Over 87 Life Insurance: Coverage Options, Costs, and What to Know

Over 87 Life Insurance: What the Landscape Looks Like

Life insurance over age 87 remains available, though the choices narrow and the cost structure shifts dramatically compared to younger applicants. The market for over 87 life insurance centers on a few specific product types designed for seniors who may have health challenges, limited budgets, or simply want to cover final expenses without a medical exam. Understanding these options helps families plan with confidence rather than guesswork.

Why People Seek Coverage After 87

Common reasons for maintaining or purchasing a policy at this age include covering funeral and burial costs, paying off a mortgage or debt so heirs are not burdened, leaving a small inheritance, or covering estate settlement expenses. Some applicants also look for over 87 life insurance to offset final medical bills or provide a death benefit that covers a spouse still living on a fixed income.

Types of Policies Available for Applicants Over 87

The most accessible products fall into a few categories:

• Guaranteed Issue Whole Life: No medical exam and typically no health questions beyond age and sometimes a two-year waiting period before the full death benefit pays.
• Final Expense Insurance: A smaller whole life policy, often between $5,000 and $25,000, built specifically to cover burial and end-of-life costs.
• Simplified Issue Life Insurance: May include a health questionnaire but skips the exam, with approval based on age and health history.
• Modified Benefit Plans: Policies that limit the death benefit during the first two years, paying only premiums plus interest if the insured dies early.

Factors That Shape Premiums and Eligibility

Insurers evaluate age, gender, tobacco use, and sometimes the applicant's state of residence. Because the pool of over 87 life insurance applicants carries a higher statistical risk, premiums are substantially higher than for a 40-year-old, and coverage amounts tend to be lower. Some carriers impose a maximum issue age, commonly around 80 to 90, meaning the window for new coverage closes at a specific point. Pre-existing conditions, such as heart disease or diabetes, may not disqualify an applicant but can place them in a higher premium tier.

Costs and Premium Structures

Premiums for policies issued at 87 or older are fixed for the life of the policy but are high relative to the death benefit. A $10,000 guaranteed issue policy might carry monthly premiums ranging from roughly $80 to several hundred dollars, depending on the carrier, gender, and plan structure. The older the applicant at issue, the steeper the annualized cost. Riders such as accelerated death benefit or waiver of premium are rarely available or add significant cost at this age.

Comparing Guaranteed Issue vs. Simplified Issue

Guaranteed issue policies offer the easiest entry but come with the highest premiums and often a graded death benefit during the first two years. Simplified issue policies may require answering health questions but can offer a larger death benefit for the premium if the applicant qualifies. The trade-off is clear: guaranteed issue removes the health barrier entirely, while simplified issue can reward better health with more favorable terms.

What to Watch Out For

Policyholders and applicants should read the contestability clause carefully. Most policies include a two-year contestability period during which the insurer can investigate and deny a claim based on material misrepresentation. Also, some over 87 life insurance products are not true life insurance but annuity-based products that function differently and may not provide the intended death benefit. Working with an independent broker who can compare multiple carriers helps avoid costly misunderstandings.

Alternatives When Traditional Coverage Is Too Costly

If premiums on a new policy are prohibitive, alternatives include pre-arranged funeral plans, payable-on-death bank accounts, or simply budgeting for final expenses outside of insurance. Each option has trade-offs in terms of liquidity, growth, and whether the funds are protected from creditors or Medicaid spend-down rules.

How to Approach the Application Process

Start by gathering recent medical records, a list of current prescriptions, and details on existing coverage. Compare at least three carriers that specialize in senior issues. Ask directly about the contestability period, the graded benefit structure, and whether the policy builds cash value. An honest application reduces the risk of a denied claim later.

The Bottom Line on Over 87 Life Insurance

Coverage is still within reach for those over 87, but the products are specialized, the premiums reflect the age at issue, and the death benefit amounts are modest compared to what a younger applicant could secure. The right policy depends on the goal: covering final expenses, leaving a small legacy, or protecting a surviving spouse. Matching the product to the goal, and reading the fine print carefully, leads to a decision that serves the family's needs rather than creating new financial strain.