Many retirees and older adults begin to think about life insurance to help cover final expenses or provide for their loved ones. However, as you age, the cost of premiums increases. Though the most affordable and comprehensive life insurance policies might seem out of reach, several options are still available to seniors. Senior citizens looking for the best life insurance solutions frequently prioritize different factors than younger buyers. For example, seniors may be less concerned about using life insurance as an investment vehicle and more concerned with the end-of-life benefits. Therefore, Business Insider has taken these priorities into account when selecting the best life insurance for seniors.
Best Senior Life Insurance
Here are Business Insider’s top picks for senior life insurance:
- Best for customer satisfaction: State Farm Life Insurance
- Best for term life insurance: Mutual of Omaha Life Insurance
- Best for retirement planning: New York Life Insurance
- Best for end-of-life care: John Hancock Life Insurance
- Best for buyer flexibility: USAA Life Insurance
- Best for universal life: Prudential Life Insurance
- Best for guaranteed issue: Corebridge Direct
- Best Senior Life Insurance with No Medical Exam: AARP Life Insurance
Ethos Life
Ethos Life provides a streamlined online application and generally offers quick coverage. Plans often do not require medical exams, making them accessible. Ethos earns a high rating because it is a solid choice for guaranteed coverage.
- Insider’s Rating: A five-pointed star
- JD Power Customer Satisfaction Rating: Not Rated
- AM Best Financial Strength Rating: A
Pros:
- 100% online application process
- Quotes in minutes
- Coverage starts quickly after approval
- Term policies renewable up to age 94 for qualifying applicants
Cons:
- No conversion options to turn term policies to whole life for no-exam policies
- Whole life policy limits are lower
Corebridge Direct
Corebridge Direct is often considered a market leader. It is praised for its guaranteed issue options and affordable term life policies. They offer universal life coverage.
- Insider’s Rating: A five-pointed star
- JD Power Customer Satisfaction Rating: 762
- AM Best Financial Strength Rating: A
Pros:
- Guaranteed life insurance for seniors aged 50 to 80
- High financial strength and customer service ratings
Cons:
- Some policies have limited benefits, up to $25,000
Amica Life Insurance
Amica is considered a strong option for both term and whole life coverage. The company provides discounted bundles for its customers.
- Insider’s Rating: A five-pointed star
- JD Power Customer Satisfaction Rating: N/A
- AM Best Financial Strength Rating: A+ (Superior)
Pros:
- Offers level term and whole life policy
- Discount and bundling opportunities
- Available in all 50 states
Cons:
- Limited add-on coverage options
- No universal policies
State Farm Life Insurance: Best Senior Life Insurance for Customer Satisfaction
State Farm Life Insurance leads in customer satisfaction according to J.D. Power’s study. The company offers a range of insurance products and typically provides multi-policy discounts. State Farm utilizes a network of licensed agents to help buyers understand policy options and customize coverage.
Policy options may exclude seniors over 65 from applying for the first time. However, through consultation with a licensed insurance agent, seniors can explore available whole, term, and universal policies. State Farm also provides survivorship universal options, which allow spouses to get coverage together and enable the surviving spouse to maintain the policy and increase the death benefit; both spouses can access loans against the policy once requirements are met.
Mutual of Omaha Life Insurance: Best Senior Life Insurance for Term Life
Mutual of Omaha Life Insurance is recognized for its stability. It offers flexibility in underwriting for specific demographics, including seniors. Their term life insurance policies are especially notable for first-time senior applicants and those seeking to renew term life policies, offering renewals up to age 94 for qualifying applicants.
New York Life Insurance: Best Senior Life Insurance for Retirement Planning
New York Life Insurance is well-suited for those planning for the future. It provides a range of investment options, and its agents are trained to answer questions regarding policy loans and withdrawals.
John Hancock Life Insurance: Best Senior Life Insurance for End-of-Life Care
John Hancock Life Insurance is highlighted for offering accelerated death benefits, also known as “living benefits.” This allows policyholders to access funds in the event of a terminal illness. If a qualifying condition develops, John Hancock will pay a portion of the death benefit while the insured is still alive, up to $1 million, which can help manage high medical bills and end-of-life costs.
USAA Life Insurance: Best Senior Life Insurance for Flexibility
USAA Life Insurance provides policies for both military and non-military buyers. They offer unique whole life coverage for active-duty military members. USAA is often chosen by veterans, including those with combat-related illnesses. USAA may pay out after a drug overdose where other companies would refuse. Therefore, USAA can be an ideal option for seniors seeking flexibility.
Prudential Life Insurance: Best Senior Life Insurance for Universal Life
Prudential Life Insurance offers options for survivorship life insurance, covering two people jointly. When one person passes, the policy continues. The PruLife SUL Protector program allows policyholders to take loans against the policy, impacting the final death benefit.
Corebridge Direct: Best Senior Life Insurance for Guaranteed Issue
Corebridge Direct offers guaranteed issue life insurance to applicants within specific age limits. This means coverage is provided without a medical exam. Policy amounts are typically smaller, making them suitable for final expenses.Corebridge offers a simplified issue whole life insurance option without a medical exam, death benefits ranging from $5,000 and $35,000.
AARP Life Insurance: Best Senior Life Insurance with No Medical Exam
AARP Life Insurance, through a partnership with New York Life, provides whole life coverage with no medical exams, requiring only a health questionnaire. Policies accumulate cash value and are paid up at age 95.
Senior Life Insurance Options Ranked by Customer Satisfaction
Customer reviews and ratings from organizations such as J.D. Power can provide insights into how life insurance companies treat their customers. J.D. Power’s 2024 study measured customer satisfaction, with the highest-ranked companies scoring as follows:
- State Farm: 699
- Guardian Life: 685
- MassMutual: 673
- Northwestern Mutual: 670
- Nationwide: 666
- Mutual of Omaha: 659
Why Seniors Need Life Insurance
Life insurance is beneficial for seniors, often for different purposes than for younger people:
- Final Expenses: Life insurance policies assist with funeral costs, medical bills, and other end-of-life costs.
- Paying off Debt: Life insurance can help loved ones manage and pay off remaining debt after a death like a mortgage or medical debt.
- Lost Income: Life insurance may replace lost income as some families are reliant on income earned by older people.
- Legacy Planning: Life insurance can provide a strong foundation for children and grandchildren.
Types of Life Insurance for Seniors
- Guaranteed Issue Life Insurance: This type has low qualifications, making it high-premium life insurance with limited coverage amounts for older people between the ages of 50 and 80.
- Simplified Issue Life Insurance: Similar to guaranteed issue, this requires a health questionnaire instead of a medical exam. This results in lower premiums, and higher coverage.
- Term Life Insurance: Generally the cheapest life insurance because it does not guarantee a payout. This provides coverage for a specific term, such as 10, 20, or 30 years.
Why You Should Trust Us: How We Review Life Insurance for Seniors
Business Insider’s methodology assesses what an insurance provider offers against its cost. Factors include policy options, premiums, application processes, coverage exclusions, customer satisfaction, and financial stability. Community engagement and controversies are separate factors.
Frequently Asked Questions
Why is there an age limit on life insurance policies?
As you age, the risk of death increases. Companies place stricter limits on coverage or don’t cover seniors.
How does term life insurance work for senior buyers?
Term life insurance offers temporary coverage, usually from 10 to 30 years, though providers often limit available terms for senior buyers.
What’s the best type of life insurance for seniors?
The best type is usually a guaranteed issue life insurance policy, restricted to people 50 and older, as it doesn’t require a medical exam.
Who has the cheapest life insurance for seniors?
GEICO and Mutual of Omaha are known for affordable rates, but this depends on individual needs and location.
Is it worth having life insurance after 65?
Yes, life insurance can be worth it, especially with a spouse and end-of-life expenses to cover. Many policies cover people up to 85 years old.
