As you age, securing the right life insurance policy becomes crucial to protect your loved ones from financial burdens. For seniors over 60, life insurance can cover funeral costs, medical bills, outstanding debts, or even leave an inheritance. However, choosing the best policy can be overwhelming due to varying costs, coverage types, and eligibility requirements.
This guide explores the best life insurance options for seniors over 60, including:
- Types of life insurance available (term, whole, guaranteed issue, burial)
- Top-rated insurance companies for seniors
- Average costs based on age and health
- How to qualify with pre-existing conditions
- Common mistakes to avoid when buying senior life insurance
By the end, you’ll know exactly which policy fits your needs and budget.
Why Do Seniors Over 60 Need Life Insurance?
Many seniors assume they no longer need life insurance, but here’s why it’s still valuable:
✅ Cover Final Expenses – The average funeral costs 7,000–7,000–12,000, which can burden family members.
✅ Pay Off Debts – Avoid leaving behind mortgages, credit card debt, or medical bills.
✅ Supplement Retirement Income – Some policies (like whole life) build cash value.
✅ Leave an Inheritance – Provide tax-free money to children or grandchildren.
✅ Cover Estate Taxes – High-net-worth individuals may need coverage for tax liabilities.
Best Types of Life Insurance for Seniors Over 60
1. Term Life Insurance
- Best for: Seniors in good health who want affordable, temporary coverage.
- Coverage Length: 10, 15, or 20 years.
- Pros: Lowest premiums, fixed rates, simple approval.
- Cons: Expires if you outlive the term; no cash value.
- Average Cost: 80–80–200/month for a $100,000 policy.
Best Companies:
- Haven Life (easy online approval)
- Banner Life (competitive rates for healthy seniors)
2. Whole Life Insurance
- Best for: Seniors who want lifelong coverage + cash value growth.
- Coverage Length: Lifetime (as long as premiums are paid).
- Pros: Fixed premiums, guaranteed death benefit, cash value accumulation.
- Cons: 3–5x more expensive than term.
- Average Cost: 200–200–500/month for $50,000 coverage.
Best Companies:
- Mutual of Omaha (strong financial ratings)
- New York Life (best for dividends)
3. Guaranteed Issue Life Insurance
- Best for: Seniors with health issues (no medical exam required).
- Coverage Length: Lifetime (but often has a 2-year waiting period).
- Pros: No health questions, guaranteed approval.
- Cons: Low coverage (5K–5K–25K), high premiums.
- Average Cost: 50–50–150/month for $10,000 coverage.
Best Companies:
- AIG (flexible options)
- Colonial Penn (popular for seniors)
4. Final Expense (Burial) Insurance
- Best for: Seniors who only need coverage for funeral costs.
- Coverage Length: Lifetime (smaller payouts, 5K–5K–25K).
- Pros: Easy approval, fast payouts.
- Cons: Limited benefits, higher cost per dollar of coverage.
- Average Cost: 30–30–100/month for $10,000.
Best Companies:
- Gerber Life (trusted brand)
- Transamerica (good customer service)
Best Life Insurance Companies for Seniors Over 60 (2025)
| Company | Best For | Coverage Range | Health Requirements |
|---|---|---|---|
| Mutual of Omaha | Whole life & term | 2K–2K–100K+ | Moderate underwriting |
| AIG | Guaranteed issue | 5K–5K–25K | No medical exam |
| New York Life | Cash value growth | 10K–10K–1M+ | Strict underwriting |
| Haven Life | Affordable term | 50K–50K–1M | Online approval |
| Colonial Penn | Final expense | 5K–5K–50K | No medical exam |
How Much Does Life Insurance Cost After 60?
Your age, health, and coverage type significantly impact premiums. Here’s a cost breakdown:
Sample Monthly Premiums for a $100,000 Policy
| Age | Term Life | Whole Life | Guaranteed Issue |
|---|---|---|---|
| 60 | 80–80–150 | 250–250–400 | 150–150–300 |
| 65 | 100–100–200 | 300–300–500 | 200–200–350 |
| 70 | 150–150–300 | 400–400–700 | 250–250–400 |
*Note: Smokers pay 2–3x more than non-smokers.*
How to Get the Best Rates
- Compare Quotes – Use an independent broker (Policygenius, SelectQuote).
- Improve Health – Losing weight or quitting smoking can lower premiums.
- Choose Shorter Terms – A 10-year term is cheaper than 20-year.
- Avoid Guaranteed Issue if Possible – Only use if you’re denied traditional coverage.
Common Mistakes to Avoid
❌ Waiting Too Long – Premiums increase 8–10% yearly after 60.
❌ Not Disclosing Health Issues – Could lead to claim denials.
❌ Buying Too Little Coverage – Ensure it covers debts + final expenses.
❌ Ignoring Riders – Look for accelerated death benefits (for terminal illness).
Final Verdict: Best Policy for Seniors Over 60
- Best Overall: Mutual of Omaha (reliable whole life + term options).
- Best for No Medical Exam: AIG Guaranteed Issue.
- Most Affordable Term: Haven Life.
- Best for Cash Value: New York Life.