There is this misconception that when you are 87 years of age then securing a life insurance policy is quite hard or even impossible.
However, that is far from the truth. The simple truth is life insurance does exist for people as old as 87 years of age.
Although there are different types of life insurance policies, the only one available to people at 87 is called Whole Life Insurance.
So, regardless of which insurance firm you are dealing with, what you will get is Whole Life Plan and nothing more.
How Life Insurance Works for 87 Years Old
There are a few things you should know about life insurance policy for seniors over 85 years. Firstly, you pay a fixed rate, which can’t be increased then secondly the coverage you are given certainly can’t reduce.
Thirdly, age doesn’t affect the policy expiration and finally, the policy also piles up cash value, which you may decide to borrow against.
As you know, just like other life insurance plans, the life insurance afforded to you, like 87 years old senior will result in a tax-free payment called death benefits, which is paid to your listed beneficiaries.
The money can then be used to care for several things that spring up after the death of the insured like funeral costs, paying off debts, settling medical bills, etc.
This is a good way of making sure everything is well-taken care of after you are gone without putting too much burden on your beneficiaries.
How Much is the Coverage You Can Buy at This Age?
Now you must know that the actual amount of insurance you can buy is based on your state of residence, health status as well as actual age.
However, the range is usually between a minimum of $2000 and a maximum of $100000 worth of life insurance policy.
You should note, sometimes to get a higher amount of insurance policy, there may need to buy more than one policy from several companies as each insurance firm has a limit for the amount of coverage it can offer with most of them placing their limit at $40000.
So, this may necessitate that you buy from several insurance firms to get a higher amount of coverage.
No Waiting Periods
As an 87-year-old senior seeking to buy a life insurance policy, you may be worried about having to go through the 2-3 years waiting period. There is coverage where you don’t have to go through the waiting period.
However, the condition is you have to buy from insurance firms that included health questions in the applications process and also go through a licensed agent.
It’s near impossible to get a no waiting period coverage by going directly to the insurance companies as the immediate coverage plans are sold through licensed agents. There is no medical examination required just a health questionnaire to fill out.
Care must be taken not to fall prey to insurance companies that make bad elderly insurance offers to take advantage of your desperation to key into a life insurance policy.
You must do your diligent research before taking up an offer from insurance firms.
Finding the Best Policy out there
To get the best price on a life insurance policy, it is paramount you find an insurance firm that is tolerant of the health issues you may have. Typically, at 87 years of age, there is usually one health issue or another.
For instance, the use of blood thinners is quite common at this level. We have insurance firms that will charge high rates for using drugs such as Coumadin, Plavix, or even Warfarin.
In the end, the aim is to pinpoint insurance companies that offer life insurance policies for seniors that don’t mind the use of prescribed medications and other health conditions. You can compile a list and then select which firm is offering the most affordable plans.
However, ascertaining which of these firms will accept or reject your application is not something you can do on your own.
For that, you can enlist the help of licensed agents, who will probably use the information you provide to determine the insurance that will accept your application.
Costs Factors to Consider Before Choosing a Plan
To be honest, the cost of life insurance starts to increase for seniors over 75 years. So, being 87, it is hard to expect low-cost policies.
Some of the reasons seniors at the age of 87 will want to buy a life insurance plan is to have all the expenses associated with their demise have taken care of without stressing the pockets of loved ones.
One of those expenses is funeral costs, to factor this cost into the plan you will choose then it is important to know how one costs in the first place.
Going by the NFDA report, a funeral will cost you an average of $8755, which is quite high. Some may want to consider cremation as it is cheaper; however, it is a shopping $6260 on average.
Funeral costs along with other costs or bills that follow the demise of the insured like hospital bills, cost of transporting the body, debt, etc. are things to consider before determining the coverage you want to go for.
Provided it is affordable, it is best if you go for coverage that is as high as possible to cover all these expenses after demise.
Nevertheless, if you are on a tight budget then go for plans you can afford. Having a plan is better than none at all.
It is vital you select a policy with monthly plans that suit your pocket. Just like every other type of insurance, life insurance is only good if you can make your payments on time.
The Way to Apply for Life Insurance
Getting a life insurance policy when you are 87 is not so different from other age grades for seniors like ’70s, 50’s, or ’60s.
You don’t have to pay as at the time you are applying. The insurance firms will let you choose when you want to start paying.
If you want to go through insurance agencies, these are the steps it entails:
- Collection of relevant health information and filling the application.
- You tender the filled application for approval.
- You will then wait for it to be approved.
The Things to Expect After the Application
Generally, the agency you applied with will send you a welcome package that will contain the coverage summary and the information about the insurance firm you applied with.
After that, the insurance firm you send your application to will send you a mail about the actual policy that you will receive. It is essential you double-check the policy sent to you to make everything is in order and it exactly what you are expecting.
Reasons why Seniors Desire Life Insurance Policy
For an 87 year old elderly with the current economic situation, there are reasons aplenty that will make a senior opt for a life insurance policy. Some of them are discussed below:
To Maintain Some Form of Self-Sufficiency
An 87-year-old was once young and full of energy enough to be self-sufficient but as we age then goes some degree of self-sufficiency with it too.
As the body grows weaker, you realize that you may need support here and there through assisted care or relative care. Without a source of income, it could even be harder to sustain yourself.
However, with a life insurance policy, you can borrow against your cash value if need be to service some urgent bills.
This will prevent you from being perceived as a liability as well as give you some degree of independence and self-reliance. You can repay your borrowed loan at your comfort.
Providing Support for the Young Ones
Life will eventually end, and as an 87-year adult, nobody knows this better. At times, an elderly might want to leave something behind that can be of benefit to the children.
The fulfillment of knowing that even after death, the children are still been taken care of will fill any elderly parent with joy. A life insurance policy is a good option to opt for.
Looking Out for Their Partner
Often times one out of two partners is usually the first to go and in a situation where a couple realizes the time is nearly up for one of them.
It is natural that worry sets in as to how the other half will cope when one of them is gone. To secure the financial status of their partner, couples go to the route of a life insurance policy.
In some cases, both of the couples buy life insurance due to the fact none of them know who will go first. They list one another as a beneficiary in their life insurance policy.
So when one dies the other gets the death benefits to help cushion the loss.
Having a Befitting Funeral
As we discussed earlier, funerals don’t come cheap not even cremation. There are times when people choose the way they want to be buried- in a befitting manner worthy of their status.
However, to make sure their demand is not a burden on their families or whoever is going to take care of their burial and incurred medical bills.
They purchase a life insurance plan that will be able to take care of their funeral expenses the way they want it done without putting too much burden on others with the cost.
There are some common questions asked by applicants, we will look at some of those questions below:
Q: Will Life insurance for 87 years of age require a medical exam?
A: No, life insurance policy offered to 87 years old seniors mostly don’t carry medical examination. Almost all insurance firms will not ask you for a medical test.
Although you may have to fill out a medical questionnaire to get insurance with no waiting period.
Q: Is it possible to purchase life insurance for parents that are 87 years old?
A: Of course, you can but your parents will have to consent to it. You can as well buy for your grandparents too with their consent. Provided they agree, you be the beneficiary, owner, and payer.
Q: Is it possible to purchase life insurance at 87 years of age?
A: That is a yes. However, your options are severely limited. In the U.S. there are just two insurance firms providing coverage at that age and that is based on your health status and state of residence.
Conclusion
For seniors life insurance serve as a means of financial safety, it can allow them to independent to an extent.
Instead of waiting on children or relatives to foot medical bills or urgent financial needs, they can simply borrow against their cash value and repay at their own convenience.
It put their mind at ease at their final passing that there is something left behind to take care of all issues related to their demise.