What Life Insurance Plans Are Offered after 65?

Hi Toni:

You recently wrote an article explaining the hospice issues that you were experiencing regarding your mother. Please let your Toni Says Medicare column readers know other ways hospice comforts the caregiver when a loved one passes.

My mother’s hospice case manager and social worker made sure that I knew exactly what to do for her final needs. I would have had to pay over $3,000 for cremation plus $7,000 to bury my mother’s urn on top of my father’s casket through a well-known funeral home in my area, instead of the $995 arranged price with a funeral facility that was on the hospice list. My mother passed away with no life insurance and our family had to pay for all of the extra funeral cost         out-of-pocket.

I recently turned 65, have high blood pressure, am retired, and have no life insurance. I do not want my kids to go through what I experienced with my mother. Please explain which life policy I should consider. Thanks, Eva from Houston, TX

Hello Eva:

I would love to help you explore your life insurance options after what you experienced with your mother. Many Americans wait too long to purchase a life policy and cannot qualify due to health issues. They do not realize how your health situation can affect applying for an insurance plan.

Life insurance can help your family cover your end-of-life costs and ease your peace of mind knowing that there will not be a financial strain caused by unforeseen debt that your family may be responsible for.

Eva, let’s explore the different life insurance plans that are available for those age 65 and older and whether underwriting may be required for either acceptance or to receive lower premiums:

• Term Insurance: a policy which offers a 10-,15-, 20- or 30-year policy period, depending on which insurance company you apply with. Term insurance premiums are lower and do not increase during the plan’s specific policy period. These plans can be converted to a permanent Whole Life plan while the policy is in force. Purchasing Term Insurance at a younger age and converting to Whole Life past 65 is an option worth considering.
• Whole Life: a permanent Life policy that combines a death benefit, level premiums and cash value growth that can be used for any reason during your lifetime. Whole life policies generally cost more past 65. Choosing a lower death benefit may control the price and be a good option.
• Final Expense/Burial Insurance: a small whole life policy that is meant to help your family pay for your funeral, burial, and other expenses, such as outstanding medical bills, after your death. Plans typically range from $5,000 to $25,000 in death benefits, depending on the insurance company.
• Guaranteed Issue Whole Life: a whole life policy for those with serious health issues who cannot pass medical underwriting for a typical life insurance plan. The policies range from $2,000-$25,000 in death benefits with no medical exam or health questions to answer. If you die within the first 2 years from natural causes (other than accidental), your beneficiaries will only receive all premiums paid, plus interest usually 10%. After the 2-year waiting period, the full benefit is paid for death due to all causes.

Eva, with the variety of life insurance plans to meet the health and financial needs of those past 65, it is important to take your time exploring which option is right for you and your family.

Remember, it’s what you don’t know that WILL hurt you! If you have a Medicare question, email info@tonisays.com or call 832-519-8664. Toni’s new Confused about Medicare” video series and Toni’s Medicare books are available at www.tonisays.com.