Life Insurance for Seniors 2026: Types, Costs, How to Choose

Older couple reviewing a life insurance policy document at a kitchen table with a calculator and reading glasses

Last reviewed: October 1, 2026

Short answer: Life insurance for seniors is still available after 50, 60, 70 and even 80, but the choices narrow and the cost per dollar of coverage rises with every birthday. In your 50s and early 60s, term life and fully underwritten permanent policies are usually still on the table. In your 70s, most buyers look at short terms, guaranteed universal life or small whole life policies. After 80, the realistic options are mostly small final expense (burial) policies, some with health questions and some with guaranteed acceptance and a waiting period.

Before you buy, ask who would be worse off financially if you died, and by how much. If the honest answer is "nobody", you may not need a policy. If it is a spouse who would lose pension income, a dependent adult child, a mortgage or a funeral bill, buy only the amount that fills that gap, from a licensed insurer, without pressure, and keep any existing policy until the new one is in force.

This guide explains when life insurance still makes sense in retirement, which policy types exist for older buyers, what is typically available at each age, and how to avoid the sales tactics and scams that target older adults. It draws on the FTC, the Department of Veterans Affairs (VA), the IRS, Medicaid.gov, the National Association of Insurance Commissioners (NAIC), FINRA, the California Department of Insurance and, for readers outside the US, GOV.UK and Canada.ca. We do not recommend any insurer or product, and we do not show real prices.

This article is general information, not financial, insurance, legal or tax advice. Rules differ by state, province, country and insurer.

In this guide

Do you still need life insurance in retirement?
Types of life insurance for seniors compared
What is typically available in your 50s, 60s, 70s and 80s
How health conditions affect underwriting
Graded death benefits and waiting periods
Funeral costs, the FTC Funeral Rule and pre-need contracts
Worked example: premiums paid vs death benefit
Social Security, VA and other benefits that pay at death
Medicaid and life insurance
What to do with a policy you already own
Beneficiaries, records and finding lost policies
Estate tax basics and life insurance trusts
Pressure sales and scams aimed at older adults
How to compare insurers, agents and quotes
A note for UK readers
A note for Canadian readers
Common mistakes
Buyer's checklist
FAQ
Bottom line
Sources

Do you still need life insurance in retirement?

You need life insurance in retirement only if your death would leave someone with a financial gap that your savings, pensions and other benefits would not cover. Many retirees have no such gap. Many others do, and it is usually smaller and more specific than the gap they had while raising a family.

The NAIC suggests working out your need from the income your dependants would lose, your debts, your final expenses and the effect of estate taxes and inflation.

Reasons older adults keep or buy coverage

Final expenses. A funeral, a headstone, final medical bills and the cost of settling an estate can land on a family at short notice.
A survivor income gap. When one spouse dies, income often falls by more than costs. A pension may stop or reduce, depending on the survivor option chosen at retirement, and a couple with two Social Security retirement benefits will generally be left with one.
Debts and a mortgage. Coverage sized to the debt can let a surviving spouse stay in the home. If debt is the main worry, see our guide to debt consolidation options and costs, because reducing the debt is sometimes cheaper than insuring it.
Estate liquidity and taxes. An estate that holds a farm, a business or property can be valuable but short of cash. A policy can give heirs money for taxes, fees and debts without a forced sale.
A dependant with special needs. A disabled adult child may need support for decades after your death. Permanent coverage paid into a properly drafted trust is a common tool. Take legal advice, because money paid directly to someone on means-tested benefits can affect those benefits.
A legacy or charitable gift. A policy can leave a set sum to family or a charity, or balance an inheritance when one child will receive a house or business.

When you may not need it

You may not need new coverage, and may be able to let old coverage go, if nobody depends on your income, your debts are small relative to your savings, you have set aside accessible money for a funeral, your estate is well below any estate tax threshold, and you have no legacy goal that savings cannot meet. In that case, premiums may be better spent on your own retirement or care.

To estimate an amount, add final expenses, debts and the survivor's income gap for the years it must last, then subtract savings, existing policies and survivor benefits.

Your situation	Is coverage likely to help?	Type usually considered
Single, no dependants, savings cover a funeral	Usually not needed	None, or keep a small paid-up policy
Married, pension stops or drops at your death	Often yes	Term to a set age, or permanent coverage
Mortgage or other debt outstanding	Often yes, for the length of the debt	Term matched to the payoff date
Little savings, family would struggle with a funeral bill	Often yes, a small amount	Final expense whole life
Dependent adult child with a disability	Usually yes, long term	Permanent or survivorship coverage, often with a trust
Large or illiquid estate	Possibly, with professional advice	Permanent or survivorship coverage, sometimes in a trust

Types of life insurance for seniors compared

Older buyers choose between two families of policy: term life, which covers a fixed period and is cheaper, and permanent (cash value) life, which is designed to last for life and costs more. Everything sold to seniors is a variation of one or the other, with more or less health screening.

We compare the two structures in depth in our guide to whole life vs term life insurance, so this section focuses on what matters after 50.

Term life

Term life pays only if you die during the term. Insurers set a maximum age at which they will issue each term length, and the longest terms disappear first. By the late 60s and 70s the choice is normally limited to shorter terms, and eventually new term coverage is not offered at all. Term suits a need that will end, such as a mortgage. It does not suit funeral costs, because you cannot know you will die inside the term.

Whole life

Whole life is permanent coverage with a level premium and a guaranteed cash value that builds slowly. Large policies are fully underwritten and expensive at older ages. Small ones are the basis of the final expense market.

Guaranteed universal life (GUL)

Universal life is a flexible permanent policy. A guaranteed universal life policy is built around a "no-lapse guarantee": if you pay the stated premium on time, the death benefit is guaranteed to a chosen age or for life, with little cash value. It is often cheaper than whole life for the same death benefit, but a missed or late premium can end the guarantee.

Final expense or burial insurance

"Final expense" and "burial insurance" are marketing names for small whole life policies sold to cover funeral and end-of-life costs. They come in two styles:

Simplified issue. No medical exam, but a short list of health questions. If you qualify, coverage is usually in full from the first day.
Guaranteed issue. No health questions. Acceptance is guaranteed within the age range, but the price is higher and a graded death benefit normally applies in the first years.

Our separate guide, Life Insurance With No Medical Exam, explains how these products are underwritten and what data insurers check.

Group and association coverage

Employer group life often needs no exam, but it usually ends or shrinks at retirement. The California Department of Insurance notes that under California law a group policy must be convertible to permanent insurance at the insured's option when group coverage ends. The conversion window is short and the price is based on your current age, so ask about the deadline before your last day. With plans marketed by membership groups, check whether the premium rises by age band and whether coverage reduces or ends at a set age.

Survivorship (second-to-die) policies

A survivorship policy insures two people, usually spouses, and pays when the second one dies. It usually costs less than two separate permanent policies. It does nothing for the surviving spouse's income. Its uses are estate liquidity, funding a trust for a dependant and leaving a legacy.

Type	How long it lasts	Health screening	Typical size	Relative cost per dollar of coverage	Main thing to watch
Term life	Fixed term; maximum issue ages apply	Full or accelerated underwriting	Moderate to high	Lowest while available	Outliving the term
Whole life (fully underwritten)	Lifetime	Full underwriting	Moderate to high	High	Affordability over decades
Guaranteed universal life	To a chosen age or lifetime	Full underwriting	Moderate to high	Between term and whole life	Late premiums can void the guarantee
Final expense, simplified issue	Lifetime	Health questions, no exam	Small	High	Answering questions accurately
Guaranteed issue whole life	Lifetime	None	Small	Highest	Graded benefit in the first years
Group or association	While employed or a member	Usually little or none	Small to moderate	Varies; may rise by age band	Coverage ending at retirement or a set age
Survivorship	Until the second death	Both lives underwritten	Moderate to very high	Lower than two single permanent policies	No payout at the first death

What is typically available in your 50s, 60s, 70s and 80s

The older you are when you apply, the fewer products you can buy, the shorter the terms and the higher the price. The descriptions below are general and qualitative. Every insurer sets its own age limits, and they change.

In your 50s

Your 50s are usually the last decade in which almost the whole market is open. Long terms are generally still available early in the decade, fully underwritten permanent policies are available, and healthy applicants can often qualify without an exam.

If you hold term coverage, find the conversion deadline. It often falls well before the term ends.
If you expect a need beyond your working years, such as a pension with no survivor benefit, price permanent coverage now.
Do not buy a guaranteed issue policy just because an advert says you qualify at 50. If you are in reasonable health, underwritten coverage is almost always better value.

In your 60s

In your 60s, term life is normally still available in shorter lengths, and each health condition weighs more heavily on the price. Most people retire and lose employer group coverage in this decade, so gaps appear.

Before you retire, ask about converting group coverage and compare the price with an individual policy.
Match any new term to an end date, such as the last mortgage payment.
When you choose a pension payout, compare a joint-and-survivor pension with a single-life pension plus life insurance. The insurance route only works if you can qualify and keep paying.
For coverage that cannot expire, compare guaranteed universal life with whole life.

In your 70s

In your 70s, new term coverage is limited to short terms and then generally stops being offered. Most new policies are permanent: guaranteed universal life for larger amounts if health allows, and small whole life policies for final expenses. Insurers may ask about memory, mobility and independent living as well as medical conditions.

Try simplified issue before guaranteed issue. Many people with managed conditions still qualify for first-day coverage.
Make sure the premium is affordable for life, including after a spouse's income stops.
Think hard before replacing an existing policy. A new one is priced at your current age.

At 80 and over

After 80, the market is narrow. New coverage usually means a small final expense whole life policy, and each insurer has a maximum issue age. Prices per dollar of coverage are high, because the insurer expects to pay the claim relatively soon.

Run the break-even sum in the worked example below before you buy.
Check for benefits you already have: a paid-up policy, a veteran's burial benefit, a union or fraternal benefit.
Veterans with a service-connected disability rating should look at VALife, described below.
Involve a trusted family member in any sales meeting.

How health conditions affect underwriting

Health affects whether you are accepted, which price class you are placed in, and whether the benefit is paid in full from day one. Two people of the same age can be offered very different terms.

Insurers typically look at:

Diagnoses and how recent they are. A heart attack, stroke or cancer in the last few years is treated very differently from one a decade ago.
Control. Well-managed blood pressure or type 2 diabetes is often acceptable. Complications or recent hospital stays are not.
Medications and tobacco. Prescription history reveals conditions, and nicotine use remains a major price factor.
Function and cognition. Falls, use of oxygen or a wheelchair, help with daily activities and memory problems.

The California Department of Insurance explains that there are different levels of underwriting and each affects the premium. The practical rule is to start at the top: apply for the most thoroughly underwritten product you can reasonably qualify for, and move to guaranteed issue only if the others say no.

Answer every question yourself and truthfully. The California guide explains that during the first two years an insurer may deny a claim or cancel the policy over omissions or untrue statements in the application.

Graded death benefits and waiting periods

A graded death benefit means the policy does not pay its full face amount if you die of illness during an initial waiting period, commonly the first two or three years. Instead, the insurer usually returns the premiums paid, often with some interest. Accidental death is usually covered in full from the start.

Graded benefits are standard on guaranteed issue policies. A public example is VALife, the VA's guaranteed acceptance whole life programme: the VA states that full coverage begins two years after approval, and that if the insured dies during those two years the beneficiaries receive the premiums paid plus interest.

For seniors this means a guaranteed issue policy is not a way to create a payout for someone who is already seriously ill, and replacing an old policy with a new graded one restarts the clock. Our Life Insurance With No Medical Exam guide covers graded benefits and contestability in more detail.

Funeral costs, the FTC Funeral Rule and pre-need contracts

Funeral costs vary widely by provider, region and the choices a family makes, and US federal law gives you the right to see itemised prices before you commit. Because of that variation, we do not quote an "average funeral cost". The most reliable figure is the one on the price lists of funeral homes near you.

What a funeral bill is made of

The FTC breaks funeral costs into three groups:

The basic services fee, common to all funerals, covering planning, permits and death certificates, sheltering the remains and coordinating with the cemetery or crematory.
Optional services and merchandise, such as transport, embalming, use of facilities, a hearse, a casket or other container, and cremation or interment.
Cash advances for items bought from others on your behalf, such as flowers, obituary notices and clergy. The provider may add a service fee.

Your rights under the Funeral Rule

The FTC's Funeral Rule gives you the right to:

Get price information by telephone without giving your name or contact details.
Receive a written General Price List at the funeral home.
See casket and outer burial container price lists before you are shown the items.
Buy only the goods and services you want, not a package.
Use an alternative container for cremation, and decline embalming in most cases. The FTC notes that embalming is not legally required in most states.
Supply a casket or urn bought elsewhere, with no handling fee.
Receive an itemised written statement with the total before you pay.

The FTC advises comparing prices from at least two funeral homes. Doing this once, in advance, tells you how much final expense coverage your own wishes require.

Why a pre-need funeral contract is not life insurance

A pre-need (prepaid) funeral contract is an agreement with a specific funeral provider to supply goods and services later. A life insurance policy pays cash to a beneficiary, who can spend it anywhere. Some pre-need plans are funded by a small insurance policy assigned to the funeral home, but the risks differ.

The FTC warns that protections for prepaid funerals vary widely from state to state and that some state laws offer little or no effective protection. It suggests asking what exactly you are paying for, what happens to the money and any interest, whether you are protected if the firm closes, whether you can cancel for a full refund, and what happens if you move or die away from home. The FTC also notes that you can put your wishes in writing without paying in advance, and that you should tell your family about any arrangement so they do not pay twice.

Worked example: premiums paid vs death benefit

With a small permanent policy bought late in life, there is an age after which you will have paid more in premiums than the policy will ever pay out. Knowing that break-even age helps you decide whether a policy or a savings account is the better tool.

This example is fictional and illustrative only. The premium is invented to make the arithmetic clear. It is not a quote, and real prices may be much higher or lower.

Imagine a fictional buyer, Maria, aged 68. She buys a final expense whole life policy with a death benefit of $10,000 and a level premium of $70 a month, which is $840 a year (70 x 12).

End of policy year	Maria's age	Total premiums paid	Death benefit	Benefit minus premiums paid
1	69	$840	$10,000	$9,160
2	70	$1,680	$10,000	$8,320
5	73	$4,200	$10,000	$5,800
10	78	$8,400	$10,000	$1,600
12	80	$10,080	$10,000	-$80
15	83	$12,600	$10,000	-$2,600
20	88	$16,800	$10,000	-$6,800
25	93	$21,000	$10,000	-$11,000

Break-even point. $10,000 divided by $70 is about 142.9, so the 143rd monthly payment takes the total to $10,010, past the death benefit. That is 11 years and 11 months after purchase, just before Maria turns 80.
If Maria dies at 73, her family receives $10,000 after she has paid $4,200.
If Maria dies at 88, she has paid $16,800 for a $10,000 benefit, $6,800 more than the payout.
With a graded benefit. Suppose the fictional policy were guaranteed issue, returning premiums plus 10 percent for death from illness in the first two years. If Maria died of illness at the end of year 2, her family would receive $1,680 x 1.10 = $1,848, not $10,000.

The example ignores interest and inflation. Money saved instead would earn something, which brings the true break-even earlier, and a fixed $10,000 will buy less in 20 years. On the other hand, savings offer no protection early on: after two years of saving $70 a month Maria would have $1,680. The policy buys certainty that the money is there whenever death occurs. The price is the risk of overpaying if you live a long time.

Social Security, VA and other benefits that pay at death

Government death benefits in the US are small compared with funeral costs, but survivor income benefits can be substantial, and both should be counted before you decide how much insurance to buy.

Social Security

Social Security pays a one-time lump-sum death payment of $255 to an eligible surviving spouse or, in some cases, a child. It is not intended to cover a funeral.

Monthly survivor benefits matter far more. A surviving spouse, a surviving divorced spouse, children and dependent parents may qualify on the deceased worker's record. As a general rule, a widow or widower does not receive their own retirement benefit plus a full survivor benefit. They receive the higher of the two, which is why household income falls at the first death. Ask the Social Security Administration for a personal estimate before sizing a policy.

VA burial benefits

The VA pays a burial allowance towards a veteran's burial, funeral, plot and transport costs when eligibility rules are met. The veteran must not have had a dishonorable discharge and must meet at least one condition, such as dying from a service-connected disability, dying under VA care, or receiving VA pension or compensation at death. The VA lists these maximum amounts:

Service-connected death: up to $2,000 for deaths on or after September 11, 2001.
Non-service-connected death: a burial allowance of $1,002 and a plot allowance of $1,002 for deaths on or after October 1, 2025. These figures are adjusted each year.

There is no time limit to claim for a service-connected death. For a non-service-connected death, the claim generally must be filed within two years of burial. The VA also offers burial in a VA national cemetery for eligible veterans, memorial items such as a headstone or marker, and a pre-need eligibility decision so you can confirm in advance whether you qualify.

VA life insurance programmes

Veterans' Group Life Insurance (VGLI). Group term life for people leaving the service. The VA says you must apply within one year and 120 days of leaving, and that applying within the first 240 days means you do not need to prove good health. Coverage runs from $10,000 to $500,000. Premiums depend on age and coverage amount and step up through age bands, which can make VGLI expensive late in life. It can be converted to a permanent commercial policy without a medical exam.
VALife. Guaranteed acceptance whole life for veterans with a service-connected disability rating, including a 0 percent rating. Veterans aged 80 or younger with a rating are eligible, and those aged 81 or older qualify only in limited cases. Coverage is available up to $40,000 in $10,000 steps with no medical exam, premiums are fixed for life, and full coverage begins two years after approval.

Medicaid and life insurance

Life insurance can affect Medicaid eligibility for long-term care, mainly through the cash value of permanent policies and through transfers made before an application. Each state sets the details within federal rules, so get advice from your state Medicaid agency or an elder law attorney before acting.

Different rules for older adults. Medicaid.gov explains that people whose eligibility is based on age (65 and older), blindness or disability are generally assessed using the methods of the Supplemental Security Income (SSI) programme. Some states apply more restrictive criteria.
Cash value can count. Under SSI-based methods, a permanent policy's cash surrender value can be treated as a countable resource when the face value of the policies a person owns is above a low threshold. Term insurance has no cash value. Ask your state how it treats your policies.
Transfers are examined. Medicaid.gov states that people seeking long-term services and supports are denied that coverage if they transferred assets for less than fair market value during the five years before applying. Giving away a policy with cash value can be such a transfer.
Trusts are examined too. A trust set up with at least some of the person's own funds can be considered available to them.
Estate recovery. States must seek repayment from the estates of enrollees aged 55 and older for nursing facility services, home and community-based services and related hospital and prescription drug costs. Recovery is barred where there is a surviving spouse, a child under 21, or a blind or disabled child of any age, and states must have hardship waivers. A death benefit paid to your estate, instead of to a named beneficiary, can be exposed to such claims.

Burial funds and irrevocable funeral arrangements

SSI rules allow a limited burial funds exclusion of $1,500 and treat burial arrangements according to whether they can be undone. The Social Security Administration's operating manual explains that when a life insurance policy funds a burial contract and the assignment is revocable, the cash surrender value remains a resource. When ownership is irrevocably assigned, the policy is no longer the person's resource, although it reduces the burial funds exclusion.

Many states allow irrevocable funeral trusts or irrevocable pre-need contracts, often up to a state-set limit, that are not counted for Medicaid. The limits and paperwork differ. Rules vary by state, and "irrevocable" means you cannot get the money back. Be wary of anyone who sells insurance or annuities as a guaranteed "Medicaid solution".

What to do with a policy you already own

An existing policy is usually more valuable than a new one, because it was priced when you were younger and its waiting and contestability periods have passed. Before you cancel or replace it, find out what options the contract already gives you.

Term that is about to expire

When a level term ends, you can let it lapse, renew it or convert it. The California Department of Insurance notes that term policies can be renewed without a medical exam for specified periods, and that some term insurance can be converted to cash value insurance up to a specified age with no physical examination, at a higher premium. Renewal premiums are based on your current age and can rise steeply. Conversion is valuable if your health has declined. Look for the conversion deadline today, not when the term is ending.

Permanent policies you can no longer afford

Cash value policies include nonforfeiture options, which the California guide defines as the ways the cash value can be used if the policy is surrendered or lapses:

Reduced paid-up insurance. You stop paying and keep a smaller death benefit for life.
Extended term. You stop paying and keep the full death benefit for a limited period.
Cash surrender. You end the policy and take the cash value, less charges and loans. Gains may be taxable.

You may also be able to take a policy loan. The California guide notes that outstanding loans are deducted from the proceeds at death or surrender.

Accelerated death benefits and long-term care riders

An accelerated death benefit lets the insured take part of the death benefit while alive. The California guide describes it as available on diagnosis of a terminal illness or permanent confinement to a nursing home. Whatever is paid early reduces what beneficiaries receive. IRS guidance says these payments are generally excludable from income when the insured is terminally ill, with limits and conditions for a chronically ill person.

The NAIC also lists a long-term care rider, which lets you draw on the death benefit to pay for care. "Hybrid" policies package life insurance with long-term care benefits. Compare how care needs are defined, the monthly cap, the waiting period and what remains for heirs.

Life settlements and viatical settlements

A life settlement is the sale of your policy to a third party for a lump sum. FINRA explains that the payment is typically more than the cash surrender value but less than the death benefit. A viatical settlement is the same kind of sale by someone who is terminally or chronically ill. FINRA warns that:

Life settlements can have high transaction costs, and those who arrange them can receive hefty commissions.
The lump sum may be taxable.
The payment may harm your eligibility for public assistance such as Medicaid.
The buyer may gain access to your health information, share it and require periodic health updates.

FINRA suggests looking at alternatives first: a policy loan, an accelerated death benefit, reduced coverage, an exchange into another product, or surrender. If you proceed, check that the provider and broker are licensed, get more than one bid, ask whether your state gives you time to change your mind, and walk away from pressure. Complaints go to your state insurance commissioner. Never buy a new policy in order to sell it to investors.

Beneficiaries, records and finding lost policies

A life insurance policy pays whoever is named on the insurer's beneficiary form, so keeping that form current is as important as paying the premium. In many cases the form controls who is paid even if your will says something else.

Name a primary and a contingent beneficiary. The contingent is paid if the primary dies before you.
Set percentages. The NAIC notes that you can name more than one beneficiary and should state each share.
Understand per stirpes. "Per stirpes" means that if a beneficiary dies before you, their share passes to their own descendants. "Per capita" generally means it is split among the surviving named beneficiaries. Ask how your insurer's form works.
Avoid naming your estate unless a lawyer advises it. Proceeds paid to an estate go through probate and may be exposed to creditors.
Take care with minors and vulnerable adults. The NAIC suggests considering a trust for a child.
Review after life events, such as a death, divorce or remarriage.

On tax, the IRS states that life insurance proceeds received by a beneficiary because of the insured's death are generally not included in gross income, but any interest received is taxable.

Records and the NAIC Life Insurance Policy Locator

Write down the insurer's legal name, the policy number, the face amount and the beneficiaries. Keep the policy and latest statement together, and tell your executor where they are.

If a relative dies and you cannot find their policy, the NAIC's Life Insurance Policy Locator is a free online tool. You enter your contact details and the deceased person's legal name, date of birth, date of death and Social Security number. Participating insurers search their records and contact you directly if you are a beneficiary. If nothing is found, you will not hear back. The tool cannot search for policies on a living person.

Estate tax basics and life insurance trusts

Most estates in the US owe no federal estate tax, because it applies only above a high threshold. The IRS lists a filing threshold of $13,990,000 for people who die in 2025 and $15,000,000 for people who die in 2026. Some states have their own estate or inheritance taxes with lower thresholds.

Life insurance still matters for larger estates, because the IRS includes insurance in its description of the gross estate, alongside cash, securities, real estate, trusts, annuities and business interests. In broad terms, a death benefit from a policy you own at death can be counted in your estate, even though the beneficiary pays no income tax on it.

An irrevocable life insurance trust (ILIT) is a trust that owns a policy on your life. Because the trust owns it, the aim is to keep the death benefit out of your taxable estate and to control how the money is used. The trade-off is that you give up ownership and cannot simply take the policy back. ILITs involve timing rules, gift tax questions and precise drafting, so they are a job for an estate planning attorney. If your estate is far below the thresholds, you probably do not need one.

Pressure sales and scams aimed at older adults

Most insurers and agents are legitimate, but older adults are a deliberate target for high-pressure sales, unsuitable replacements and outright fraud. Take your time, check licences and involve someone you trust.

Pressure tactics

Replacement and churning. Churning is when an agent persuades you to replace a policy, often using its cash value to fund the new one, mainly to earn a new commission. The California Department of Insurance cautions that replacement brings new startup costs and higher premiums because you are older.
Urgency. "This rate ends today" is a sales technique.
Health answers completed for you. Wrong answers can void a claim later.

Mail-order and television adverts

Adverts for guaranteed acceptance policies often headline a very low price. Some plans are sold in "units", where the premium per unit is fixed but the coverage per unit is smaller for older buyers. Some are group term plans in which the premium rises by age band and coverage ends at a stated age. Many have a graded benefit. Ask for the insurer's legal name and the benefit in dollars at your age before you send money.

Outright scams

Fake inheritance letters. In a July 2026 alert, the FTC warned about letters, supposedly from lawyers, claiming that someone with your surname died leaving an unclaimed life insurance policy worth millions. The FTC says the policy does not exist and that anyone who replies will be asked for personal information, money or both. Ignore it and report it at ReportFraud.ftc.gov.
Fake insurers and premium theft. Unlicensed sellers, or an agent who asks for cash or a cheque made out to them personally.
Impersonation calls. Callers claiming your policy will lapse unless you pay at once by gift card, wire or cryptocurrency. Hang up and call the insurer on the number printed on your statement.

The warning signs overlap with other fraud. See our guides on how to avoid loan scams and fake offers and how to spot a crypto scam.

Free-look period and senior protections

A free-look period lets you cancel a new policy shortly after delivery and get your premium back. The length is set by state law. California gives seniors specific protections:

30-day free look. Seniors, defined in the department's life insurance guide as people aged 60 and over, have no less than 30 days after receiving an individual life insurance or annuity policy to return it for a full refund.
Notice before a home visit. The agent must give written notice at least 24 hours in advance, stating the purpose of the meeting and the senior's right to have others present and to end the meeting.
Replacement disclosure. Full disclosure of the benefits and possible negative consequences is required when coverage is replaced.

Red flag	Why it matters	What to do
"Cancel your old policy first"	You could be left uninsured or restart a waiting period	Keep the old policy until the new one is issued
Very low advertised price with no benefit amount	Coverage per unit may be small at your age	Ask for the benefit in dollars
Payment by cash, gift card, wire or crypto	Licensed insurers bill through their own systems	Refuse; pay the insurer directly
Agent will not let family attend	Isolation is a pressure tactic	End the meeting
Letter about a stranger's unclaimed policy	Scam described by the FTC	Do not reply; report it

How to compare insurers, agents and quotes

Compare the same coverage across several licensed insurers, and judge each offer on what it guarantees in writing. For each quote, note:

The type of policy and of underwriting.
The death benefit, and whether it is level, reducing or graded.
The premium, whether it is guaranteed never to rise, and to what age you pay it.
For term, the renewal terms and conversion deadline. For guaranteed universal life, what breaks the guarantee.
The break-even age, using the sum in the worked example.

To check the insurer, confirm with your state insurance department that it is licensed in your state, look up its financial strength rating, and review complaint information. State guaranty associations provide limited protection if a licensed insurer fails.

To check the agent, verify the licence number, ask how they are paid and whether they represent one insurer or several. FINRA's BrokerCheck covers anyone who also sells investments.

Some insurers use credit-based information in underwriting where state law allows. Our explainer on what a credit score is and how it is calculated covers the basics.

A note for UK readers

In the UK, the closest product to US guaranteed issue cover is the over-50s plan, and the main alternatives are underwritten whole-of-life insurance and term insurance.

Over-50s plans. These offer guaranteed acceptance with no medical questions and a fixed premium, in return for a modest fixed lump sum. MoneyHelper, the government-backed guidance service, cautions that people who live a long time can pay in more than the plan pays out and that stopping payments usually means losing the cover. There is normally an initial period in which only limited benefits are paid for non-accidental death.

Whole-of-life insurance. This pays out whenever you die, as long as premiums are kept up. It is medically underwritten and is often used in inheritance tax planning.

Writing a policy in trust. GOV.UK describes a trust as a way of managing assets for people, involving a settlor, trustees and beneficiaries. Many UK insurers let you place a life policy in trust. The usual aims are to pay your chosen beneficiaries without waiting for probate and to keep the payout outside your estate. Trusts are hard to undo, so take advice.

Inheritance tax. GOV.UK states that there is normally no inheritance tax to pay if your estate is below the £325,000 threshold, or if you leave everything above it to your spouse, civil partner or a charity. The threshold can rise to £500,000 if you leave your home to your children or grandchildren. The standard rate is 40 percent on the part above the threshold.

A note for Canadian readers

In Canada, the same two families of cover exist, and the Canada Pension Plan pays a one-time death benefit that should be counted before you buy a final expense policy.

The Financial Consumer Agency of Canada (FCAC) describes term life as cover for a set period with no payment once the term ends, and permanent insurance as lifetime cover with cash value, including whole life and universal life. It notes that a beneficiary can be revocable, which you can change at any time, or irrevocable, which needs that person's written permission to change.

CPP death benefit. Canada.ca states that the benefit is a one-time payment made up of a basic amount of $2,500 and, in some cases, a top-up of $2,500, for a maximum of $5,000 (Canadian dollars). The top-up applies only where the deceased had not received a CPP retirement or disability pension and no spouse or common-law partner is eligible for a survivor's pension. If there is an estate, the executor should apply within 60 days of the death. If there is no estate, the benefit can go to the person who paid the funeral expenses, then the surviving spouse or partner, then the next of kin.

Common mistakes

Most costly errors come from buying in a hurry or buying the wrong type.

Buying with no clear purpose. If you cannot name who needs the money and why, pause.
Choosing guaranteed issue when you could pass health questions.
Using term for a permanent need. A 10-year term bought at 70 for funeral costs may expire before you do.
Replacing an old policy without a written comparison.
Missing the term conversion deadline.
Buying a premium you cannot sustain. A lapsed policy pays nothing.
Not checking group coverage before retiring.
Trusting the headline price in an advert.
Out-of-date beneficiaries, or naming the estate or a minor directly.
Telling no one. A policy nobody knows about may never be claimed.
Selling or surrendering a policy before checking alternatives.
Ignoring benefits you already have, such as veterans' burial benefits and survivor pensions.
Prepaying a funeral without asking the FTC's questions.

Buyer's checklist

Use this list before you sign anything.

I can state who needs the money, how much and for how long.
I have counted savings, existing policies, survivor pensions and Social Security, VA or other benefits.
I have asked local funeral homes for price lists.
I know the policy type and whether it is fully underwritten, simplified issue or guaranteed issue.
I know whether there is a graded death benefit and how long it lasts.
I have worked out the break-even age.
The premium is guaranteed level and affordable on a reduced income.
I compared quotes from more than one licensed insurer and verified the insurer's and agent's licences.
I answered every health question myself, truthfully, and kept a copy.
I am not cancelling or borrowing from an existing policy until the new one is in force.
I named primary and contingent beneficiaries.
If Medicaid may be needed, I have taken advice on how this policy is treated in my state.
I know my free-look period and will read the full policy within it.
A family member knows the policy exists, and nobody rushed me.

FAQ

What is the best life insurance for seniors?

There is no single best policy. Term life usually suits a debt or income gap with an end date. Guaranteed universal life or whole life suits a lifelong need. A small final expense policy suits funeral costs when savings are thin. Start with the need, then compare licensed insurers.

Can I get life insurance at 70, 75 or 80?

Usually yes, but the range narrows. In the 70s, new coverage is mostly short-term or permanent. Around and after 80, it is mostly small final expense whole life, and each insurer has a maximum issue age.

Can a senior get life insurance without a medical exam?

Yes. Simplified issue policies ask health questions but need no exam, and guaranteed issue policies ask no health questions. They cost more per dollar of coverage, and guaranteed issue normally has a waiting period for death from illness.

Is burial insurance worth it?

It can be if your family would struggle to pay for a funeral and you have little savings. If you already have savings equal to the benefit, or expect to live well past the break-even age, saving the premiums may be better.

What happens when my term life insurance expires?

Coverage ends with no payout unless you renew or convert. Renewal is usually possible at a much higher, age-based premium. Conversion to permanent coverage is possible only before the conversion deadline in your policy.

Should I cash in my life insurance policy when I retire?

Not automatically. If the need has gone, compare surrender with reduced paid-up coverage, a lower face amount or keeping the policy as a legacy. Surrender can trigger tax on gains and cannot be reversed.

Does life insurance count as an asset for Medicaid?

It can. For older applicants, Medicaid generally follows SSI-style resource rules, under which the cash value of permanent policies may be counted. Transfers within five years of applying for long-term care coverage are also examined. Rules vary by state.

How much does Social Security pay when someone dies?

The lump-sum death payment is $255, paid once to an eligible surviving spouse or child. Monthly survivor benefits are separate and can be much more significant.

Do veterans get free life insurance or a free funeral?

Not automatically. The VA offers burial in a national cemetery, memorial items and a burial allowance up to set limits for eligible veterans. VA life insurance such as VGLI and VALife is paid for by premiums.

Do beneficiaries pay tax on a life insurance payout?

In the US, the IRS says proceeds paid because of the insured's death are generally not included in the beneficiary's gross income, though interest on them is taxable. The benefit may still count in the deceased's estate for estate tax.

Is selling my life insurance policy a good idea?

Only after checking alternatives. FINRA warns that life settlements can carry high costs, may be taxable, may affect Medicaid eligibility and give the buyer access to your health information.

What is the difference between final expense insurance and a prepaid funeral plan?

Final expense insurance pays cash to a beneficiary, who can use any funeral home. A prepaid funeral plan is a contract with a particular provider. The FTC notes that protections for prepaid plans vary widely by state.

Bottom line

Life insurance after 50 is less about replacing a salary and more about closing specific gaps: a funeral bill, a surviving spouse's income, a debt, a dependant or a legacy. The market gets narrower and dearer with age, so the earlier you settle the question, the more choice you have. Buy the type that matches how long the need will last, try underwritten or simplified issue coverage before guaranteed issue, and work out the break-even age on any small permanent policy.

Count what you already have, protect an existing policy before replacing it, keep beneficiaries current, and treat pressure and unusual payment requests as reasons to stop. This guide is general information, not financial, insurance, legal or tax advice.

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