Best Cheap Life Insurance for Seniors in 2025: Top Affordable Plans
Life insurance after 60 doesn’t have to be a financial burden. Seniors in 2025 have more affordable and flexible life insurance options than ever before. Whether you’re in great health or facing a few medical challenges, there’s likely a budget-friendly plan.
According to the National Association of Insurance Commissioners (NAIC), more than 55% of seniors aged 60+ are either underinsured or not insured at all—despite the rising demand for final expense and simplified issue policies. In fact, LIMRA’s 2024 Life Insurance Report showed that life insurance applications among seniors rose 9.6% last year alone, indicating a growing awareness of the need for coverage later in life.
What is Cheap Life Insurance for Seniors?
Let’s make one thing clear—cheap life insurance doesn’t mean bad life insurance.
“Cheap” in this case means affordable premiums, often $15 to $50 per month, depending on age, health, and coverage amount.
Most seniors look for:
- Final expense insurance (aka burial insurance)
- Term life insurance (limited years, low cost)
- Guaranteed issue (no medical exam)
- Simplified issue (short health questionnaire)
Types of Life Insurance for Seniors
1. Final Expense Insurance
- Best for: Seniors age 60–85
- Average coverage: $5,000 – $25,000
- Cost: $25–$70/month
- Medical exam: ❌ No
- Why it’s cheap: Low coverage amounts
This policy is mostly used to cover funeral costs, medical bills, or small debts.
2. Term Life Insurance
- Best for: Healthy seniors up to age 75
- Coverage: $25,000 – $250,000+
- Cost: $30–$80/month
- Medical exam: Optional
- Why it’s cheap: Time-limited, often 10–20 years
Term life is best if you want larger coverage for a limited time, like paying off a mortgage or leaving money to a spouse.
3. Guaranteed Issue Life Insurance
- Best for: Seniors with serious health issues
- Coverage: $2,000 – $25,000
- Cost: $40–$120/month
- Medical exam: ❌ Never
- Why it’s cheap (but not always): Acceptance is guaranteed, but cost per $1,000 of coverage is higher
Good for peace of mind if you’ve been declined elsewhere.
4. Simplified Issue Life Insurance
- Best for: Seniors in fair or good health
- Coverage: $5,000 – $100,000
- Cost: $25–$85/month
- Medical exam: ❌ No, just a few health questions
- Why it’s cheap: Faster underwriting, moderate risk
Learn More: AT&T Internet for Seniors: AT&T Cost Senior Internet & Cost
Best Cheap Life Insurance Companies for Seniors in 2025
Here’s the top-rated, low-cost life insurance providers for seniors this year, based on affordability, flexibility, and ease of application.
| Company | Best For | Age Range | Monthly Cost (Avg.) | Max Coverage | Medical Exam |
|---|---|---|---|---|---|
| Mutual of Omaha | Final expense | 45–85 | $23–$72 | $40,000 | No |
| AARP/New York Life | AARP members | 50–80 | $28–$88 | $100,000 | No |
| Colonial Penn | Guaranteed issue | 50–85 | $9.95/unit (~$60 for $10k) | $25,000 | No |
| Globe Life | Very low intro rates | 55–80 | $3.49–$59 | $50,000 | No |
| State Farm | Term and whole life | 50–75 | $35–$110 | $250,000+ | Yes (optional) |
| Transamerica | Flexible coverage | 60–85 | $30–$90 | $50,000 | No |
| AIG | Guaranteed issue, no health Qs | 50–80 | $40–$120 | $25,000 | No |
Reviews : 68-Year-Old Woman in Florida
- Health: Mild high blood pressure, non-smoker
- Looking for: $15,000 final expense
- Company Chosen: Mutual of Omaha
- Monthly Premium: $42/month
- Policy Type: Whole life, no exam, pays out within 48 hours of death
- Reason: Simple process, low cost, fixed rate for life
How Much Does Life Insurance Cost for Seniors?
Premiums increase with age, but many seniors are surprised how affordable it can still be.
Here’s a sample breakdown (non-smoker, female, fair health):
| Age | Final Expense ($10k) | Term Life ($100k/10 years) |
|---|---|---|
| 60 | $28/month | $41/month |
| 65 | $35/month | $57/month |
| 70 | $44/month | $76/month |
| 75 | $60/month | $102/month |
| 80 | $72/month | Not available at most companies |
If you’re 75 or older, go for final expense or guaranteed issue plans.
Pros of Cheap Life Insurance for Seniors
- Fixed premiums: No surprises as you age
- Peace of mind: You won’t leave loved ones with debt
- No medical exam: Most policies skip the needles and labs
- Quick approval: Some policies start within 24–48 hours
Cons to Watch Out For
- Low coverage caps: Most stop at $25k
- Two-year waiting period: On guaranteed issue plans
- Higher cost per dollar: Especially for older seniors
- Tricky marketing: Beware of misleading “$9.95 per unit” ads
What Seniors Should Consider Before Buying?
Ask yourself:
- Do I need this insurance to cover final expenses only, or leave money behind?
- Can I comfortably afford the premiums for the rest of my life?
- Am I okay with a waiting period, or do I need immediate coverage?
- Have I compared at least 3 companies?
Tips to Get the Best Cheap Life Insurance as a Senior
- Apply Sooner, Not Later – Rates go up every year.
- Don’t Overbuy – Only get what you need (ex: $10k for funeral).
- Work with a Licensed Independent Agent – They can compare multiple carriers.
- Bundle with Spouse – Some companies offer joint discounts.
- Skip Colonial Penn’s “unit” plan – You get less coverage than it sounds like.
What Should You Do Next?
If you’re a senior in 2025 and you’re thinking about life insurance, you’ve got more options and flexibility than ever before. The key is to:
- Act quickly while you’re still in good enough health
- Choose a policy that fits your exact needs
- Compare rates before signing anything
You don’t have to spend hundreds per month to protect your family—just make a smart choice, and you’ll sleep better knowing you’ve got it handled.
FAQs
What’s the cheapest life insurance option for seniors in 2025?
Final expense insurance is usually the most affordable, starting at $25/month for $10,000 in coverage.
Can seniors over 80 still get life insurance?
Yes, companies like Mutual of Omaha and AIG offer policies for seniors up to age 85—with no medical exam.
What’s the catch with “guaranteed issue” policies?
They often have a 2-year waiting period before they pay the full death benefit (unless death is accidental).
Is it worth buying life insurance at 75 or 80?
Yes—if you want to avoid leaving funeral costs or debts to your family. Just be mindful of the premiums.
