Finding life insurance after age 75 can feel impossible. You may even wonder if you should buy it. Do seniors really need life insurance?
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The fact of the matter is many seniors do need life insurance after age 75. Whether you’ve run out of reserves or didn’t have as much saved as you thought, it might dawn on you around this age that you need something to help your loved ones when you pass.
But there’s one problem.
How will you pass the medical exam when you’re a senior? Most seniors have health issues of some sort, even if they aren’t major, which makes it hard to pass a medical exam, and if they do, the insurance cost is high.
Fortunately, there’s an option called no medical life insurance. Here’s how it works.
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Table of Content
What is No Medical Life Insurance for Seniors?
No medical life insurance works almost the same as traditional life insurance but without a medical exam.
Instead of going through the exam that checks for markers of any significant illnesses or diseases, you get coverage without the medical exam. The coverage amount will be lower because of the risk involved for the insurance company, but for many seniors, it’s enough to cover what they need.
How Does it Work?
No medical life insurance offers coverage from $10,000 – $50,000 in most cases for seniors over 75. Seniors use the insurance for a variety of reasons, including:
- Final expenses – The average funeral costs $10,000, but some cost even more. Leaving your family with that obligation can be devastating for them. No medical life insurance can ensure your loved ones have the money necessary for your end-of-life costs.
- Medical expenses – Most seniors have high medical bills before they pass. Rather than taking the funds from your estate, your loved ones can use your life insurance payout to cover the costs.
- Handling other debts – If you leave behind other debts, your life insurance payout can help your loved ones satisfy the debts without affecting your estate.
How Much Life Insurance can you Get Without a Medical Exam?
The problem with no medical exam life insurance is the limit on the coverage amount. Because insurance companies take a significant risk insuring you, they usually limit the coverage to no more than $50,000.
You may find a company here or there that will allow more, but typically, the coverage is $10,000 – $25,000, but up to $50,000 in certain situations.
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You’ll have limits on the lower end if you have a true no medical exam and no medical question policy. In contrast, if you at least answer some questions for the insurance company, you may be able to increase the limits slightly.
Policies for No Medical Life Insurance for Seniors
Just like in your younger years, there are different types of no-medical life policies to consider.
Final Expense Insurance
Final expense insurance is the most common life insurance option for seniors over 75. As the name suggests, it covers your final expenses in life, including your final arrangements, medical bills, and remaining debts.
Final expense insurance is permanent life insurance that stays in place as long as you pay the premiums. The premiums never change, and your loved ones can use the funds however they see fit when you pass.
Final expense insurance isn’t available until age 50, and you may have to answer some health questions to get coverage.
Simplified Issue Life Insurance
Simplified issue life insurance provides easy access to life insurance coverage without a medical exam. You must answer a handful of medical questions, but they are just to ensure you don’t have any major health issues that would exclude you from the policy, such as cancer or end-stage kidney disease.
The coverage limits on simplified issue insurance sometimes go up to $50,000, but on average, they top out at $35,000. The premiums are lower than guaranteed-issue life insurance.
Guaranteed Issue Life Insurance
Guaranteed issue life insurance offers coverage to anyone. You don’t have to pass a medical exam or answer health questions. Everyone gets coverage, but it comes at a cost.
Guaranteed issue life insurance is the most expensive policy available. There’s also another downside.
There’s a 2-year waiting period. You don’t have any coverage from the date of application through the 2nd anniversary. If you die within that time, your loved ones only get a return of the premium you paid plus a small percentage. They don’t get the death benefit.
How Much Does Life Insurance for Seniors over 75 Cost?
Cost is the one thing prohibiting many seniors from securing no medical life insurance over 75. It can get costly, which is another reason to keep the coverage amount lower so you can afford the insurance.
The cost depends on many factors, including the following.
The Type of Policy
The type of policy you get determines the premiums. Permanent life insurance has higher premiums than term life insurance because it lasts your lifetime. Term life insurance expires after a specific term.
It also depends on if you take a guaranteed life insurance policy (no medical questions) or a simplified life insurance policy (you answer a handful of medical questions). The more information you give an insurance company, the less your policy may cost (if you qualify).
If you’re reading this, you’re likely over 75, but if you’re under 80, you’ll get lower premiums than if you were trying to secure a policy over 80.
80 years old is the cutoff for most insurance companies. Any company that offers life insurance over 80 charges much higher premiums because of the higher risk of an immediate payout.
The Insurance Company
Every insurance company charges different premiums. Some are known for low or competitive premiums, others for their high costs but rare policies you can’t find elsewhere.
For example, Mutual of Omaha is known for low life insurance premiums for seniors over 75. In contrast, AIG is known for higher premiums, but they offer guaranteed coverage, so you don’t have to answer medical questions to get covered.
Learn here about 5 top-rated life insurance companies for seniors.
Pros and Cons of No Medical Life Insurance for Seniors
Knowing that you’ll pay more for no medical life insurance for seniors, you may wonder if it’s worth it. Understanding the pros and cons of the policy can help.
- There are still many options for seniors over 75
- You don’t need to go through a medical exam and sometimes even answer medical questions
- A large number of companies offer life insurance for seniors over 75
- You’ll have peace of mind knowing you’re helping your loved ones
- The premiums can be very high
- The coverage amount is limited
- It can be hard to find no medical life insurance once you hit 80
What age is too late to get life insurance?
There are plenty of policies for seniors over 75, but you’ll have to shop around. Not all companies offer it. Your best bet is a no-medical life insurance policy such as a final expense, simplified issue, or guaranteed issued life insurance policy. Some companies offer these policies up to age 85.
How do you decide how much life insurance a senior needs?
Think about your needs. Are you trying to cover your final expenses for your loved ones, or do you need something more? Final expense insurance is the most common policy for seniors over 75, but some take out whole life policies such as simplified issue or guaranteed issue policies to get slightly higher coverage amounts to leave money behind for their loved ones.
Can you get term life insurance over 75?
Some companies (although it’s rare) offer term life insurance over 75, usually up to age 80. Almost all companies require a medical exam, though, and the term is usually no longer than 10 years. The cost is usually relatively high too.
No medical exam life insurance for seniors over 75 is possible, but you’ll want to shop around. The premiums will be much higher, so don’t go into sticker shock, but make sure you get quotes from several companies.
Since you don’t need a medical exam, the application process is simple, allowing you to get actual quotes from several companies so you can compare your options, including the coverage amount, premiums, and waiting periods.