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Senior Life Insurance Guide

Senior Life Insurance
Insurance Quotes 2 Day Team

Written By Doug Mitchell

Doug Mitchell, CLU holds a BA degree in Finance from Auburn University, a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA and Top of the Table member of the Million Dollar Round Table (MDRT). Doug has spent close to 30 years in the insurance and financial planning industry and has held licenses to sell securities, long-term care insurance, health.  Doug is also a financial blogger addressing the topics of life insurance, annuities and retirement income planning.

Holly Mitchell  &

Holly Mitchell’s background in life insurance insurance goes back to 1985 when she worked for her father who was a New York Life agent. Holly has a marketing degree from Auburn University and has had a life insurance license since 2008. In addition to advising life insurance for customers all around the country, Holly is our website fact checker.

Rob Pinner   &

Rob Pinner is the founder and CEO of Pinner Financial Services servicing all 50 states. Rob started his insurance career in 2002.

Louis LaBash

Results-driven and innovative life insurance professional with 30 plus years of life insurance industry sales and marketing experience. Recognized as a pioneer in the field, leveraging phone and internet channels to exceed personal sales of over $100 million during the first decade of the 21st century. Creator of a highly effective intuitive IUL life insurance sales software that facilitated the sale of millions of dollars of indexed universal policies by numerous life insurance agents. Proven track record as a Managing General Agent (MGA), Life Agent, IUL Life Insurance Sales Software developer, and leading-edge creator of insurance marketing tools, educational content, and delivery systems.

 7 minute read

Senior life insurance helps you plan your family’s financial future. Thus, easing the financial burden for your loved ones in the future. Luckily, there are several options for senior life insurance. Here is all you need to know about life insurance for seniors.

What Is Senior Life Insurance?

Senior life insurance is the same as life insurance at any age. However, life insurance for seniors is priced and marketed differently. The difference is because seniors have special needs and financial situations. Most senior life insurance is bought by individuals aged between 50 and 85.

There are various types of senior life insurance. The common types are term life insurance and whole life insurance. To get life insurance coverage as a senior, you may need to undergo a brief medical evaluation. The good news is that some insurance companies issue life insurance coverage without a medical exam.

Be sure to disclose all health information and answer all questions honestly. Withholding information regarding pre-existing health conditions could hold up the issue of your policy or prevent you from being insured completely.

Why Seniors Need Life Insurance

Reasons Why Seniors Need Life Insurance

Even if you have enough savings, medical emergencies and other financial setbacks might lead you to bankruptcy. Life insurance gives you and your family time to adjust in the event of a financial crisis. Here are other scenarios where life insurance will come in handy:

  • If you have a significant amount of debt that others will have to repay in the event of your death
  • If you are a breadwinner, life insurance ensures that your dependents still have some income after you pass away.
  • If you have a high net worth and want to cover estate expenses.
  • If you wish to cover your final (burial) expenses
  • Life insurance is also a way of providing an inheritance to those you leave behind.

Types of Life Insurance for Seniors


Senior Term Life Insurance

Term life insurance is also known as pure life insurance. It is temporary coverage that guarantees payment of a stated death benefit in case the insured dies within a specified period, usually 10-20 years. The policy has no other value other than the guaranteed death benefit. Once the policy term expires, the insured can renew it or sometimes convert it into permanent coverage.

The policy premiums are determined based on the policy’s value, age, gender, and underlying health conditions of the insured. It provides the cheapest option for life insurance if you are in great health. If you die during the policy term, the insurer pays the death benefit to your beneficiaries. Fortunately, in most cases, the death benefit is not taxable. If you die after your policy has expired, the death benefit is not paid.


Senior Whole Life Insurance

Whole life insurance provides lifelong death benefit coverage for the policyholder. The death benefit is paid to a beneficiary upon the insured death, provided that the policy is in force. Besides the death benefit, whole life insurance has a cash-saving component called the cash value. The policyholder can draw or borrow from the cash-saving component.

The insured remits payments more than the scheduled premiums to build the cash value. These payments are called paid-up additions. Policy dividends can also be reinvested into the cash value and earn interest. The cash value serves as a source of equity and offers a living benefit to the insured.


Senior Guaranteed Issue Life Insurance

Guaranteed-issue life insurance is a policy that does not require you to undergo a medical examination for acceptance. For this reason, it is called ”no questions final expense insurance” or ”guaranteed acceptance life insurance.” This option is worthwhile if your health does not qualify you for normal whole life insurance.

However, guaranteed issue life insurance has a waiting period. If you die during the waiting period, your beneficiary won’t receive the death benefit. The insurance company will only refund your beneficiaries the premiums you paid if you die during this period. The waiting period is two years for most companies.


Senior Final Expense Insurance

Burial or final expense insurance typically covers funeral services and merchandise costs after death.  The policy can be bought online or by telephone since they do not require a medical exam.

Final expense insurance is a whole life policy that builds a cash value over time. Unlike term, final expense insurance can be bought in small amounts. Premiums are paid for the duration of the policy. In addition, the policy provides permanent coverage.

Senior Guaranteed Universal Life Insurance

This is a form of permanent life insurance. It is unique because it never expires – provided the premiums are paid. Some companies offer a return of premium. Return of premium allows you to take a full or partial refund on paid premiums if you no longer need coverage. These policies offer some flexibility, such as reducing the death benefit amount in the future if needs change.

A guaranteed universal life policy may or may not include a cash value component. Those with a minimum cash value growth compared to whole life insurance. You have a guarantee of coverage regardless of age, health, or changes to the market.

Life Insurance Riders

Riders help you customize coverage. Life insurance riders provide additional benefits to basic life insurance at additional costs. Here are eight common riders:

Guaranteed Insurability Rider

This rider enables you to buy additional coverage during coverage without a further medical examination. It is beneficial if there is a significant change in your life circumstances like increased income. It can also renew your policy upon expiry without further medical examinations.

Accidental Death Rider

An accidental death rider pays an additional benefit if the insured dies as a result of an accident. This rider is also called double indemnity. The name double indemnity is because it pays twice the death benefit amount in the event of accidental death.

Waiver of Premium Rider

Waiver of premium rider waves future premiums if the insured becomes permanently disabled. It also waives premiums for those who lose income due to injury or illness. However, the term ‘permanent disability’ varies from one insurer to another.

Family Income Benefit Rider

Family income benefit riders provide a steady flow of income to your family upon death. You need to determine in advance the number of years your family will receive the benefit. This rider is for individuals who are the sole breadwinners of their families.

Accelerated Death Benefit Rider

They allow the insured to use the death benefits if diagnosed with a terminal illness. The insurer advances part of the death benefit to the insured. The insurance company will subtract the amount you receive from what your beneficiaries will receive on death.

Child Term Rider

Child term rider provides a death benefit for young children of the policyholder. Upon maturity of the children, it may be converted to permanent coverage. The child also won’t require a medical examination.

Long-Term Care Riders

Long-term care riders offer payments if the insured has to receive nursing care. The payments are made monthly. It also covers those who receive home care.

Return of Premium Rider

Under the return of premium rider, the insurer returns your premiums if you don’t die during the policy term. The premiums may be returned in full or partially. In the event of your death, your beneficiary receives the paid premium amount.

How to buy Senior Life Insurance

Before purchasing any life insurance, you should consider if the coverage matches your financial goals. For instance, if you want a life policy that could cover your mortgage payments or outstanding debt, a term life policy will do for you. If covering your funeral cost, you might consider final expense insurance.

Consider a guaranteed universal life policy if you want to leave an inheritance to your loved ones.

Before you purchase a policy, consider these three guidelines:

  1. Use our burial policy calculator on this page to compare death benefits and premiums for different insurers. Comparison will help you determine the right policy for your budget.
  2. Consult with us. We can direct you to the best policy for your situation.
  3. Apply for your policy through one of our advisors.

Cost of Senior Life Insurance 

The policy cost is directly proportional to what the insurer is willing to risk. With life insurance, the premiums are higher if you have a higher likelihood of dying. Insurers evaluate several factors to determine the level of risk they assume. Below are some of the factors that will determine how much premium you pay:

  • Age
  • Type of life insurance policy
  • Duration of coverage or its value
  • Gender at birth
  • Underlying health conditions
  • Occupational hazards
  • Driving record
  • Tobacco use

Senior Life Insurance Quotes

Getting senior life insurance doesn’t have to be stressful. Start by using the calculator on this page to see what your cost will be.

Frequently Asked Questions

What Are the Benefits of Life Insurance for Seniors?

Life insurance for seniors can offer several benefits, including financial security for loved ones, covering final expenses such as funeral costs, and potentially serving as a financial asset that can accumulate cash value over time. It can also help in estate planning and ensuring a legacy for beneficiaries.

How Do Medical Examinations Impact Life Insurance for Seniors?

Medical examinations can impact the eligibility and premiums of life insurance for seniors. While some policies require health screenings, there are options like no-exam life insurance policies that might be more suitable for seniors with health concerns. These policies might have higher premiums but offer quicker approval without a medical exam.

Can Seniors Get Life Insurance with Pre-Existing Conditions?

Yes, seniors with pre-existing conditions can still obtain life insurance. While these conditions may affect the type of policy they can get and the premiums, some insurers specialize in high-risk policies. It’s important for seniors with pre-existing conditions to thoroughly explore their options and possibly consult with insurance experts to find the most suitable coverage.

author avatar
Doug Mitchell, CLU Independant Advisor
Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA. Doug has spent almost 30 years in the life insurance industry and has also held licenses to sell securities, long-term care insurance and home and auto insurance. Doug is a Top of the Table Million Dollar Round Table member (MDRT).  MDRT is a global, independent association of the world's leading life insurance advisors.  For two years, Doug served as President of the Auburn Opelika Association of Financial Advisors and has been a member of the Million Dollar Round Table. He obtained Life Millionaire status at Horace Mann Insurance Company and was awarded the Life Agent of the Year Award. Later in his career with New York Life he was an Executive Council Member. Doug currently serves as President of Ogletree Financial, a managing general agency serving life insurance agents and clients in all parts of the United States. Today, Doug’s main focus is servicing 1000s of policyholders and growing the agency through the reach of