What Are The Best Life Insurance Plans For Seniors?

If you’re over 60 and shopping for life insurance, you’ve probably already discovered something frustrating—most of the information out there is written for 30-year-olds buying their first term policy. The advice doesn’t fit, the products don’t match your needs, and the whole experience feels like you’re navigating a system designed for someone else’s life stage.

Here’s the reality: life insurance for seniors is a completely different ballgame. Your needs have changed. Maybe you’re looking to cover final expenses so your kids aren’t burdened. Perhaps you want to leave a legacy for grandchildren or favorite charities. Or maybe you’re addressing estate planning concerns that weren’t on your radar when you were younger.

The good news is that plenty of life insurance options exist specifically designed for people in their 60s, 70s, and even 80s. Some require medical exams, some don’t. Some build cash value, others provide simple death benefits. The key is understanding which type matches your specific situation, health status, and financial goals.

This article cuts through the confusion and breaks down the best life insurance options for seniors, what each type offers, who they’re best for, and how to choose wisely without overpaying or getting locked into the wrong coverage.

Summary

Seniors have several life insurance options including term life insurance, whole life insurance, guaranteed issue life insurance, simplified issue policies, final expense insurance, burial insurance, and group life insurance through associations. The best choice depends on your health status, budget, coverage needs, and whether you can qualify for medically underwritten policies. This guide examines seven types of life insurance available to seniors, explaining how each works, their advantages and limitations, typical costs, and who benefits most from each option.

Term Life Insurance for Seniors

Term life insurance provides coverage for a specific period—typically 10, 15, or 20 years—and pays a death benefit if you pass away during that term. For seniors, term insurance works best in specific situations despite being the most common recommendation for younger people.

How it works: You pay fixed premiums for the term length you choose. If you die within that period, your beneficiaries receive the full death benefit tax-free. If you outlive the term, the coverage ends and you’ve paid for protection you didn’t use—which is actually the ideal outcome.

Who it’s best for: Seniors who still have specific financial obligations that will disappear over time. Maybe you have a mortgage with 10 years remaining, or you’re providing support to a dependent that will end in 15 years. Term insurance covers that specific window affordably.

The challenge for seniors: Premiums increase significantly with age. A healthy 65-year-old might pay $150-300 monthly for $250,000 in 10-year term coverage, while a 75-year-old could pay $500-800 for the same coverage. Once you hit 70+, term insurance often becomes prohibitively expensive or difficult to qualify for.

Medical underwriting: Most term policies require medical exams and health questionnaires. If you’re healthy for your age, this works in your favor with better rates. If you have significant health issues, you’ll either pay much higher premiums or get declined entirely.

The verdict? Term insurance makes sense for healthy seniors with temporary coverage needs and the budget for potentially high premiums. For most seniors with permanent needs or health issues, other options deserve consideration.

Whole Life Insurance for Seniors

Whole life insurance provides lifetime coverage with fixed premiums and a cash value component that grows over time. It’s more expensive than term but offers guarantees and benefits that appeal to many seniors.

How it works: You pay level premiums for life (or until a certain age like 100). Part of your premium covers the death benefit, part goes toward cash value that grows at a guaranteed rate. The death benefit is guaranteed, premiums never increase, and you can borrow against or withdraw from cash value if needed.

Who it’s best for: Seniors wanting permanent coverage with predictable costs, those interested in leaving a guaranteed legacy, or people who value the cash value component for potential emergency access or supplemental retirement income.

The advantages: Whole life is the most straightforward permanent insurance. What you see is what you get—guaranteed death benefit, guaranteed cash value growth, fixed premiums. No surprises, no market risk, no complexity. For seniors who value certainty and simplicity, this matters enormously.

The cost reality: Whole life is significantly more expensive than term. A 65-year-old might pay $300-600 monthly for $100,000 in coverage, depending on health and the specific policy. For seniors on fixed incomes, these premiums can be challenging.

Building cash value at 65+: Here’s an important consideration—cash value builds slowly in the early years of any whole life policy. If you’re buying at 65 or 70, you may not live long enough to accumulate substantial cash value. The primary value becomes the death benefit, not the living benefits.

Whole life works best for relatively healthy seniors who can afford the premiums, want guaranteed lifetime coverage, and value the simplicity and certainty it provides.

Guaranteed Issue Life Insurance

Guaranteed issue life insurance is designed specifically for seniors who can’t qualify for traditional medically underwritten policies. It’s the easiest to get but comes with important limitations.

How it works: No medical exam, no health questions, guaranteed acceptance if you’re within the age range (typically 50-85). You apply, you’re approved, done. The trade-off is significantly limited death benefits in the first 2-3 years and higher premiums for the coverage amount.

The graded death benefit: Most guaranteed issue policies include a graded or modified benefit. If you die from illness within the first two years (sometimes three), your beneficiaries don’t receive the full death benefit—typically just a return of premiums paid plus interest. After the waiting period, full death benefits apply. Death from accidents usually pays full benefits immediately.

Coverage limits: Guaranteed issue policies typically max out at $25,000-$50,000 in coverage. They’re designed for final expenses, not large legacy planning.

Who it’s best for: Seniors with serious health conditions who’ve been declined by other insurers, or those who simply can’t or won’t complete medical underwriting. If you have significant health issues and need some coverage, guaranteed issue might be your only option.

The cost premium: Because everyone is accepted regardless of health, guaranteed issue policies charge everyone as if they’re high-risk. Even healthy seniors pay significantly more per dollar of coverage than they would with underwritten policies. A 70-year-old might pay $80-120 monthly for just $10,000 in coverage.

Guaranteed issue serves an important purpose—ensuring everyone can get some coverage—but it should be a last resort, not a first choice, for seniors who can qualify for better options.

Simplified Issue Life Insurance

Simplified issue policies sit between fully underwritten and guaranteed issue coverage. They offer better rates than guaranteed issue but easier approval than traditional policies.

How it works: You answer health questions (typically 5-15 questions) but don’t need a medical exam. Approval is based on your answers and sometimes a review of prescription drug databases and medical records. The entire process can happen in minutes online or over the phone.

Coverage amounts: Simplified issue policies typically offer $25,000-$500,000 in coverage, significantly more than guaranteed issue options. This makes them viable for more substantial financial planning needs.

Who it’s best for: Seniors in reasonably good health with minor conditions well-managed through medication. If you have controlled high blood pressure or take cholesterol medication but are otherwise healthy, simplified issue often provides good coverage at reasonable rates without the hassle of exams.

The middle-ground pricing: Premiums fall between guaranteed issue (most expensive) and fully underwritten (least expensive for healthy applicants). You pay a modest premium for the convenience of no exam and quick approval.

Watch the questions carefully: Simplified issue applications ask specific health questions. Answer honestly—misrepresenting your health can result in claim denials. But if the questions don’t specifically ask about your condition (maybe they ask about cancer but not about your arthritis), you’re fine.

For many seniors, simplified issue hits the sweet spot—enough coverage for real needs, affordable premiums, no medical exam hassle, and relatively quick approval.

Final Expense Insurance

Final expense insurance (also called funeral insurance or burial insurance) is specifically designed to cover end-of-life costs—funeral, burial, outstanding medical bills, and other final expenses.

How it works: Small permanent policies typically ranging from $5,000-$25,000 designed to cover the average funeral cost (currently $7,000-$12,000) plus related expenses. Premiums are fixed, coverage is permanent, and policies usually include simplified or guaranteed issue underwriting.

Who it’s best for: Seniors primarily concerned with not burdening their family with funeral and final expenses. If your main goal is ensuring your kids don’t have to scramble to cover your burial costs, final expense insurance directly addresses that need.

Affordable premiums: Because coverage amounts are small, premiums are manageable even on fixed incomes. A 70-year-old might pay $40-80 monthly for $10,000 in coverage, depending on health and the specific policy type.

Quick payout: Many final expense policies offer expedited death benefit payments specifically to help families cover immediate funeral costs without waiting for estate settlement or probate.

Consider the value: Before buying final expense insurance, compare costs. If you’re healthy enough to qualify for a simplified issue policy, you might get better value buying a slightly larger simplified issue policy to cover final expenses plus leave something extra for loved ones.

Final expense insurance serves a clear, specific purpose. Just make sure you’re getting good value and not overpaying for convenience.

Group Life Insurance Through Associations

Many associations—AARP, alumni associations, professional organizations, even some credit unions—offer group life insurance to members. These policies deserve consideration as part of your coverage strategy.

How it works: The association negotiates group rates with an insurer and offers coverage to members, often with simplified underwriting or guaranteed issue up to certain amounts. You get coverage through your membership, usually at competitive rates.

The advantages: Group rates can be excellent, especially for seniors with health issues who’d pay high premiums individually. Some policies offer guaranteed issue amounts (often $25,000-$50,000) just for being a member, with options to purchase more coverage through simplified underwriting.

The limitations: Coverage amounts are typically limited—often maxing out at $50,000-$100,000. Coverage usually ends if you leave the association. Rates may increase as you age, unlike individual policies with fixed premiums.

AARP is worth investigating: If you’re 50+, AARP offers several life insurance options through its partnership with New York Life. The guaranteed acceptance option provides up to $25,000 in coverage with no health questions for members between 50-80.

Don’t rely on it exclusively: Group coverage works well as supplemental coverage or bridge coverage while you arrange individual policies. The limitations and lack of portability make it risky as your only life insurance.

Universal Life Insurance Options

Universal life insurance provides permanent coverage with flexible premiums and death benefits. For seniors, certain types of universal life—particularly guaranteed universal life (GUL)—can be attractive.

– Guaranteed Universal Life (GUL): This is essentially permanent term insurance—permanent coverage at relatively low premiums with minimal cash value. For seniors wanting lifetime coverage at the most affordable permanent premium, GUL often beats whole life on price.

How it works: You pay premiums designed to keep the policy in force until a specific age (often 90, 95, or 100) or for life. The death benefit is guaranteed as long as you pay the required premiums. Cash value is minimal or nonexistent—you’re paying for pure death benefit.

Who it’s best for: Healthy seniors wanting permanent coverage at lower premiums than whole life, estate planning situations where you need guaranteed death benefit for specific purposes, or anyone who doesn’t value the cash value component of traditional whole life.

The medical underwriting requirement: GUL policies typically require full medical underwriting, meaning medical exams and detailed health questionnaires. If you’re in good health for your age, you’ll get the best rates. If you have health issues, you may not qualify or will pay significantly higher premiums.

– Indexed Universal Life (IUL): This is generally less suitable for seniors purchasing their first policy. The cash value growth potential takes years to materialize, and seniors often don’t have the 15-20 year timeline needed for IUL to truly shine. However, if you already own an IUL from earlier years, it can continue to serve you well.

Conclusion

The “best” life insurance for seniors isn’t a one-size-fits-all answer—it depends entirely on your health, budget, coverage needs, and financial goals. Healthy seniors with temporary needs might choose term insurance. Those wanting guaranteed lifetime coverage could opt for whole life or GUL. Seniors with health issues might need simplified or guaranteed issue policies. And those focused purely on final expenses can find specialized products designed exactly for that purpose.

Start by clarifying what you actually need the insurance to accomplish. Cover final expenses? Leave a legacy? Pay off debts? Support a surviving spouse? Once you know your “why,” the “what” becomes clearer.

Get quotes from multiple companies—rates vary dramatically between carriers, especially for seniors. Consider working with an independent insurance agent who can shop multiple companies on your behalf rather than being locked into one company’s products.

And don’t assume you can’t get coverage or can’t afford it. Even seniors with health conditions have options, and the peace of mind that comes from knowing your loved ones won’t face financial burdens after you’re gone is worth the effort of finding the right policy. You can schedule a free 30-minutes consultation to find a tailored solution, just for you.  We will guide you through all you need to know to achieve your objectives.

FAQs

Question 1: Can I get life insurance if I’m over 70 with health problems?

Answer: Yes, though your options are more limited. Guaranteed issue policies accept anyone within the age range (typically up to 80-85) regardless of health. Simplified issue policies might approve you depending on the specific health conditions. You’ll pay higher premiums than healthier applicants, but coverage is available. Start with simplified issue quotes before resorting to guaranteed issue—you might qualify and save significantly.

Question 2: How much life insurance do seniors typically need?

Answer: This varies widely. For final expenses alone, $10,000-$25,000 covers most funerals and immediate costs. If you want to leave a legacy, pay off debts, or provide income for a surviving spouse, you might need $50,000-$500,000+. Calculate your specific needs: outstanding debts, final expenses, desired legacy, and any income replacement needed. Don’t just buy based on what seems affordable—buy based on what’s actually needed.

Question 3: Is life insurance worth it after 80?

Answer: It can be, depending on your situation. If you need to cover final expenses and don’t have savings earmarked for that purpose, even a small guaranteed issue policy makes sense. For estate planning with significant assets, life insurance might still play a role. But if you have sufficient assets to cover final expenses and don’t have estate tax concerns, self-insuring by saving money might be more cost-effective.

Question 4: What’s the difference between final expense and burial insurance?

Answer: They’re essentially the same thing—different names for small permanent life insurance policies designed to cover end-of-life expenses. Some burial insurance policies pay directly to funeral homes, while final expense insurance pays beneficiaries who then handle expenses. The coverage amounts and purposes are identical, and the terms are often used interchangeably.

Question 5: Can I convert my term life insurance to permanent coverage as a senior?

Answer: Many term policies include conversion options allowing you to convert to permanent coverage without medical underwriting, usually within the first 5-10 years of the term or before a certain age (often 65-70). Check your existing policy—if you have a conversion option and you’re approaching the deadline, converting might be wise even if you don’t think you need it now. Once the conversion period ends, you’ll need new medical underwriting for any permanent policy.