Life Insurance for Seniors

Reason	How Life Insurance Can Help
Covering final expenses	Pays for funeral and medical bills, easing family burdens
Legacy for loved ones	Provides a tax-efficient inheritance
Estate or tax planning	Helps heirs cover estate or tax costs
Business succession	Funds buy-sell agreements or supports company stability
Supplementing retirement income	Some policies offer cash value for withdrawals or loans

Why Do Seniors Get Life Insurance?

Millions of Americans depend on life insurance for financial protection and peace of mind. As people age, many assume coverage is out of reach or unavailable due to health issues—but today’s market offers options for nearly every stage of life. Some policies are available for buyers up to age 90, and select contracts are open to those with health concerns.

There are several reasons seniors may want life insurance. Some look for coverage to handle final medical bills and burial costs, preventing these expenses from falling on loved ones. Others are business owners using life insurance to support succession planning. Many use policies to address estate taxes or to leave a financial legacy for heirs. Increasingly, seniors also consider life insurance for supplemental retirement income—LIMRA reports that 52% of Americans now expect life insurance to help support their retirement, up from just 38% in 2011.

What Are Your Life Insurance Options?

Seniors generally have two main categories of insurance available: term life insurance and permanent life insurance.

Type	Coverage Length	Cash Value?	Best For
Term Life	10–20 Years	❌	Short-term needs, affordability
Whole Life	Lifetime	✅	Legacy, estate planning, lifelong protection
Universal Life / GUL	To age 90, 95, or 100	Sometimes	Flexible needs, long-term coverage at lower cost

Term Life Insurance for Seniors

For seniors with short-term coverage needs, term life insurance may be a practical solution. Policies typically last up to 20 years, with common terms of 10 or 15 years. If you are age 70 or older, you may have a medical history or health concerns. These are considered higher-risk but still insurable for many buyers.

Key features of term life insurance for seniors:

• Guaranteed death benefit, but no cash value
• Premiums remain level during the term
• Premiums increase if you renew after the term ends, due to age changes
• Coverage ends if premium payments stop

Many term policies include living benefit riders for terminal illness or some long-term care costs. An experienced insurance professional can help you identify these features if they are a priority.

Permanent Life Insurance for Seniors

Seniors can also consider permanent policies like whole life insurance and universal life insurance. Permanent insurance can provide lifelong protection as long as premiums are paid.

While term life tends to be more affordable in the short run, permanent coverage provides guaranteed lifelong protection and may offer cash value. Not all permanent insurance builds cash value—if your main priority is a guaranteed death benefit, consider guaranteed universal life (GUL), which may have lower costs than other permanent types.

Some universal life policies provide guarantees to age 90, 95, or even 100—sometimes at lower costs than whole life.

Goal-Matching: Life Insurance Strategies for Seniors

Objective	Recommended Policy	Typical Use
Final Expense Coverage	Term or Whole Life	Pay funeral, burial, or last medical bills
Leaving a Legacy	Whole or Universal Life	Tax-efficient inheritance for heirs
Supplemental Retirement Income	Universal Life (with cash value)	Tax-advantaged withdrawals or loans
Estate or Tax Planning	Whole or Universal Life	Offset estate taxes or provide liquidity
Business Succession	Whole or Universal Life	Buy-sell funding or business continuation

Who Should Consider Life Insurance in Later Years?

• Retirees with dependents or shared obligations
• Seniors wishing to leave a legacy for heirs
• Business owners with succession or buy-sell planning needs
• Anyone concerned about final expenses or estate taxes
• Seniors interested in supplementing retirement income with policy cash value

How the Underwriting Process Works

Age and health are the two biggest factors determining the cost of life insurance premiums for seniors. Generally, the older you are, the more expensive coverage becomes, and those in better health have more policy options.

For most carriers, term life is generally best suited to seniors in good health, and all applicants must meet the company’s underwriting requirements. Risk factors considered include:

• Current health, physical condition, height/weight
• Personal health history
• Hazardous occupation
• Personal habits (tobacco, alcohol, or drug use)
• Age
• Military status, driving record, financial status, and hazardous hobbies

Each company sets unique guidelines—one may offer favorable rates even for those managing common conditions with medication, while another may not.

Medical Exam vs. “No Medical Exam” Policies

Carriers may require a paramedical exam, often including an EKG, especially after age 70. Many also include a cognitive and physical function test. These in-home exams are paid for by the insurance company, and results influence your premium based on longevity risk.

“No medical exam” policies exist, but premiums are higher due to limited health information. Even if you’re not asked to fill out a medical questionnaire, insurers will routinely check your Medical Information Bureau (MIB) report, pharmacy records, and motor vehicle report.

For seniors with serious health issues, a “graded life insurance plan” may be an option. With this policy, full death benefits may not be available for the first two or three years, but it can still provide much-needed protection when traditional coverage is out of reach.