Katherine Warnock Affordable life insurance is a great way to ensure that any after-death financial burden doesn’t fall onto your surviving family members.
While it’s a common fact that life insurance typically gets more expensive as you age, life insurance for seniors over 80 years of age may surprise you by costing less than you think.
Since there are fewer insurance options for senior adults, many policies for seniors fall into the permanent life insurance type. These policies don’t expire and will continue throughout your lifetime as long your premiums are paid.
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What is the best life insurance for seniors over 80 years old?
Choosing the best life insurance can be a bit time-consuming, especially when you’re looking at the key areas like price, after-death benefits, riders, and other limitations.
Since buying life insurance for seniors over 80 can be quite limiting, there are a few factors that do work out to your benefit when buying permanent coverage:
- Premiums are fixed.
- Coverage is guaranteed to never decrease.
- Your policy can’t expire due to your age.
So what is the best life insurance for seniors over 80?
AARP
A.M. Best Rating: A++
Ages: 50-89
AARP is a great option for seniors who want to skip the medical exam or have other health limitations that would otherwise disqualify them from coverage. Applicants are able to get maximum coverage of up to $50,000 and will be required to answer a short health-related questionnaire.
Both whole life and term life coverage are available, however, the age limitation on AARP’s term life is 80.
Mutual of Omaha
A.M. Best Rating: A++
Ages: 45-85
Mutual of Omaha offers whole life, term life, universal, and final expense for its applications with flexibility towards your policy, and coverage starting at $100,000.
You can choose from any of the above-mentioned policies with the option of any term life policy being able to migrate into a whole life policy once you reach over the age of 80.
There is no physical medical exam required, however, a short questionnaire must be filled out before coverage can start. There is also no medical verification for funeral expense planning.
AIG
A.M. Best Rating: A+
Ages: 50-85
AIG offers three main types of insurance: universal life, term life, and whole life insurance. If you are over the age of 80, whole life insurance is the only insurance available with its maximum age limit being 85.
Coverage starts from $5,000 and can get up to $25,000 depending on the policy you choose, with guaranteed acceptance and no medical exam required for seniors over 80.
Policy benefits for a cash value after death for both terminal and chronic illnesses are also available upon acceptance. There are no additional fees required to access this living benefit.
MetLife
A.M. Best Rating: A+
Ages: 18-80
For seniors over 80, MetLife offers whole life insurance with flexible funding options. Coverage starts at $2,500 and goes up to $50,000. This policy will build cash value with fixed premiums throughout your lifetime, as well as offer final expense benefits.
Death benefits are limited for the first two years of your policy term, with the exception of “death by accident.” There are no medical exams or questionnaires required for coverage acceptance.
Transamerica
A.M. Best Rating: A
Ages: 40-85
Transamerica offers whole life insurance for seniors over 80 and final expense policies for seniors up to age 85, making them one of the few companies on the market to do so.
Coverage has a maximum of $40,000 and starts from day one with no minimum waiting period.
Transamerica also offers:
- Guaranteed death benefit
- Guaranteed cash accumulation value
- Chronic Illness Rider
- Critical Illness Rider
- Terminal Illness Accelerated Death Benefit Rider
No medical exam or lab work is required for acceptance.
Aetna
A.M. Best Rating: A
Ages: 40-89
Aetna is unique on the market for seniors over 80 because it offers policy coverage of up to $25,000 for those who are as old as 89 years of age.
There are a few health-related questions that need to be answered in order to determine eligibility and health status, so if you struggle with chronic issues or health concerns, Aetna may not be the best option for you.
However, if you are accepted, Aetna offers a variety of coverage features as well as excellent rider add-ons.
Americo
A.M. Best Rating: A
Ages: 50-85
Americo offers universal life coverage, as well as whole life coverage insurance. Benefits include mortgage payments, coverage for funeral costs, medical expenses, and other after-death expenses.
Coverage ranges from $5,000 to $30,000, depending on which policy you choose, with coverage also eligible for chronic and terminal illnesses.
How much does life insurance for seniors over 80 costs?
With over 54% of people in the United States having life insurance, it’s important to factor in not only the type of coverage you are getting but how expensive it might end up costing you.
Historically, life insurance for seniors does typically cost a bit more than someone under the age of 70, or even 65. Let’s look at the average rates that you may be paying for life insurance.
| Policy Amount | 80-84 | 85+ |
|---|---|---|
| $10,000 | $2,900/year | $3,600/year |
| $15,000 | $4,400/year | $5,300/year |
| $20,000 | $6,400/year | $7,000/year |
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Since these numbers are relatively high, it might turn you off from the idea of buying life insurance at an affordable cost.
However, there are a few life insurance companies that offer competitive rates that won’t break the bank:
- Mutual of Omaha. Policies start at $254/month.
- AIG. Policies start at $216/month.
- Transamerica. Policies start at $284/month.
These prices may vary slightly based on your policy type.
Affordable Life Insurance for Seniors Over 80: The Bottom Line
Life insurance is important for every stage in life, especially when you are becoming a senior. Being in good health as a senior doesn’t always guarantee you exclusions from certain life insurance policies, since age is a big factor when it comes to acceptance.
But choosing the right type of insurance, as well as the right company that fits your needs, will not only give you peace of mind later on down the road but it will also help your family with covering any after-death expenses and funeral costs.
Any of these listed companies are great fits for seniors over 80 years old.
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