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Affordable Burial Insurance Options for Seniors Over 80

Jun 22, 2023 | Burial Insurance

Affordable Burial Insurance Options for Seniors Over 80

Finding affordable burial insurance can be a challenge for seniors who are over 80 years old. However, it is still possible to obtain low-cost life insurance at this stage with the assistance of a licensed insurance agent.

When searching for life insurance options for seniors over 80, burial insurance is often the best choice. Burial insurance provides a practical alternative to traditional life insurance since it doesn’t require a medical examination for eligibility.

This is particularly beneficial for individuals who have health issues that prevent them from qualifying for other life insurance products such as whole life insurance or term life insurance.

If you’ve been wondering whether life insurance is available for seniors over 80, the answer is yes. Here’s how you can secure it.

Life Insurance Options for Seniors Over 80

If you or a family member is over 80 and in need of insurance coverage, burial insurance is well-suited for your situation. Also known as final expense insurance or funeral insurance, burial insurance allows you to provide a reasonable death benefit for your beneficiaries. The funds can be directed to a funeral home if desired, as they are typically utilized for funeral expenses.

How Burial Insurance Works

Burial insurance provides coverage that grants a death benefit upon the passing of the insured individual. The death benefit can range from $5,000 to $25,000, with lower benefit amounts often corresponding to lower premium payments. The premiums you initially agree to are fixed for the duration of your policy. Unlike term life insurance, burial insurance remains in effect throughout your lifetime, regardless of age.

Additionally, once you secure coverage, your death benefit will never decrease. This assurance brings peace of mind to your loved ones, as they can use the funds for any purpose, including planning your funeral and covering other final expenses.

Cost of Life Insurance for Seniors Over 80

While there are some affordable life insurance options available for seniors over 80, they are limited in number. Typically, you can expect to pay between $90 and $200 for life insurance once you surpass the age of 80. The precise cost of your coverage will depend on factors such as the desired coverage amount, your age, state of residence, and gender.

Coverage Amounts for Seniors Over 80

When purchasing burial insurance, you will need to determine the coverage amount that suits your needs. Depending on your health condition, your application will undergo underwriting, and the insurer will assess the coverage you qualify for. Generally, the minimum coverage amount for seniors over 80 is around $2,000, while the maximum limit can be approximately $25,000.

Some seniors over 80 may also be eligible for traditional life insurance, which can provide a death benefit of up to $100,000. However, eligibility for this type of insurance will depend on your health status and ability to pass a medical examination.

Funeral Insurance Application Process with Seniors in Mind

Navigating the funeral insurance application process can feel overwhelming, but rest assured that there are steps in place to guide you through it. Each insurer may have their own variations, but here is an overview of what you can expect:

Step 1: Discovering the Options

To find the right funeral insurance policy that suits your specific needs and budget, it’s essential to gather quotes from local providers. This is where an insurance agent can be invaluable, as they possess the expertise to assist you in identifying the most suitable plans and providers.

Insurance agents have access to helpful tools that simplify the search for burial insurance plans. By utilizing these tools, you can save time and effort by avoiding the need to gather quotes individually from each company. Your agent can assess each quote, ensuring it aligns with your requirements and provide you with the associated costs. Moreover, since many policies involve health-related questions, an agent can streamline the application process by pre-screening your health conditions and recommending insurers that are accommodating to applicants with similar health issues.

Knowledge is crucial when shopping for insurance. It’s important to compare multiple options before making a decision to find the ideal insurance policy that meets your goals, whether it’s a smooth application process, a substantial death benefit, or a specific budget requirement. Your agent will support you in reaching these objectives.

To start collecting quotes, you will typically need the following information:

  • State of residence: Rates can vary depending on your location.
  • Birthday: Funeral insurance rates are influenced by age.
  • Health class: Your health status, ranging from excellent to poor, can impact the application decision.
  • Coverage amount: The size of the death benefit you desire affects the cost of coverage.
  • Gender: Funeral insurance rates may differ based on gender.
  • Smoker status: If you are a smoker, insurers may categorize you as a higher risk, resulting in increased coverage costs.
  • Personal information: Basic details such as your full name, phone number, and email address are usually required to acquire quotes.

Step 2: Choosing an Affordable Policy

Once you have gathered quotes, the next step is to select a policy that fits within your budget. If your preferred choice requires you to answer health questions that result in a price increase, you may need to explore other plans. It’s important to aim for a target that offers quality coverage at an affordable price, considering that eligibility and coverage levels may vary.

You can customize your policy to reduce the cost. For instance, opting for a lower death benefit can lead to lower premium payments. By finding the right carrier and policy structure, you can achieve significant savings over time without compromising on the quality of coverage.

Step 3: Completing the Application

Once you have found a company that meets your needs, the next step is filling out an application. This application will require you to provide various personal information. Some common requirements include:

  • Your social security number
  • Driver’s license number
  • Beneficiary information
  • Contingent beneficiary information
  • Your doctor’s contact information

You will also be asked about the following:

  • Health history
  • Family health history
  • Prescription medications
  • Any risky hobbies and activities
  • Driving record
  • Criminal record

The application process typically takes between ten and twenty minutes. If you require assistance, your insurance agent can guide you through filling out the application, leveraging their experience from assisting numerous applicants in similar situations. You can trust them to provide valuable insights that will help you successfully complete the funeral insurance application process.

Step 4: Interview Process

After submitting your application, the next step is undergoing the underwriting process, which often includes a phone interview with one of the insurer’s underwriters. This interview aims to clarify any questions or details submitted in your application.

During the interview, it is crucial to answer honestly regarding your health history, lifestyle, family health background, and any risky activities you engage in. Your responses will determine the level of risk you pose to the insurance company, influencing the rates they offer.

Step 5: Waiting for Underwriting Decision

This step primarily involves waiting for the insurance underwriters to review your application thoroughly and make a decision. They will carefully examine your answers to personal and medical questions, emphasizing the importance of remaining honest throughout the application process. Underwriters will also evaluate your medical information history to assess your risk level and determine the associated insurance costs.

Additionally, underwriters may consider some personal details that you may not be aware of, such as:

  • Driving record: Your preferred insurer’s underwriting department might review your motor vehicle report to determine whether you have any unsafe driving habits. Factors such as drag racing, driving under the influence of drugs or alcohol, or indications of reckless driving may affect your risk profile and the cost of coverage.
  • Parents’ health history: Underwriters may inquire about your parents’ health, including whether they are alive or if they passed down any genetic-related illnesses like cancer or heart disease. This information helps gauge potential hereditary medical conditions.
  • Prescription drug history: Your prescription drug records may be used to verify the accuracy of your medical history. Concealing any undisclosed illnesses during the application process through medication can lead to application rejection or higher rates.

Step 6: Receiving Your Policy

After completing all the necessary steps, you simply need to wait to receive your policy. If your application is accepted by the insurance company, they will notify you through phone or email.

It’s important to note that the rates offered in the policy may differ from the initial quote. However, it is common for insurers to provide adjusted rates following the completion of the underwriting process.

If you review the policy and find it satisfactory, you can proceed by paying your first premium and ensuring regular payments to keep the plan active.

We understand the importance of providing financial support for funeral expenses, regardless of age. Our team of caring insurance experts specializes in finding affordable burial insurance coverage for seniors aged 80 and above. To discuss your options and find peace of mind, please reach out to us at (800) 398-9821 to speak with a licensed agent.

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