A Complete Guide to Insurance for Seniors
As you enter retirement, you may transition to Medicare and lose any insurance benefits you had through your employer. As you age, you’re also more likely to experience health issues. All of this means that it's a good time to reevaluate your insurance. Having key types of insurance—such as health, life, and home—helps you access care and protects your assets.
Key takeaways:
Health insurance, life insurance, and home insurance are important. They help safeguard your finances and well-being.
Vision insurance, dental insurance, and long-term care insurance help cover extra health costs. These costs often increase with age.
Compare insurance plans for rates, coverage, and eligibility. This helps you find the best fit for your needs and goals.
What insurance do senior citizens need?
The right insurance for you can vary depending on your needs and goals. Health insurance and life insurance are often recommended to protect your finances. You can also purchase additional coverage depending on your lifestyle or expenses. For example, if you’re planning a trip, travel insurance can be helpful.
Essential vs. optional insurance
What’s considered essential and optional insurance can depend on your specific needs and goals. In general, basic health insurance, such as Original Medicare, is recommended for seniors. Life insurance and home insurance can also protect your financial assets and your loved ones.
Optional types of insurance include:
Vision and dental: While often not a part of regular health insurance, extra vision and dental coverage can help you save money over the long term.
Long-term care insurance: The elderly are more likely to need help with activities of daily living, such as meal preparation, bathing, and housekeeping. Long-term care insurance can help cover these services so you don’t have to pay out of pocket.
Auto insurance: If you own a car, auto insurance is legally required. You may also choose to add helpful add-ons, like roadside assistance.
Travel insurance: For those who love traveling, having travel insurance is advisable. If you get injured or become sick while abroad, travel insurance can protect you from bearing the mounting hospital costs yourself.
How insurance needs change after age 65
At age 65, most Americans become eligible for Medicare. At this age, you may also lose your employee benefits. This is when you need to make some decisions about your insurance to fill any gaps and get the coverage you want. Older adults often have more healthcare needs, so you may wish to get more coverage to support your well-being.
Insurance needs for seniors on fixed incomes
For seniors on fixed incomes, it’s important to focus on essential types of insurance. This includes:
Health insurance to help cover health care services, medical supplies, and medications
Home insurance to protect your assets
Life insurance to cover final expenses
Health insurance options for senior citizens
Depending on your unique health needs, there are a number of health insurance options available.
Medicare
Most people become eligible for Medicare when they turn 65. Original Medicare consists of Part A and Part B. Part A covers hospital care and skilled nursing facility care. It's mainly for inpatient services. Part B covers outpatient care and medical equipment. This includes doctor visits, diagnostic tests, surgeries that do not require hospitalization, and items like wheelchairs and walkers.
You can enroll in Medicare during your Initial Enrollment Period (IEP), which is a seven-month period around your 65th birthday. If you are already receiving Social Security benefits, you will be automatically enrolled in Medicare.
Most individuals do not pay premiums for Medicare Part A because they have worked for over 10 years and contributed to Medicare taxes during this time. However, most people do pay a monthly premium of $185 for Part B in 2025.
Medicare Advantage (Part C)
Many people choose to switch from Original Medicare to a Medicare Advantage plan, which can be done during the annual Open Enrollment Period between October 15 and December 7. Medicare Advantage can provide you with more coverage than Original Medicare. For instance, routine vision and hearing care are not included in Original Medicare, but many Medicare Advantage plans provide this extra coverage. Prescription drugs are also covered in most Medicare Advantage plans.
With Medicare Advantage, you are responsible for paying the usual Part B premium, Part A premium (if applicable), and any copay, which is usually a fixed amount per service, depending on your provider. While most Advantage plans have no additional premiums, provider networks are typically limited.
Medicare Supplement Insurance (Medigap)
Medicare Supplement plans, also known as Medigap plans, help to fill the gaps in Original Medicare. Medigap does not replace Original Medicare like a Medicare Advantage plan. Instead, it works alongside Original Medicare. These plans can help reduce your out-of-pocket costs, such as premiums, deductibles, and coinsurance, while still allowing you access to Medicare’s broad network of providers.
There are ten types of Medigap plans (A-N), each with standardized benefits. It’s best to enroll in Medigap during your Medigap Open Enrollment Period, which is a six-month period from your Medicare Part B effective date.
Prescription Drug Coverage (Medicare Part D)
Original Medicare doesn’t cover prescriptions. However, you can buy Medicare Part D to add drug coverage to your plan. This can help make your prescriptions more affordable.
With Part D, you pay a monthly premium depending on your plan. For 2025, the average monthly premium for Part D plans is $46.50 for standard coverage. You are also responsible for paying the negotiated price for the drugs covered under Part D till you meet the deductible.
The maximum deductible for a Part D plan in 2025 is $590. Some plans have a zero deductible, which means you receive coverage right away. During the coverage period, you pay a 25% coinsurance of the cost of covered drugs while the plan covers the rest.
Your plan begins to pay 100% of covered drug costs for the rest of the year once your out-of-pocket expenses reach $2,000.
Life insurance options for senior citizens
Life insurance is essential for senior citizens. It can help pay your final expenses and any remaining debts, as well as protect your loved ones.
Term life insurance for seniors
Term life insurance provides coverage for a set period or term. This means that if the policyholder passes away during the term, then the policy value is paid to the beneficiary. If they outlive the term, there is no payout. The benefits of term life insurance are that it has a lower premium, and you only pay for coverage when you need it. For example, some people opt for term life insurance while paying off debts, and then switch to another plan.
Whole life insurance for seniors
Whole life insurance provides lifetime insurance protection. This means that it doesn’t expire, unlike term life insurance, as long as you continue paying your premiums. While whole life insurance can be more expensive up front, premiums are fixed, meaning you won’t pay more over time.
Final expense insurance for seniors
This type of insurance covers final expenses, including burial and funeral costs. While a final expense insurance policy is more affordable than whole life insurance, it provides simpler coverage, meaning that it isn’t a good choice for those who need larger life insurance payouts.
Long-term care insurance for seniors
Long-term care insurance can help reduce your costs if you are no longer able to perform daily activities, such as meal preparation or bathing, or require long-term skilled nursing care.
When to buy long-term care insurance
It’s generally recommended to buy long-term care insurance between the ages of 50 and 65. This is when costs tend to be the most affordable, and you’re less likely to have chronic health conditions. However, it’s important to consider your current financial situation and the criteria you must meet before you start receiving benefits. You may also want to think about your family history. If your family has a history of certain health issues, such as Alzheimer’s, you may wish to consider buying long-term care insurance sooner.
There are hybrid long-term care and life insurance packages for those who would like to receive comprehensive coverage.
Auto and home insurance for seniors
If you drive, auto insurance is essential. If you’ve been driving for a long time and have a clean driving record, you may be eligible for auto insurance senior discounts.
Home insurance is also important if you own a home, since your home is typically your largest asset. It’s usually recommended to have a policy that covers the full replacement cost of your home, so you are covered in case of an unexpected loss or damage to the property. You may also wish to take an inventory of your valuables to determine if you have any high-value items that may require additional coverage.
Choosing the best insurance for senior citizens
Several factors must be taken into consideration when choosing insurance, including your financial status and goals, health status, lifestyle, and coverage needs.
How to compare insurance options
Online tools are one way to compare insurance plans. When comparing options, you’ll want to consider:
Cost of premiums, which is the monthly or annual cost of maintaining insurance
Amount of coverage to understand how much will be paid out in different situations
Deductible, which is the amount you need to pay out-of-pocket before coverage kicks in
Network coverage, in the case of health insurance
Payout terms, including how long it takes to receive a payout
Limitations, such as restrictions based on health status
Discounts, such as savings for maintaining a clean driving record
Working with insurance agencies and brokers
Insurance agencies and brokers can research different insurance policies for you. This can save you time and make it easy for you to compare policies from different companies. A broker can also work with you to understand your unique needs and suggest policies that would work best for you.
Timing insurance purchases
In general, it’s best to purchase insurance sooner rather than later. For example, if you purchase health insurance before developing a health condition, it is typically more affordable. If you’re enrolling in Original Medicare, registering within your IEP can help you avoid late penalties.
Bottom line
As you enter retirement, having insurance can reduce your out-of-pocket costs and provide you with financial protection. However, insurance needs can vary by individual. It’s best to consult a financial advisor, insurance broker, or agent to help you determine the best fit for your needs.
Frequently asked questions about insurance for senior citizens
What insurance do I need when I turn 65?
When you turn 65, it’s important to have health insurance to help cover healthcare expenses. It’s also a good idea to look at life insurance and home insurance to protect your assets.
How much does health insurance cost for seniors?
The cost of health insurance depends on your particular plan. Once you turn 65, Medicare becomes your primary plan, but you may still have out-of-pocket costs. If you switch to a Medicare Advantage plan, the average monthly premium for 2025 is $17. You must also consider costs such as deductibles, copayments, and coinsurance before choosing a plan.
Can seniors get affordable life insurance?
Yes, seniors can get affordable life insurance. As you age, premiums usually go up. However, there are ways to make life insurance more affordable. You can choose term insurance, compare different plans, or pick a simpler life insurance option.