Getting life insurance for your elderly mother may seem like a challenging task, but there are a multitude of options thanks to companies that focus on the senior and elder niche.
One of the basic aspects of life is the relationship between a child and his or her mother. As we get older, so do our moms and they will inevitably need our assistance with some things – this includes financial matters.
Many children find that their moms are getting older, yet they don’t have any life insurance or the coverage that they have is inadequate.
If you find yourself in this situation take some time to learn more about getting a policy for your older mother. Learn more about age limits, health issues, types of coverage, and how to get a fair rate. You can even compare rates from multiple carriers that specialize in insuring the elderly.
Life insurance for an elderly mother is different than coverage in your younger years.
Many people are aware that there is a difference but are unsure about what that really means. Well, let’s start off with the basics – age and gender. First, it is always less expensive to obtain life insurance for a woman than a man (same age, same health conditions) because women are expected to live longer.
Second, the most basic factor that determines a life insurance premium is age. A woman in her fifties will pay much less than an elderly woman who is 85.
This leads me to something important to consider – age 85 is the maximum age that a woman can obtain life insurance coverage. I don’t recommend that anyone wait this long because the policy will be much more expensive, but believe it or not, many people obtain additional life insurance coverage even at this age.
How much more will it cost?
Let’s take a look at the same policy for a 70 year old woman versus an 85 year old woman. If you were to obtain a $25,000 life insurance policy for a 70 year old woman who is in average health, it would cost $1014 per year.
That same policy for an 85 year old woman in average health is $2636 per year. You can see the difference. It is more than double the amount.
Does your elderly mother have enough life insurance?
These days the cost of living continues to go up. A life insurance policy purchased 10 to 15 years ago might have seemed comfortable and enough to cover the expenses that come with death, but as times change it may not be enough now.
The first thing to ask is what is the policy intended to cover?
Many seniors and elderly obtain life insurance coverage just to make sure the costs of their funeral are taken care of. This means that a simple policy between $5,000 and $15,000 would be sufficient, depending on the type of burial one is looking for.
What else needs to be considered? Well, there are other costs that come with the death of a loved one than just the funeral. You have to consider final expenses such as bills that need to be taken care of, taxes, debts, and even probate fees and court costs. This could easily add on several thousand dollars or more to the expenses that are left behind. If you own real estate that is not paid off or auto loans, then this is another factor to consider.
Simplified Issue Coverage vs. Getting an Exam
There are two routes you can choose from when you think about getting life insurance for someone who is older. One route is to apply for policies that require a complete physical examination. This means that the insurance company will examine height and weight as well as blood and urine sample. These things will be scrutinized and it will take a few weeks to get the results. If your elderly mom is in great health then I recommend this because the rate will be lower.
If your mom’s health is not so great, then a simplified issue life insurance policy is a better option. There is an application with a health questionnaire and possibly a phone interview. The rate for a policy that is issued this way is a little big higher, but the insurance carrier offers some leeway when it comes to health issues.
Policy Ownership – How this Affects Your Mother’s Policy
There are a few different ways that you can be involved in your elderly mother’s life insurance policy. You can simply assist her in shopping around and finding the best rate and best policy for her individual needs. In this case, she would be the owner of the policy and she would pay her own premiums. You would be a passive party to the policy.
You also just be a named beneficiary on the policy. For example, if your 80 year old mother purchases a 25,000 policy and names you and a sibling as beneficiaries with a 50 / 50 split then you would receive $12,500 upon your mother’s death. As a beneficiary you do not have any control over the features and decisions of the policy . In this case, you would also be a somewhat passive party to the policy, until the time comes when a death claim is made and monies are paid out.
A third way to be involved in your mom’s life insurance policy is to be the owner. An owner is someone who has control of the policy. This means that you have certain rights and powers when it comes to the policy. You can name and change beneficiaries. You can choose various options and change the features of the policy. You can even borrow some of the cash value if it is a whole life insurance policy. This is an active role.
You could also be the one who pays the premiums. This means you write a check monthly or yearly for the premium or the premium is drafted directly from your checking account. This is also an active role.
Keep in mind that any one of these aspects above can be together. So you could be the owner, a beneficiary, and the payor of the policy, or you could just be a beneficary, etc.
Health Concerns of the Elderly – How it Affects Life Insurance Rates
Another inevitable part of the aging process are aches, pains, and health issues. This is just a natural part of life, however some seniors and elderly have much more serious health concerns than others. Most insurance companies that work with the senior population understand that there will be some health concerns like controlled high blood pressure, controlled hypertension, and even well controlled type 2 diabetes. These would be considered minor health concerns and typically don’t affect premium much.
In other cases, some elderly have a history of more serious health problems such as a heart attack, stroke, or some form of cancer. These are viewed as more risky to an insurance carrier and because of that, rates are higher to offset that risk.
Some seniors and elderly who have a history of serious health issues are concerned that they may not be able to find life insurance coverage.
I’ve talked with many people who have been turned down. What I’ve found is that anyone who is turned down probably hasn’t done the best job in researching rates and researching companies.
This is an important aspect of getting a life insurance policy, especially if you want to get the absolute most affordable rate that you can. Shopping around can save you hundreds, if not thousands of dollars over the life of your policy and the reason is simple – all insurance companies have their own standards. Company A may decline anyone who has had a heart issue in the last 12 months, while Company B may approve or charge a higher rate.
Another example is that Company A may charge very high rates to smokers, while Company B has fairly favorable rates to smokers.
With all the companies that are available to choose from, how does someone pick the best one? The easiest way to do that is to use a quote engine or database that includes companies that specialize in seniors and the elderly. It’s that simple. That is what we offer here at www.lifeinsuranceforelderly.org – a way to research and compare rates for seniors and the elderly so you get the best policy at the best rate for your unique situation.
Get started today. If you want to get a life insurance policy for your elderly mother or you just want to shop around and compare rates, it is as simple as entering your zip code and clicking the quote button.