By Marc Gilman
Questions? Call (800) 927-9326 or email
Key Takeaways
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Not everyone over 65 needs life insurance. The right starting question isn’t your age — it’s whether a specific financial gap would open up for someone else if you passed away.
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A funeral is a real, immediate expense for whoever handles it. The most recent industry data (NFDA, 2023) puts the median cost at $8,300 for a funeral with viewing and burial, or $6,280 with cremation — and both have likely risen further since.
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Several distinct policy types exist for people over 65, each suited to a different need: term life, whole/permanent life, and final expense (burial) insurance, with guaranteed-issue and simplified-issue underwriting paths for those with health concerns.
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Federal estate tax now affects a much smaller group than it used to. After 2025’s OBBBA legislation, the federal exemption is $15 million per person ($30 million per married couple) — meaning very few estates owe federal estate tax. Some states still tax much smaller estates, though; Massachusetts, for example, taxes estates above $2 million.
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Guaranteed-issue policies skip health questions entirely but typically include a 2-year graded death benefit period, during which a non-accidental death pays out only a refund of premiums rather than the full benefit — a detail worth understanding before choosing one over simplified issue.
Start with the actual question: do you need it?
Life insurance after 65 isn’t a given, and it isn’t universally unnecessary either — it depends entirely on what would happen financially to the people around you if you weren’t there. A few honest questions tend to clarify this quickly:
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Would someone else be left covering your funeral and final expenses out of pocket?
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Do you carry debt — a mortgage, a co-signed loan — that wouldn’t disappear with you?
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Does a spouse depend on income that would stop, such as a pension without a survivor benefit, or your larger Social Security check?
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Do you want to leave a specific inheritance to family, or make a gift to a cause that matters to you?
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Is estate liquidity a concern — enough accessible cash for heirs to cover taxes or settlement costs without having to sell an asset quickly?
If none of these apply — no dependents, no debt, savings that comfortably cover your own final expenses — a policy may genuinely be unnecessary. For a lot of people, though, at least one of these still applies well into their 70s and 80s.
What a funeral actually costs today
For many seniors, the most immediate reason to consider coverage is also the most avoidable to plan for. According to the National Funeral Directors Association’s most recent complete study (2023), the median cost of a funeral with viewing and burial was $8,300, and $6,280 for viewing and cremation. Notably, funeral costs rose only 5.8% (burial) and 8.1% (cremation) between 2021 and 2023 — slower than the 13.6% general inflation rate over that same period, though both figures have likely climbed somewhat further since, given inflation since 2023.
It’s worth knowing what that median figure does and doesn’t include: it covers the basic service fee, transfer of remains, preparation of the body, a casket, use of the funeral home’s facilities and staff, and a basic printed memorial package. It does not include cemetery costs, a vault, a headstone or monument, or cash-advance items like flowers — all of which add to the real total a family ends up facing.
The policy types available after 65
Term life insurance provides coverage for a fixed period — commonly 10 or 20 years — and is generally the least expensive option for someone who qualifies in reasonably good health. It’s well suited to covering a specific, time-limited need: paying off a mortgage with a known payoff date, or bridging until a pension or other income source is secure. Most carriers cap the issue age for new term policies somewhere in the 75–80 range, so availability narrows as you get older.
Whole life (permanent) insurance provides coverage that lasts your entire life, with premiums that stay level and a cash value component that grows over time. It costs more than term for the same death benefit, but it doesn’t expire, which matters if the goal is guaranteed final expense coverage or a guaranteed legacy amount regardless of when you pass.
Final expense insurance (also called burial insurance) is a smaller whole life policy — typically in the $5,000 to $25,000 range — purpose-built to cover funeral and burial costs specifically, rather than serving as broader income replacement. Underwriting is usually simplified or guaranteed, making it accessible to people who might not qualify for larger traditional policies.
Guaranteed-issue and simplified-issue underwriting are the two paths available for people whose health might otherwise complicate qualifying. Simplified issue asks a short list of health questions but skips the medical exam — coverage is often available with same-day approval. Guaranteed issue skips health questions entirely, which means virtually everyone in the eligible age range qualifies, but it typically comes with higher premiums for the coverage amount and a graded death benefit period, commonly two years, during which a death from natural causes pays out only the premiums paid (often with modest interest), rather than the full face amount. Accidental death is usually covered in full from day one under both structures.
Estate taxes: a much narrower reason than it used to be
Life insurance has traditionally played a role in estate planning — providing heirs with liquid cash to cover estate taxes without having to sell property or investments quickly. That reason applies to far fewer people today than it did even a couple of years ago. Legislation passed in 2025 (the One Big Beautiful Bill Act) permanently set the federal estate tax exemption at $15 million per individual, or $30 million per married couple using portability — up substantially from prior levels, and no longer subject to the scheduled reduction that had been expected at the end of 2025. As a result, fewer than roughly 0.2% of estates nationally are projected to owe any federal estate tax at all.
That said, this isn’t the whole picture for everyone. Several states levy their own estate taxes at thresholds far below the federal number. Massachusetts, for instance, taxes estates above $2 million — a threshold that a primary home plus retirement accounts and other assets can reach more easily than most people expect, particularly for longtime homeowners. If estate liquidity is part of your thinking, it’s worth checking your specific state’s threshold rather than assuming the federal $15 million figure is the only number that matters.
How underwriting actually works at this age
Qualifying for coverage after 65 generally comes down to a mix of age, current health, and medical history — but “harder to qualify” doesn’t mean “impossible.” Simplified and guaranteed issue products exist specifically because insurers recognize that a meaningful share of applicants at this age have a health condition of some kind. Being turned down for one type of policy, or quoted a higher rate, doesn’t mean coverage isn’t available elsewhere — it often just means a different product or carrier is a better fit.
Gathering your medical history, current medications, and any recent hospitalizations before you apply can speed up the process regardless of which underwriting path you go through, and it gives whoever you’re working with a clearer picture of which products you’re likely to qualify for at a reasonable rate.
Questions worth asking before you buy
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What specific gap — funeral costs, debt, income replacement, legacy — is this policy meant to cover, and how much does that actually require?
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Does the coverage amount match that gap, or is it a round number that doesn’t map to anything specific?
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If you’re considering guaranteed issue, do you understand the graded death benefit period and what it means for the first two years?
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Would your health likely qualify you for simplified issue at a better rate, rather than defaulting to guaranteed issue?
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Does your state have its own estate tax threshold that changes the estate-planning calculation for your situation?
What To Do Next
If you’re trying to figure out whether coverage makes sense for your situation — and if so, which type actually fits — reach out and we’ll walk through it together.
Questions? Call (800) 927-9326 or email
This article is for general educational purposes and is not a recommendation to purchase any specific insurance product, nor tax or legal advice. Underwriting requirements, premiums, and available products vary by carrier, state, age, and health. Consult a licensed advisor and, for tax or estate matters, a qualified tax or legal professional to review your specific situation.
