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Life insurance is best purchased early, but the need for life insurance grows with age. Many retirees start thinking seriously about life insurance to pay for funerals, leaving existing belongings, and taking care of their family after they’re gone.
But options shrink, and rates may rise exponentially with some life insurance providers. Nevertheless, depending on your life insurance goals, you may still have great options from some of the best life insurance companies.
Best Life Insurance for Seniors
State Farm Life Insurance – Product Name Only: Best for customer satisfaction Mutual of Omaha Life Insurance – Product Name Only: Best for term life insurance New York Life Insurance – Product Name Only: Best for retirement planning John Hancock Life Insurance – Product Name Only: Best for end-of-life care USAA Life Insurance – Product Name Only: Best for buyers who need flexibility Prudential Life Insurance – Product Name Only: Best for universal life AIG Life Insurance – Product Name Only: Best for guaranteed issue
Acceptance gets harder as you age because a life insurance company looks at health conditions and other indicators you may not pay premiums for as long as it would like. This is why many life insurers get stricter as you age and eventually stop offering policies altogether. Others only provide small funeral expense policies with guaranteed acceptance as long as you’re within certain age limits. Our goal is to help readers with more limited options find a life insurance policy that makes sense.
Compare the Best Life Insurance for Seniors
Methodology: How We Chose the Best Life Insurance for Seniors
Our life insurance ratings are based on a few key factors. To ensure a fair and even playing field for insurance companies and customers, we look at customer satisfaction, financial stability, types of policies offered, average premiums, coverage exclusions, and more. We also factor in recent controversies and ways an insurance company may engage with and improve its community.
Factors such as customer satisfaction and average premiums are equally weighted. However, we are aware not all charitable efforts are recognized, and not all controversies are based on facts. So a company’s engagement with its community and recent controversies are considered separately.
Why You Should Trust Our Recommendations
We act as both experts and buyers in insurance. A licensed insurance agent reviews new guides and reviews for accuracy to avoid common misnomers. We aim for readers to walk away with more knowledge about the type of insurance and companies that may provide better coverage and customer satisfaction. Life insurance is about the peace of mind of knowing your family can pay for retirement, funeral, and other costs based on the terms of the policy you buy.
Each life insurance company has underwriting guidelines to control risk and ensure financial stability. But as insurance guidelines evolve, companies can offer coverage to more diverse buyers. Therefore, our reviews are subject to change as life insurance companies change. While we are open to feedback from different companies, agents, underwriters, or providers do not dictate our opinions.
Life Insurance for Seniors Frequently Asked Questions
Why is there an age limit on life insurance policies?
There is an age limit on life insurance because ultimately, any insurance is a calculation of risk. What are the chances a life insurance company will have to pay you more than it got through premiums and subsequent investments? As you age, an insurer’s chances of a loss grow exponentially. As such, companies place stricter limits on coverage or don’t cover seniors.
How much life insurance should I buy?
How much life insurance you need and how much you can get are important considerations. The coverage you’re eligible for will change with age and based on other factors. Online calculators can give you a rough estimate. But a life insurance agent can run a customized quote on the amount of coverage you might need to achieve your financial goals.
How does term life work for senior buyers?
Term life insurance is a temporary life insurance policy. It allows buyers to get more coverage with lower premiums. The risk is you get no benefit if you live beyond the policy’s expiration. Accelerated death benefits are generally not included. However, term life insurance providers may offer riders for increased coverage for a term with a whole life base or offer accelerated death benefits in specific circumstances.
Best Senior Life Insurance for Customer Satisfaction
JD Power’s life insurance study continues to rank
Some policies exclude seniors over age 65 from applying for the first time. But all life insurance policies are quoted by licensed insurance agents employed by State Farm. Meeting with a State Farm agent allows buyers to communicate goals and needs and answer critical questions agents might have. In addition, qualifying seniors can access limited whole, term, and universal life policies. State Farm is among the companies also offering survivorship universal options. Essentially, spouses can get insured together, and a surviving spouse can continue to make payments and increase the death benefit. Both spouses can also take out loans and other withdrawals against the policy once they meet the requirements.
K of Clewiston, FL, a verified reviewer on ConsumerAffairs, said, “State Farm is the best insurance company out there. They have great Life Insurance Policies to fit your needs…..Also, their prices are the most reasonable out there.”
Best Senior Life Insurance for a Term Policy
Mutual of Omaha
However, its term life insurance policy stands out for seniors applying for the first time or younger buyers looking to renew term life policies. Term life insurance policies with Mutual of Omaha are renewable for qualifying applicants up to age 94. Of note, not all applicants will qualify to renew policies beyond any age, as approval is based on health history and other factors. Many life insurance policies also require a medical exam. However, Mutual of Omaha stands alone as it does not cut off term life buyers over 65.
One important thing to highlight is Mutual of Omaha’s availability to resolve consumer issues, even when it’s not the company’s fault. For example, Roger of Eagle, AK, originally left a complaint on ConsumerAffairs, and the company promptly responded. He later updated his review, saying, “Thank You Mutual of Omaha! Physicians Mutual Dental has informed me of my mistake. You are a fine company serving the life insurance needs of USA citizens and expats as well.”
Best Senior Life Insurance for Retirement Planning
New York Life
Like other retirement planning vehicles, the earlier you start, the better. Premiums will be lower, and you can apply for a large payout. But if you can afford higher premiums at a later age, New York Life still offers comprehensive policies with loans and early withdrawal options to take you into retirement. Riders can also customize its coverage. For example, whole life customers can buy 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 an extra death benefit for loved ones. This satisfies borrowers who want stability but like the idea of a higher payout should they die in their prime working years.
New York Life’s knowledgeable agents are highlighted by William of Starks, Louisiana, on ConsumerAffairs, saying, “They are willing to help and pay without hassle. They make sure all your needs are met. They check with you often to make sure your policy is up to date. If at anytime there are questions that need addressing they are readily available to help.”
Best Senior Life Insurance for End-of-Life Care
Life insurance is traditionally thought of as a death benefit option. You pay into the policy for years, and your beneficiaries file a claim for a payout once you’re gone. Some policies still work that way.
If you develop a qualifying condition, John Hancock will pay 50-100% of your qualifying death benefit while you’re still alive. However, it caps accelerated death benefit claims at $1 million if you expect to live a year or less. This could help balance costly medical bills and end-of-life costs beyond what social security or disability payments would comfortably cover.
Best Senior Life Insurance for Buyers Who Need Flexibility
USAA is among the limited life insurance providers still offering coverage with a history of cancer. Of course, not all buyers will qualify, and policy options are limited. Accounting for state laws, USAA life insurance policies may also pay out after a drug overdose (frequency may increase with more daily medications to treat age-related conditions) when other life insurance companies refuse. For seniors looking for a bit of flexibility, USAA could be an ideal option.
Best Senior Life Insurance for a Universal Policy
The PruLife SUL Protector program encompasses multiple categories such as the Preferred Best, Preferred Smoker, and Preferred Non-Tobacco. Universal policies with Prudential do allow loans. So both parties can pull money out of the policy via loans. It would simply reduce the final death benefit.
Best Senior Life Insurance for Guaranteed Issue
Guaranteed issue: two words many seniors and even younger applicants aren’t used to hearing about life insurance. Seniors aged 50-80 enjoy guaranteed coverage with no medical exam, and the application is 100% online. In short, it means what it sounds like.
Best Life Insurance Companies for Seniors Ranked by Customer Satisfaction
JD Power conducts an annual study of life insurance based on reported customer satisfaction. Then it assigns companies a score out of 1,000, listing the top performers on its website. So if you’re shopping for life insurance, the following companies are the ones JD Power readers had positive experiences with.
JD Power Rankings (Max 1,000 points)