Cheapest Life Insurance Companies & Policies for Seniors

Finding the cheapest life insurance policy as a senior is more challenging but there are affordable options. Life insurance becomes significantly more expensive as you age, particularly for high coverage amounts.due to age and health related risks.

• Term Life Insurance:  Seniors will want to opt for lower term lengths (e.g. 10 years) and lower coverage amounts ($100k-$250k) to get the cheapest rate.  Hig coverage amounts for a long term period will be expensive.  You will need a medical exam to get the cheapest rate.
• Guaranteed Acceptance:  This type of policy doesn't have a term limit, it remains in affect as long as you pay your premiums.  This is a  cheaper life insurance type for seniors and doesn't requiere a medical exam, but has much lower coverage limits (typically $10k to $50k)
• Final Expense Insurance: A permanent policy designed for burial and end-of-life costs. Coverage ranges from $5,000-$35,000. No medical exam required, just health questions. Premiums stay fixed and coverage lasts for life. Some policies have a 2-3 year waiting period before full benefits apply to natural deaths.

For seniors needed to cover minimal amounts of expenses and funeral costs after passing, guaranteed acceptance life insurance policies are a cheaper recommended option.

Guaranteed acceptance life insurance does not require medical exams or health questions, making it accessible to most seniors.  The payout is flexible meaning you can use it for all types of expenses, not just funeral costs as is the case with burial insurance.

For seniors ages 60, Ethos has the cheapest life insurance starting $20 per month for females and $29 for males with $10,000 of coverage. For seniors aged 70, Mutual of Omaha is the most affordable option for guaranteed acceptance life insurance with $10,000 coverage. 

MoneyGeek created a comparison table showing the cheapest guaranteed acceptance life insurance options for seniors aged 60, 70, and 80.

See our list of the best guaranteed acceptance life insurance companies.

Age is one of the biggest cost factors in determining your term life policy cost.  Term life insurance is affordable in your 50s and 60s, but becomes quite expensive into your 70s especially for coverage over $1M.  See the average cost by age below for a 10-year term policy.

GEICO and Transamerica offer the most affordable life insurance for adults aged 65 to 70. A 10-year term policy with a $250,000 coverage amount has an average monthly cost of $175 per month for a male.  Allstate has the cheapest rate for female seniors at $109 per month.

The table below shows the top providers that offer the cheapest term life insurance for seniors based on monthly costs for a 10-year $250,000 term policies.

Smokers often face higher life insurance premiums as they are statistically more likely to develop health complications, which makes them a higher risk to insure. As a result, insurance providers charge higher rates to offset this risk. 

GEICO and Transamerica are leading options for low-cost life insurance for older adults who smoke. For a 10-year term policy with a $250,000 coverage amount, both companies offer an average monthly rate of $389.08.

The table below shows average life insurance quotes for seniors who smoke.

Health status is a significant factor in determining life insurance premiums. Seniors with poor health often face higher premiums because their health conditions pose a higher risk to insurers. Chronic illnesses or serious health issues increase the likelihood of an earlier payout, prompting insurance companies to charge more to offset this risk.

GEICO and Transamerica are noted for providing the cheapest options for seniors with poor health, with an average monthly cost of $195.13.

The table below illustrates the average monthly cost of life insurance for seniors with poor health.

Some seniors opt for higher coverage amounts to ensure broader financial protection for loved ones that need ongoing financial support.  

Transamerica offers the cheapest life insurance for seniors needing high coverage amount with  a monthly rate of $589.05 for a 10-year term policy with a $1 million coverage amount. 

Use the table below to compare the average cost of life insurance for seniors looking for high coverage amounts, particularly a term policy with a $1 million coverage amount.

Seniors should consider life insurance in these situations:

1. Final expenses aren't covered - If you don't have enough savings set aside for funeral costs and end-of-life expenses (typically $7,000-$12,000)
2. You have dependents - If you have a spouse, disabled adult child, or others who rely on your income or care
3. You have outstanding debt - Including mortgage, personal loans, or medical bills that would burden your family
4. Estate planning needs - To provide inheritance, equalize estates among heirs, or cover estate taxes
5. Business succession - If you own a business that needs financial protection during ownership transition.

There are three less expensive life insurance policy types to choose from:  

Choose Guaranteed Acceptance (GA) when:

• You have serious health conditions that would disqualify you from traditional coverage
• You're primarily concerned with covering funeral/final expenses (typically $5,000-$25,000 needed)
• You're over 70 years old, when term options become extremely limited
• You can't or don't want to take a medical exam
• You need coverage quickly with minimal underwriting

Choose Term Life when:

• You're relatively healthy and can qualify (usually more affordable with better coverage)
• You need substantial coverage ($100,000+) for specific time-limited needs
• You have specific financial obligations ending within about 10 years
• You're younger (50s-60s) when term rates are still reasonable
• You want the most coverage for the lowest premium and can pass medical underwriting

Choose Final Expense when:

• You want permanent coverage specifically for burial and end-of-life expenses
• You need moderate coverage ($5,000-$35,000)
• You want simplified underwriting (health questions but no medical exam)
• You prefer fixed premiums that never increase
• You're concerned about lifetime coverage rather than term-limited protection
• You can accept a potential 2-3 year waiting period for full natural death benefits

See our rankings: 
Best Final Expense Life Insurance
Best Guaranteed Acceptance Life Insurance

Selecting the right insurance provider involves more than just finding the lowest senior life insurance rate. To ensure reliable and satisfactory coverage, seniors may want to:

• Evaluate Financial Strength: Investigate the insurer's financial stability. A solid financial rating indicates a firm's ability to fulfill claims reliably. Opting for a financially sound company can safeguard your investment.
• Assess Customer Service: Look at customer service reviews and testimonials. Superior customer support is essential for smoothly managing claims and policy adjustments. Providers with high customer satisfaction are often more responsive and supportive.
• Review Policy Details: Carefully read the terms of the policies. It's important to know the benefits, exclusions and premium obligations. Understanding these details can help you manage your life insurance costs effectively and prevent problems.

These steps help seniors secure a dependable life insurance provider that offers both value and stability.

Determining the right amount of life insurance for a senior depends on several personal factors and financial goals. Here’s how to calculate the appropriate coverage:

1. Assess Financial Obligations: Calculate any outstanding debts and potential final expenses to ensure your policy covers these essential costs. This assessment helps understand how much financial protection your beneficiaries might need.
2. Consider Income Replacement: Although many seniors may be retired, some life insurance can replace any income sources upon which others depend, helping to maintain your dependents' standard of living.
3. Plan for Estate and Tax Considerations: If you aim to leave money to heirs or have potential estate taxes, life insurance can provide the funds necessary to handle these expenses without burdening your estate.
4. Get Quotes and Compare Rates: Use tools to receive a senior life insurance quote and compare rates. This will help you gauge what amount of coverage you can obtain for a feasible price.

By addressing these considerations, seniors can tailor their life insurance coverage to fit their financial situation and effectively protect their loved ones.

MoneyGeek gathered the most frequently asked questions about life insurance for seniors to help you make a better financial decision.