Life insurance for seniors

Start with the purpose

• Final expenses and estate settlement — final expense or small whole life
• Leaving something to children or grandchildren — permanent coverage
• Covering a remaining mortgage — term, if the length is available
• Estate liquidity or tax planning — specialist advice, larger permanent policies
• Replacing a pension survivor benefit — depends on the amount and duration

What's typically available

Fully underwritten coverage remains available to many older applicants in reasonable health, and it generally offers the most coverage per dollar. It's worth trying first rather than assuming otherwise.

Simplified issue asks a short set of health questions. Guaranteed issue accepts within an age band without health questions at all.

The graded benefit detail

This causes more disappointment than anything else in this market. Guaranteed issue and some final expense policies are issued with a graded or modified death benefit: if death occurs from natural causes within an initial period, the policy typically returns premiums paid rather than the full face amount. Accidental death is usually covered in full from the start.

Not every policy works this way. Ask directly: is the full death benefit payable from day one, and if not, what exactly is paid and for how long?

Check what you already have first

• An old policy you'd forgotten — check for paid-up or reduced coverage
• A permanent policy with cash value you could use differently
• Coverage through a former employer or union
• A pension survivor benefit already in place
• Any policy a parent bought on you decades ago

Be wary of pressure

This market attracts high-pressure selling. Nobody should be rushing you, and you're entitled to take a policy away and read it during the free look period before committing.

If a conversation makes that difficult, that's information about the conversation.