Term life or final expense: Which life insurance policy is better for seniors?

Key takeaways

Final expense insurance is permanent and easier to qualify for, but offers lower coverage.
Term life insurance provides more coverage for a lower price — if you’re still relatively healthy.
Seniors on fixed incomes may prefer final expense for its simplicity and guaranteed payout.
Think about your goals: Do you want to cover funeral costs, or leave a larger inheritance?
Policy cost and eligibility can vary significantly by age, health, and type of coverage.

What is final expense insurance?

If you're over 60, the right life insurance policy can bring peace of mind — and prevent your loved ones from taking on financial stress after you're gone. If you’re comparing term life insurance vs final expense coverage, it helps to understand how each works for your age and health profile. Final expense insurance is a type of permanent life insurance created specifically for older adults. It’s designed to cover funeral costs, unpaid bills, and small legacy gifts without requiring a full medical exam.

Why people choose it:

Coverage lasts your whole life
Easy to qualify for, even with health issues
Premiums stay the same for life
Payouts typically range from $5,000 to $40,000

Final expense insurance, also known as burial insurance, it’s a popular option for seniors who want simple, predictable protection. Final expense insurance for seniors is often used to cover end-of-life costs without affecting your family’s savings.

How term life insurance works after 60

Term life insurance covers you for a fixed period — often 10 or 20 years — and typically requires some health screening to qualify. It’s less common to see seniors over 75 approved, but many 60- to 70-year-olds can still get coverage.

What makes it appealing:

Provides higher death benefit amounts (often $100,000 or more)
Costs less than permanent insurance on a per-dollar basis
Suitable for covering debts, mortgage, or income replacement

The catch? Term life expires, so you’ll need to plan what happens if you outlive the policy.

Compare senior life insurance quotes →

Term vs. final expense: Key differences

Let’s break down burial insurance vs. term life so you can choose the right fit for your age, budget, and goals. Do these policies build cash value?

Unlike permanent policies like whole life or universal life insurance, neither final expense nor term life insurance builds cash value. That means you can’t borrow against them or receive a payout while you’re still alive. These policies are designed for affordable death benefit protection — not for long-term savings or investment growth.

Feature	Final Expense Insurance	Term Life Insurance
Coverage length	Lifetime	10–30 years
Coverage amount	$5,000–$40,000	$50,000–$500,000+
Health requirements	Minimal	Moderate to strict
Application process	No medical exam	Often includes medical exam
Use cases	Burial, medical bills, small debts	Income replacement, larger legacy
Age range	50–85	Up to 75 (varies by insurer)

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Methodology: Rates and eligibility ranges reflect internal Policygenius data and industry averages for applicants ages 60 to 80, current as of August 2025.

What kind of coverage fits your goals?

Final expense insurance may be a better fit if you:

Want guaranteed lifelong coverage
Only need $10,000–$20,000 in protection
Have a fixed income or chronic health condition
Value a quick, easy application process

Term life insurance may work better if you:

Are under 70 and in good health
Need higher coverage for a shorter time
Want to leave a larger inheritance or cover remaining debts
Can complete a medical exam (or qualify for no-exam term options)

Find the best life insurance for older adults based on your age, health, and goals.

Sample quotes for seniors

Here’s what real-world pricing looks like for life insurance for seniors over 60, based on average age, coverage, and health status. Learn more about life insurance for seniors and how your age impacts costs.

Even without exact quotes, it helps to know what factors impact your costs. Age, health, gender, and location all affect what you’ll pay — and what type of policy you can qualify for.

What else should you consider before you choose?

In general:

Term life typically offers more coverage per dollar, but requires better health and ends after a set term.
Final expense costs more per dollar of coverage but is easier to qualify for and lasts your lifetime.

No matter what you choose, it’s a good idea to compare policies — and talk to a licensed agent — so you know what your options really cost. Explore the best life insurance for older adults to protect your loved ones and finalize your estate plan with confidence.

Compare senior life insurance quotes →

This article is for informational purposes only and does not constitute financial advice. Always consult a licensed life insurance agent or financial advisor before choosing a policy.

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