Can an 87 Year Old Get Life Insurance?
Life insurance is a vital financial tool for individuals of all ages, including seniors. If you’re 87 years old, you might wonder if obtaining insurance coverage is still possible. Indeed, life insurance is available for individuals at this age, though the options might be more limited than for younger applicants.
When considering life insurance policies at 87, the primary option is whole life insurance. This type of permanent coverage, also known as burial insurance, is specifically tailored for seniors and accounts for the unique challenges they may encounter when seeking their own policy. Securing whole life insurance at this age offers a sense of security, with stable premiums and benefits that won’t decrease or expire.
Key Takeaways
- Life insurance is available for seniors, even at 87 years old
- Whole life insurance is the primary option for individuals at this age
- Obtaining coverage offers financial safeguards and stability for seniors
Understanding Life Insurance for Seniors
As an 87-year-old, you may think that getting life insurance is challenging. However, several policy options are available, even for seniors with pre-existing health conditions. In this brief section, I will discuss different types of life insurance policies for seniors, including age and eligibility requirements.
Life Insurance Policy Options
Various policies cater to seniors’ diverse needs, such as whole life insurance, term life insurance, permanent life insurance, universal life insurance, and guaranteed issue life insurance. Each policy comes with its own set of pros and cons, which I have briefly outlined in the table below:
| Policy Type | Benefits | Disadvantages |
|---|---|---|
| Whole Life Insurance | Lifelong coverage and cash value accumulation | Higher premiums |
| Term Life Insurance | Lower premiums and customizable coverage periods | Coverage expires after the term |
| Permanent Life Insurance | Combines whole life and term life benefits; cash value grows tax-deferred | May have higher premiums and fees |
| Universal Life Insurance | Flexible premiums and death benefits; tax-deferred cash value growth | It can be more expensive and complex to manage |
| Guaranteed Issue Life Insurance | No medical exams or health questions; easy to obtain | Waiting period before full benefits; limited death benefits; higher premiums |
Age and Eligibility Requirements
The eligibility requirements for life insurance policies vary by policy type and provider. However, most providers have age limits for specific policies, as shown in the table below:
| Policy Type | Age Limit |
|---|---|
| Whole Life Insurance | Some providers offer up to age 85 |
| Term Life Insurance | Limited options, but some providers offer coverage up to age 80 |
| Permanent Life Insurance | Most providers have an age limit of 85 |
| Universal Life Insurance | Similar to permanent life insurance, usually up to age 85 |
| Guaranteed Issue Life Insurance | Generally available for seniors up to age 85 |
As an 87-year-old seeking life insurance, your best option might be guaranteed issue life insurance, which has lenient eligibility requirements and no medical underwriting. Researching different insurance providers and policy options is crucial to find the one that best suits your needs.
Challenges Faced by 87-Year-Olds Seeking Life Insurance
Pre-Existing Health Conditions
As an 87-year-old, I understand that dealing with pre-existing health conditions is one of the primary challenges when seeking life insurance. Health issues associated with aging can make it harder for seniors to secure coverage. Some common health conditions faced by seniors include:
| Health Condition | Description |
|---|---|
| Diabetes | High blood sugar levels. |
| Heart Disease | A range of conditions affects the heart. |
| COPD | A chronic inflammatory lung disease. |
| Arthritis | Joint inflammation causes pain and stiffness. |
I’ve learned that insurance companies may perceive seniors with pre-existing conditions as high-risk clients. As a result, they may charge higher premiums or even deny coverage altogether. However, I’ve found that some insurance providers offer products specifically designed for seniors with health issues, like final expense life insurance, which can help cover end-of-life costs.
Limited Coverage Options
Another challenge faced by someone like me, an 87-year-old, is the limited coverage options available at this advanced age. Many life insurance companies have age limits and might not provide coverage to those over 85. Here are some options available for seniors at this age:
| Coverage Type | Pros | Cons |
|---|---|---|
| No Medical Exam Life Insurance | No medical exam is required; faster approval | May have higher premiums |
| Final Expense Life Insurance | Covers end-of-life expenses, small death benefit | It may not cover other financial needs |
Finding a suitable life insurance policy at 87 can be challenging, but with the right information, finding one that meets our needs is possible. It’s always a good idea to compare different options and consult an insurance agent or financial planner to make an informed decision.
Common Uses for Life Insurance Proceeds
Funeral and Burial Costs
One of the primary reasons I invest in life insurance is to cover funeral and burial costs. Funeral expenses can be significant and, without proper planning, could burden my loved ones financially. To help them avoid this stress, I ensure my life insurance policy covers these costs. Here’s a breakdown of some common funeral and burial costs:
| Item | Average Cost |
|---|---|
| Funeral Service | $2,000 |
| Casket | $2,300 |
| Burial Plot | $1,500 |
| Grave Marker/Headstone | $1,500 |
Final Expenses and Medical Bills
Another reason for considering life insurance at my age is to cover any final expenses and outstanding medical bills that might be left after my passing. Medical bills can accumulate quickly, especially at an advanced age, and having a life insurance policy can provide the necessary funds to settle these debts.
| Final Expense | Estimated Cost |
|---|---|
| Outstanding Medical Bills | Varies |
| Estate Taxes | Varies |
| Legal Fees | Varies |
Income Replacement
I want to ensure that my spouse or other dependents can maintain their current standard of living, even after I am no longer around, to provide financial support. Therefore, I factor in income replacement when determining the appropriate amount of life insurance coverage. Here are some key components to consider:
| Income Source | Amount |
|---|---|
| Monthly Living Expenses | Varies |
| College Tuition | Varies |
| Retirement Savings | Varies |
Mortgage Payments
Lastly, one of the main objectives of my life insurance policy is to cover any outstanding mortgage payments for my family. This will help ensure that they can remain in our home without worrying about losing it due to an inability to make payments. Here is an example of mortgage payment considerations:
| Mortgage Component | Amount |
|---|---|
| Principal Balance | Varies |
| Interest Rate | Varies |
| Monthly Payment |
