As people get older, having life insurance can provide much needed financial peace of mind. A good life insurance policy could be a useful financial tool to help seniors pay off their mortgage, erase debt and get supplemental income after retirement. In addition, leaving loved ones enough money to pay outstanding debt, funeral costs or estate taxes (if a large inheritance is left) can reduce financial burdens inheritors may face.
To choose the best life insurance for seniors, there are a few things to keep in mind. Seniors need to decide how long they need coverage for, how much coverage they want and what they want to use the money for. They also need to name a beneficiary who will eventually receive the funds.
The best life insurance for seniors
There are many life insurance companies on the market. Each provider has pros and cons, so it’s important to find the best company with the right coverage options before purchasing a policy. Here is the best life insurance for elderly individuals.
1. Mutual of Omaha
Mutual of Omaha underwrites its policies through United of Omaha Life Insurance Company, which is a highly ranked insurance provider. The company offers term, whole and universal life insurance policies. Seniors can purchase a policy up to age 80, although final expense insurance is available through age 85.
Mutual of Omaha is a good senior life insurance company thanks to the recently launched Mutual Cares. The online resource was designed to inform seniors about the topics they’re interested in, such as combating loneliness, health and wellness.
The company is financially strong with an A+ rating from AM Best and an A+ rating from S&P. Mutual of Omaha is also highly rated by J.D. Power, with four stars for overall satisfaction. Mutual of Omaha is a great life insurance company for any senior who is looking for financial help during retirement and is starting to plan for final expenses.
2. New York Life
New York Life specializes in life insurance, retirement planning and long-term care. The company offers term, whole, universal and variable universal life insurance for seniors. New York Life also offers a number of flexible policy options and compounding coverage that seniors can use as they get older.
AARP members have access to exclusive pricing and coverage through a partnership with New York Life. Members can get term and permanent coverage up to $100,000 with no medical exam.
New York Life is a one-stop-shop for every life insurance need, with great ratings. The company earned four stars for overall satisfaction from J.D. Power. It has an A++ rating from AM Best and an A++ rating from S&P. New York Life’s financial strength is a good indicator that it will be able to supply funds to seniors for the duration of their policy.
3. AIG Life
If price is the main priority when shopping for life insurance, AIG is a great option. According to its website, the company offers $250,000 of term life insurance coverage for $14 per month in some states. AIG offers term, universal, quality of life and guaranteed issue whole life insurance.
AIG Life doesn’t have the most stellar customer ratings from J.D. Power—only two stars for overall satisfaction—but it’s one of the cheapest life insurance providers for seniors on the market. The company is also financially strong, with an A rating from AM Best and an A+ rating from S&P.
Seniors looking specifically for final expense insurance should consider Transamerica. The company is known for offering robust and customizable final expense insurance options. In addition to final expense insurance, Transamerica also offers whole, term, universal and index universal life insurance policies.
Most of Transamerica’s insurance plans require a medical exam. The guaranteed issue final expense policy is the only plan that doesn’t require an older adult to undergo lab tests or medical examinations. Instead, Transamerica uses proprietary underwriting algorithms to determine insurability and issue immediate coverage with no waiting period.
Some of the riders older adults will like include a grandchild rider, return of premiums after 20 years and accelerated death benefits.
Transamerica is strong financially, with an A rating from AM Best and an A+ rating from S&P. The company gets decent customer reviews, with an A- rating from BBB and two stars for overall satisfaction from J.D. Power.
5. Haven Life
Haven Life underwrites its life insurance policies through MassMutual, which consistently receives high ratings from industry firms and customers alike. Haven Life offers comprehensive coverage at an affordable price, making it a good option for seniors who are recently retired and planning for the years to come.
The one downside to Haven Life is that they only offer term life insurance for seniors and everyone else. However, term policies for adults over 50 of $100,000 to $3 million are possible for applicants up to the age of 64. Haven Life’s customer service is top notch, so it’s a great provider for people who are new to life insurance. Haven Life also has good financial strength, with an A++ rating from AM Best. Its parent company, MassMutual, has a three-star rating for overall satisfaction from J.D. Power.
How much does a senior life insurance policy cost?
There are several factors that contribute to the cost of a life insurance policy. The main factors are age, health history, gender and lifestyle. Typically, younger people pay less for life insurance than older people. Additionally, healthy individuals will pay less for life insurance than people who have pre-existing health conditions or people who smoke.
When looking at a senior life insurance company, it’s important to keep in mind that term life insurance is less expensive than a permanent policy. According to Lincoln Heritage, a healthy male over 70 years old can expect to pay between $122 and $435 per month for $200,000, ten-year term coverage. A healthy female over 70 could pay between $66 and $194. The same older male will pay $1,122 to $2,089 a month for a $250,000 permanent life insurance policy.
Because the cost of life insurance is so personalized, it’s hard to determine what the average life insurance policy costs. Before purchasing life insurance, shop around and get quotes from multiple providers to find the cheapest one.
Choosing the best senior life insurance policy for you
Having a strong life insurance policy is important for seniors. As people get older, they plan for retirement, pay off outstanding debts and prepare for end-of-life costs. Many seniors also set money aside for their children, spouses and other beneficiaries. Before purchasing life insurance, it’s helpful to understand the types of policies and who they are best for.
A majority of people, regardless of age, opt for a term life insurance policy. This type of insurance provides a large amount of coverage at a low rate. If a person is in good health, a term insurance policy won’t break the bank. It’s most ideal for people who need coverage for 10-20 years. Keep your age in mind because the best life insurance for seniors over 60 might be different for the best policy for someone else.
Permanent life insurance is the other option, which is the umbrella coverage that includes whole, universal and variable life insurance. Permanent life insurance covers a person for their entire life, from the time they purchase the policy until their death. In addition to insurance, a permanent life policy also includes investment options. Permanent life insurance is the more expensive option, but it offers much greater financial flexibility.
Frequently asked questions
What is the most affordable life insurance for seniors?
The most affordable life insurance for seniors is going to be different for everyone. For example, a healthy 65-year-old woman will pay less for life insurance than a 75-year-old man who has a history of heart disease. Before purchasing life insurance, get multiple quotes to find which provider can offer the best rate for your circumstances.
What is the best life insurance company for seniors?
The best life insurance company for seniors depends on the price and your coverage needs. Additionally, some companies stand out for their exceptional customer service, while others are known to offer low rates. To find the best company for your needs, consider which factors are the most important and determine the type of policy you need, which will help narrow down the search.
Do seniors need to have life insurance?
Life insurance is not required, but it’s a smart investment for the future. Life insurance gives seniors and their families financial peace of mind and ensures they have money to cover medical debt, pay for funeral expenses and gift money to spouses and other family members.