While it is true that life insurance policies become more expensive as you age, many insurers will accept older adults even if they are not in perfect health. Here's what you need to know about shopping for life insurance as an elderly person.

Check to see if you require life insurance before you begin shopping. If you are debt-free and have adequate savings or funds set aside for final expenses, you may not require insurance at all. A life insurance policy may be appropriate if you:

• Have outstanding debts that others must repay.
• With your earnings, you can support a spouse, child, or other dependents.
• You want to pay for your own funeral and burial expenses.
• Have a large net worth and wish to avoid estate taxes.
• You wish to leave an inheritance to those you leave behind.

Types of life insurance for seniors

Term life: Cheapest option

If you're in good health for your age and willing to take a medical exam, a term life insurance policy could be a good low-cost option. Because term life insurance is only available for a limited time, it is best suited for covering debts such as a mortgage or providing financial support to a spouse or dependent if you die during the policy term.

If you shop for life insurance in your 60s and 70s, you can usually get a 10- or 20-year term life policy, but if you're over 80, you'll probably have a hard time finding term life coverage.

Whole life: Lifelong coverage

Whole life insurance can provide long-term peace of mind because the death benefit is paid regardless of when you die as long as you pay the premiums. Whole life, like other permanent policies, accumulates cash value by investing a portion of your premiums in a savings account. You can then withdraw the money or take out a loan against it. However, the cash value in life insurance can take a long time to accumulate — sometimes a decade or more.

This type of life insurance is typically more expensive than term products, particularly if purchased later in life. This is due to the fact that your health can deteriorate as you age and your life expectancy decreases, which means the insurer may have to pay out the policy sooner.

Guaranteed issue life insurance: No medical exam

Guaranteed issue life insurance, also known as senior life insurance or “final expense” insurance, has no medical requirements for acceptance. Medical exams are used by life insurance companies to better understand your health and predict your life expectancy, so policies that require them are typically less expensive. If your health prevents you from qualifying for coverage, however, no-medical-exam life insurance, such as simplified or guaranteed issue, may be a viable option.

These policies usually have a two-year waiting period before full benefits are available, which is known as a graded death benefit or limited benefit period. Unless you die as a result of an accident, your beneficiaries may not receive the full amount of your policy's death benefits during this two-year period. Instead, the insurer will either reimburse you for the premiums you paid plus interest, or pay you a lower amount. Because life insurance medical exams are usually free, they may be worthwhile even if you aren't in perfect health.

Simplified issue life insurance, on the other hand, does not require a medical exam and instead requires you to fill out a health questionnaire. Coverage is typically low, rarely exceeding $100,000.

Funeral insurance: Burial coverage

Funeral insurance, also known as pre-need insurance, is another option for seniors. These plans are typically purchased through funeral homes, and the payout is made directly to the funeral home to cover the cost of prearranged services.

Funeral insurance differs from burial insurance in that the death benefit is paid to life insurance beneficiaries of your choice, who can then spend the money however they see fit.

Guaranteed universal life insurance: Term and perm combination

Guaranteed universal whole life insurance combines term and permanent life insurance policies. Guaranteed universal, also known as "term for life," is similar to term coverage in that it expires after a set period of time. Instead of selecting a number of years to cover, you choose an age at which the policy will expire, such as 90, 110, or 121.

Although guaranteed universal life has lower monthly premiums than whole life, it still has a small cash value while providing high coverage amounts. Guaranteed universal policies typically necessitate passing a medical exam in order to qualify, and coverage is not guaranteed. The term "guaranteed" refers to a death benefit that is guaranteed as long as you pay your premiums.

Cost of life insurance for seniors

Finding low-cost life insurance for seniors can be difficult, as the cost of coverage typically rises with age. However, affordable options may be available, particularly if you are in good health. The following is the average cost of life insurance for older adults, including seniors over the age of 80:

Average monthly life insurance rates for senior women

Average monthly life insurance rates for senior men

How to shop for senior life insurance

Consider your financial goals and how much money you'll need to achieve them before deciding on the type of life insurance to purchase. A term life policy, for example, could cover mortgage payments or other outstanding debts that would become the responsibility of others if you died. If you want to pay for funeral expenses, a small whole life policy or pre-need insurance might be a good option because the death benefit is paid out regardless of when you die. Perhaps you want to leave a sizable inheritance to your loved ones by purchasing a guaranteed universal life insurance policy.

Before purchasing an insurance policy, consider the following:

1. Shop around. Compare monthly premiums and death benefits to ensure you're getting the best policy for your budget and financial objectives.
2. Work with a fee-only financial advisor to ensure you select the best policy for your needs, especially if you plan to buy life insurance with an investment component.
3. Pay close attention to the fine print. Make a note of important details, such as which causes of death are not covered and what happens if you are unable to pay your premiums.

Determine whether you require a rider.

Life insurance riders are optional features that can be added to a policy for an additional fee. Riders differ depending on the company and policy, but they typically include:

• Accelerated death benefit, where you can access part or all of the death benefit early if you’re diagnosed with certain health conditions and need medical care or nursing home care.
• Long-term care riders, which help pay for in-home care or nursing home care.
• Child riders, which provide death benefits to the policyholder's young children if they die during the policy period.