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Does Medicare Cover Life Insurance?

No, Medicare does not cover life insurance. These two types of insurance can each play an important role in one’s financial security. Learn more about Medicare insurance and life insurance options for beneficiaries.

Christian Worstell

by Christian Worstell | Published October 31, 2023 | Reviewed by John Krahnert

Medicare benefits include a wide range of services including inpatient and outpatient care, durable medical equipment and more, but Medicare is not Life Insurance, so must be bought separately.

Medicare does not cover life insurance or pay out a death benefit when a policyholder passes away, and there isn’t any sort of inheritance associated with Medicare. 

Life insurance must be purchased separately from Medicare, but learning more about the two types of insurance and exploring your plan options be a vital part of planning for your retirement.

Medicare Vs. Life Insurance   

Both Medicare and life insurance play important roles in providing some financial protection to an older adult and their loved ones. But while these two policies share a common goal, they are very much different from each other. 

Medicare is a form of health insurance and provides coverage for a variety of health care services and products. Meanwhile, life insurance is a form of financial protection that pays out a lump sum of money to a designated beneficiary upon the death of the policyholder. 

It can be said that when Medicare coverage ends, life insurance protection begins. In other words, someone enrolled in Medicare will utilize those benefits to help pay for health care while they are still alive. And Medicare coverage includes hospice care and other end-of-life care. Once the person passes away, their life insurance coverage will kick in and issue a payout to a surviving spouse, child, or other beneficiary who can use the money to pay off any other outstanding medical expenses, funeral service, burial, or cremation. 

Some life insurance policies include living benefits, which allow the policyholder to access a portion of the death benefits while they are still alive. With living benefits, a person can utilize Medicare benefits and life insurance protection at the same time. 

Is There a Medicare Death Benefit?

Medicare does offer life insurance or pay out a death benefit or any other money when a beneficiary passes away.

Social Security, however, issues a one-time death benefit payment of $255 along with survivor’s benefits to a surviving spouse or child. Survivor’s benefits allow a qualified beneficiary to inherit the Social Security benefits of a deceased person. 

Where Can You Buy Both Medicare And Life Insurance?

Some insurance companies may sell Medicare insurance plans as well as life insurance policies, though you’re not required to purchase both types of insurance from any single insurance company.

United of Omaha and Mutual of Omaha are two examples of insurance underwriters who offer Medicare Supplement insurance (also called Medigap) plans and life insurance policies. To learn more about the life insurance options available where you live, you can request a free plan quote or call to speak with a licensed insurance agent from

 To learn more about the Medicare Supplement plans available where you live and how they could help you save on your Medicare costs, call today to speak with a licensed insurance agent or request a free plan quote online. 

Compare Medigap plans in your area.

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