Death is a part of being alive. It is bound to happen one day. The uncertainty of death however worries all. Leaving behind loved ones with no resources, especially if you are the breadwinner of the family, is a scary possibility.
While there are plenty of life insurance policies to choose from at a young age, it might be difficult for senior citizens to avail life insurance. As one grows older and starts to cross the age of 65, insurance companies tend to stop providing options. Moreover, funeral cover for those over 75, 80 and 90 is much harder to come by.
Can seniors over the age of 80 avail Life Insurance?
Yes. One can buy life insurance after the age of 80 as well. However the options are limited. Seniors over the age of 80 are mostly looking for insurance to cover their funeral and burial costs. Hence, they shall fine insurance policies named as burial insurance plans or final expense insurance.
After the age of 80, there is usually only a single whole life insurance cover, which includes:
- Premiums are fixed and cannot increase.
- Coverage guaranteed never to decrease.
- Policy can’t expire due to age.
As applicable to all life insurance policies, the result of these policies will be a tax-free cash payment directly to the beneficiary(s).
One may approve of any of the following as their beneficiary(s):
- Children (step or adopted are acceptable)
- Parent (stepparent is acceptable)
- Niece or nephew
- Family friend
- Aunt or Uncle
- Funeral home
- Pretty much any family member or person one is close with
How much does Life Insurance for 80+ costs in South Africa?
The cost of Funeral Cover for seniors over the age of 80 in South Africa is typically R56 per month with coverage upto R100 000. The exact price depends on one’s gender, age, state of residence, health, and the amount of coverage requested.
There are a handful of insurance companies in South Africa that provide insurance cover for senior citizens. However, even if you come across a company that is willing to provide cover, you will find higher-than-average premiums.
How does Funeral Insurance or Funeral Cover work in South Africa?
- Funeral insurance works a lot like other types of insurance. You decide how much funeral cover you want to buy and then you pay a monthly premium.
- You choose who to cover.
- Some funeral insurance policies also give you other benefits like burial repatriation, grocery benefits or cashback.
- If you or your loved ones die, the money is paid out.
- A decision to take out funeral insurance should form part of a proper financial plan.
Insurance Company in South Africa that may help
Sanlam provides its customer with a Family Insurance Plan that allows one to include family members over the age of 80 as well. They also provide funeral cover plans.
While it may hard to find a life insurance provider who will cover funeral costs, it is not impossible.