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How to Choose the Best Senior Life Insurance Company

Seniors who have worked a lifetime to build their financial assets often don’t need a large amount of life insurance. In many cases, they no longer have loved ones who are financially dependent on them, so they don’t need to replace lost income. But many older adults still want an added layer of protection to help ensure their loved ones aren’t left with a heavy financial burden to cover their final expenses.

That’s why seniors benefit from working with a senior life insurance company that caters to their unique needs. The policies offered by these providers have a variety of coverage options even for those in their 80s, meaning there are plans available no matter how big of a policy you need or your budget for paying monthly premiums. This guide explains everything you need to know about choosing a senior life insurance company like Lincoln Heritage Life Insurance Company

What Is a Senior Life Insurance Company?

Senior life insurance companies offer coverage to older adults, including those who aren’t in good health. They offer one or more types of life insurance for seniors 60 and over, although the options vary depending on the provider. Some companies offer life insurance for seniors in their 80s, while others have a cutoff age of 70 or 75.

While younger adults often buy insurance with a death benefit that will cover their lost income if they die suddenly, policies from senior life insurance companies are only meant to cover certain final expenses. They typically come in smaller amounts than what people buy in their 30s and 40s and pay for costs like your funeral, medical bills, and outstanding loans.

How to Choose a Senior Life Insurance Company

Before you narrow down your options for a policy type, it’s important to research the senior life insurance companies you’re considering working with. Not every provider has the products, services, and experience to help you find the right policy for your needs, and not all companies will ensure your loved ones receive your death benefit quickly after you pass away.

To find the best senior life insurance company, make sure it has:

  • Policy options with the right amount of coverage you need at a price you can afford
  • High ratings and rave reviews from clients
  • A quick claims process that gives your beneficiaries the funds they need in as little as 24 hours
  • A long business history
  • Features that make it easy to manage your life insurance policy on your computer, smartphone, or tablet

How to Qualify for Coverage from a Senior Life Insurance Company

Every senior life insurance company has different requirements for coverage. You don’t always have to take a medical exam or even complete a health survey to purchase a policy, but if a provider qualifies you as healthy, you’ll pay lower rates than if you skip taking a medical test. Plus, if you don’t provide any health information, there will be a waiting period before your loved ones can receive your death benefit.

Policy Type Requires Medical Exam Requires Health Questionnaire Offers Plans with No Waiting Period
Burial or Funeral (Final Expense)  
Term
Guaranteed Issue      
Guaranteed Universal      

How to Choose a Senior Life Insurance Policy

The best way to choose a senior life insurance policy is to decide how much coverage you need. You’ll need to consider how large of a death benefit you need and if you want a   policy with an accumulated cash value. To figure this out, think about what your loved ones will use the policy funds for. They may need the money for one or more of the following:

 

  • Final expenses: With the average cost of a funeral being $9,000 or more and because most cremations cost at least $2,000, it’s helpful to have funds that cover your memorial service, funeral, burial or cremation, and other associated costs.
  • Medical bills: Older adults often leave behind medical bills their family members must pay when they pass away.
  • Outstanding debts: Large debts like mortgages, auto loans, and personal loans will need to be paid by your estate.
  • Estate taxes: If taxes need to be paid on your estate, life insurance can cover them so your loved ones don’t have to.
  • Inheritance: Life insurance makes it possible to leave larger inheritances to your heirs outside what your estate provides.
  • Asset liquidity: If you have physical assets you want your loved ones to keep after you die, such as your family home, life insurance provides cash to pay your estate taxes without the selling of your property.
  • Lost income: If you receive a pension or another source of income your spouse depends on, life insurance can help replace it.
  • Charitable donation: Part of your policy can be left as a gift to your favorite charitable organizations.

 

Once you determine the policy size you need, keep these things in mind when choosing your product:

 

  • Look for a policy that offers the full death benefit as soon as you sign up. Some permanent policies have a waiting period of a few years before your loved ones will receive your death benefit. For example, guaranteed policies have a waiting period because they don’t require a medical exam, making them a riskier investment for senior life insurance companies. Buying a policy in your younger years when you’re in good health helps ensure you won’t be limited to policies with a waiting period.
  • Get quotes and cost breakdowns. The insurance agent you speak with should provide you with information about the exact costs you’ll pay over the life of your policy. If you’re interested in a cash value (permanent) policy, ask for information about the accumulated cash value’s historical performance.
  • Consult loved ones and trusted advisors. In addition to the senior life insurance company specialist you speak with, take some time to discuss the coverage options you’re considering with a family member, financial planner, or other trusted advisor.

 

FAQs

What policies are available from senior life insurance companies?

There are two main types of policies offered by senior life insurance companies. Both are permanent life insurance, meaning the policies don’t expire and have a cash value component:

 

  • Final expense insurance, also called burial or funeral insurance, is a whole life policy used to cover final arrangements, including your memorial service, funeral, and related costs. These typically come in smaller policy sizes than other types of senior life insurance policies, usually between $5,000 and $20,000. You can also buy a policy without taking a health exam by answering a brief health questionnaire.
  • Guaranteed issue life insurance offers coverage to individuals without any type of health exam. For this reason, the premiums tend to be high while the policy amounts are relatively small. Plus, they have a graded death benefit, meaning there’s a waiting period before the full death benefit is available to your beneficiaries. These are usually a last-resort option for seniors who are in poor health and don’t qualify for other types of policies.

 

Some companies also offer term life insurance to seniors up to a certain age, usually 60 or 65. These policies don’t accumulate a cash value, and they often have a strict term limit of 10, 15, or 20 years. The older you are, the smaller term limit you’ll qualify for (if you’re even eligible). If you outlive your policy into your 80s or 90s, it will be difficult to requalify for a term policy and more expensive to buy permanent life insurance.

How much does senior life insurance cost?

The cost of senior life insurance varies widely depending on your provider, policy type, and benefit amount. Life insurance for seniors can be as little as $20 per month for healthy seniors in their 60s who buy a final expense policy, while guaranteed policies may run $400 per month for the same amount of coverage.

What are the policy amounts from senior life insurance companies?

In general, senior life insurance benefits range from $5,000 to $20,000. Seniors usually don’t need a large amount of life insurance to replace their lost income, pay off large debts, or cover living expenses for dependants. Policies from senior life insurance companies are meant to pay for specific final expenses, like your funeral, medical bills, or estate taxes, so they’re usually much smaller than policies that cater to younger adults who are just starting out in life.

How do I get a quote from a senior life insurance company?

The best senior life insurance companies offer free quotes to those who fill out a simple online form. You’re usually required to enter information such as:

 

  • Your contact information
  • Your age
  • Desired death benefit amount
  • Depending on the policy type, answers to basic health questions

From there, a senior life insurance specialist will contact you with quotes for the policies you qualify for. For a free quote from Lincoln Heritage Life Insurance Company, complete this form.

When are you too old to buy life insurance?

You can generally purchase term life policies if you’re 80 or younger. However, the length of the policy won’t be as long as what you can buy earlier in life. Plus, if you outlive the policy, you’ll need to buy new coverage, and you may no longer qualify for term insurance based on your age.

Some providers sell permanent life insurance to seniors as old as 85. While the premiums will be higher, you can keep costs down by purchasing a smaller sized policy designed to cover your final expenses, such as funeral or burial insurance.

Why Seniors Should Choose Lincoln Heritage Life Insurance Company

Lincoln Heritage Funeral Advantage has provided protection to families for over 55 years. Our commitment to our clients speaks for itself in our A+ rating from the Better Business Bureau (BBB) and client testimonials. If you want to work with a senior life insurance company that will provide you and your loved ones peace of mind and compassionate service at an affordable price, contact Lincoln Heritage Life Insurance Company.

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