A Guide to Buying Life Insurance for Seniors
Consider your financial goals, age and overall health to see which life insurance option is right for you.
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Seniors may have a tough time finding the ideal life insurance policy. But whether you want to cover final expenses or leave a lump sum for your family, worthwhile coverage options do exist.
While it’s true that life insurance policies become more costly as you age, many companies will insure older adults, even if you’re not in perfect health. Here’s what to know about shopping for life insurance as a senior.
Do seniors need life insurance?
Before you start shopping, check whether you need life insurance. If you’re debt-free and have savings set aside for final expenses, then you might not need coverage.
A life insurance policy could make sense if you:
Have debt that others would have to repay after you die.
Support a spouse, domestic partner, child or other dependents with your income.
Want to cover your own funeral and burial costs.
Have a high net worth and want to cover estate taxes.
Want to provide an inheritance to those you leave behind.
Plan to leave a donation to charity.
Pros and cons of life insurance for seniors
Pays out a death benefit to your loved ones.
May provide cash value you can borrow against in retirement.
Higher premiums with age.
Lower coverage amounts.
Types of life insurance for seniors
There are several different kinds of life insurance for seniors. The type of life insurance policy that makes sense for you depends on your situation, but here are a few suggestions.
💲Best for cheap life insurance for seniors: Term life
A term life insurance policy could be a good, low-cost option if you’re in good health for your age and willing to take a medical exam. Because term life is temporary, it’s best for covering debts, such as a mortgage, or providing financial support for a spouse or dependent if you die during the policy term.
When shopping for life insurance in your 60s and 70s, you can typically secure a 10- or 20-year term life policy. However if you’re over 80, you’ll have difficulty finding term life coverage.
📅 Best for lifelong coverage: Whole life
Whole life insurance usually provides lifelong coverage, as long as you pay the premiums. It builds cash value over time. You can then withdraw the cash, or take out a loan against the value. However, it can sometimes take a decade or more for the cash value to build.
This type of permanent life insurance is often more expensive than term life, especially if you purchase a policy as an older adult. This is because as you age, your life expectancy is shorter and the insurer might have to pay out the policy sooner. Also, adults tend to develop health issues over time, which can cause higher premiums.
🩺 Best for no medical exam: Guaranteed issue life insurance
Sometimes called senior life insurance or “final expense” insurance, guaranteed issue life insurance has no medical requirements. Because life insurance companies use medical exams to better understand your health and life expectancy, policies that require them tend to be cheaper.
However, if your health disqualifies you from other types of coverage, no-medical-exam life insurance such as simplified or guaranteed issue may be an option. As life insurance medical exams are often free, they may be worth it even if you’re not in perfect health.
These guaranteed policies typically come with a two-year waiting period, sometimes referred to as a “graded death benefit.” Unless you die from accidental causes, your beneficiaries may not receive the full death benefit from your policy during this time frame. Instead, the insurer will either reimburse the premiums you paid plus interest, or pay out a smaller amount.
Alternatively, simplified issue life insurance skips the medical exam and just requires a health questionnaire. Coverage tends to be low, rarely going above $100,000.
Permanent life insurance: Other options
If you’re in the market for permanent life insurance, there are options other than whole life insurance. These include:
Universal life insurance, which offers flexible premiums and death benefits.
Guaranteed universal life insurance, a form of universal life insurance with level premiums and death benefits. It has lower premiums than whole life but the cash value buildup is minimal and you may need to take a medical exam to qualify.
Variable life insurance, which has a flexible death benefit and allows you to choose investments to direct your cash value into.
Variable universal life insurance, which comes with adjustable premiums and lets you choose investments for the cash value of your policy.
Survivorship life insurance, which usually insures two spouses and pays out when the second person dies. This type of policy is also known as second-to-die joint life insurance.
Funeral insurance: Pays for your funeral only
Another option for seniors is funeral insurance, also called pre-need insurance. These plans are often purchased from funeral homes to cover the cost of prearranged services.
Funeral insurance is different from burial insurance, which pays the death benefit to your life insurance beneficiaries who can then use the money for any purpose.
Cost of life insurance for seniors
Finding cheap life insurance for seniors is not always easy, but affordable options may be available, especially if you’re in good health and purchase a policy before 70.
For instance, a 60-year-old nonsmoking man in good health might pay $2,644 per year for a $500,000 20-year term life policy. When the same man turns 70, premiums for a new policy shoot up to $10,968 for the same coverage length and amount. Women tend to pay less for coverage, with a 60-year-old nonsmoker in good health paying $1,885 per year for a $500,000 20-year term life policy. At 70 years old, the same woman will see premiums for a new policy hit an average of $8,328 per year.
Average monthly life insurance rates for senior women
Policy type | Age 60 | Age 70 |
|---|---|---|
20-year term life ($500,000) | $157 | $694 |
Whole life ($500,000) | $1,055 | $1,814 |
Source: LifeStein.com. Lowest three rates for each age averaged. Data valid as of November 26, 2025, and rates are subject to change. | ||
Average monthly life insurance rates for senior men
Policy type | Age 60 | Age 70 |
|---|---|---|
20-year term life ($500,000) | $220 | $914 |
Whole life ($500,000) | $1,210 | $2,066 |
Source: LifeStein.com. Lowest three rates for each age averaged. Data valid as of November 26, 2025, and rates are subject to change. | ||
» MORE: Average life insurance rates
How to shop for senior life insurance
When deciding what type of life insurance to buy, first consider your financial goals and how much cash you’ll need to achieve them. For example, a term life policy could cover mortgage payments or other debts that might become a burden to others when you die.
However, if your goal is to pay for funeral expenses, you might consider a small whole life policy because the death benefit pays out regardless of when you die. If you want to leave a sizable inheritance to your loved ones, guaranteed universal life insurance might be a good option.
Step 1: Shop around.
Compare premiums and benefits to get the right policy for your budget and financial goals. When you’re comparison shopping, be sure to disclose your medical history to get the most accurate quote.
Insurers have different life insurance underwriting standards, so it’s important to know where they stand on various health conditions. As a senior, if you have heart disease, cancer, stroke, diabetes or kidney disease, you might end up with a more expensive rate or be declined coverage. In that case, there are other options available to you, such as guaranteed issue life insurance.
Step 2: Read the fine print carefully.
Make note of key details, such as which causes of death aren't covered and what will happen if you can’t pay premiums.
Step 3: Determine if you need a rider.
Life insurance riders are features that can be added to a policy, sometimes for an extra cost. Riders vary but often include:
Accelerated death benefit riders, which allow access to a portion of your policy’s payout if you’re diagnosed with a terminal illness. There are similar riders that pay out if you’re diagnosed with a critical or chronic illness.
Long-term care riders, which help cover the cost of an in-home care provider or nursing home.
Child term riders, which provide a payout for the policyholder’s young children if they die during the policy period.
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