Life insurance is a type of financial protection that allows you to pass on money to your loved ones, pay off debts or taxes, or cover funeral expenses after your death.
It may be worth having life insurance if you’re an older adult, but your age and health, coverage needs, and budget all can affect whether you’ll be able to get a policy and which kind is right for you.
Though life insurance may seem complicated — especially if you’ve never had coverage before — we can make it easier to understand and help you get quotes for the coverage you need.
Life insurance terms you should know
Beneficiaries: The people you name on your life insurance policy to receive the lump sum of money — also known as the death benefit — when you die.
Cash value: The portion of a permanent life insurance policy’s monetary value that grows tax-deferred over the life of the policy.
Death benefit: The amount of money the life insurance company will pay your beneficiaries when you die.
Face amount: The dollar amount, or death benefit, your beneficiaries receive if you die while your life insurance policy is active.
Insured: The person who is covered by the insurance policy.
Policy: The legal document that includes the terms and conditions of your life insurance contract.
Policyholder: The person who owns an insurance policy. Usually, this is the same person as the insured.
Permanent life insurance: A type of life insurance that lasts for the rest of your life and usually includes a cash value account.
Premium: The amount you pay your insurance company to keep your coverage active. Premiums are typically paid monthly or annually.
Riders: Add-ons to a life insurance policy that provide more robust coverage, sometimes for an extra cost.
Term life insurance: A life insurance policy that lasts for a set number of years before it expires. If you die before the term is up, your beneficiaries receive a death benefit.
Underwriting: The process where an insurance company evaluates the risk of insuring you and determines your final rate.
What older adults need to know about life insurance
If you’re an older adult with beneficiaries who depend on you, or if you just want to set up your family for long-term financial stability, life insurance may be right for you.
For the most part, life insurance works like this: your policy pays a death benefit to your beneficiaries (such as your spouse, children, or an organization) when you die. Your beneficiaries can use the death benefit to cover their own expenses, pay off debts or taxes, pay for your funeral costs, or to live off of in the long term.
Most older adults can get term or permanent life insurance, though rates are typically higher than for younger people. It becomes harder to get life insurance as you age, especially if your health changes — like if you develop diabetes or have a stroke.
What should I know about life insurance at my age?
Life insurance at 60
You may need life insurance in your 60s if you have dependents and you’re saving for retirement but don’t have enough money set aside to live off of yet, especially if you still have a mortgage or other debts.
Average term life rates at this age: $81 - $214 a month
Average whole life rates at this age: $332 - $6,514 a month.
Life insurance at 70
It’s still possible to get life insurance in your 70s, though it’s harder to find affordable rates. Insurance companies are often reluctant to cover adults older than 80 years old, so any term coverage you get while in your 70s will likely be limited.
Average term life rates at this age: $229 - $481 a month
Average whole life rates at this age: $587 - $11,609 a month
Average final expense rates at this age: $35 - $131 a month
Life insurance at 80
The life insurance policy you get in your 80s may have restrictions on benefits, and it will be very difficult to find certain types of coverage. Still, it’s worth considering if you want to pass money to any dependents or loved ones, or if you want to be sure your family can pay for your funeral and burial.
Average term life rates at this age: $493 - $3,413 a month
Average final expense rates at this age: $65 - $251 a month
Best types of life insurance for older adults
There’s not really one single type of life insurance that’s best for all older adults. Instead, the best coverage for you depends on personal factors, like your health and age, whether you have dependents, your debt and assets, what you can afford to spend, and the amount of coverage you need.
While there isn’t one type of life insurance that older adults should have, there are certain policies that may fit your needs better than others.
Type of life insurance | Permanent? | How it works | Who may benefit |
|---|---|---|---|
No | Pays a benefit if you die while the policy is active. | Someone seeking affordable coverage that only lasts a set period of time. | |
Yes | Has a death benefit as well as a cash-value portion that gains value while you’re alive. | High-income and high net-worth people, and people with dependents who require long-term care, who can benefit from the extra savings that the cash-value portion offers. | |
Yes | Has a fixed death benefit and premiums, as well as a minor cash-value portion. | Someone who wants permanent coverage and the ability to customize their premium and the life of their policy. | |
Yes | Has a non-fixed death benefit and a cash-value portion that changes value based on the performance of a market index. | Someone who is comfortable with moderate risk in exchange for potentially higher returns. | |
Yes | Has a non-fixed death benefit and a cash-value portion that changes value based on sub-accounts, such as mutual funds. | Someone who is comfortable with moderate risk in exchange for potentially higher returns. | |
Yes | Pays a small death benefit to your beneficiaries that can help pay for end-of-life expenses. | Someone who can’t qualify for traditional term or permanent coverage due to age or medical history. |
Read more about what type of life insurance to get as an older adult
Cost of life insurance for older adults
When you get older and your life expectancy goes down, the cost of getting life insurance goes up — insurance companies even stop offering you coverage after a certain age.
There’s no set rule about what you should pay for coverage, but it’s a good idea to estimate how much life insurance you need before buying a policy so you don’t pay too much for coverage. Keep in mind that your premiums depend on the type of policy you want to buy.
Type of policy | Amount of coverage | Estimate of average monthly rates |
|---|---|---|
Term | $250,000 | $252 |
Whole | $250,000 | $1,074 |
Final expense | $20,000 | $133 |
Methodology: Monthly term-life rates are calculated for male and female 65-year-old non-smokers obtaining a 20-year $250,000 life insurance policy. Final expense rates are calculated for male and female non-smokers obtaining a simplified issue or guaranteed issue final expense whole life policy from Mutual of Omaha or Transamerica. Whole life rates are calculated for non-smokers for a whole life insurance policy from Mutual of Omaha, Transamerica, and MassMutual. All rates approximate.
Rates may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 09/12/2024.
How to get life insurance as an older adult
The process of buying life insurance is pretty similar no matter your age — after deciding how much coverage you need and what kind of policy to buy, you can compare quotes and, following an application process and a medical exam, wait to get approved for coverage.
That said, older adults in particular should be mindful of:
Their financial responsibilities
Their health and age
How their death benefit will pay out
Best and cheapest life insurance companies for older adults
All of our life insurance company reviews and recommendations are based on insurers’ premiums, policy details, financial strength, transparency, and customer experience.
Methodology
Why you can trust our picks
Our recommendations are based on internal and external expert analysis, as well as our Policygenius Life Insurance Price Index, which uses real-time data from leading life insurance companies to determine pricing trends. When reviewing a life insurance company, our editorial team uses a proprietary scoring rubric with five factors — price, policy details, financial strength, transparency, and customer experience — to assign an unbiased rating between one and five stars. These ratings are also taken into consideration as part of our company recommendations. We don’t get paid for our reviews.
Our reviews and recommendations can help you find a reliable insurer for your family’s financial protection, but the best life insurance company for you depends on multiple factors. A licensed agent at Policygenius can support you during the application process to ensure you get the right coverage for your circumstances at the most competitive price.
Best life insurance for older adults
Prudential is the best overall life insurance company for older adults for its affordability and willingness to cover applicants with age-related health conditions — though another insurer may be a better fit for your needs.
Cheapest insurer for older adults
On average, Protective often has some of the cheapest life insurance rates for older adults who are in good health, though rates vary by person. Another insurer may be cheaper for you if you’re a smoker, you have pre-existing conditions, or you’ve experienced a health emergency.
Life insurance quotes for older adults
The best way to find affordable life insurance is by comparing quotes (price estimates based on personal factors like your age, health, and desired coverage level) from different insurance companies before you buy a policy.
It’s a good idea to compare quotes if you’re an older adult because of how expensive life insurance can be past the age of 60. By comparing quotes, you can easily see which insurance company is offering you the best rate for the coverage you need.
You can compare quotes from top life insurance companies with an online marketplace like Policygenius. It’s free and, if you’re unsure what type of life insurance is right for you, we can also help you determine the right kind of life insurance for your goals and needs.
More about finding your best life insurance policy
