Cheapest Life Insurance for Seniors Over 70 and 75: What Actually Lowers the Price

Short answer: There is no single “cheapest” life insurance company for everyone over 70. The price you pay depends mostly on your age when you apply, your health, whether you use tobacco, how much coverage you buy, and what type of policy you choose. For most people in their 70s, the lowest-cost path is to buy only the coverage you really need, apply as soon as you can, answer the health questions honestly so you qualify for the best rate class you can, and compare similar policies from more than one insurance company.

Why prices go up after 70

Life insurance is priced on risk. The Connecticut Insurance Department puts it plainly: the older you are when you buy, the more expensive the premiums. That is why waiting a year or two “to think about it” can cost you. Each birthday can move you into a higher price bracket, and a new health diagnosis in the meantime can limit which policies you can get at all.

The good news is that age is only one part of the price. Several other factors are partly in your control.

What insurance companies look at

State regulators list the same handful of factors again and again. Here is what usually matters, and how much you can do about each one:

Source: Connecticut Insurance Department; NAIC.

Which type of policy costs less?

This is where many seniors either save money or overpay.

Term life insurance covers you for a set number of years. The NAIC describes term as lower-cost coverage for a specific period, and most term policies build no cash value. The catch for older buyers: if you outlive the term, coverage ends, and the NAIC warns that renewed term premiums are higher. For someone in their 70s who wants coverage to last for the rest of their life, term can end up being the more expensive choice over time, or leave the family with nothing.

Whole life insurance (often sold to seniors as final expense or burial insurance) lasts for your whole life as long as premiums are paid. Premiums follow a set schedule and, on most final expense policies, do not go up with age. Coverage amounts are usually smaller, which keeps the monthly cost manageable. We explain this in more detail in What Is Final Expense Insurance?.

Simplified issue whole life asks health questions but usually no medical exam. If you can answer “no” to the health questions, this is often the most affordable permanent option for people in their 70s, and coverage typically starts on day one.

Guaranteed acceptance (guaranteed issue) whole life asks no health questions. That convenience costs more: premiums are generally higher for the same amount of coverage, and these policies usually include a waiting period before the full death benefit is paid for natural causes. It is a good safety net when health problems rule out other options, but it is rarely the cheapest choice for a reasonably healthy 70- or 75-year-old. See Burial Insurance With No Waiting Period for how waiting periods work.

How to lower your price (without losing the coverage you need)

Use this checklist before you buy:

• Figure out what the money is for. The NAIC says how much to buy depends on the financial needs that will continue after your death. For many seniors that means a funeral, a few final bills, and maybe a small cushion for family, not a large policy.
• Know what a funeral costs. According to the National Funeral Directors Association’s 2023 study, the national median cost of a funeral with viewing and burial was $8,300, and a funeral with viewing and cremation was $6,280. Prices vary a lot by area, so check with a local funeral home if you have one in mind.
• Do not overbuy. Every extra $1,000 of coverage adds to the premium. Covering the realistic need is the single biggest way to keep costs down.
• Apply sooner rather than later. Your age on the application date sets the price.
• Answer health questions honestly. You may qualify for a better rate class than you expect, and accurate answers protect your family’s claim later.
• Start with simplified issue if you can qualify. Only move to guaranteed acceptance if health questions rule you out.
• Compare similar policies. The NAIC notes that price is a major area of competition and recommends comparing similar policies from different companies. “Similar” matters: compare the same coverage amount and the same type of policy, and check whether there is a waiting period.
• Ask about payment options. Some insurance companies offer a small discount for paying by automatic bank draft or paying annually. This varies by insurance company and state.
• Don’t cancel an old policy first. The NAIC advises comparing your current policy with any new one and keeping the old one in force until the new one is in place.

What about over 80, 85, or 90?

The same rules apply, but choices narrow as age goes up. Many insurance companies stop issuing new policies somewhere in the 80s, and coverage amounts are usually smaller. We cover this age group in Life Insurance for Seniors Over 80.

Watch out for “too cheap” offers

Ads promising a very low price “for everyone” or a large benefit for a dollar or two a day often leave out the details: the coverage amount may shrink with age, the price may rise at certain birthdays, or a waiting period may apply. Before you buy, ask:

1. Exactly how much does the policy pay, and does that amount ever change?
2. Can the premium go up as I get older?
3. Is there a waiting period, and what is paid if I pass away during it?
4. Is this company licensed in my state? (Your state insurance department can confirm this.)

The NAIC also notes that most new policies come with a “free look” period, usually about 10 days, during which you can return the policy for a full refund. The exact length is stated in the policy and varies by state. If you’d like more on ads that sound too good to be true, read Is the $25,000 Final Expense Benefit Real?.

The bottom line

The cheapest life insurance for a senior over 70 is usually a modest whole life policy, sized to cover real final expenses, bought as early as possible, and compared across several insurance companies. Rates and options vary by insurance company and state, and your health answers make a big difference.

If you’d like help comparing options side by side, a licensed agent can look at your age, health, and budget and walk you through what’s available where you live, with no obligation to buy. Here’s how our free agent service works.

Frequently asked questions

What is the cheapest life insurance for seniors over 70?

It depends on your age, health, tobacco use and how much coverage you need. For many people in their 70s, a small simplified-issue whole life policy that covers final expenses is the most affordable way to stay covered for life.

Is term life insurance cheaper for seniors?

Term can cost less at first, but coverage ends when the term does, and renewal premiums are higher. For lifelong coverage after 70, whole life is often the better value.

How much life insurance does a 75-year-old need?

Enough to cover the costs that will remain after you pass. For many seniors that’s a funeral plus final bills. NFDA’s 2023 study put the median funeral with viewing and burial at $8,300.

Why is guaranteed acceptance life insurance more expensive?

Because the insurer asks no health questions, it charges more for the same coverage and usually adds a waiting period before the full benefit is paid for natural-cause deaths.

Sources

• Connecticut Insurance Department: Life and annuity insurance, what affects premium
• NAIC: A Consumer's Guide to Life Insurance
• NAIC Consumer Insight: Want to purchase life insurance? Tips to help you through the process
• NFDA: 2023 Member General Price List Study (released Dec. 8, 2023)

This article is for general education. Policy features, prices and eligibility vary by insurance company and state; your agent will explain the specific terms of any policy before you apply.