Final expense insurance for people over 60

Why your 60s are a common time to buy

Many people buy final expense insurance in their 60s because work-based life insurance ends at retirement. Group coverage often stops or becomes expensive to convert when you leave your job.

You are still in the lower half of the age range most carriers accept, which runs to 85. That means more carrier choices and lower fixed premiums than you will see in your 70s.

Final expense also fills a different role than a big policy. It is sized for one known cost, the funeral and last bills, so the benefit is small and the premium is set for life.

Policy types and limits at 60 to 69

A level benefit policy pays the full face amount from the first day. Mutual of Omaha's Living Promise level plan issues at ages 45 to 85, and Foresters PlanRight issues at 50 to 85 for $5,000 to $35,000.

Face limits begin to step down in this decade. Transamerica allows up to $40,000 on its Immediate Solution from 56 to 65, then $30,000 from 66 to 75.

If you do not qualify for a level plan, graded and guaranteed issue plans are still open. Gerber Life's guaranteed policy issues from 50 to 80 for $5,000 to $25,000 with no health questions.

How health questions change in your 60s

The questions are the same at every age, but more applicants in their 60s answer "yes" to one. Common examples are recent heart procedures, insulin use with complications, COPD treated with oxygen, or cancer treatment in the last two to three years.

Carriers usually sort answers into tiers. On Mutual of Omaha's Living Promise application, a "yes" in Part One means no coverage, a "yes" in Part Two means the graded plan only, and all "no" answers mean the level plan.

Well-controlled conditions such as high blood pressure or type 2 diabetes on pills often still qualify for level coverage. See our pages on diabetes, heart disease and COPD.

The graded period gets shorter at 65 with one carrier

Some carriers change the rules at 65. American Amicable's Senior Choice return-of-premium plan pays premiums plus 10% interest for death in the first three years for issue ages 50 to 64, but only the first two years for issue ages 65 and up.

So if you need a return-of-premium plan, applying at 65 rather than 64 can shorten the waiting period by a year. Accidental death pays the full face amount in every year on that plan.

How much coverage to buy in your 60s

Total the funeral, cemetery and last bills. NFDA reports a 2023 median of $8,300 for a funeral with viewing and burial, before cemetery charges, and $6,280 with viewing and cremation.

A simple direct cremation costs much less, while a burial with plot, vault and headstone can cost more than double the funeral median. Our cost guide shows how coverage amount changes the premium.

For many people in their 60s, $10,000 to $25,000 covers a funeral and last bills. If you also carry a mortgage, compare a term policy at age 60 rates for that need.

Fitting premiums into a retirement budget

Pick a premium you can pay for life on your expected retirement income, not your current paycheck. A whole life policy only pays if it is still in force.

If you are still working, a limited-pay plan can finish the payments early. Transamerica's 10-Pay Solution, for example, issues to age 85 and stops premiums after 10 years.

Ask what happens if money gets tight later. Transamerica's brochure lists a reduced paid-up option, which keeps a smaller policy in force with no further premiums instead of letting it lapse.

Buying now vs waiting

Waiting costs money twice. The rate rises with age, and a new diagnosis can move you from a level plan to a graded one.

In Mutual of Omaha's Living Promise level table, a 65-year-old man pays about 31% more per $1,000 than a 60-year-old, and a 70-year-old pays about 34% more than a 65-year-old. Exact rates vary by carrier and state.