What kinds of life insurance can seniors buy?
Here is how the four main kinds compare at a glance.
| Kind | Lasts | Health check |
|---|---|---|
| Term life | A set number of years | Health questions, sometimes an exam |
| Whole life | Your whole life | Health questions, sometimes an exam |
| Final expense | Your whole life | A short list of health questions |
| Guaranteed issue | Your whole life | None, but a limited early benefit |
Is term life a good idea after 60?
Term life is built to give lower cost coverage for a set time, such as 10 or 20 years. It can make sense if you still owe on a mortgage or someone still depends on your income.
There are catches for older buyers. The NAIC says most term policies build no cash value, that renewing a term policy means higher premiums, and that some policies drop the right to renew at a certain age. If the term ends before you do, the coverage ends too. Ask what the premium will be at each renewal before you buy.
What about whole life insurance?
Whole life lasts as long as you keep paying, and you pay on a set schedule. It builds cash value over time, which the NAIC describes as money you may be able to use later.
Depending on the policy, the insurer may ask you to see a doctor or answer detailed health questions. For people who mainly want to cover a funeral and some bills, a smaller whole life policy, sold as final expense insurance, is often simpler.
What is final expense insurance?
Final expense insurance is a small whole life policy with a short application. There is usually no exam, just a few health questions. According to LIMRA (opens in a new tab), the average simplified issue final expense policy sold in 2024 was $14,535.
That size lines up with funeral costs. The 2023 national median for a funeral with viewing and burial was $8,300, per the NFDA, before cemetery costs. Our final expense guide explains how it works, and the funeral cost guide breaks down the costs.
What if my health is poor?
Guaranteed issue life insurance asks no health questions. If you are in the age range, you are accepted. For example, AAA Life (opens in a new tab) accepts ages 45 to 85 for up to $25,000 of coverage.
The trade off is a limited benefit at first. On AAA Life's plan, a death that is not from an accident in the first two years pays back the premiums plus 30%, not the full amount. Read how guaranteed issue works before choosing it, and try plans with health questions first if you can.
How much life insurance does a senior need?
Think about what you want the money to do. A few common goals:
- Pay for a funeral, burial or cremation
- Clear medical bills, a car loan or credit cards
- Leave something for a spouse, child or grandchild
- Pay off a mortgage so a spouse can stay in the home
Add up the goals that apply to you, subtract savings your family could use right away, and that is a fair starting point. Then make sure the premium fits your monthly budget for good, not just this year.
What should I check before I buy?
- The company is allowed to sell in your state. The NAIC (opens in a new tab) suggests checking with your state insurance department.
- Your answers are true and complete. The NAIC warns that false statements found later can reduce or cancel coverage.
- The highest premium you could ever be charged.
- Your beneficiary, and a backup. You can usually change them later at no cost.
- The free look period. Most policies can be returned for a full refund within about 10 days of delivery, per the NAIC.
You buy this coverage for yourself, so you answer the questions and sign. If a family member is helping you look, that is fine; they can sit with you on the call.
When you are ready to compare, our quiz takes a few minutes. Licensed insurance agents then contact you with plans that fit your age, state and budget.