Final expense insurance at 85 and older

Why 85 is the cutoff

Carriers set a maximum issue age because the risk of death in the first few years rises sharply. For the products we checked, that limit is 85.

Mutual of Omaha Living Promise level, Foresters PlanRight, Transamerica Immediate Solution, Mutual of Omaha Guaranteed Whole Life and Colonial Penn all list 85 as their top issue age. New York and some other states set lower limits.

Check how your carrier counts age. Some use your age at your last birthday, others your nearest birthday, which can close the window up to six months early.

Underwriting also gets more careful near the limit. Expect prescription and MIB checks on simplified issue plans, and possibly a recorded phone interview, as Mutual of Omaha uses.

If you are 85 today

Apply now rather than after your next birthday. You can still choose a level plan with full day-one coverage if you answer "no" to the health questions.

If you cannot qualify for a level plan, guaranteed issue is still open at 85 from Mutual of Omaha and, in most states, Colonial Penn. These limit natural-cause death benefits for the first two years.

Face amounts are usually capped at $25,000. Transamerica's Immediate Solution allows $25,000 at 76 to 85, as does Mutual of Omaha's guaranteed policy.

Keep the amount modest. At 85 the premium per $1,000 is the highest it will ever be, so many people buy just enough for a cremation or simple service and use savings for the rest.

If you already have a policy

Keep it. Whole life final expense policies stay in force for life as long as premiums are paid, and the premium cannot rise.

Gerber Life, for example, states that it cannot cancel your policy while premiums are paid. Set up automatic payments so a missed bill does not cause a lapse you cannot replace.

Make sure your beneficiary is current and knows the policy exists. Store the policy number with your funeral wishes, not only in a safe deposit box.

Ways to pay for a funeral after 85

A preneed funeral contract lets you choose and pay for arrangements directly with a funeral home. The FTC says state law governs these, and protections vary widely, so ask what happens to the money if the firm closes or you move.

Some states require preneed money to go into a state-regulated trust, or into a life insurance policy assigned to the funeral home, according to the FTC. Ask which method your funeral home uses.

A payable-on-death bank account is another option. It passes directly to a named person outside probate, so the funds are available quickly. See what final expense covers for how these options compare.

Make your wishes easy to follow

Whatever you use to pay, write your wishes down and give copies to family. The FTC warns against leaving them only in a will or safe deposit box, since those are often opened after the funeral.

If you prepay, tell your family. The FTC notes that relatives who do not know about a prepaid plan may end up paying for the arrangements a second time.

Review the plan every few years. Funeral homes can close or change owners, and prices change, so check that your arrangements still stand.

Name the person who will make arrangements, and tell them where your policy or prepaid contract is kept. That one step often matters more than the amount of coverage.

Keeping funeral costs in line

You have rights that keep costs down. Under the FTC Funeral Rule, a funeral home must give you an itemized price list and let you buy only the goods and services you want.

Funeral homes must also accept a casket you bought elsewhere without charging a fee, and offer an inexpensive alternative container for cremation.

Shop by phone. The FTC says funeral directors must give price information over the phone if you ask, and that price lists are the way to compare total costs.

NFDA's 2023 median for a funeral with viewing and cremation was $6,280. A direct cremation with no viewing usually costs less, which can make a small policy or savings enough.