts, and medical bills. Life insurance helps provide financial support to pay off these debts, ensuring that the family is not left with a huge financial burden. Below is a rough estimation of some common debts seniors may have:
| Debt Type | Estimated Balance |
|---|---|
| Mortgage | $50,000 – $200,000 |
| Credit Card Debt | $5,000 – $20,000 |
| Medical Bills | $2,000 – $10,000 |
| Other Loans | $1,000 – $10,000 |
Life insurance policies, such as whole life insurance, can help seniors over 85 to cover the financial requirements for their final expenses and outstanding debts. These insurance policies provide peace of mind to seniors, knowing their families will receive support in need.
The One Type of Life Insurance Available
Final Expense Life Insurance
As individuals grow older, finding life insurance options may become more challenging. However, for seniors aged 86, Final Expense Insurance can be a viable solution. This type of life insurance is specifically designed to cover end-of-life expenses, such as burial costs and medical bills.
Final expense insurance differs from traditional term life insurance and focuses more on providing financial support to loved ones during difficult times. While term life insurance is generally unavailable for individuals over 80, final expense policies can be obtained up to age 90.
Premiums for final expense insurance will vary depending on the coverage amount and the insured individual’s age. To give an idea of the potential costs, we have provided a table with sample premiums below:
| Age | Coverage Amount | Monthly Premium |
|---|---|---|
| 86 | $5,000 | $XX.XX |
| 86 | $10,000 | $XX.XX |
| 86 | $15,000 | $XX.XX |
It is important to note that some final expense policies might have a waiting period before the full coverage goes into effect. This period can vary depending on the insured individual’s health status. Before choosing a policy, it is essential to be aware of any waiting periods and discuss them with the insurance provider.
In addition to the premium costs and waiting periods, the application process for final expense insurance is relatively simple. These policies typically do not require medical exams, making it easier for seniors to obtain coverage. However, insurers may ask about health history and other relevant factors when determining eligibility and premiums.
In summary, final expense insurance presents an accessible and viable life insurance option for 86-year-olds looking to support their loved ones with end-of-life expenses. It is crucial to research available options and consult an insurance professional to find the best policy.
Factors Affecting Life Insurance Eligibility At 86
An 86-year-old individual can still obtain life insurance, but several factors affect their eligibility and the cost of their premiums.
Age: Life insurance premiums typically increase as people get older. On average, life insurance for an 86-year-old can cost between -0 monthly for a $5,000-$10,000 policy. Premiums increase by an average of 8-10% each year.
| Age | Average Monthly Premium |
|---|---|
| 80 | $65 – $250 |
| 85 | $75 – $290 |
| 86 | $90 – $320 |
Health: Insurers consider the applicant’s health when determining eligibility and pricing for life insurance. Pre-existing conditions, recent hospitalizations, and overall physical health can affect the cost and availability of coverage.
Tobacco history: Tobacco use is another factor that can influence life insurance premiums. Smokers typically pay higher rates due to the increased risk of smoking-related health issues.
Coverage amount: The desired level of coverage also affects the cost of life insurance for 86-year-olds. Policies with higher death benefits will generally have higher premiums.
Although term life insurance is not typically available for individuals over 80, whole life and final expense insurance options are available up to age 90. These policies provide coverage for funeral expenses and can offer financial security for the policyholder’s family.
Application and Underwriting Process
Health Questions and Medical Exams
The application and underwriting process for an 86-year-old seeking life insurance involves answering several health questions and sometimes undergoing a medical exam. These steps are meant to evaluate the applicant’s overall health and determine their eligibility for coverage.
| Factors Considered | Description |
|---|---|
| Health Issues | Pre-existing conditions |
| Medical History | Past treatments and surgeries |
| Lifestyle Choices | Smoking, alcohol, exercise |
Whole life insurance, burial or final expense insurance, and universal life insurance are available for seniors between 85 and 89 years old. Some plans might offer simplified issue coverage, which requires answering a health questionnaire but may not require a full medical exam.
Waiting Period
The waiting period refers to the time between submitting the life insurance application and activating the policy. Different insurers have varying waiting periods, depending on factors like the applicant’s health history and the type of coverage chosen. It is possible to avoid a waiting period by selecting a policy that offers immediate coverage.
| Coverage Type | Waiting Period |
|---|---|
| Whole Life Insurance | Varies by insurer |
| Burial/Final Expense Insurance | Varies by insurer |
| Universal Life Insurance | Varies by insurer |
Quotes
Premiums for life insurance policies at age 86 can vary significantly, depending on coverage amount, health, and policy type. The table below shows sample premiums for various policy types.
| Policy Type | Sample Premium (Monthly) |
|---|---|
| Whole Life Insurance | $150 – $400 |
| Burial/Final Expense Insurance | $100 – $250 |
| Universal Life Insurance | $200 – $500 |
Life Insurance Providers for Seniors
This section will explore several life insurance providers that cater to seniors, focusing on four specific companies: Aetna Protection Series, Aetna-CVS Health Accendo, Security National, and Baltimore Life.
Aetna Protection Series
Aetna Protection Series offers a variety of affordable life insurance options designed for seniors. These plans provide coverage to ensure that seniors’ families are financially protected in case of their passing. Their policies typically offer:
| Policy Feature | Benefit |
|---|---|
| No Medical Exam | Easy application process |
| Guaranteed Acceptance | No health questions asked |
| Fixed Premiums | Consistent, predictable payments |
Aetna Protection Series’ life insurance products are tailored to meet the needs of seniors, ensuring that they can find a suitable policy without any hassle.
Aetna-CVS Health Accendo
Aetna-CVS Health Accendo is a collaboration between Aetna and CVS Health to provide seniors with competitive life insurance policies. They offer life insurance products with unique features, including:
| Policy Feature | Benefit |
|---|---|
| No Waiting Period | Immediate coverage upon policy issuance |
| Final Expense Coverage | Assistance with funeral expenses |
| Family Plan Options | Coverage for multiple family members |
Aetna-CVS Health Accendo policies cater to the needs of seniors, helping them secure their family’s financial future and cover end-of-life expenses.
Security National
Security National stands out as a reliable life insurance provider for seniors. They offer a range of insurance products specifically designed for those aged 50 and above. Security National plans typically include:
| Policy Feature | Benefit |
|---|---|
| Flexible Policies | Customizable coverage |
| Affordable Rates | Cost-effective options |
| Simple Application Process | Minimal paperwork requirements |
With a commitment to providing insurance solutions to seniors, Security National ensures that seniors can find the protection they need without putting a strain on their finances.
Baltimore Life
Baltimore Life offers a range of life insurance products designed to cater to the unique needs of seniors. Their policies typically cover final expenses, ensuring seniors’ families are not burdened with high costs. Some of the benefits of their plans include:
| Policy Feature | Benefit |
|---|---|
| Guaranteed Acceptance | No health questions or medical exams required |
| Immediate Coverage | No waiting periods |
| Whole Life Policies | Lifetime coverage with fixed premiums |
Baltimore Life’s life insurance products allow seniors to provide for their families and confidently cover end-of-life expenses.