Life Insurance for Seniors: What are the affordable life insurance for seniors in 2023?


One of the most reliable methods to provide for loved ones, especially the elderly, is through life insurance. However, deciding which policy is best for you might be difficult. What form of life insurance for seniors should you get? How much is sufficient? What kind of life insurance do you need at your age?

Life insurance for seniors varies by company and can include a medical exam (also known as a life insurance exam) or simply answering health questions. It can cost anywhere from $15 to several thousand dollars per month and be used to pay off large debts like a mortgage or cover small bills like funeral costs.

Although life insurance does indeed cost more as you get older, that doesn’t mean you don’t have options.

We’ve reviewed providers based on characteristics like plan diversity and nationwide availability to help you find the best life insurance for seniors. As a result, there is a broad selection of suppliers offering some of the best plans available.

Life Insurance Definition

A contract between your life and an insurance company is called life insurance. In exchange for your premium payments, the insurance company will pay your beneficiaries a lump sum known as a “death benefit” after you pass away.

Your beneficiaries are free to use the money any way they like. This can include things like paying bills, paying a mortgage, or paying for a child’s education. Life insurance can help your family stay in their house and pay for the things you planned for.

Also read: AD and D Insurance: Definition, Benefits, Coverage, & Payouts

Is Life Insurance for Seniors Expensive?

The cost of life insurance for seniors is typically higher than the cost of life insurance for younger people. A person aged 60 could spend anywhere from $100 to $200 per month for $25,000 worth of guaranteed issue whole life insurance, while a person aged 70 could pay anywhere from $160 to over $300 per month for the same coverage.

At What Maximum Age Can One Purchase a Life Insurance Policy?

There isn’t really a one-size-fits-all age limit for purchasing a life insurance policy because the maximum age at which a policy can be purchased is typically determined by the specific life insurance provider. If you are 85 years old or older, you may have a difficult time finding an insurance provider who is prepared to give you a policy.

Types of Life Insurance

Here are the two types of life insurance:

  • Term Life Insurance
  • Permanent life insurance

#1. Term Life Insurance

According to the Insurance Barometer Report, term life insurance is not only the most economical type of life insurance, but it is also the most popular (with 71 per cent of purchasers).

Term life insurance provides coverage for a certain period, and the premium payments remain the same throughout the policy’s tenure. The most common policy lengths are 10, 15, 20, 25, and 30 years.

Your beneficiaries can file a claim and receive the death benefit money tax-free if you die during the policy’s term.

When the policy’s term ends, you may be able to renew it in one-year increments, which is known as assured renewability. However, the rate of renewal will increase each year.

#2. Permanent Life Insurance

Permanent life insurance provides coverage for the rest of your life. It costs more than term life because:

  • It has the potential to last the rest of your life.
  • Usually increases the worth of money.

Throughout the policy’s life, the cash value component grows tax-deferred. It serves as the policy’s savings component. You can usually borrow against the cash value of the policy or make a withdrawal. You can obtain the cash value of the policy minus any surrender charges if you decide to cancel it.

Because the cash value of some policies might build up over time, don’t expect to have access to a large sum of money all at once. The predicted cash value will be shown on your policy illustration. Also read: Irrevocable Beneficiary: A Definitive Guide

Why do Life Insurance for Seniors?

  • It can aid in the financial protection of your family.
  • It has the potential to compensate for lost earnings.
  • Reduce your stress levels.
  • It might be able to assist your loved ones in getting out of debt.
  • Getting Ready for the Unexpected

>. It can aid in the financial protection of your family

Life insurance is designed to safeguard the financial future of your family. Even if you have resources, it is unlikely that they will be sufficient to meet your family’s costs for several years, if not decades, if anything unforeseen occurs to you. Term life, whole life, and universal life are the three main types of life insurance to consider.

>. It has the potential to compensate for lost earnings

Your income may cover a portion or even all of your family’s daily needs, whether you work a 9-to-5, are self-employed, or operate a small business.

Housing, food, utilities, clothing, auto maintenance, and healthcare premiums are likely all part of your monthly budget, and your family will still need to fund these costs without your income.

A life insurance policy’s death benefit can assist your family get the money they need to offset these costs. When weighing your options, you might want to consider utilizing a life insurance calculator to help you figure out how much coverage you’ll need.

>. Reduce your stress levels

It’s often an emotional and stressful period when a loved one passes away. If you’re worried about replacing your income or paying your bills, an already stressful time might become even more difficult.

While your life insurance coverage won’t be able to cure all of your problems, it can help your family get back on their feet. Knowing they’ll be able to cover the mortgage with your death benefit, for example, can offer your spouse the time they need to progress at their speed.

>. It might be able to assist your loved ones in getting out of debt

Because some types of debt don’t go away after you die, your loved ones may have to use money from your estate or sell other assets to pay them down. This could result in less money available to cover expenses.

Credit card debt, company debt, personal and/or educational loans, and home debt are all examples of debts that cheap life insurance for seniors can assist their loved ones to pay off. Life insurance can assist reduce some of the financial obligations that your loved ones may face after you pass away, at a time when they are already suffering from your loss.

>. Getting Ready for the Unexpected

According to conventional wisdom, having a rainy day or emergency fund would help you prepare for unexpected situations such as losing your job or having your car break down.

While cheap life insurance for seniors can cover and compensate for damage to your valuables and property, there is no way to put a price on someone’s life. Even so, death is an unavoidable part of life. And life insurance is one instrument for ensuring that you have a financial plan in place in the event of your death.

Life insurance premiums are determined in part by an applicant’s health and age, among other factors. As a result, waiting until a major illness develops may prevent you from obtaining a suitable life insurance plan, assuming one exists at all.

Life Insurance Cost

Life insurance companies mostly base their premiums on your age and health state, but they also consider your occupation, weight, smoking status, and even your family’s medical history.

Insurers usually divide applicants into three categories: super preferred, preferred, and standard, with super, preferred being the healthiest. Premiums are then calculated depending on your risk class by insurers.

Each insurer has its review procedure and criteria are weighted differently. That’s why comparing quotes from different insurers is a good idea. Always look for low-cost life insurance for seniors that you can afford. Also read: Business Liability Insurance: Definition, Costs, Coverage & Cost-Effective Options

What is the Typical Monthly Payment for Life Insurance?

On average, a policy of life insurance will cost you $26 per month. This is based on data that was provided by Quotacy for an individual who was 40 years old and purchased a term life insurance policy for $500,000 with a term of 20 years. This is the most frequent term length and the amount that is sold.

List of Best Life Insurance Companies for Seniors

Here is the list of the best life insurance companies for seniors:

  • Northwestern Mutual
  • Guardian Life
  • MassMutual
  • USAA
  • AARP
  • New York Life

#1. Northwestern Mutual

This senior plan life insurance coverage It’s beneficial to the consumer experience and pays benefits. Northwestern Mutual is a dependable choice, with significantly fewer complaints than one might expect from a corporation of its size. Also, people who have whole-life policies may be able to get dividends, which the company has been giving out regularly since 1872.

#2. Guardian Life

Senior plan life insurance coverage that is extended with a wide range of policy alternatives is advantageous. If you want to extend the coverage of an expiring term policy for another five years, Guardian allows you to do so. If you’re searching for a different sort of permanent insurance, check out Guardian’s universal and variable universal life products, which are available up to the age of 85.

#3. MassMutual

MassMutual senior plan life insurance coverage is good for the elderly and anyone seeking a lot of coverage. Few insurers offer whole-life packages to those above the age of 85, so this company is a strong pick for elderly people searching for long-term coverage. Additionally, if you’re searching for a larger death benefit, MassMutual’s $3 million maximum coverage may be intriguing.

#4. USAA

USAA senior plan life insurance coverage is great for allowing you to be more flexible and avoid having to take a medical exam. Before your term policy expires, USAA allows you to change it to permanent coverage, which can be handy if you think you’ll need lifelong coverage in the future.

If you want to avoid taking the medical test, the company’s simplified whole-life plan may be a suitable option – you simply have to answer a few health questions to be covered. Military families aren’t the only ones who can benefit from USAA life insurance.

#5. AARP

It’s a good option for senior applicants and those who want to avoid taking the medical exam. To qualify for either term or whole-life coverage, applicants must answer a few health questions. Although AARP products are only available to members, spouses are also covered.

#6. New York Life

For vast coverage ranges, this is a good choice. New York Life’s broad coverage range is significant, with term and whole life face values ranging from $10,000 to millions of dollars.

At What Age Do Life Insurance Benefits Stop?

When the insured individual reaches the age of 100, the policy is said to have reached its maturity, and coverage is no longer provided. Even after decades of making payments into the policy, it is still feasible that the policyholder (and their heirs) will get no compensation from the insurance.

Best Life Insurance for Seniors Over 60

Here are the best life insurance options for seniors over 60:

  • Mutual of Omaha
  • AIG
  • Haven Life Insurance Agency
  • Principal Life Insurance
  • Transamerica
  • Fidelity Life

Life insurance has a clear value for a young parent, homeowner, or married couple. The cost is modest, and the options are plentiful for healthy individuals. Your family will be able to pay bills, send the kids to school, and manage the costs of your burial with less financial stress if you die unexpectedly.

When it comes to life insurance for older buyers, things get a little more complicated. Many people in their 60s may not require life insurance any longer. They may have already paid off the mortgage, quit working, and sent their children to fend for themselves.

Purchasing or retaining life insurance coverage after the age of 60 can be advantageous. Your retirement years are frequently an excellent time to reassess your life insurance, whether you decide to double down or cut coverage.

Life Insurance for Seniors Over 90

When you reach the age of 90, your demands become fairly limited. You may merely want to cover the costs of the burial and funeral. A person over the age of 90 is nearing the end of his or her life, and senior plan life insurance coverage of $9000 or more is sufficient to cover the necessary expenses. Most underwriters won’t sell term life insurance for those over the age of 90, and if they do, the premiums will be prohibitively expensive.

Whole life insurance for seniors over 90 years old may be the best option for you. At this point, having a policy for a specific amount of time is pointless. You can quickly pay off your bills if you buy a complete life insurance policy.

Because health is a key issue in this situation, it’s a good idea to get a no-exam life insurance policy, but it’s expensive.

The underwriter, on the other hand, may grade the senior plan life insurance policy for a specific period, which may be two years or more.

No death benefits will be given if the client dies; just the premium, plus some interest, will be paid.

Life Insurance for Seniors Over 80

When you’re 80 or older, there are fewer options for life insurance rates for seniors than when you were younger, and you won’t be able to get a big policy. The good news, however, is that you don’t require as much coverage at this point in your life as you previously did.

Most people in their eighties have paid off big debts such as mortgages, have grown children who are no longer financially dependent on them, and do not require a safety net to replace lost income. Furthermore, they usually have sufficient funds and assets to cover the debt they leave behind.

When you get to the age of 80, you should consider purchasing a whole life insurance policy, particularly final expense insurance, to cover the costs of your funeral, burial, and other expenses.

Along with final expense insurance, there are a few more policy kinds to consider, especially if you have medical debt or wish to leave an inheritance to any of your loved ones.

Term Life Insurance for Seniors

For those seeking senior life insurance for persons over the age of 65, term life insurance rates for seniors may be a smart alternative because it has various advantages that should be examined. Always look for the policy that best suits your needs.

One of the main advantages of term life insurance rates for seniors is that it is often less expensive for senior life insurance than whole life insurance. If you’re a senior in good health-seeking for life insurance with cheaper premiums than whole life or another type of permanent policy, this could be a viable option.

Another advantage is their adaptability. Many insurance companies provide a variety of term benefit limits (some as low as $10,000), term lengths (as little as 10 years), and policy riders to help you customize your coverage. Because of this flexibility, you can choose a policy based on the amount and length of coverage you require.

A term policy may be an excellent alternative if you’re a senior looking for ways to pay final expenses and unpaid medical bills while also leaving something for your children or grandchildren.

Life Insurance no Medical Exam

No exam life insurance, as the name implies, does not require a medical exam. It also doesn’t necessitate any laboratory work or a lengthy application process. Instead, you can apply for coverage by answering a few simple health-related questions using this simplified form of underwriting. If your answers meet the underwriting standards of the insurance company from whom you are seeking coverage, you may be offered a life insurance policy based on your responses.

It can be appealing to many people to be able to expedite the underwriting process when applying for life insurance coverage.

Aside from the time savings, no exam life insurance may be a smart option if you:

  • Have reservations regarding certain medical tests
  • You don’t want to be examined by a doctor or a medical technician.
  • Want to get insurance quickly without having to go through the entire underwriting process?
  • Prefer to apply for insurance from the comfort of your own home, over the phone, or by mail?

Low-cost Life Insurance for Seniors

When you apply for life insurance, the insurance company will almost always need you to undergo a medical examination to establish your overall health and, as a result, the level of the insurance risk you pose.

By applying for no-exam life insurance, you may be able to avoid the physical test and speed up the acceptance process.

A no-exam policy’s premiums are frequently higher than a standard policy’s, however, there are a few possibilities. Looking for standard insurance with fast acceptance is the most cost-effective alternative. Look for a business that offers rapid acceptance or accelerated underwriting on its term insurance as a low-cost option.

For those in good health, fast admission eliminates the need for a medical exam at no additional cost.

What Type of Life Insurance Coverage is Best for Older People?

Guaranteed issue life insurance coverage is frequently the most prudent choice for seniors who are in bad health. This is a form of life insurance that does not require you to undergo a medical exam or answer any health-related questions, and if you apply for it, you will never be denied coverage regardless of your health.

Which Insurance Company has the Most Affordable Life Insurance Policy for Older People?

According to research, the most cost-effective option for seniors in their 60s is life insurance from Transamerica, while the most cost-effective option for seniors in their 70s and 80s is life insurance from State Farm. Your age will result in an increase in the amount of the premium that you are required to pay for your life insurance policy.

What are the Circumstances Under Which Life Insurance Will Not Pay Out?

An application error, a lapse in premium payments, erroneous medical history information, or faults while naming a beneficiary could all be reasons.


Seniors who are approaching or have already retired may believe that they do not require insurance at this time. Many of your financial obligations, like raising children, paying a mortgage, and paying for your children’s college education, may be behind you.

You may not need life insurance in your 60s or 70s if you don’t have any debt, have enough funds for you and your partner to live comfortably into the future, and have money set up to cover funeral costs and other unexpected needs. Life insurance, on the other hand, can be a valuable safety net for many older persons and their families when they are most in need.

FAQs about Life Insurance for Seniors

Are there any life insurance policies specifically suited for seniors?

Yes, Guaranteed issue life insurance and final expense insurance are the life insurance policies that are designed for seniors.

What is the best life insurance for a senior in poor health?

You can get a guaranteed issue life insurance policy without having to answer any health-related questions or undergo a physical examination. These policies provide limited coverage but are intended for people who need to pay for a funeral and other minor expenses.

Guaranteed issue insurance have “graded death benefits,” which are as follows: If you die within the first two or three years of having the policy, your beneficiaries will not receive the death benefit. Instead, they are frequently given a refund of their premiums plus interest.

How can I get money out of my life insurance policy?

You can take money out of a cash value life insurance policy, take a loan against it, or surrender the policy for cash if you have one.

You could potentially sell the policy as part of a life settlement. Learn more about how to cash in on your life insurance policy.

Term life insurance, on the other hand, does not contain a cash value component, thus there is no money to access inside the policy.

What Is Life Insurance for Seniors?

Senior life insurance is often known as final expense insurance or funeral insurance. Seniors, on the other hand, are not confined to these possibilities. As a senior, your options for life insurance are limited only if your age exceeds issue age requirements or your health prevents you from acquiring coverage.

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