Best senior life insurance companies August 2023
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Updated 8:28 a.m. ET Aug. 2, 2023
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Buying life insurance in your senior years can provide your loved ones with a financial safety net. It can also ensure some or all of your end-of-life expenses, like funeral or burial costs, are covered.
Even though your life insurance options may decrease as you age, you still have options. Our team of insurance experts has reviewed data on 24 top insurers to help you find the best senior life insurance companies.
Why trust our insurance experts
Our team of experts evaluates hundreds of insurance products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 28 insurers evaluated
- 96 policy feature analyzed
- 5 levels of fact checking
Key points
- Penn Mutual and Protective have the best senior life insurance, according to our analysis of 24 life insurance companies.
- Seniors have several life insurance options, including term life, whole life and burial insurance.
- Senior life insurance can cover funeral expenses and other bills or act as an inheritance.
Best senior life insurance companies of 2023
Compare the best senior life insurance companies of 2023
| Company | Our rating | AM Best financial strength rating | LEARN MORE | ||
|---|---|---|---|---|---|
| Penn Mutual | 5.0 stars | A+ (Superior) | Compare Rates | Compare quotes offered by participating partners | |
| Protective | 5.0 stars | A+ (Superior) | Compare Rates | Compare quotes offered by participating partners | |
| Pacific Life | 4.5 stars | A+ (Superior) | Compare Rates | Compare quotes offered by participating partners | |
| Equitable | 4.0 stars | A (Excellent) | Compare Rates | Compare quotes offered by participating partners | |
| Midland National | 4.0 stars | A+ (Superior) | Compare Rates | Compare quotes offered by participating partners | |
| Transamerica | 4.0 stars | A (Excellent) | Compare Rates | Compare quotes offered by participating partners | |
| Mutual of Omaha | 3.5 stars | A+ (Superior) | Compare Rates | Compare quotes offered by participating partners | |
| Minnesota Life | 3.0 stars | A+ (Superior) | Compare Rates | Compare quotes offered by participating partners | |
| Principal | 3.0 stars | A+ (Superior) | Compare Rates | Compare quotes offered by participating partners | |
| Ameritas | 2.5 stars | A (Excellent) | Compare Rates | Compare quotes offered by participating partners | |
| John Hancock | 2.5 stars | A+ (Superior) | Compare Rates | Compare quotes offered by participating partners | |
| Nationwide | 1.5 stars | A+ (Superior) | Compare Rates | Compare quotes offered by participating partners | |
| Guardian | 1.0 star | A++ (Superior) | Compare Rates | Compare quotes offered by participating partners |
Methodology
To determine the best senior life insurance companies, our life insurance experts evaluated 24 of the top life insurance companies that offer coverage in the United States.
Each life insurance company included in our evaluation had the opportunity to earn up to 100 points, based on the following factors:
Term life insurance rates: 50 points. Since term life insurance is often the most affordable coverage option, we evaluated rates for a 10-year term life policy for 70-year-old males and females and coverage amounts of $500,000 and $1 million.
Cost competitiveness of cash value policies: 15 points. Most permanent life insurance policies have a cash value component, but not all are created equal. We looked at internal policy costs, such as administrative fees and policy charges, to determine the competitiveness of permanent life policies offered by insurance companies in our review.
Historical performance: 15 points. The growth of cash value policies depends on several factors, including the historic performance of an insurance company’s investments. Our analysis took into account this metric to determine how an insurance company’s performance and therefore cash growth potential compared to others.
Reliability of policy illustrations: 15 points. When you purchase a permanent life insurance policy, the insurer should provide an illustration to show how the cash value is projected to grow over time. This is particularly important if you’re relying on your policy cash value as part of your retirement planning. We evaluated the accuracy of each insurer’s policy illustration to determine which companies provided the most reliable outlooks.
Financial strength: 5 points. There are four major rating agencies — AM Best, Fitch, Moody’s and Standard and Poor’s — that evaluate an insurer’s financial strength, a factor that indicates an insurer’s ability to pay out a claim years from now. We took this into consideration to account for the likelihood an insurance company is able to claim obligations.
To evaluate life insurance companies, we used data provided by Veralytic, an independent publisher of life insurance research and analytics, and AccuQuote, a national online insurance agency.
Why some companies didn’t make the cut
Of the 24 insurance companies we evaluated, only six made our list of the best senior life insurance companies, earning at least 4 stars out of 5. Companies with high policy rates, growth-prohibitive internal costs or a poor historic performance were less likely to make our list. The same is true for companies that did not provide reliable policy illustrations for permanent life insurance policies or had a high number of consumer complaints.
What is life insurance for seniors?
Senior life insurance is typically any type of life insurance coverage available to people age 62 or older, including term life insurance and permanent life insurance.
Regardless of the type of life insurance you purchase, it will include a death benefit, which is a sum of money paid out to your beneficiary. You can choose one or more beneficiaries, with common options being a spouse, partner, child or grandchild.
The death benefit can be used in any way the beneficiary chooses, such as for paying funeral costs, outstanding debts or medical bills, everyday living expenses or estate taxes. It can also simply act as an inheritance, though there may be other financial vehicles better suited for this purpose, so speak to a financial advisor if that’s your goal.
What type of life insurance is best for seniors?
There are several options when it comes to choosing a senior life insurance policy. Here are some common types of life insurance to consider:
- Term life insurance. Term life insurance locks in rates and coverage for a set period of time, often 10 to 15 years.
- Permanent life insurance. This refers to any type of life insurance that is designed to last your lifetime. Permanent life insurance includes whole life insurance, variable life insurance and universal life insurance policies.
- Burial insurance. This is a form of whole life insurance that offers a minimal death benefit — usually $5,000 to $25,000 — that can be used to cover end-of-life expenses, like a funeral. It can also be used to cover other expenses as your beneficiaries see fit.
- Simplified issue life insurance. This type of life insurance refers to term or permanent life insurance policies that don’t require a health exam, though it’s likely you’ll still need to complete a health questionnaire.
- Guaranteed issue life insurance. Guaranteed issue life insurance ensures you’re approved for coverage regardless of your health. You won’t have to fill out a health questionnaire or undergo an exam, but it’s usually more expensive than other types of coverage.
Do seniors need life insurance?
Life insurance for seniors isn’t required, but some people may benefit from purchasing a policy.
Here are some ways a life insurance policy can benefit seniors:
- Provide a financial safety net to a surviving spouse, partner or child.
- Help loved ones cover any outstanding debts or bills, including medical bills.
- Cover final expenses, such as a funeral and burial.
- Provide an inheritance to a loved one.
- Help heirs cover potential estate taxes after your death.
- Cover the cost of long-term care if you’re diagnosed with a chronic, critical or terminal illness, provided the policy includes the appropriate rider.
Alison Salka, Ph.D., senior vice president and director of research at LIMRA suggests senior shoppers consider their exact goals as they consider various coverage options. “Older adults have different financial needs,” she said. “If they still have a mortgage… and if they have a spouse or significant other still living in the house, they may want enough coverage to cover their loved ones.” But if their primary goal is to ensure their funeral expenses are taken care of, a burial or final expense policy may be a better option.
Pros and cons of senior life insurance
If you’re 60 or older and are considering purchasing a life insurance policy, analyzing your needs as well as the benefits and drawbacks of purchasing coverage can help you decide if it’s worth the expense.
Pros:
- Beneficiaries can use the death benefit to cover a number of expenses, or as an inheritance.
- Policies with living benefits may provide early access to the death benefit if you are diagnosed with a terminal, chronic or critical illness.
- Some life insurance policies, such as burial insurance, don’t require a health exam or questionnaire.
Cons:
- Cost of coverage increases with age which can lead to high rates for relatively low coverage amounts.
- Policies may have graded death benefits, meaning your beneficiary will only receive a partial death benefit if you pass away within two to three years of purchase.
- Medical issues can lead to higher premiums and make you ineligible for some types of coverage.
What to look for in a senior life insurance policy
Finding life insurance that fits your budget is important, but rates aren’t the only thing you should keep in mind. Here are some other factors that can help you find the best senior life insurance for you.
Adequate coverage length
Term life insurance can help cover short-term financial obligations, like the remaining years on a mortgage, while permanent life insurance, like a small burial insurance policy, can provide coverage to last your lifetime.
Suitable age limits
Life insurance companies often stop issuing policies at a certain age, but this varies by company. They also set guaranteed renewal age limits, which can limit your options to renew coverage beyond a certain age.
Riders
Policy add ons, such as long-term care or accelerated death benefit riders, can help you customize your policy. Some riders may be included, but you often have to pay extra to add them.
Conversion options
If you’re considering the term but think there is a possibility you’ll want permanent life insurance in the future, find a convertible policy.
“Make sure there is a conversion option for a term policy so that a policy can be switched to a permanent form of coverage with a set premium level when the term period of the policy expires,” said Chris Orestis, a CSA and president of Retirement Genius.
“Another feature would be to look at hybrid-life insurance policies that have a long-term care rider which would allow the policy to be converted to cover long-term care costs if a person meets the level of care requirements.”
How much does life insurance for seniors cost?
Your rate will depend on a number of factors, including the type and amount of coverage you want. Term life insurance policies are typically cheaper than permanent life insurance policies, and the more coverage you purchase, the higher your premium will be.
How much you pay for coverage will also depend on the company you choose, as each company assesses risk and assigns premiums differently. The tables below show example rates for each of the insurers that earn at least 4 stars out of 5 in our rating of the best life insurance for seniors.
Example annual rates for a $500,000 10-year term life policy for women
Example annual rates for a $500,000 10-year term life policy for men
Alternative life insurance options for seniors
If you aren’t able to qualify for a traditional term or permanent life insurance policy, or you don’t want any of the options available to you, there may be alternative options available.
Long-term care insurance
If you’re considering life insurance as a safety net for long-term care expenses, a standalone long-term care insurance policy may meet your needs. It can cover the cost of a nursing home, hospice care, adult day care centers and physical and occupational therapy, among other things.
This type of insurance can be costly, so always consider your financial goal — living benefits or financial support for beneficiaries — before purchasing coverage.
Annuities
An annuity is a contract between you and an insurance company that allows you to make a premium payment (or payments) now in exchange for a payout (or series of payments) later in life.
Payments can be used to supplement your income during retirement and you can name beneficiaries to receive a death benefit if you pass away before payouts begin.
Before you decide if any of these options are right for you, speak with a financial advisor. They can help you determine how life insurance alternatives fit into your financial goals and budget.
Based on our analysis, Protective, Pacific Life, Midland National and Transamerica are the best life insurance options for seniors over 70. These companies make our best life insurance and best senior life insurance ratings, and have a maximum issue age of 75 (with the exception of Transamerica, which offers term policies with a maximum issue age of 80).
If you’re over 80 years old and shopping for life insurance, your best option may be burial insurance. Burial insurance, also known as final expense insurance, is a type of whole life insurance that offers a a low amount of coverage — typically between $5,000 and $25,000 — that can be used to cover things like funeral costs, end-of-life expenses, outstanding medical bills or other debts.
If you’re 60 years of age or older, the best life insurance for you depends on several factors: your health, budget and coverage expectations.
Term life insurance is generally the most affordable option, but policy terms may be limited to 10 or 15 years, depending on your age. Because coverage is locked in for a limited period, this type of life insurance might be right for you if you want to make sure an existing expense, like outstanding debt or mortgage balance, is covered if pass away during the level term period. This type of coverage does not have a cash value component.
If you’re looking for coverage to last until you die, at any age, permanent life insurance is the best option. It is more expensive than term, but most permanent life insurance policies have a cash value component, which you can tap into while you’re alive, as long as there’s enough cash in the account.
Other types of life insurance worth considering are burial insurance, which covers funeral expenses, and guaranteed issue life insurance, which can help you find coverage even if an existing health condition prevents you from getting approved for other types of life insurance.
If your health is limiting your life insurance options, consider applying for simplified issue or guaranteed issue life insurance.
Simplified issue life insurance is coverage that has a “simplified” application process that usually requires you to answer a few questions about your health, but you won’t need to take a medical exam.
Guaranteed issue life insurance is coverage that doesn’t require a medical exam or questionnaire, and approval is guaranteed. The trade-off is usually higher rates and lower death benefits when compared to other life insurance options.
Burial insurance, also known as final expense or funeral insurance, is another option. Coverage amounts are usually low but can provide enough for beneficiaries to cover funeral expenses. You likely will need to answer a few questions about your health, and approval is not guaranteed, but it may be easier to get than a traditional term or permanent life insurance policy.
If you no longer want your life insurance policy, you can cancel, or “surrender,” your policy. Once you surrender your policy, coverage ends and you won’t have to continue making premium payments. If you surrender a permanent policy, you may also receive a refund of your cash value minus any surrender fees charged by the insurer.
But that isn’t the only choice available.
“An important option that a senior aged policy owner should remember is that if they are going to lapse or surrender a policy they could possibly sell it off through a life settlement,” said CSA Orestis.
This involves selling your policy to a third party, and would usually mean you’d get the cash surrender value of the policy. But the amount will be less than the net death benefit, and getting a lump sum payout can impact any public assistance you receive, like Medicaid.
If you have a cash value life insurance policy, you can tap into it while you’re alive in one of three ways:
- Take a loan against your policy.
- Make a withdrawal.
- Surrender your policy.
Taking a loan will reduce your beneficiary’s death benefit if you pass away before repaying the loan. If you surrender your policy, you’ll no longer have coverage and your beneficiary will not receive a death benefit when you die.
Life insurance after age 65 may be worth it if:
- You have a spouse, partner or dependent who relies on your income.
- You are paying off a mortgage.
- You want to leave your beneficiary enough money to cover end-of-life expenses or other bills.
Remember that life insurance is only a part of your bigger financial picture. It’s important to evaluate your budget, assets and any retirement or savings accounts before you purchase a policy. Because financial decisions can be complex, it’s wise to speak to a financial advisor who can help you determine if a life insurance policy is best for you based on your unique circumstances.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
