Due to the recent pandemic, we have seen an increase in seniors over 70 searching for life insurance.
Most do not want to have to complete a medical exam.
They have common reasons to be shopping for life insurance this late in life. Many are concerned about whether they can find life insurance at all.
Although final expense policies are very popular, large face amount term and universal life policies are also available.
Seniors who are in their 70s and shopping for life insurance are generally looking for affordable life insurance because:
- they’ve finally retired and discovered their life insurance at work does not follow them into retirement
- they previously had term life insurance and the annual renewal rates have become unaffordable
- they are currently carrying more coverage than they need because of paid-off debts and a paid-off mortgage
- they surrendered a policy for cash to make it through the market crash of 2007 and have been unable to afford a replacement policy
- they feel their current policy is not sufficient to leave a financial legacy and cover final expenses
The good news is that we represent many life insurance companies who specialize in non-medical life insurance for seniors.
What’s the Best Life Insurance for Seniors Over 70?
Seniors who are in their 70s and shopping for life insurance will need to consider their circumstances and their budget to find a life insurance policy that will make sense for them.
Here are four very important questions to consider when shopping for coverage:
- How much life insurance do I need?
- Should I buy cheap term insurance or permanent insurance that provides lifetime coverage?
- How much life insurance can I afford?
- Am I healthy enough to qualify for preferred rates?
The amount of life insurance you purchase should be based on the financial risk you want to mitigate.
Are you looking to leave a paid-for home to your spouse? Do you want to leave money for heirs or a favorite charity? Or, are you just concerned about leaving enough money to surviving loved ones to cover final expenses like your funeral and burial?
Finally, are you looking for Term Life Insurance since it’s so affordable or do you prefer a permanent policy like Whole Life or Universal Life that will build cash value over time that you could access in an emergency?
Can a 70-year-old Get Term Life Insurance?
If you can medically qualify, Term Life Insurance will be the most affordable option for seniors in their 70s and there are companies who offer Term Insurance without a medical exam requirement but the rates are generally higher than a fully-underwritten policy which includes a medical exam.
There are, however, pros and cons that seniors should consider when shopping for term life insurance.
Advantages of buying term life insurance
- Seniors over 70 can choose up to a 20 year term policy with the death benefit and monthly payment locked in for the life of the policy.
- Seniors can purchase very high death benefits depending on their age and their health.
- There is a good selection of companies that offer life insurance for seniors over 70 with no medical exam.
- Most companies will allow policyholders to renew their term policy on an annual basis at the end of the policy term
Disadvantages of buying term life insurance
- To qualify for the most affordable rates, the applicant must be very healthy and a non-smoker.
- Term life insurance is temporary and will only pay if the insured dies during the policy term.
- Term life insurance builds no cash value so you cannot borrow against your policy. If the policy is canceled or expires, there is no cash returned to the policyholder.
How much is Term Life Insurance for Seniors Over 70?
As we mentioned earlier, your premium will be based on your age, your health, the death benefit, and the length of the term you prefer. There are also many companies that offer term insurance with no medical exam.
Actual 10-year Term Life Insurance Rates for Seniors in their 70s:
| Age | Gender | $25,000 | $50,000 | $100,000 |
| 70 | Male | $45.04 | $84.00 | $112.09 |
| Female | $34.63 | $60.08 | $80.94 | |
| 75 | Male | $81.19 | $156.30 | $179.29 |
| Female | $60.05 | $114.30 | $103.08 | |
| 80 | Male | $208.29 | $321.43 | $290.41 |
| Female | $176.49 | $243.56 | $220.41 |
The rates provided are for an applicant that qualified for the Standard Plus rate class and are subject to underwriting.
Final Expense Life Insurance for Seniors Over 70 No Medical Exam
Final expense insurance also referred to as funeral or burial insurance, is one of the most popular life insurance policies purchased by seniors in their 70s.
These policies are built on whole life insurance so all the guarantees and benefits of whole life will be found in final expense insurance.
Seniors of all ages purchase final expense life insurance to cover the final expenses that almost everyone leaves to surviving loved ones. Typically, these final expenses consist of funeral and burial costs, unpaid medical bills, and nursing home charges not paid by health insurance.
Seniors who purchase final expense insurance get peace of mind knowing that their final expenses will not be a burden on surviving loved ones because arrangements have been made ahead of time.
The difference between Final Expense Whole Life insurance and traditional Whole Life insurance is liberalized underwriting, lower death benefits (average $10,000 to $15,000), and a medical exam is never required.
Additionally, many companies offer two or three different plans to accommodate seniors who are dealing with health issues. This allows the company to offer alternative coverage if an applicant cannot medically qualify for the lowest rates and first-day coverage.
Level Benefit Final Expense Insurance
The level benefit plan is typically the lowest priced of the three plans and when issued, coverage for deaths from natural causes is available the first day.
Although there is rarely a medical exam required, the insurance company will have many health and lifestyle questions on the application and will order a report from the Medical Information Bureau (MIB).
Typically, eligible applicants are 50 to 85-years old with death benefits ranging from $5,000 to $35,000.
Here are actual rates for a Final Expense Policy for a Healthy Male and Female Non-Smoker:
| Age | Gender | $10,000 | $20,000 | $30,000 |
| 70 | Male | $70.67 | $138.18 | $205.70 |
| Female | $51.92 | $100.70 | $149.47 | |
| 75 | Male | $99.51 | $186.34 | $291.20 |
| Female | $72.41 | $137.86 | $204.62 | |
| 80 | Male | $138.60 | $272.85 | $407.10 |
| Female | $98.43 | $193.66 | $288.89 |
The rates listed above are based on a Standard rate class and are subject to underwriting.
What if I don’t Qualify for Level Benefit Final Expense Insurance?
Many insurance companies have alternate choices that you can take advantage of if you don’t medically qualify for a Level Benefit plan.
If you are unable to purchase level benefit final expense insurance, your independent agent will then try and qualify you for a Graded Benefit Plan.
Graded Benefit Life Insurance for Seniors over 70 No Medical Exam
Graded benefit final expense insurance was specifically designed to help seniors who don’t qualify for level benefit coverage. Many insurance companies use the graded benefit plan because the underwriting guidelines are friendlier for seniors who are dealing with certain illnesses.
Graded Benefit Final Expense insurance is very similar to a level benefit plan except for the premiums are slightly higher and there is a two-year period when the death benefit is graded if death results from natural causes.
How the company pays the benefit during the waiting period varies between insurance companies but the most common method of paying the death benefit is as follows:
- Year 1 – If the insured dies from natural causes in the first year, the beneficiary would receive 30% of the death benefit.
- Year 2 – If the insured dies from natural causes in the second year, the beneficiary would receive 70% of the death benefit.
- Year 3 – If the insured dies from natural causes after the second year (month 25 and thereafter), the beneficiary would receive 100% of the death benefit.
IMPORTANT NOTE: The waiting period does not apply if the insured dies resulting from an accident. In this case, the beneficiary would receive 100% from the first day of coverage.
What if I can’t medically qualify for a Graded Benefit Plan?
To make it possible for all seniors to purchase life insurance no matter if they are healthy or not, several insurance companies offer Guaranteed Issue Final Expense plans.
With a Guaranteed Issue (guaranteed acceptance) plan, the insurance company does not consider your health condition nor do they have health questions on the application. This means that virtually anyone alive and between the ages of 50 and 80 can buy Final Expense life insurance.
In return for accepting an unknown health risk, the insurance companies apply a 2-year waiting period to the policy where they will not pay the full death benefit if the insured’s death is due to natural causes.
Instead, the insurance company will typically pay 110% of the premiums that have been paid into the policy.
After the waiting period expires in the 25th month of coverage, the beneficiary will be entitled to 100% of the death benefit minus any outstanding loan amounts.
In addition to higher rates and the two-year waiting period, the insurance company will typically cap the death benefit at $25,000.
Here is a chart that compares the rates between level benefit, graded benefit, and guaranteed issue Final Expense Life Insurance for Seniors over 70.
The rates provided are for $10,000 in coverage:
| Age | Gender | Level Benefit | Graded Benefit | Guaranteed Issue |
| 70 | Male | $70.67 | $86.00 | $99.18 |
| Female | $51.92 | $70.21 | $76.33 | |
| 75 | Male | $96.58 | $110.99 | $139.52 |
| Female | $71.11 | $96.30 | $108.17 | |
| 80 | Male | $139.73 | $145.18 | $206.33 |
| Female | $98.43 | $120.89 | $176.37 | |
| 85 | Male | $192.74 | $237.51 | NA |
| Female | $135.90 | $179.22 | NA |
Should I buy Life Insurance for Seniors from a TV Company?
Since the senior marketplace has become so competitive among insurance companies, a handful of companies are now advertising and selling directly to senior consumers.
We believe anything that can make insurance shopping easier for seniors over 70 is a good thing. However, the companies that advertise and sell directly to seniors take the independent insurance professional (your advocate) out of the transaction.
We have found that companies like Colonial Penn, Globe Life, and Lincoln Heritage, push their guaranteed acceptance plan on almost every customer who contacts them.
With the highest rates out there and having a 2-year waiting period for death from natural causes, we believe that guaranteed issue (guaranteed acceptance) life insurance should only be purchased as a last resort.
Finally, these TV insurance companies do not reveal their rates unless the consumer visits their website and offers a lot of information to receive a quote.
This means if you wanted to compare the 3 or 4 companies that sell direct to the consumer, seniors would have to visit all of their websites and provide a lot of information to get a quote so they could make a legitimate comparison.
Which companies offer the Best Life Insurance for Seniors Over 70 No Medical Exam?
Currently, there are hundreds of life insurance companies operating across the U.S. but not every one of them has products that are best suited for seniors over 70.
While representing many of the highly-rated life insurers, we have developed a list of “senior-friendly” life insurance companies that have the most liberal underwriting and are the easiest to do business with.
| A.M. Best Rating | A |
| Term Life Insurance | Yes |
| Whole Life Insurance | Yes |
| Universal Life | Yes |
| Level Benefit Final Expense Insurance | Yes |
| Graded Benefit Final Expense Insurance | Yes |
| Guaranteed Issue Final Expense Insurance | Yes |
| A.M. Best Rating | A |
| Term Life Insurance | Yes |
| Whole Life Insurance | Yes |
| Universal Life | Yes |
| Level Benefit Final Expense Insurance | Yes |
| Graded Benefit Final Expense Insurance | Yes |
| Guaranteed Issue Final Expense Insurance | Yes |
| A.M. Best Rating | A |
| Term Life Insurance | Yes |
| Whole Life Insurance | Yes |
| Universal Life | Yes |
| Level Benefit Final Expense Insurance | Yes |
| Graded Benefit Final Expense Insurance | Yes |
| Guaranteed Issue Final Expense Insurance | Yes |
| A.M. Best Rating | A |
| Term Life Insurance | Yes |
| Whole Life Insurance | Yes |
| Universal Life | Yes |
| Level Benefit Final Expense Insurance | Yes |
| Graded Benefit Final Expense Insurance | Yes |
| Guaranteed Issue Final Expense Insurance | Yes |
| A.M. Best Rating | A |
| Term Life Insurance | Yes |
| Whole Life Insurance | Yes |
| Universal Life | Yes |
| Level Benefit Final Expense Insurance | Yes |
| Graded Benefit Final Expense Insurance | Yes |
| Guaranteed Issue Final Expense Insurance | Yes |
| A.M. Best Rating | A |
| Term Life Insurance | Yes |
| Whole Life Insurance | Yes |
| Universal Life | Yes |
| Level Benefit Final Expense Insurance | Yes |
| Graded Benefit Final Expense Insurance | Yes |
| Guaranteed Issue Final Expense Insurance | Yes |
Frequently asked Questions
Can I buy life insurance if I'm 80?
As a matter of fact, you can. Insurance companies will generally insure seniors up to age 85 depending on the death benefit you require.
Is Term or Whole Life better for Seniors over 70?
Depending on your health history, Term will always cost less than Whole Life but if you want coverage for a lifetime that will be available for your beneficiary, we recommend Whole Life insurance.
Is Guaranteed issue life insurance worth it?
If you are unable to purchase life insurance because of severe or multiple medical issues, Guaranteed Issue life insurance will be your only option. It is especially valuable if you believe you will outlive the 2 year waiting period.
Why should I buy life insurance if I have no debt and no one who depends on me?
Every person who dies generally leaves final expenses like funeral and burial costs to surviving loved ones. Even when you have cash in the bank, that money is generally considered part of your estate and can take time before your loved ones would be able to access it. Life insurance eliminates that risk.
Guaranteed Universal Life Insurance
Universal Life Insurance is similar to whole life insurance because it can be funded to last a lifetime and it also builds cash value over time that can be accessed by the policyholder for any reason with no credit check or required repayment.
The primary difference between Universal Life and Whole Life is the flexibility of the Universal Life policy.
This flexibility means that the policyholder can change premium payments to accommodate their budget and increase or decrease the death benefit to accommodate life events. If a policyholder asks to increase the death benefit, most carriers will require the insured to go through medical underwriting again.
Guaranteed Universal Life insurance does build cash value but not at the rate of a traditional universal life policy because the premium and cash value are used to cover the cost of life insurance as the insured gets older.
Here are actual Universal Life Insurance rates for seniors over 70 in good health:
| Age | Gender | $50,000 | $100,000 | $150,000 |
| 70 | Male | $172.14 | $256.76 | $385.13 |
| Female | $146.10 | $227.95 | $341.92 | |
| 75 | Male | $240.87 | $379.96 | $569.94 |
| Female | $212.29 | $326.87 | $490.30 | |
| 80 | Male | $395.08 | $545.83 | $818.74 |
| Female | $305.44 | $446.68 | $670.02 |
The rates provided above are for applicants that qualify for the Preferred rate class and all rates are subject to underwriting. The rates are for coverage to age 95.
Final Expense Life Insurance for Seniors Over 70 No Medical Exam
Final expense insurance also referred to as funeral or burial insurance, is one of the most popular life insurance policies purchased by seniors in their 70s.
These policies are built on whole life insurance so all the guarantees and benefits of whole life will be found in final expense insurance.
Seniors of all ages purchase final expense life insurance to cover the final expenses that almost everyone leaves to surviving loved ones. Typically, these final expenses consist of funeral and burial costs, unpaid medical bills, and nursing home charges not paid by health insurance.
Seniors who purchase final expense insurance get peace of mind knowing that their final expenses will not be a burden on surviving loved ones because arrangements have been made ahead of time.
The difference between Final Expense Whole Life insurance and traditional Whole Life insurance is liberalized underwriting, lower death benefits (average $10,000 to $15,000), and a medical exam is never required.
Additionally, many companies offer two or three different plans to accommodate seniors who are dealing with health issues. This allows the company to offer alternative coverage if an applicant cannot medically qualify for the lowest rates and first-day coverage.
Level Benefit Final Expense Insurance
The level benefit plan is typically the lowest priced of the three plans and when issued, coverage for deaths from natural causes is available the first day.
Although there is rarely a medical exam required, the insurance company will have many health and lifestyle questions on the application and will order a report from the Medical Information Bureau (MIB).
Typically, eligible applicants are 50 to 85-years old with death benefits ranging from $5,000 to $35,000.
Here are actual rates for a Final Expense Policy for a Healthy Male and Female Non-Smoker:
| Age | Gender | $10,000 | $20,000 | $30,000 |
| 70 | Male | $70.67 | $138.18 | $205.70 |
| Female | $51.92 | $100.70 | $149.47 | |
| 75 | Male | $99.51 | $186.34 | $291.20 |
| Female | $72.41 | $137.86 | $204.62 | |
| 80 | Male | $138.60 | $272.85 | $407.10 |
| Female | $98.43 | $193.66 | $288.89 |
The rates listed above are based on a Standard rate class and are subject to underwriting.
What if I don’t Qualify for Level Benefit Final Expense Insurance?
Many insurance companies have alternate choices that you can take advantage of if you don’t medically qualify for a Level Benefit plan.
If you are unable to purchase level benefit final expense insurance, your independent agent will then try and qualify you for a Graded Benefit Plan.
Graded Benefit Life Insurance for Seniors over 70 No Medical Exam
Graded benefit final expense insurance was specifically designed to help seniors who don’t qualify for level benefit coverage. Many insurance companies use the graded benefit plan because the underwriting guidelines are friendlier for seniors who are dealing with certain illnesses.
Graded Benefit Final Expense insurance is very similar to a level benefit plan except for the premiums are slightly higher and there is a two-year period when the death benefit is graded if death results from natural causes.
How the company pays the benefit during the waiting period varies between insurance companies but the most common method of paying the death benefit is as follows:
- Year 1 – If the insured dies from natural causes in the first year, the beneficiary would receive 30% of the death benefit.
- Year 2 – If the insured dies from natural causes in the second year, the beneficiary would receive 70% of the death benefit.
- Year 3 – If the insured dies from natural causes after the second year (month 25 and thereafter), the beneficiary would receive 100% of the death benefit.
IMPORTANT NOTE: The waiting period does not apply if the insured dies resulting from an accident. In this case, the beneficiary would receive 100% from the first day of coverage.
What if I can’t medically qualify for a Graded Benefit Plan?
To make it possible for all seniors to purchase life insurance no matter if they are healthy or not, several insurance companies offer Guaranteed Issue Final Expense plans.
With a Guaranteed Issue (guaranteed acceptance) plan, the insurance company does not consider your health condition nor do they have health questions on the application. This means that virtually anyone alive and between the ages of 50 and 80 can buy Final Expense life insurance.
In return for accepting an unknown health risk, the insurance companies apply a 2-year waiting period to the policy where they will not pay the full death benefit if the insured’s death is due to natural causes.
Instead, the insurance company will typically pay 110% of the premiums that have been paid into the policy.
After the waiting period expires in the 25th month of coverage, the beneficiary will be entitled to 100% of the death benefit minus any outstanding loan amounts.
In addition to higher rates and the two-year waiting period, the insurance company will typically cap the death benefit at $25,000.
Here is a chart that compares the rates between level benefit, graded benefit, and guaranteed issue Final Expense Life Insurance for Seniors over 70.
The rates provided are for $10,000 in coverage:
| Age | Gender | Level Benefit | Graded Benefit | Guaranteed Issue |
| 70 | Male | $70.67 | $86.00 | $99.18 |
| Female | $51.92 | $70.21 | $76.33 | |
| 75 | Male | $96.58 | $110.99 | $139.52 |
| Female | $71.11 | $96.30 | $108.17 | |
| 80 | Male | $139.73 | $145.18 | $206.33 |
| Female | $98.43 | $120.89 | $176.37 | |
| 85 | Male | $192.74 | $237.51 | NA |
| Female | $135.90 | $179.22 | NA |
Should I buy Life Insurance for Seniors from a TV Company?
Since the senior marketplace has become so competitive among insurance companies, a handful of companies are now advertising and selling directly to senior consumers.
We believe anything that can make insurance shopping easier for seniors over 70 is a good thing. However, the companies that advertise and sell directly to seniors take the independent insurance professional (your advocate) out of the transaction.
We have found that companies like Colonial Penn, Globe Life, and Lincoln Heritage, push their guaranteed acceptance plan on almost every customer who contacts them.
With the highest rates out there and having a 2-year waiting period for death from natural causes, we believe that guaranteed issue (guaranteed acceptance) life insurance should only be purchased as a last resort.
Finally, these TV insurance companies do not reveal their rates unless the consumer visits their website and offers a lot of information to receive a quote.
This means if you wanted to compare the 3 or 4 companies that sell direct to the consumer, seniors would have to visit all of their websites and provide a lot of information to get a quote so they could make a legitimate comparison.
Which companies offer the Best Life Insurance for Seniors Over 70 No Medical Exam?
Currently, there are hundreds of life insurance companies operating across the U.S. but not every one of them has products that are best suited for seniors over 70.
While representing many of the highly-rated life insurers, we have developed a list of “senior-friendly” life insurance companies that have the most liberal underwriting and are the easiest to do business with.
Frequently asked Questions
Whole Life Insurance for Seniors Over 70
Since Whole Life Insurance is considered a foundational product in the life insurance marketplace, many seniors are familiar with the guarantees and benefits whole life provides.
- Your policy cannot be canceled by the company as long as premiums are paid.
- Once your policy is issued, the death benefit cannot be reduced by the company for any reason. Even if you become critically ill and must live in a hospice facility, the insurance cannot reduce your benefit.
- Once your policy is issued, the insurance company cannot increase your premium for any reason. Your premiums will remain locked-in for a lifetime.
- Your policy will build cash value over time and will earn tax-deferred interest paid by the insurance company. Policyholders can access the cash value via policy loans, withdrawals, or by surrendering the policy for cash. When the policyholder dies, any outstanding loan and interest will be deducted from the death benefit.
Here are actual Whole Life Insurance rates for seniors over 70 in good health:
| Age | Gender | $25,000 | $50,000 | $75,000 |
| 70 | Male | $155.99 | $305.68 | $442.83 |
| Female | $141.88 | $277.46 | $361.14 | |
| 75 | Male | $219.48 | $427.13 | $596.56 |
| Female | $193.31 | $380.97 | $487.53 | |
| 80 | Male | $299.64 | $592.99 | $886.33 |
| Female | $258.91 | $512.17 | $695.02 |
The rates provided above are for applicants that qualify for the Preferred rate class and all rates are subject to underwriting.
Guaranteed Universal Life Insurance
Universal Life Insurance is similar to whole life insurance because it can be funded to last a lifetime and it also builds cash value over time that can be accessed by the policyholder for any reason with no credit check or required repayment.
The primary difference between Universal Life and Whole Life is the flexibility of the Universal Life policy.
This flexibility means that the policyholder can change premium payments to accommodate their budget and increase or decrease the death benefit to accommodate life events. If a policyholder asks to increase the death benefit, most carriers will require the insured to go through medical underwriting again.
Guaranteed Universal Life insurance does build cash value but not at the rate of a traditional universal life policy because the premium and cash value are used to cover the cost of life insurance as the insured gets older.
Here are actual Universal Life Insurance rates for seniors over 70 in good health:
| Age | Gender | $50,000 | $100,000 | $150,000 |
| 70 | Male | $172.14 | $256.76 | $385.13 |
| Female | $146.10 | $227.95 | $341.92 | |
| 75 | Male | $240.87 | $379.96 | $569.94 |
| Female | $212.29 | $326.87 | $490.30 | |
| 80 | Male | $395.08 | $545.83 | $818.74 |
| Female | $305.44 | $446.68 | $670.02 |
The rates provided above are for applicants that qualify for the Preferred rate class and all rates are subject to underwriting. The rates are for coverage to age 95.
Final Expense Life Insurance for Seniors Over 70 No Medical Exam
Final expense insurance also referred to as funeral or burial insurance, is one of the most popular life insurance policies purchased by seniors in their 70s.
These policies are built on whole life insurance so all the guarantees and benefits of whole life will be found in final expense insurance.
Seniors of all ages purchase final expense life insurance to cover the final expenses that almost everyone leaves to surviving loved ones. Typically, these final expenses consist of funeral and burial costs, unpaid medical bills, and nursing home charges not paid by health insurance.
Seniors who purchase final expense insurance get peace of mind knowing that their final expenses will not be a burden on surviving loved ones because arrangements have been made ahead of time.
The difference between Final Expense Whole Life insurance and traditional Whole Life insurance is liberalized underwriting, lower death benefits (average $10,000 to $15,000), and a medical exam is never required.
Additionally, many companies offer two or three different plans to accommodate seniors who are dealing with health issues. This allows the company to offer alternative coverage if an applicant cannot medically qualify for the lowest rates and first-day coverage.
Level Benefit Final Expense Insurance
The level benefit plan is typically the lowest priced of the three plans and when issued, coverage for deaths from natural causes is available the first day.
Although there is rarely a medical exam required, the insurance company will have many health and lifestyle questions on the application and will order a report from the Medical Information Bureau (MIB).
Typically, eligible applicants are 50 to 85-years old with death benefits ranging from $5,000 to $35,000.
Here are actual rates for a Final Expense Policy for a Healthy Male and Female Non-Smoker:
| Age | Gender | $10,000 | $20,000 | $30,000 |
| 70 | Male | $70.67 | $138.18 | $205.70 |
| Female | $51.92 | $100.70 | $149.47 | |
| 75 | Male | $99.51 | $186.34 | $291.20 |
| Female | $72.41 | $137.86 | $204.62 | |
| 80 | Male | $138.60 | $272.85 | $407.10 |
| Female | $98.43 | $193.66 | $288.89 |
The rates listed above are based on a Standard rate class and are subject to underwriting.
What if I don’t Qualify for Level Benefit Final Expense Insurance?
Many insurance companies have alternate choices that you can take advantage of if you don’t medically qualify for a Level Benefit plan.
If you are unable to purchase level benefit final expense insurance, your independent agent will then try and qualify you for a Graded Benefit Plan.
Graded Benefit Life Insurance for Seniors over 70 No Medical Exam
Graded benefit final expense insurance was specifically designed to help seniors who don’t qualify for level benefit coverage. Many insurance companies use the graded benefit plan because the underwriting guidelines are friendlier for seniors who are dealing with certain illnesses.
Graded Benefit Final Expense insurance is very similar to a level benefit plan except for the premiums are slightly higher and there is a two-year period when the death benefit is graded if death results from natural causes.
How the company pays the benefit during the waiting period varies between insurance companies but the most common method of paying the death benefit is as follows:
- Year 1 – If the insured dies from natural causes in the first year, the beneficiary would receive 30% of the death benefit.
- Year 2 – If the insured dies from natural causes in the second year, the beneficiary would receive 70% of the death benefit.
- Year 3 – If the insured dies from natural causes after the second year (month 25 and thereafter), the beneficiary would receive 100% of the death benefit.
IMPORTANT NOTE: The waiting period does not apply if the insured dies resulting from an accident. In this case, the beneficiary would receive 100% from the first day of coverage.
What if I can’t medically qualify for a Graded Benefit Plan?
To make it possible for all seniors to purchase life insurance no matter if they are healthy or not, several insurance companies offer Guaranteed Issue Final Expense plans.
With a Guaranteed Issue (guaranteed acceptance) plan, the insurance company does not consider your health condition nor do they have health questions on the application. This means that virtually anyone alive and between the ages of 50 and 80 can buy Final Expense life insurance.
In return for accepting an unknown health risk, the insurance companies apply a 2-year waiting period to the policy where they will not pay the full death benefit if the insured’s death is due to natural causes.
Instead, the insurance company will typically pay 110% of the premiums that have been paid into the policy.
After the waiting period expires in the 25th month of coverage, the beneficiary will be entitled to 100% of the death benefit minus any outstanding loan amounts.
In addition to higher rates and the two-year waiting period, the insurance company will typically cap the death benefit at $25,000.
Here is a chart that compares the rates between level benefit, graded benefit, and guaranteed issue Final Expense Life Insurance for Seniors over 70.
The rates provided are for $10,000 in coverage:
| Age | Gender | Level Benefit | Graded Benefit | Guaranteed Issue |
| 70 | Male | $70.67 | $86.00 | $99.18 |
| Female | $51.92 | $70.21 | $76.33 | |
| 75 | Male | $96.58 | $110.99 | $139.52 |
| Female | $71.11 | $96.30 | $108.17 | |
| 80 | Male | $139.73 | $145.18 | $206.33 |
| Female | $98.43 | $120.89 | $176.37 | |
| 85 | Male | $192.74 | $237.51 | NA |
| Female | $135.90 | $179.22 | NA |
Should I buy Life Insurance for Seniors from a TV Company?
Since the senior marketplace has become so competitive among insurance companies, a handful of companies are now advertising and selling directly to senior consumers.
We believe anything that can make insurance shopping easier for seniors over 70 is a good thing. However, the companies that advertise and sell directly to seniors take the independent insurance professional (your advocate) out of the transaction.
We have found that companies like Colonial Penn, Globe Life, and Lincoln Heritage, push their guaranteed acceptance plan on almost every customer who contacts them.
With the highest rates out there and having a 2-year waiting period for death from natural causes, we believe that guaranteed issue (guaranteed acceptance) life insurance should only be purchased as a last resort.
Finally, these TV insurance companies do not reveal their rates unless the consumer visits their website and offers a lot of information to receive a quote.
This means if you wanted to compare the 3 or 4 companies that sell direct to the consumer, seniors would have to visit all of their websites and provide a lot of information to get a quote so they could make a legitimate comparison.
Which companies offer the Best Life Insurance for Seniors Over 70 No Medical Exam?
Currently, there are hundreds of life insurance companies operating across the U.S. but not every one of them has products that are best suited for seniors over 70.
While representing many of the highly-rated life insurers, we have developed a list of “senior-friendly” life insurance companies that have the most liberal underwriting and are the easiest to do business with.
