Best Life Insurance for Seniors Reviews

New York Life – Best Overall

Because New York Life is a mutual insurance company owned by its policyholders, you must become a member to enroll. Once enrolled, you will be able to take advantage of all of its plans and policies, which are available nationwide. AARP also endorses New York Life's AARP Life Insurance Program, which is the only life insurance program designed specifically for AARP members.

New York Life offers four plans: term and whole life insurance, as well as universal and variable universal life insurance. Term life insurance policies are convertible, which means you can convert some or all of the benefits from your term insurance into permanent policies.

Whole life insurance policies come in three varieties: standard, value whole life, and custom whole life. The latter allows you to shorten the time it takes to pay for premiums by up to five years or customize them to fit your budget.

Mutual of Omaha – Best Plan variety

Mutual of Omaha provides life insurance in five different types: term life, whole life, universal life, indexed universal life, and children's whole life. The term life policy is available in 10-, 15-, 20-, and 30-year terms, with issue ages ranging from 18 to 30. The standard amount of coverage is $100,000.

Mutual also provides a "term life express" policy that does not require a medical exam and has lower policy limits. Mutual of Omaha also offers guaranteed issue life insurance, a permanent policy form of no-exam life insurance that works like a final expense option and covers from $2,000 to $25,000 without the need for a medical evaluation or answering a health questionnaire.

Other policies include "living promise whole life" insurance, which comes in two options: level and graded benefit. The level option is comprehensive, covering ages 45-85 with coverage limits ranging from $2,000 to $40,000. The graded option is more restricted, covering ages 45-80 and reducing the limit range by half, from $2,000 to $20,000.

Banner – Best for Term Life Insurance

Banner provides the typical life insurance products, but its term life insurance policy stands out due to its age limit. Term life insurance policies typically have a maximum policy coverage of 30 years, but Banner goes above and beyond by offering term life policies with a maximum policy coverage of 40 years. Not only that, but their term policies include a free accelerated death benefit rider, allowing you to receive a portion or all of your death benefit if you are diagnosed with a terminal illness.

Banner is also distinguished by its payment process. Life insurance companies typically take 14-60 days to pay a claim after it has been processed, and this time can be extended if the provider does not receive the necessary documentation. Banner has a one-business-day payment option for all of their policies.

Guardian Life – Best for Couples

Guardian Life Insurance Company offers four types of life insurance policies: term, whole life, universal, and variable universal. Their whole-life policy, "Guardian EstateGuard," stood out to us. This policy is designed to insure married couples with a single policy, so that if one person dies, the other receives the death benefits.

Customers with HIV can also get term and whole life insurance from Guardian. To qualify, you must meet a number of requirements, including being between the ages of 20 and 60, being free of any AIDS-defining illnesses, and being under the care of an HIV specialist.

MassMutual – Best for Whole Life Insurance

MassMutual provides Vantage Term policies with 10-, 15-, 20-, 25-, and 30-year terms and death benefits ranging from $100,000 to $10 million.

They stood out to us because of their Direct Term option, which can be purchased until the age of 64 and is convertible beyond the issuing age. Their whole life policies have higher limits than competitor plans aimed at seniors, with death benefits exceeding $25,000. Applicants must complete a medical exam within 90 days of their application. MassMutual does not provide guaranteed issues or living benefits.

Their whole life policies, on the other hand, provide guaranteed cash value, guaranteed death benefit options, and dividend participation, so you can rest assured that your next of kin will receive all of the plan's benefits.

Transamerica – Best for Riders

The best features of Transamerica are its wide range of riders and its final expense coverage option. This insurer offers more than seven optional riders, including a waiver of premium rider, which waives premiums after six months of disability, a monthly disability income rider, and an accidental death benefit rider. They also have a children's/benefit grandchildren's rider that adds level term insurance as long as the parent or grandparent is between the ages of 18 and 25 and the child/grandchild is between the ages of 15 and 18.

Transamerica's final expense insurance comes in three options: immediate, 10-pay, and simple. The most comprehensive option is the immediate option, which provides insurance to customers aged 0-85 and covers payments made in full until the age of 121. The simplest solution is also the least inclusive, as it is only available to customers aged 18 to 80, or 50 to 75 if you live in New York.

Other Companies We Considered

AIG

We considered AIG for its term insurance variability, but chose Banner because its features were more impressive. AIG's term life insurance plans, for example, cover up to 35 years, which is less than Banner's, and they do not include a free death benefit rider.

State Farm Insurance

Although State Farm is an excellent insurer, we chose not to include it because of its final expense insurance limits. Death benefits are capped at $10,000, whereas other companies provide up to $50,000.

USAA

We did not select USAA because it does not provide final expense-specific policies due to rider limitations — only three are available — and because you must be a member to apply. We decided that this was too narrow for our purposes.

Guide to Senior Life Insurance

Life insurance acts as a financial safety net for people with dependents and pressing financial obligations, giving you the peace of mind that your family will be taken care of after you die. If you have no financial responsibilities and are only looking to cover funeral expenses after your death, you may be able to do so with savings. Another option to consider is a final expense insurance policy, which we will go over further below.

If, on the other hand, you have grandchildren or adult children with disabilities who rely on you financially, want to make a charitable donation, or cover estate taxes for your loved ones, a life insurance policy may be the way to go.

Seniors have access to the same types of life insurance as everyone else, albeit at a higher cost. This cost difference arises from the fact that the likelihood of dying in any given year increases with age, and insurers set premiums accordingly. This guide will walk you through the various types of life insurance available to help you decide which, if any, should be included in your retirement plan.

Life Insurance Options for Seniors

Life insurance policies are classified into two types: term life insurance and permanent life insurance. Each of them has several subcategories, each with its own set of characteristics.

Term life insurance for seniors

Term life insurance is a straightforward product that pays out a predetermined death benefit to the policy's beneficiaries if the insured dies within a specified timeframe. The most common options are 20-year term life insurance and 30-year term life insurance. If the insured lives beyond the term of the policy, the policy will either expire or increase in price, depending on the plan. Some term life policies can be renewed after their terms have expired, but the insurer may adjust your premiums based on your age and health or medical conditions, depending on the plan.

Permanent life insurance for seniors

Permanent life insurance, unlike term life insurance, does not expire. It is intended to pay a death benefit to the policy's beneficiaries upon the death of the insured, regardless of age. This type of life insurance also provides living benefits in the form of a separate investment component known as the "cash value," which the policyholder may borrow from as long as the premiums are paid.

Permanent life insurance premiums are significantly higher than term life insurance premiums. However, it may be more appropriate for people who have long-term obligations, want to cover estate taxes after their death, or want to use life insurance as an investment vehicle. If you are looking for a whole life insurance policy as an investment, it is generally recommended that you first exhaust other investment options, such as a 401k, IRA, or Roth IRA.

Whole life insurance and various types of universal life insurance are examples of permanent life options.

Final expense insurance for seniors

Final expense (also known as burial insurance) is a type of whole life insurance policy that pays out a death benefit to cover funeral and other end-of-life expenses. These policies provide less coverage and a lower death benefit, typically ranging from $2,000 to $50,000. Final expense insurance is an option for those who, due to their health, are unable to qualify for traditional life insurance coverage and require only a small death benefit.

Long-term care insurance for seniors

Long-term care insurance is designed to cover the costs of in-home nursing or hospice care in the event of a chronic or debilitating illness, disorder, or disability. You must be unable to perform at least three activities of daily living (ADLs), which include eating, dressing, continence, toileting, transferring, and personal hygiene, for this type of insurance to kick in.

The majority of long-term care insurance policies cover services that health insurance and Medicare do not, such as nursing home or assisted living facility costs. They also operate on a reimbursement model, which means you must pay for services out of pocket before applying for reimbursement.

If you have a pre-existing condition, you may not be eligible for long-term care insurance, but you can still purchase this type of coverage in your mid-60s. In fact, it is advised for people between the ages of 55 and 65.

LTC policies are priced based on the benefit period chosen, the type of policy, the payout options, and the applicant's health. These policies can have the highest premiums of any type.

How Much Does Senior Life Insurance Cost?

In general, the cost of any insurance is directly proportional to the risk that the insurer is willing to take by providing you with a policy. The higher your risk of death, the higher your premiums with life insurance.

Because there are so many variables that go into calculating premiums, it's difficult to provide ballpark figures without knowing the specifics.

The cost of your life insurance policy will be determined by the following factors:

• Life insurance policy type
• The amount of coverage or its monetary value
• The gender of the person
• Family and health status medical history
• Tobacco consumption
• Driving history
• Occupation and interests

Age is one of the most important of these factors. Whole life insurance is still available up to the age of 85, the older you get, the higher your premiums will be.

Underwriting Process

As an applicant, the underwriting process is designed to assess your life and risks. Because life insurance companies price risk differently based on their underwriting guidelines, the outcomes and resulting premiums are always variable.

Because underwriting can vary so much, it is recommended that you obtain at least three life insurance quotes from different companies before deciding on a policy. Another option is to hire a broker to do the shopping for you, though you will have to pay for their services.

Riders

Riders are optional extras. Some riders are specific to a policy, while others are more general. Guaranteed insurability, accidental death, family income benefit, and accelerated death benefit are all common riders. It is important to note that not all insurance companies offer the same riders, if any at all, so when purchasing life insurance, inquire about rider availability with each company individually.

How to Buy Life Insurance for Seniors?

Credit rating agencies such as A.M. Best will give the best life insurance companies high financial ratings. A good financial rating can indicate that the insurer you've chosen will be around to pay out your beneficiaries' life insurance claim.

How Do You Select the Appropriate Policy and Insurer for You?

The best life insurance policy for you is determined by your objectives and financial situation. Consider what you want the policy to accomplish and look for options to help you achieve those objectives.

Then consider the cost of premiums. A whole life insurance policy may appear to be a good investment, but if the high premium payments are unaffordable on a fixed income, you risk having your coverage lapse.

Another important factor to consider is approval. If you have pre-existing medical conditions, you may be limited to more expensive guaranteed issues or simplified issue policies.

How Can You Reduce Your Insurance Premiums?

Premiums may be difficult to reduce because they are calculated using various factors. Here are some possibilities:

• Consider how much life insurance you truly require: Examine your finances and determine how much life insurance is appropriate for you and your budget.
• Improve your health: Even if you're a senior, being physically fit will result in lower premiums. Losing weight and abstaining from tobacco and/or alcohol reduces your risk.
• Stick with term life insurance: Term life insurance is the most affordable option for life insurance. The premiums are lower than those of a permanent policy.
• Comparison shop: Shopping around and comparing quotes is the simplest way to reduce premiums.

Before Making Any Decision, Speak with a Financial Professional.

A certified financial planner (CFP) can help you create a financial plan and determine whether you need life insurance and which product is best suited to your financial objectives. Of course, there may be a fee for this service, and it may not be suitable for everyone.

The benefit of consulting a certified financial planner before purchasing life insurance, according to Malik Lee, CFP and founder of Felton & Peel Wealth Management, stems from the fiduciary standard.

“If you go to a traditional life insurance agent, they will give you options based on a suitability standard or whether or not you can afford the policy. A certified financial planner, on the other hand, or someone bound by fiduciary standards, looks at how the policy fits your goals and plans,” Lee explained.

“Imagine going to a car dealership. If you go to a car dealership and tell them you have $30,000, they will try to find you a car for that amount. Whereas if you went to a fiduciary car dealership, they would ask you if you have a large family or if you drive a lot, and this can mean the difference between walking away with an eight-cylinder car and a four-cylinder SUV,” he added.

How We Chose the Best Life Insurance for Seniors

With so many competitors in the life insurance industry, we wanted to select companies that catered to seniors and provided excellent plans and benefits with few to no restrictions. To accomplish this, we assessed each company based on three criteria: age/benefit limits, plan and rider availability, and nationwide availability.

Limits on Age, Year, and Benefits

Because age limits in the life insurance industry vary greatly, we wanted to make sure that our top picks could benefit people of all ages. As a result, companies with broader age and year restrictions outperformed us. For example, whereas most term life insurance policies have a 30-year limit, Banner's has a 40-year limit, allowing you to keep your term life policy for a longer period of time.

Plan and Rider Availability

We wanted to look at companies that offered more than just the basic term and whole life insurance options for seniors. As a result, all of the companies we chose offer a diverse range of plans. We also wanted to help you tailor your plan to your specific needs, so each company offered a variety of riders to choose from.

Nationwide Availability

Companies with statewide availability received higher ratings from us, while those with services limited to a few states were not considered. Except for Banner, which is only available in New York, all of our top picks are available across the country.