Skip to Content
Multigenerational family talking on couch representing that different stages require different insurance policy types.
Policy Types

Senior life insurance

You might think that once you hit retirement you don't need life insurance. However, it might be a good idea for some. Here's what you need to know about life insurance as you approach your golden years.
As you get older, your life insurance needs can change. A young and healthy single 20-year-old and a 50-year-old who is married with a few kids will look at life insurance in different ways.

Generally, as people get older in life and begin to move into retirement age and beyond, things change. Your children are likely grown and you have less debt to worry about. However, for some seniors, life insurance is still something they want to consider to cover burial costs or to leave behind financial protection for loved ones.

Here's what you need to know about life insurance so you can determine if it's right for your needs.

What is senior life insurance?

Senior life insurance isn't one type of policy, but more of a broad term that describes different types of life insurance policies that seniors may consider.

Some common examples include burial or final expense insurance. As the costs of funeral and burial expenses rise, many seniors take out a policy to cover them so that their loved ones don't have to pay for the costs.

This type of life insurance can provide an extra layer of coverage to older Americans, especially if you have a term life insurance policy that could run out at age 70, for example.

What kinds of life insurance policies might seniors consider?

With life insurance, there are many different types of policies. If you're looking for  life insurance to cover your burial and funeral, you may want to consider:
  • Traditional life insurance: If you are in good health and under a certain age, you may qualify for a traditional life insurance policy with affordable premiums. This type of policy can help your beneficiaries cover the costs of your final expenses.
  • Simplified issue policy: If you have medical conditions that could make it difficult for you to qualify for a traditional life insurance policy, or if you've been turned down for coverage in the past, this may be a good option. A simplified issue policy allows you to apply for coverage and bypass the medical exam — however, premiums tend to cost more.
  • Guaranteed issue policy: A guaranteed issue policy will provide some amount of coverage. The only requirement for this policy is that you pay your premiums on time. However, because there are no qualifications, premiums tend to be substantially higher than other life insurance policies.

How do I qualify for coverage?

In the case of final expense life insurance, policies are typically offered two ways: simplified or guaranteed issue policies. Even though you might not need to complete a full medical exam, you will likely need to answer a medical questionnaire with your application, which might determine your rates.

How much coverage do I need?

Today, the average funeral costs nearly $8,000. Additional costs can vary depending on the type of funeral and burial you'd like. If you want to have a service and viewing that goes beyond most basic funeral service packages, you'll need to cover those costs.

So, it might not hurt to consider the type of funeral and burial you'd like, and even contact your local funeral home to discuss potential costs.

Do I really need senior life insurance?

While many seniors may consider these policies, they are not for everyone. Depending on your needs, you might have other ways to pay for these final expenses, such as:

  • Having the available funds set aside for your final expenses
  • Having long-term care insurance
  • Having made pre-paid arrangements with a funeral home
  • As you age, you may start to think about the costs associated with your final expenses. You may also start to worry about leaving this financial burden to your spouse and other loved ones.

Getting a life insurance policy can help cover these costs and provide some peace of mind knowing your loved ones will have the funds to pay for your funeral during a stressful time.

 

WEB.1549.06.15

Arrows linking indicating relationship

Related Articles

Man at auto dealership receiving the keys to a new car.

What is asset protection?

Learn more
Woman in glasses, smiling, doing work at a desk.

Comparing term life insurance policies

Learn more
A young toddler holding her dad’s hand while walking into a room.

The guaranteed insurability rider: Affordable life insurance options

Learn more

All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax-related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.