Life insurance can help ensure that your loved ones are financially secure should the unexpected happen—no matter your age. Whether you’re nearing retirement, relishing in some time off, or are still finding enjoyment at work, it’s never too late to consider purchasing a senior life insurance policy or expanding your current coverage.
What is life insurance for seniors?
Life insurance for seniors is all about planning for your family’s future after you’re gone, like covering burial expenses and taking care of outstanding debts. The money from a life insurance policy can help cover the cost of a funeral service and any remaining nursing home or medical bills. With some types of insurance policies, leftover funds can be used however your beneficiaries see fit.
Reasons Seniors Should Consider Life Insurance
Some seniors may believe that after a certain age, life insurance is no longer necessary. However, there are compelling reasons for seniors to have life insurance coverage. No matter your age, life insurance provides financial protection for surviving spouses or dependents, covering expenses such as outstanding debts, medical bills, or funeral costs. This can help ensure that your loved ones are not burdened with financial stress during an already difficult time.
For those with ongoing financial obligations, such as mortgages or business loans, life insurance can safeguard against the loss of income or assets. Life insurance can even be used as a wealth transfer tool, allowing seniors to leave a tax-free inheritance to their beneficiaries or make charitable donations. While premiums may be higher for seniors, many policies offer benefits that can be accessed during one's lifetime, such as accelerated death benefits for terminal illnesses.
Types of Life Insurance for Seniors
With so many different types of life insurance available for seniors, it can seem overwhelming to sift through the options, prices, and fine print. At SelectQuote, we can shop some of the most trusted carriers on your behalf quickly and efficiently, comparing prices and coverage from the companies we represent to provide you with your best options. Learn more about the different types of life insurance available below.
Term Life Insurance: This type of coverage is both affordable and flexible, as you only buy as much coverage as you need. The length of term life insurance coverage typically ranges from 10 to 30 years.
Whole Life Insurance: Whole life insurance is a type of permanent life insurance, which provides a set amount of coverage with a stable premium. Coverage lasts your entire lifetime.
Universal Life Insurance: Universal life insurance also provides lifetime coverage, but may be more expensive than whole life insurance. Premiums are variable and range between a set minimum and maximum that you and your carrier decide on when you purchase your policy.
Final Expense Insurance: Also known as burial insurance, final expense insurance helps cover funeral expenses and debts to lessen the burden on your family. If you’re between the ages of 45-85, you can’t be turned down for final expense insurance, and there’s no medical exam required.
Term Life Insurance for Seniors
Term life insurance is an affordable way to protect your family’s financial security if something were to happen to you. As the name suggests, you have the option to choose the term (or length) and only buy it for as long as you need it. Term lengths can range anywhere from 10 to 30 years, and while it doesn’t build up a cash value like permanent life insurance options, it can still provide peace of mind.
Whole Life Insurance for Seniors
Whole life insurance is a type of permanent life insurance that provides a set amount of coverage for as long as you live. Like all types of permanent life insurance, whole life insurance has three distinguishing features:
Lifetime coverage
Set premium, meaning what you pay for the first month is what you’ll pay every month the policy is in force
As your premiums accrue (and at a time specified by the insurance carrier), you can borrow against your whole life policy’s cash value
Learn About Whole Life Insurance
Universal Life Insurance for Seniors
Similar to whole life insurance, universal life insurance is another type of permanent insurance, but with variable premiums set between a minimum and maximum amount. Unlike whole life insurance, the cash value of universal life insurance is tied to market performance.
More on Universal Life for Seniors
Final Expense Insurance for Seniors
Final expense is a common choice of life insurance for seniors, as it is typically a very affordable option and does not require a medical exam in most cases. Final expense insurance helps cover end-of-life costs like funeral expenses, medical bills, and outstanding debts. Even if you have a traditional form of life insurance (such as term or whole), it can be beneficial to also have final expense insurance to ensure your loved ones have the financial security they need when you're gone.
Guaranteed Issue Life Insurance
Guaranteed issue life insurance is a type of final expense insurance. Just as the name implies, coverage is guaranteed if you’re between the ages of 45 and 85. This makes it a good option for seniors, as there’s no chance of being rejected due to your age or health status.
Simplified Issue Life Insurance
Another type of final expense coverage is simplified issue life insurance. While approval for a simplified issue policy isn’t guaranteed, eligibility requirements are far more lenient than other types of coverage. You also don’t have to undergo a medical exam or supply medical records in order to qualify, although you may have to answer a basic health questionnaire.
Start Your Final Expense Quote
Finding Affordable Life Insurance as a Senior
While it’s true that life insurance is less expensive if you purchase your policy when you’re young, that doesn’t mean seniors can’t find an affordable policy. Consider the following strategies:
Shop Around: Compare quotes from multiple insurers to find the best rates. SelectQuote makes this easy by doing the shopping and comparison on your behalf—all in just minutes.
Apply Early: Life insurance only gets expensive as you get older, so consider applying for your policy as early as possible. For seniors, this could mean applying closer to retirement age and while you’re in good health, rather than waiting until a more advanced age.
Explore Membership Benefits: Senior-focused organizations, such as AARP, may offer discounted life insurance rates to members.
Factors that Determine Senior Life Insurance Rates
Life insurance rates are determined by several factors. The type of policy you are shopping for will also impact rates—for example, the length of a term policy or the amount of benefit you choose. Other considerations for life insurance rates include:
Age
Gender
Current health and medical history
Lifestyle factors, such as if you smoke, use tobacco, or have a high-risk occupation or hobby
Final expense insurance rates can also consider:
Driving history
Pharmacy report (since this insurance type typically doesn’t require a medical exam)
Financial history, including credit report
With so many factors at play, getting coverage might seem intimidating. At SelectQuote, we streamline this process for you by shopping dozens of carriers at once. Our experienced licensed insurance agents tailor their searches to your exact needs, working to find the right amount of coverage at a price you can afford.
Average Cost of Life Insurance for Seniors
The cost of life insurance for seniors will vary based on age, gender, health, lifestyle, policy type, and more. According to the Lincoln Heritage Life Insurance Company, here’s what the annual cost of life insurance for seniors could look like.
Age | 65-year-old man | 65-year-old woman | 75-year-old-man | 75-year-old woman |
Final Expense | $426-$894 | $270-660 | $490-$970 | $380-$730 |
Term Life | $1316 and up | $1316 and up | $1,140-$4,060 | $840 – $2,640 |
Whole Life | $672 and up | $492 and up | $3,750-$22,440 | $2,940 – $18,450 |
How to Get Senior Life Insurance Quotes
Shopping for life insurance as a senior may seem daunting, but it doesn’t have to be. At SelectQuote, we make the process as seamless and personalized as possible. We’ll get to know your situation, learn more about the coverage you’re looking for, and then provide free life insurance quotes from some of the most trusted companies—all in just minutes.
We can also answer any questions you have about life insurance for seniors, match you with the best carrier for your lifestyle or health condition, and find opportunities to try and save you money. Shop with us today for peace of mind tomorrow!
