Many retirees and older adults are increasingly considering life insurance to cover final expenses or provide financial security for their families. However, as people age, premiums tend to increase. While the most affordable and comprehensive life insurance policies may seem out of reach for older people, several options cater specifically to their needs. Seniors often have different priorities than younger individuals when purchasing life insurance. They may be less interested in regarding life insurance solely as an investment and more concerned about end-of-life benefits.
Business Insider has taken these unique priorities into account when selecting the best life insurance for seniors. Here are our top recommendations:
Best 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 a guaranteed issue: Corebridge Direct
- Best Senior Life Insurance with No Medical Exam: AARP Life Insurance
Ethos Life
- Insider’s Rating: A five-pointed star A five pointed star A five pointed star A five pointed star A five pointed star
- 4.37/5
- Perks:
- 100% online process, quick quotes
- Coverage starts immediately once approved
- Term policies renewable up to age 94(for qualifying applicants)
- Cons:
- No conversion options to convert term policies to whole life for no exam policies
- Whole life policy limits are lower
- Link: [Ethos review](External link)Show Pros, Cons, and More
Corebridge Direct
- Insider’s Rating: A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star
- 4.25/5
- Perks:
- Guaranteed life insurance available for seniors between 50 and 80
- High financial strength and customer service ratings
- Cons:
- Some policies only have benefits up to $25,000
- AIG may not offer extensive death benefits for seniors
- Link: [Corebridge Direct review](External link)Show Pros, Cons, and More
Amica Life Insurance
- Insider’s Rating: A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star
- 3.87/5
- Perks:
- 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
- Online complains indicating life insurance service does not match other Amica products
Best Senior Life Insurance for Customer Satisfaction: State Farm Life Insurance
State Farm Life Insurance leads in customer satisfaction, according to J.D. Power’s life insurance satisfaction study. J.D. Power’s study analyzes thousands of customer reviews and gives each insurer a score. State Farm offers various insurance products like auto, life, home, and pet, with multi-policy discounts, encouraging clients to keep their insurance with the company.
Some company policies restrict first-time applicants over 65. However, all State Farm life insurance policies are facilitated by licensed agents who communicate goals and needs and answer questions. Moreover, eligible seniors can avail themselves of limited whole, term, and universal life policies. State Farm’s survivorship universal options allow spouses to get insured, with the surviving spouse able to continue payments and increase the death benefit. Both spouses can also take loans and withdrawals against the policy once they meet the requirements.
Best Senior Life Insurance for Term Life: Mutual of Omaha Life Insurance
Mutual of Omaha Life Insurance maintains stability in the life insurance industry. Its size enables flexibility in underwriting for specific groups, including seniors. Regardless of age, a licensed agent can assist in selecting the optimal options. Its term life insurance is especially suitable for first-time applicants or for younger buyers renewing term life. Policies with Mutual of Omaha are renewable for eligible candidates up to 94 years old. However, not all applicants may qualify to renew policies because approval depends on health and other factors. Many life insurance plans also need a medical exam. Interestingly, Mutual of Omaha does not cut off term life buyers over 65.
Best Senior Life Insurance for Retirement Planning: New York Life Insurance
New York Life Insurance is designed for the forward-thinking customer, offering robust investment options. Its agents are trained to address all queries about its policies, including penalties for early withdrawals or loans from the policy. Like other retirement planning instruments, starting early is beneficial for lower premiums. However, New York Life provides extensive policies with loans and early withdrawal options to support retirement, even at a later age, with higher premiums. Riders can personalize the coverage. For instance, whole life customers can get a living benefits rider to withdraw money in the event of a terminal illness. Buyers can also add an accidental death rider until age 70 for additional death benefits.
Best Senior Life Insurance for End-of-Life Care: John Hancock Life Insurance
John Hancock Life Insurance provides an accelerated death benefit, or “living benefits” for end-of-life care, also offering early withdrawal options in the event of a terminal illness. Buyers can use the benefits at any age, provided specified terms are met. When an insured person develops a qualifying condition, John Hancock will pay 50-100% of the death benefit while they are alive. Benefit claims are capped at $1 million if one is expected to live a year or less. This can help balance medical bills and end-of-life costs beyond Social Security or disability payments.
Best Senior Life Insurance for Flexibility: USAA Life Insurance
USAA Life Insurance policies are available to a wide range of buyers, including those in the military and civilians. It provides unique whole life coverage for active military members, exceeding the government’s equivalent life insurance. USAA policies accompany the buyer regardless of employment. It’s quite popular with veterans with combat-related illnesses and disabilities. USAA is one of the few providers that still offers coverage for individuals with a history of cancer. However, not everyone will be able to qualify. Also, USAA life insurance policies may also pay out after a drug overdose when other life insurance providers refuse. For seniors’ flexibility, USAA might be ideal.
Best Senior Life Insurance for Universal Life: Prudential Life Insurance
Prudential Life Insurance gives survivorship options for life insurance buyers. Unlike a standard policy, it covers two people who will continue to grow as long as the surviving spouse continues making payments. Policies can extend up to $65 million with a maximum age of 85. The two people insured cannot have an age gap of greater than 25 years.
The PruLife SUL Protector program has categories like Preferred Best and Preferred Non-Tobacco. Universal life policies with Prudential allow for loans. All parties can take money out of the policy via loans at the expense of the final death benefit.
Senior Life Insurance for Guaranteed Issue: Corebridge Direct
Corebridge Direct offers guaranteed issue life insurance, which cannot deny applications if one falls within the set age limits. Seniors between 50 and 80 can enjoy guaranteed coverage without a medical exam, with the convenience of a 100% online application.
Corebridge’s policies offer coverage between $5,000 and $25,000. They can be used as burial insurance to cover funeral expenses. Alternatively, Corebridge’s simplified issue whole life insurance provides a no-medical exam option, with death benefits between $5,000 and $35,000.
Best Senior Life Insurance with No Medical Exam: AARP Life Insurance
Through a partnership with New York Life, AARP Life Insurance provides up to $50,000 in whole life coverage without a medical exam, though applicants need to fill out a health questionnaire. These policies accumulate cash value for those who reach 95.
Senior Life Insurance Options Ranked by Customer Satisfaction
Online reviews are a valuable resource for assessing a company’s customer service. However, they can be biased. Third-party organizations conduct surveys to assess customer satisfaction. J.D. Power’s study assesses customer satisfaction. Here are the companies ranked by J.D. Power in 2024.
For context, overall customer satisfaction in life insurance companies dropped significantly to 648 in 2024 from 790 in 2023.
Why Seniors Need Life Insurance
Although life insurance is associated with a younger person’s passing, seniors can also benefit by taking out a policy. Here are some of the reasons why:
- Final Expenses: Most senior policies are finalized expense policies designed to cover funeral, medical, and end-of-life costs, reducing the financial burden on the family.
- Paying off debt: Life insurance can help cover existing debt, such as mortgages and medical debt, to ensure that loved ones don’t inherit those burdens.
- Lost income: Life insurance may be needed to replace any lost income after passing away.
- Legacy Planning: Even if your family doesn’t have an immediate financial need, life insurance can establish a strong financial foundation for future generations
Types of Life Insurance for Seniors
Guaranteed Issue Life Insurance
Guaranteed issue life insurance is a type of no-medical life insurance, with minimal qualifications for applicants, but higher premiums and offers limited coverage, such as funerals or burials/cremations. Generally, it’s used by older people between 50 and 80, and many providers have age limits. This policy really has one function, offering an option to seniors with poor health.
Simplified Issue Life Insurance
Simplified issue life insurance, similar to guaranteed issue, does not need a medical exam, but it may be denied if you have a terminal illness. Lower premiums result from a more comprehensive health questionnaire, and higher coverage will still be lower than the other types of life insurance.
Term Life Insurance
Term life insurance is more affordable because it doesn’t guarantee a payout. The coverage only extends for a specific period, generally, 10, 20, or 30 years. Term life helps cover one’s loved ones if death occurs, for example, the death benefit from a policy can settle the remaining debts.
How We Review Life Insurance for Seniors
Business Insider emphasizes what an insurance provider offers and the associated costs. Our rating factors look at policy options, average premiums, the application process, coverage exclusions, customer satisfaction, and financial stability, taking customer satisfaction and average premiums into account. However, charitable efforts and recent controversies are considered separately.
Factors such as customer satisfaction and average premiums are equally weighted.
Lina Roby
Lina covers insurance products. Her goal is to help readers make informed decisions for insurance needs.
Evelyn He
Evelyn helps fact-check Personal Finance stories ensuring the language is clear and compliant.
