Try to stay away from insurance agents whose primary specialty is selling auto or home insurance, such as through Farmers Insurance or State Farm Insurance. Their life insurance rates are rarely as low as the rates an independent agent can find for you using companies like Transamerica, Banner Life Insurance, or Prudential.
Many other large, A rated life insurance companies still offer life insurance beyond age 81 and age 82, such as MetLife, Protective Life Insurance, and Aviva Life Insurance.
Requirements to Purchase When Over 80 Years Old
Whether you are 85 years old or less, you’ll need to take a paramed exam (medical exam), which is usually done at your home at the insurance company’s expense. It will usually require blood withdrawal, urinalysis, and sometimes an EKG. For large insurance amounts, other requirements may be ordered.
It’s important you realize the quotes above are for a 10 year term policy, which means the premiums will be level guaranteed for the first 10 years, but then will increase thereafter. For guaranteed level premiums for life, the premiums will be higher by about 15% to 20%.
For example, a healthy man at age 83 can purchase a guaranteed $100,000 universal life policy to age 121 for $638 per month, a 20 percent increase over the 10 year term policy. Of course the benefit is that after the first 10 years since the policy was issued, if the applicant is now 93 and still living, he’ll still have level premiums he can afford, whereas the 10 year term policy’s premiums may adjust to an astronomical number.
Purpose of Getting Cover in Your Eighties
In life insurance policies, the policy holder pays a premium (the cost of insurance), either on a regular basis, such as annually or monthly, or as a lump sum. Of course the advantage to the owner is the peace of mind knowing that the insured individual’s death will not lead to financial difficulty for the deceased’s loved ones.
Say you’re 85 years old and most of your assets are tied up in real estate holdings or business ownership. Upon your death, your beneficiaries would be able to make better decisions about whether to hold or sell your assets if some liquid cash is available to them by way of life insurance.
No one who has spent a lifetime building wealth wishes for those assets to be sold off immediately upon their death due to a need for cash. Suppose your estate is taxable and the trustee needs to raise cash to pay the estate tax bill, which by the way, is due 9 months from the date of death. Life insurance can solve this problem.
Which Type of Insurance is Best at Age 81, 82, 83, 84, 85?
There are only two types of policies you can buy once you reach age 81 to age 85, which are 10 year term (sorry, 15 year is no longer available at this age), and whole life insurance. With term life insurance you buy a limited, defined term such as 10 years. Whole life, on the other hand, covers you for your whole life until you pass away, or in some cases, until you reach a specified age such as 100.
Since in your eighties, permanent or whole life insurance only costs a fraction more than 10 year term, I would recommend a permanent policy if you can afford it. For example, if you have a male at age 82 purchase 10 year term, he might outlive the coverage if he can just live to age 93, which is certainly possible if this 82 year old is in good health.
Can I purchase for my Mother, Father, Parents?
Yes. They must be aware of it, but you can be the owner of the policy, pay the premiums, and determine who will be the benefactor of the funds upon death, which could be yourself. Please see our article about purchasing life insurance on your parents for more information.
Call us at 877-996-9383 for a no obligation quote for your parent or yourself for term life insurance or whole life.
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