What Life Insurance Plans Are Offered after 65?

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 Hi Toni:

             Recently, you wrote an article explaining the hospice issues that you were experiencing regarding your mother. Please let your Toni Says Medicare column readers know how 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 ern on top of my father’s casket with a well-known funeral home in the Houston area, instead of the $995 arranged price with a funeral home 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 which was over $10,000.

            My question is that I have recently turned 65, retired and am without any 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 since I am 65 with high blood pressure. Thanks, Eva 

Hello Eva:

            I would love to help you explore your life insurance options after what you have 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 important your health situation can affect apply for an insurance plan.

            Life insurance can help your family cover your end-of-life issues and move forward with peace of mind knowing that there is not a financial strain causing any unforeseen debt that they may be responsible for.

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

• Term Insurance: Is a policy which offers10,15,20 or 30 year policy period depending on which insurance company you apply with. Term insurance plans have lower premiums that do not increase during the plans specific policy period. These plans can be converted to a permanent Whole Life plan while policy is in force. A good option regarding when to purchase Term Insurance is at a younger age and convert to Whole Life past 65.        *Reader Alert be sure that option is available with the insurance company you chose. *
• Whole Life: Is 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 policy generally costs more past 65 and choosing a lower death benefit may control the price and be a good option.
• Final Expense/Burial Insurance: 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 benefit depending on which insurance company is chosen.
• Guaranteed Issue Whole Life: A whole life policy for those with serious health issues that cannot pass medical underwriting of a typical life insurance plan. The policy ranges from $2,000-$25,000 in death benefits with no medical exam or health questions to answer. First 2 years, if you die from natural causes (other than accidental), your beneficiaries will receive all premiums paid, plus 10%. After two years, the full benefit is paid for death due to all causes.

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

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

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