How Does Life Insurance Work for People Over 85?

Let’s be honest. If you’re over 85 and looking into life insurance, you’ve likely lived through a few “should’ve gotten that earlier” moments already. And while traditional life insurance might not be as simple or affordable as it was in your 40s or 50s, the door isn’t entirely closed. It’s just narrower, and it comes with a little more fine print.

So how does life insurance work when you’re over 85? What types are available, what are the tradeoffs, and is it even worth it at this age? Let’s walk through it.

First, the basics: What are your options after 85?

Most traditional term and whole life insurance policies stop offering new coverage by the time you reach 80. By 85, you’re really looking at a few specialized products that are designed for final expenses rather than long-term financial planning.

The most common option at this stage is guaranteed issue life insurance. This type of policy does not require a medical exam and has minimal health questions, which is why it’s often marketed to people in their later years. It’s designed to be simple, fast to get, and—let’s be clear—not very large in value. You’re usually looking at policies ranging from $2,000 to $25,000.

These policies are generally used to cover funeral costs, medical bills, or other end-of-life expenses so loved ones aren’t left scrambling to pay for them. That’s the promise. But the reality is a little more nuanced.

The catch: Waiting periods and higher premiums

Insurance companies aren’t in the business of taking obvious losses. So when someone over 85 buys a guaranteed issue policy, they almost always include a graded death benefit, which means there’s a waiting period—typically two to three years—before the full payout kicks in. If the insured passes away during that time, the beneficiary might receive only the premiums paid plus a small amount of interest, or in some cases a partial payout.

Premiums are also significantly higher because of the increased risk to the insurer. You’re buying insurance at a time in life when statistics are not exactly in your favor. Expect to pay a lot more per dollar of coverage than someone 20 years younger would. For example, a $10,000 guaranteed issue policy for an 86-year-old might cost anywhere from $100 to $300 per month, depending on gender, insurer, and state of residence.

Is it worth it? That depends on your goals

Let’s assume you’ve got no life insurance in place and want to make sure your funeral is paid for and no one in the family has to chip in. If you’re healthy enough to expect a few more years and don’t mind the monthly payments, a small guaranteed issue policy could provide that peace of mind.

But if you’ve already set aside money for your final expenses—say, in a payable-on-death savings account or through a pre-need funeral contract—then buying life insurance this late in life might not make sense. You might be better off leaving those funds where they are rather than spending a few thousand dollars a year on premiums you might never fully benefit from.

Don’t forget: Medicaid planning and other considerations

There’s also the Medicaid angle. Some people over 85 are concerned about qualifying for Medicaid coverage, particularly if long-term care might be needed. A small life insurance policy with a cash value could affect your eligibility, depending on your state’s rules. On the other hand, if you already receive Medicaid, you’ll want to check whether buying a new policy could put you over the asset limit.

In these cases, it’s wise to speak with an elder law attorney or financial advisor who specializes in senior care planning. They can help you make sure you’re not inadvertently disqualifying yourself from benefits you need.

A quick note for adult children helping their parents

If you’re helping a parent navigate this process, tread gently. It can be tough for someone who’s lived a full life and provided for others to now be thinking about how to cover their own final expenses. Focus on the goals. Is the goal to leave a gift? To make sure no one has to organize a GoFundMe for a funeral? To take care of debts or unpaid medical bills?

Sometimes the best solution isn’t insurance at all. It could be simplifying assets, consolidating accounts, or prepaying for arrangements.

So what’s the bottom line?

Life insurance after 85 is available, but it’s a very specific product for a very specific purpose. It’s not about wealth transfer or legacy building. It’s about covering a gap—usually funeral costs or debts—so that loved ones aren’t left in a stressful spot.

If you’re considering it, look closely at the terms, especially the graded death benefit and monthly cost. Make sure it aligns with your actual needs. And don’t be afraid to look at non-insurance options to solve the same problem.

Because at 85 and beyond, the best gift might not be a check from an insurance company. It might just be the peace of knowing that everything’s already taken care of.