Eligibility and Common Policy Types
At age 73, most insurers still offer coverage, but options narrow to policies that accommodate higher age and potential health issues. The primary products are guaranteed‑issue whole life, simplified issue whole life, and final‑expense (burial) insurance. Traditional term policies are rarely available because the risk period exceeds typical term lengths, though a short‑term (10‑year) policy may exist for exceptionally healthy applicants.
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How Premiums Are Determined
Premiums for seniors depend on age, health status, gender, and the amount of coverage. Because the insurer assumes a higher probability of payout, rates increase sharply after age 70. Guaranteed‑issue policies, which require no medical exam, carry the highest per‑dollar cost, often double or triple that of a medically underwritten whole‑life policy for the same face amount.
Pros and Cons of Each Option
Choosing the right policy involves weighing cost against benefits such as cash value, guaranteed payouts, and underwriting simplicity.
- Guaranteed‑Issue Whole Life: Accepts all applicants, no exams, but premiums are steep and the death benefit may be reduced if the policy lapses early.
- Simplified Issue Whole Life: Requires a brief health questionnaire; slightly lower rates than guaranteed‑issue but still higher than standard whole life.
- Final‑Expense Insurance: Designed for burial costs, typically $5,000‑$25,000 coverage; premiums are modest, and eligibility is broad.
Cost Comparison Table
| Policy Type | Typical Monthly Premium (USD) | Coverage Range | Medical Underwriting |
|---|---|---|---|
| Guaranteed‑Issue Whole Life | $150‑$300 | $10,000‑$50,000 | None |
| Simplified Issue Whole Life | $120‑$250 | $10,000‑$100,000 | Short questionnaire |
| Final‑Expense Insurance | $70‑$130 | $5,000‑$25,000 | None or brief questionnaire |
Factors That Can Lower Costs
Even at 73, certain steps can reduce premiums. Maintaining a healthy lifestyle—non‑smoker, controlled blood pressure, and stable weight—improves eligibility for simplified issue policies. Purchasing a policy with a smaller face amount or opting for a shorter payment period (e.g., paying premiums for 10 years instead of lifelong) also trims costs.
Application Process Overview
The application typically involves:
Approval for guaranteed‑issue policies is usually instant, while simplified issue may require a few business days for underwriting.
When Life Insurance May Not Be Necessary
If the primary goal is to cover funeral expenses and there are sufficient savings or a pre‑paid burial plan, a standalone final‑expense policy might be redundant. Additionally, if the individual's estate is modest and there are no dependents, the financial benefit of a larger whole‑life policy diminishes.