life insurance for seniors14 mins read

Life Insurance for Seniors Over 70

An overview of life insurance types available to seniors over 70, including term, whole life, and burial insurance, with cost and coverage comparisons.

Tiatun Tiatun

Written by

Tiatun Tiatun

Founder of The Care Ratings

TCR Editorial Team

Edited by

TCR Editorial Team

Editorial Review Team

Published

Fact Checked
Older adult reviewing life insurance documents with a financial advisor at a desk

GPT Image 2 / The Care Ratings illustration.

Life Insurance for Seniors Over 70: Term, Whole Life, and Burial Insurance Options

Key Takeaways

  • Life insurance remains relevant for seniors over 70 because life expectancy at 65 is nearly 20 years, and funeral costs average $8,300 or more.
  • Term life insurance becomes significantly more expensive after age 70; whole life and burial insurance offer guaranteed acceptance but typically have high premium-to-benefit ratios.
  • Burial insurance (ages 50–85, no medical exam, $5,000–$25,000 typical coverage) is easy to qualify for but may cost as much in premiums as the policy pays out.
  • Life insurance proceeds bypass probate and reach beneficiaries quickly, unlike assets tied up in an estate. Some policies allow accelerated death benefits for long-term care costs.
  • Financial and insurance decisions are personal; consult a licensed insurance agent or financial advisor to determine what coverage, if any, fits your family’s situation.

Why Life Insurance Matters for Seniors Over 70

Many families encounter the question of life insurance for seniors over 70 only after a hospitalization or a conversation about end-of-life planning. The financial stakes are real. According to CDC data on older American health, life expectancy at age 65 is 19.7 years overall — 18.4 years for men and 20.8 years for women. That means a 70-year-old today is statistically likely to live well into their 80s, a long window during which coverage decisions carry lasting consequences.

CategoryValue
Ages 65–741,773 deaths per 100,000
Ages 75–844,264 deaths per 100,000
Ages 85+13,834 deaths per 100,000
Why life insurance premiums rise steeply with age: death rates per 100,000 increase dramatically from ages 65–74 to age 85+.

Source: CDC / National Vital Statistics System – Mortality Data (2024)

The CDC data tells insurers exactly why coverage becomes more expensive with age. Deaths per 100,000 population climb from 1,772.9 for adults ages 65–74 to 4,264.0 for ages 75–84 — and then to 13,834.0 for adults 85 and older. Insurers price that risk into every premium. For families navigating post-acute care after hospitalization or surgery, this financial planning question often surfaces at the same time as care decisions.

Beyond funeral costs, the core reasons seniors over 70 consider life insurance typically include: covering final expenses without burdening family members, replacing income for a surviving spouse, paying off remaining debts, and — in some policies — accessing living benefits to offset long-term care costs. What makes sense depends entirely on a family’s financial situation, health status, and existing assets. This article reports on what the products are, what they cost in approximate terms, and what limitations apply.

How Funeral Costs Shape the Life Insurance Decision

Median cost of funeral with burial

$8,300

Median cost of cremation with memorial service

$6,200

Median funeral costs in 2024: burial typically costs more than cremation, but both exceed $6,000.

Source: AARP, citing National Funeral Directors Association 2024 Report

Funeral expenses are often the most immediate financial burden a family faces after a death. According to AARP, citing the National Funeral Directors Association’s 2024 report, the median funeral with burial costs about $8,300, while cremation with a memorial service averages $6,200. Once cemetery fees, headstones, and flowers are factored in, the total frequently exceeds $10,000.

For many older consumers, a funeral ranks as their third-largest expense — behind only their home and car — and it is an expense many families have not set aside funds for. The timing compounds the problem. Most funeral homes expect full payment upfront, and funds tied up in probate may not be accessible for weeks or months after death.

That is where life insurance and burial-specific products play a structural role. A life insurance policy pays a lump sum directly to the named beneficiary and, unlike assets directed through a will, does not have to pass through probate. The payment typically arrives within days to weeks of claim submission — fast enough to cover funeral costs without forcing family members to front the bill.

Term Life Insurance: Low Cost, But Rising Premiums at Older Ages

Term life insurance provides coverage for a fixed period — typically 10, 15, or 20 years — and pays a death benefit only if the insured dies during that term. If the term ends and the policyholder is still alive, no benefit is paid. This structure makes term life the most affordable type of coverage for younger adults in good health, but the calculus shifts significantly after age 70.

The fundamental problem is actuarial: term life insurance premiums increase as the insured ages because the probability of death increases with age. The CDC mortality data above makes this concrete — an insurer covering a 75-year-old faces nearly 2.4 times the mortality risk compared to covering a 65-to-74-year-old. That risk is priced into every annual renewal or new policy application.

For seniors over 70, term life carries several practical constraints that families should understand:

  • Availability narrows with age. Many carriers limit new term policy issuance to applicants under a certain age. A 10-year term issued at age 75 would expire at 85; some carriers decline to issue new term policies to applicants in this age range altogether.
  • Premiums can be substantial. Because life insurance premiums for any type of policy are cheaper when purchased at a younger age, a senior buying a term policy at 70 or 75 faces rates that reflect their current age and health status — not the lower rates they would have paid decades earlier.
  • No cash value accumulates. Unlike whole life, term policies build no savings component. If the insured outlives the term, all premiums paid are gone.

For a senior whose primary goal is covering funeral costs or a modest debt, term life is generally not the most efficient product at this life stage. However, for a 70-year-old in excellent health who needs to replace income for a surviving spouse over a defined period, it may still be worth comparing quotes. The research dossier for this article did not locate whitelisted sources with current age-banded premium tables; families should obtain quotes directly from licensed insurers or a licensed insurance agent for specific figures.

Whole Life Insurance: Permanent Coverage With Cash Value

Whole life insurance covers the insured for their entire life — no term expiration — and includes a cash value component that grows over time. Some whole life insurance policies serve as investments by accruing cash value, which policyholders can borrow against or surrender for cash. Whole life combines a death benefit with a savings account that grows over time. That extra feature makes it more expensive than term insurance, but the policy never expires as long as premiums are paid.

For seniors over 70, whole life products typically come in two forms:

Simplified issue policies require answers to a short health questionnaire but no medical exam. Applicants with serious pre-existing conditions may be declined. Coverage amounts tend to be modest.

Guaranteed issue policies ask no health questions and accept all applicants within the eligible age range. The trade-off is higher premiums per dollar of coverage and, almost universally, a graded benefit period — typically two years — during which only a return of premiums (plus interest) is paid for death from illness. Full benefits for accidental death usually apply from day one.

As an illustrative example of product availability: AARP offers members access to permanent and term life insurance from New York Life with coverage ranging from $25,000 to $150,000. Their permanent life product allows members to apply for up to $50,000 in coverage without a medical exam. This is cited to illustrate what the market offers, not as an endorsement of any specific product or carrier.

Whole life is regulated at the state level; product availability, pricing, and underwriting standards vary by state. Seniors in states with stricter insurance regulations may have fewer product options.

Burial Insurance: Easy Qualification, But Watch the Premium-to-Payout Ratio

Approximate monthly premium for a 70-year-old man ($10,000 burial policy)

$70/month

Approximate monthly premium for a 70-year-old woman ($10,000 burial policy)

$53/month

Sample burial insurance premiums at age 70 for a $10,000 benefit show gender differences but relatively high ongoing costs.

Source: AARP, citing Choice Mutual insurance agency data (2025)

Burial insurance — also called final expense insurance — is a form of whole life insurance designed specifically to cover funeral and burial costs. It is typically marketed to adults ages 50 to 85 and does not require a medical exam, making it easier to qualify for than most other types of life insurance. Coverage amounts are small, generally ranging from $5,000 to $25,000 — enough to cover a funeral but not much more.

According to AARP, citing industry data from Choice Mutual, a 70-year-old man pays approximately $70 a month — $840 a year — for a burial policy with a $10,000 benefit. A 70-year-old woman pays approximately $53 a month, or $636 a year, for the same coverage. Those figures are illustrative of the market; actual premiums vary by carrier, state, and applicant health.

A man who buys a $10,000 burial policy at 70 and lives to 84 will have paid approximately $11,760 in premiums — more than the policy’s face value. AARP notes that many burial insurance policies have relatively high premiums and low payouts. The Funeral Consumers Alliance, a death-care industry watchdog group, advises against buying pre-need and burial insurance for this reason: consumers will often pay as much or more in premiums than the policy will pay out.

Three structural features of burial insurance that families should understand before purchasing:

  • Graded benefit period. Most guaranteed-issue burial policies include a two-year waiting period. If the insured dies from illness within that window, the insurer typically returns only the premiums paid, plus interest — not the full face value. Accidental deaths are usually covered in full from day one.
  • Fixed face value. Unlike term policies with adjustable coverage amounts, burial insurance face values are small and fixed. They cover a funeral; they do not replace income or pay off significant debts.
  • Medicaid planning consideration. Medicaid asset rules for prepaid burial funds vary by state. Families considering Medicaid-funded long-term care should consult a licensed elder law attorney before purchasing burial insurance or making prepaid funeral arrangements, as these may affect eligibility in their state.

When Life Insurance May Make Sense for Seniors Over 70

Life insurance is most relevant in specific circumstances.

Covering funeral costs without burdening survivors. When a senior has limited liquid assets, a life insurance policy or burial policy can ensure that funeral bills are paid quickly and without family members having to front the money from personal savings. Life insurance benefits are distributed directly to named beneficiaries and are not subject to probate. However, the specific timeline for receiving benefits depends on the insurer’s claims process. Families should discuss timing expectations with their insurance agent or beneficiary services representative.

Income replacement for a surviving spouse. If one spouse’s Social Security benefit or pension ends at death, the surviving spouse may face a significant income reduction. A whole life policy can partially offset that gap.

Paying for long-term care costs through living benefits. Some life insurance policies include riders or options called accelerated death benefits, which allow policyholders to receive a portion of the death benefit while still living. These are typically available only for terminal illness or long-term care triggers. Before considering this option, consult a tax professional and elder law attorney, as using an accelerated death benefit may have tax and Medicaid eligibility consequences. Accelerated death benefit payouts are typically up to 80% of the policy’s face value and reduce the amount available to beneficiaries when the policyholder dies. They may not be available to policyholders with certain pre-existing conditions.

Only 3 to 4% of adults over age 50 have some form of long-term care insurance, according to AARP citing LIMRA. Life insurance with living benefit riders is one of the few available products that can partially address this gap. Families weighing these options may also be managing other complex decisions, such as coordinating care among multiple providers, where the same planning mindset applies.

Life settlements — selling an existing policy to a third party for a lump sum greater than its cash surrender value — are sometimes mentioned as an option for seniors who no longer need coverage. The dossier’s most recent life settlement source is from 2010 and falls outside the freshness window for this article. Families interested in this option should consult a licensed financial advisor and verify current market terms independently.

Key Questions to Ask Before Buying Any Policy

Before any senior or their family member considers a life insurance or burial insurance product, these questions can help clarify what you need and how each product works.

What will actually happen to your assets at death? Funds held in bank accounts, retirement accounts, or investment accounts transfer differently than assets directed through a will. Most funeral homes expect full payment upfront, so the availability of liquid funds at the moment of death matters. Life insurance proceeds reach the beneficiary faster than probate assets.

What type of policy is available at your age and health status? Burial insurance typically covers death-related costs; pre-need insurance is intended to cover a predetermined amount for a funeral arranged in advance. Whole life and guaranteed-issue products are generally more accessible for seniors over 70 than new term policies, but they carry higher premiums per dollar of coverage.

What does the graded benefit period mean for your situation? For guaranteed-issue policies, the two-year graded benefit period is a critical detail. A senior in poor health who purchases a guaranteed-issue policy and dies within two years from illness may leave their family with only a return of premiums, not the full benefit.

How does this policy interact with Medicaid eligibility? For seniors who may need Medicaid-funded nursing home care in the future, the cash value of a life insurance policy may count as an asset. Prepaid burial arrangements structured under qualifying SSI rules may receive different treatment. State rules vary considerably.

What will this policy cost over your expected lifetime? Running the premium math matters. A $10,000 burial policy at $70 a month breaks even at roughly 12 years. If the senior is in their 70s and in average health, that math is not automatically unfavorable — but it should be understood before purchase.

For the questions this article cannot answer — specific carrier pricing, individual underwriting decisions, estate planning implications — a licensed independent insurance agent or a fee-only financial advisor who works with seniors is the appropriate resource. Some state insurance departments also offer free consumer assistance; the nursing home tour questions to ask framework on this site illustrates the same principle: knowing the right questions is the first step.

Disclaimer: This article provides general information about life insurance for seniors and is not financial, legal, insurance, or tax advice. Life insurance policies, eligibility rules, benefit amounts, premium structures, and program details vary by state, by carrier, and by individual circumstances. Do not rely on this article to make a purchasing decision. Before making decisions about life insurance, burial insurance, long-term care insurance, Medicaid planning, estate planning, or asset protection, consult a licensed elder law attorney, a fee-only financial advisor who specializes in senior care, an insurance agent, or your state insurance commissioner’s office. If you are considering Medicaid eligibility for long-term care, consult a qualified elder law attorney in your state to understand how these products and arrangements may affect your circumstances.

Sources cited in this article:

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