Once you have reached your 80s, many of your financial concerns will change. This will include a greater focus on how to protect your family from the financial burden of your funeral expenses. For many over 80, that may also include any debt that must be paid or perhaps covering the financial needs of your spouse and family if you are still the breadwinner.
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One avenue that many seniors use to protect the finances of their families is through a life insurance policy. Life insurance is a low-cost, high-yield policy that offers substantial financial protection for a low, monthly rate. The premiums will depend on the size of the benefits which may range from $25,000 up to $50,000 or more based on your needs. Learn how health affects the premium for people over 80 years.
How Much Life Insurance Do You Need?
For seniors over 80, the amount of benefits that you want should cover whatever financial burden you leave behind. For the most part, the amount your family needs will depend on the following;
- Funeral Expenses
- Mortgage & Auto Loan Payments
- Estate Taxes
- Any Outstanding Debt
Today, the average cost of a funeral is $9,000. This has gone up considerably from $6,000 of just a decade ago. You need to be aware of rising funeral costs and having enough benefits in your life insurance plan will help cover the expense.
In addition to funeral expenses, if you still have a mortgage or auto loans to pay, then covering those will be necessary. Given the high amount of estate taxes, covering them for your family will be most helpful. This is especially true if you are passing on a business to children. You can alleviate some of the estate taxes by setting up trusts which can alter the amount of the benefits. Finally, any other outstanding debt that needs to be addressed should be included in the policy.
Average Cost of Life Insurance for Seniors over 80:
In truth, there is no “average” cost in the sense of one-number-fits-all since life insurance premiums are dependent on age, gender, health, type of policy, lifestyle choices, and so forth. However, some average premium costs that you can expect to pay include the following;
– 80-Year-Old Man: $50,000 Policy – $193.79 per month
– 80-Year-Old Woman: $50,000 Policy – $157.93 per month
Women pay less than men because statistically they live longer, and the numbers do not include health, lifestyle, or other factors. Still, this will provide you with a ballpark figure of what life insurance will cost for an average policy. For those in poorer health, a no exam or perhaps a guaranteed life insurance policy is recommended. However, they can be considerably more expensive that a standard policy.
For seniors who have reached the age of 80, it is also important to get a life insurance policy as soon as possible as the rates only go up the older you get. By acting quickly, you can save money while providing the financial protection needed to your family when the worst occurs.