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Insurance for Older Adults: What You Need to Know

No matter what your age, it’s important to have some form of insurance for older adults. If you’re a senior citizen, this is especially true. It’s no secret that expenses typically increase as you age, so having insurance in place helps you cover some of those, particularly if they are unexpected expenses. There are a few different types of insurance policy for seniors that you may want to consider, such as Medicare, Medigap, long-term care insurance, supplemental health insurance policies, vision insurance, dental insurance, among others. You may also want to consider life insurance to help protect your loved ones financially in the event of your death.

nurse with senior in chair

Each type of insurance policy for senior citizens has its own unique benefits and drawbacks, so it’s important to carefully consider all your options before choosing the right policy for you. We’ll be going through each type and what they can cover so you can have a better understanding on which one is best for you.

Kinds of Insurance Policies for Seniors


Medicare is a health insurance program that is administered by the federal government. It is available to seniors who are 65 years of age or older, as well as to some younger people with disabilities or end-stage renal disease. Medicare provides coverage for hospitalization, doctor visits, prescription drugs, and other medical services. There are four parts to Medicare; below we shared a brief rundown so you can familiarize and have a basic insight on your options and choose the coverage that can meet your needs.

These four parts are:

Hospital insurance – covers all your hospital-related expenses including admissions, nursing facility care, hospice care, and assisted living care.

Medical insurance – covers doctor’s fees as well as professional fees of other medical providers, outpatient care, home health care, expenses used to purchase medical equipment, preventive services.

Medicare advantage – this is a Medicare-approved plan that most private companies offer. It is an alternative to the Original Medicare and is often a bundle plan containing Part A, Part B, and sometimes, Part D.

Drug coverage – covers the expenses from purchasing prescription drugs as well as recommended vaccines.

Benefits of Medicare include:

Not having to pay a premium for Part A

No deductibles for Part A services

Minimum monthly premium payments for Part B which covers 80% of most covered medical services after you meet the yearly deductible

couple talking to insurance agent


Medigap is a type of insurance policy for seniors that can help cover some of the costs that Medicare doesn’t, such as co-payments, co-insurance, and deductibles. It’s important to note that Medigap does not cover long-term care or dental care.

Benefits of Medigap include:

Helps cover some of the out-of-pocket costs not covered by Medicare

Gives you more flexibility in choosing your providers and health care facilities

Long-term Care Insurance

A long-term care insurance policy for seniors, as the name implies, is designed to help cover the costs of long-term care services such as home healthcare or nursing home stays. Seniors may also want to this as it is designed to help cover the costs of extended care services, such as nursing home care, home health care, and assisted living. Long-term care insurance can be a valuable form of financial protection if you develop serious health issues or physical disabilities that require extensive medical attention.

Benefits of long-term care insurance:

Helps you maintain your independence by providing the financial resources needed for long-term care services

Allows you to have access to a wider range of providers through your policy

Supplemental Health Insurance

Supplemental health insurance policies for senior citizens, such as critical illness or vision insurance, can help cover the costs of medical services that are not covered by your Medicare coverage. These senior insurance policies typically have a lower premium than other types of health insurance, but the benefits tend to be more limited.

Benefits of supplemental health insurance include:

Getting coverage for conditions that are excluded under Medicare or Medigap plans

Often less expensive than traditional health insurance if you don’t need a lot of coverage

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Examples of supplemental health insurance

Vision Insurance

Vision insurance is a type of supplemental health insurance that seniors may want to consider. This type of insurance can help cover the costs of eye exams, glasses, and contact lenses.

Dental Insurance

Dental insurance is another type of supplemental health insurance. This type of insurance can help cover the costs of dental care, such as routine teeth cleanings, x-rays, and fillings.

Life Insurance

Life insurance is a type of coverage that helps protect you or your loved ones in the event of death. Typically, life insurance policies pay out a specified amount of money to beneficiaries upon the death of the policyholder, known as the insured. Depending on the type of life insurance you choose, your coverage may be designed to help pay for costs like final expenses, medical bills, or other financial obligations and needs. The different life insurance options for seniors also provide additional benefits, such as disability or critical illness coverage.

Life insurance premiums vary based on factors such as age, health, and the type of policy you choose. Generally speaking, term life insurance is less expensive than whole life insurance. For example, a healthy 40-year-old man can expect to pay around $27 a month for a 20-year, $500,000 term life insurance policy. On the other hand, a healthy 40-year-old man can expect to pay around $1,100 per year for a $250,000 whole life insurance policy.

Apart from your age and health history, the type of coverage you choose can affect the cost of your premiums – for example, term life insurance is typically less expensive than whole life insurance because it does not accumulate cash value over time and only provides coverage for a specified duration of time. As such, it’s important to compare different types of policies and providers before choosing one that meets your needs and budget.

Benefits of life insurance:

Gives peace of mind knowing that your loved ones will be protected financially in the event of your death

Provides access to additional benefits, such as disability or critical illness coverage (take note these are additional costs)

senior man driving red car

Types of Life Insurance

Term Life Insurance

Term life insurance for seniors is a type of life insurance that provides coverage for a specified duration (e.g., 10 or 20 years) and pays out a death benefit if you die during that time period. This type of coverage is typically much less expensive than whole life insurance because it does not accumulate cash value over time or provide any additional benefits other than the specified death benefit.

Whole Life Insurance

Whole Life Insurance is another type of life insurance that provides lifetime coverage and offers policyholders access to the cash value inside their policies, which can be withdrawn or borrowed at any time (with interest). While these types of policies are more expensive than term life insurance, they may be well-suited for seniors who want peace of mind knowing that their loved ones will have financial security if they die.

Auto Insurance

If you own a car, you are required by law to have auto insurance. Auto insurance can help cover the costs of repairs or replacements if your car is damaged in an accident. It can also help cover the costs of medical care if you or someone else is injured in an accident.

Benefits of auto insurance:

Depending on what is required in your state or any additional coverage you have opt for, this can offer a basic to comprehensive level of protection against the costs of repairs or replacements

If you or someone else is injured in an accident, this also gives you coverage for medical expenses

happy senior couple in house with boxes

Homeowners Insurance

Homeowners’ Insurance is a type of senior insurance policy that you may need to consider if they own a home.

Benefits of homeowners insurance:

Helps cover the cost of repairs or replacement if your home is damaged by a fire, wind, or other disasters

Covers the cost of medical care if you or someone else is injured on your property

Flood Insurance

Flood Insurance is a type of insurance that can be beneficial for seniors who live in areas that are prone to flooding or is constantly in the eyes of storms. Flood insurance policies are sold through the National Flood Insurance Program (NFIP) and are typically available through private insurers as well.

Benefits of flood insurance:

Gives protection against the costs of repairs or replacements if your home is damaged by a flood

Offers coverage for medical expenses if someone is injured on your property due to flooding

Burial Insurance

The average cost of a funeral in the United States is between $7,000 and $12,000. However, the cost of a funeral can vary widely depending on the type of service you choose. For example, a traditional funeral with a viewing and burial can cost upwards of $10,000. If you opt for a simpler cremation service, the cost may be closer to $1,000.

It can get pretty costly, which is why burial insurance may be something you should consider. Also called final expense insurance, this type of life insurance is specifically designed to cover the costs of your funeral and burial expenses. Burial insurance policies typically have lower death benefits than other types of life insurance, but they may be more affordable for seniors on a fixed income.

Benefits of burial insurance:

Offers protection against the high cost of a funeral

Gives coverage for the cost of a burial or cremation

Allows you to have peace of mind knowing that your loved ones will not have to bear the financial burden of your funeral expenses

female senior thinking hard

When Should I Get an Insurance Policy for Senior Citizens?

There is no “one size fits all” answer to this question, as the right time to get insurance depends on a variety of factors such as your age, health, and financial situation. However, it’s generally advisable to get insurance sooner rather than later in life. This is because premiums tend to increase as you age, and it may become more difficult to qualify for coverage if you have pre-existing health conditions.

How Do I Choose an Insurance Policy for Older Adults?

Now that we’ve covered the different types of insurance that are commonly available to seniors, let’s take a look at some factors to consider when choosing an insurance plan.

One of the most important factors to consider is how much coverage you need. Are there any medical or financial obligations, such as hospital bills or final expenses, that will need to be paid if you die? If so, it may be wise to look for plans with higher death benefits, such as whole life insurance policies or term life insurance policies with extended durations.

Another important factor to consider is your overall health and lifestyle. For example, if you have existing health conditions or engage in risky activities like smoking or extreme sports, you may need to look for insurance policies that allow you to adjust your premiums or coverage levels based on your individual circumstances.

You should also consider the cost of your insurance policy for senior citizens. Different types of plans will have different costs associated with them, so it’s important to weigh things like premiums, deductibles, and other associated fees when making your choice. You may also want to compare the coverage options offered by different companies and choose a provider that offers the type of benefits and flexibility that best meets your needs.

happy affectionate senior couple

When choosing an insurance policy for seniors, it’s also important to consider any existing relationships you may have with providers or financial institutions. For example, if you already work with a particular insurer or bank, they may offer special discounts on their products or services that could save you money on your premiums.

Finally, be sure to read the fine print before signing up for any insurance policy for older adults. It’s important to understand things like coverage limits, exclusions, and other important details before making a commitment.

The bottom line is that there are a lot of different factors to consider when choosing an insurance plan but doing your research and understanding your options can help you make the best decision for your needs. Ultimately, which type of insurance policy for seniors to invest in will depend on your individual needs and circumstances. Be sure to carefully research all of your options so that you can make the best decision for your budget and lifestyle. And if you have any questions, don’t hesitate to ask a licensed agent or broker for help.


For many seniors, insurance is an essential part of planning for their financial security and well-being. Whether you're looking for peace of mind knowing that your loved ones will be financially secure if something happens to you or you need coverage for medical costs or final expenses, there are plenty of options insurance policies for senior citizens to help ensure that you have the coverage you need.

No matter what type of insurance you choose, it’s important to evaluate your coverage regularly and make sure that the policy still meets your needs as you get older. Seniors should also take steps to protect themselves from fraud (such as being cautious about sharing personal information online) and should keep in mind that their beneficiaries have a right to know about any changes or updates to their policies. By educating yourself about your different insurance options, you can make more informed decisions about your coverage and ensure that you have the financial security you need to enjoy your senior years.

Still need more help figuring out senior insurance policies? Browse through our other guides and articles at Senior Assistance Club!