Life Insurance for Seniors

Frequently Asked Questions

Life Insurance for Seniors
Certain types of life insurance plans may be a good option for seniors to diversify assets and protect the finances of loved ones.

Why may life insurance be a good option for seniors?

There are several reasons why life insurance could be a good option for seniors. Certain types of life insurance plans such as Whole Life and Universal Life hold value as an asset and can serve as an alternative type of investment. Also, life insurance could be a good option for estate planning. There may be tax advantages for a senior’s family members or beneficiaries if they receive money through the senior’s life insurance policy versus receiving money through an estate after death. As always, we recommend speaking with a financial or insurance professional before purchasing an insurance policy or making estate planning decisions.

What is the best life insurance for seniors?

As mentioned, Whole Life insurance plans may be a good option for seniors because these plans retain value as an asset. Also, it is worth noting that Final Expense Insurance (funeral insurance) and Long Term Care insurance (LTC) are technically types of life insurance plans. These types of plans can be combined with regular life insurance plans. For example, some insurance companies offer combo LTC-Whole Life plans, which may be a good option for seniors.

How old is too old to purchase life insurance as a senior? Can seniors over 70 get life insurance?

Some life insurance companies have age limits for issuing a new policy to seniors. This is especially true for Term Life insurance. For example, insurance companies may refuse to issue a new Term plan to seniors over 70 or 80 years old. On the other hand, usually there are no age limits for Whole Life insurance plans, but Whole Life plans are more expensive and monthly rates are higher the older you are when purchasing the plan. While there may not be age limits, Whole Life plans become less and less affordable the older a senior becomes.

How much does life insurance cost for seniors? What are affordable life insurance options for seniors?

There is a wide range of cost of life insurance for seniors, depending on the type of life insurance being considered. There are numerous types of life insurance. Term Life insurance is typically much cheaper than Whole Life, but Term may not be the best option for seniors. Final Expense insurance is usually more affordable, but these plans only serve to pay for funeral and burial costs. Whole Life and LTC Insurance plans are typically more expensive and monthly costs can depend on your age and medical conditions.

See our Funeral Insurance and Long Term Care Insurance pages to learn more about these types of life insurance.