Updated Feb. 21, 2023
If you're a senior citizen (or closing in on those golden years), you probably know that buying senior life insurance isn't quite as easy as it was when you were younger. Locating the best life insurance for seniors is all about finding an affordable policy that provides the coverage you're looking for. We've combed through life insurance companies to find insurance companies that understand what you're looking for in a policy and provide reasonably priced coverage.
The Ascent's picks for best life insurance options for seniors
- Mutual of Omaha: Best for customizing coverage
- AIG: Best for direct savings
- Northwestern Mutual: Best for multiple coverage options
- MassMutual: Best for financial backing strength
- Gerber: Best for no exam policies
Mutual of Omaha
Best for customizing coverageMutual of Omaha
Rating image, 4.00 out of 5 stars.
4.00 stars
Our ratings are based on a 5 star scale.
5 stars equals Best.
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Adults between the ages of 18 and 80 are eligible to apply for a term life insurance policy through Mutual of Omaha. While it's more expensive to purchase an insurance policy of any type when you're older, the company manages to keep life insurance rates relatively low.
As with any life insurance policy, smokers can expect to pay considerably more for a policy. For example, a 70-year-old male who smokes can expect to pay around $832 per month for a 10-year policy rather than $214.
That said, Mutual of Omaha offers no-exam whole life insurance for adults from 45 to 85 years of age (50-75 in New York). These no-exam policies allow smokers to land a whole life policy they may not qualify for with other companies.
Mutual of Omaha offers a variety of riders for those who want a more customized policy. Further, the company scores well in J.D. Power's customer satisfaction surveys.
AIG
Best for direct savingsAIG
Rating image, 4.00 out of 5 stars.
4.00 stars
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = PoorBottom Line
AIG, part of the American International Group Inc., operates in more than 80 countries. The company claims that when a customer calls AIG directly, they can save up to 55% on a term life policy compared to other insurers.
AIG also makes the list of best life insurance for seniors by offering various policy types, including term, whole, and universal life insurance. Two of their policy types - Accidental Death and Dismemberment (AD&D) and Guaranteed Issue Whole Life -- are available with no physical exam.
As part of a vast, multinational company, AIG has the financial strength to pay out when the time comes. S&P Global Ratings gives the insurer an A+ score for financial strength, and AM Best gives it an A.
Northwestern Mutual
Best for multiple coverage optionsNorthwestern Mutual
Rating image, 5.00 out of 5 stars.
5.00 stars
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = PoorBottom Line
Northwestern Mutual has been in business for more than 160 years. The life insurance company offers a variety of life insurance types, including term, whole, and universal. With an AM Best rating of A++ and S&P Global rating of AA+, policyholders can be sure that Northwestern Mutual has the financial backing to pay their death benefit.
MassMutual
Best for financial backing strengthMassMutual
Rating image, 4.00 out of 5 stars.
4.00 stars
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = PoorBottom Line
Another life insurance provider with the financial strength to provide protection is MassMutual. Like Northwestern Mutual, the company receives ratings of A++ and AA+ from AM Best and S&P Global. In addition to term life, MassMutual offers permanent life insurance policies, like whole and universal coverage. The only fly in the ointment is that seniors over 75 will need to purchase either whole or universal life as term life is only available to age 75.
Gerber
Best for no exam policiesGerber
Rating image, 4.00 out of 5 stars.
4.00 stars
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = PoorBottom Line
While people may remember buying a life insurance policy for their children or grandchildren through Gerber, the company is also ideal for seniors. Adults between 50 and 80 have access to guaranteed issue policies, and medical exams may not be needed for term or whole life policies. In addition, policies are discounted by simply signing up for autopay.
What seniors should know before buying life insurance
The first thing seniors should know before buying life insurance is that many people shop for life insurance in the autumn of their lives and for a variety of reasons. For example, a person may have custody of their grandchildren and want to ensure they can get through college after the grandparent's death. Someone might wish to buy final expense insurance so their family won't be responsible for the cost of their burial. Or, a couple may decide they want enough coverage to leave money to heirs or a charitable organization after they're gone. Whatever the reason for buying life insurance, here are some key facts seniors should know:
- Initially, premiums may seem high. Seniors shopping for insurance coverage should not allow the first quotes they receive to scare them off. There are far too many insurance companies and dedicated insurance agents in the world to believe that all premiums are equal. Shopping around is sure to uncover lower premiums.
- Premiums can increase. If the last time a person purchased life insurance was 30 or 40 years ago, they might not know that the premiums on some policy types creep up as the policyholder ages. Before buying a policy, it's essential to know if the premiums are fixed or whether they are likely to rise.
- It may be possible to skip the medical exam. No-exam life insurance policies are available for a senior with significant health problems (or a smoker). The premiums are higher than a traditionally underwritten policy, but it may be the best way to get the life insurance coverage they desire.
Does age impact the cost of life insurance?
The cost of life insurance increases with age. That's because insurance companies price policies based on risks. Statistically, the older a person is, the closer they are to dying. And once they die, the life insurance company pays their named beneficiaries. That's why it's less expensive to insure a 21-year-old than a 71-year-old.
What type of life insurance is best for seniors?
The "type" of life insurance best for seniors depends on the senior in question. Are they looking for coverage to pay off their mortgage if they predecease their spouse, or seeking a way to leave an inheritance to their children?
The reason for taking out a policy helps determine the type of coverage needed. In the case of paying off a mortgage, a term insurance policy may be just right. For someone concerned about leaving a financial legacy, whole or universal life may fit the bill because coverage lasts the policyholder's entire life, as long as premiums are current.
Just as there's no single type of senior, there's no single policy that fits them all.
The ability to enjoy financial peace of mind is a luxury, and for seniors looking for additional financial peace, life insurance can help. The best life insurance companies not only provide insurance, but they also provide the expertise to help seniors identify the best type of coverage for their situation.
RELATED: Check out The Ascent's guide to the best credit cards for seniors.
| Offer | Best For | Next Steps |
|---|---|---|
Mutual of Omaha
Rating image, 4.00 out of 5 stars.
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Great For: Best for customizing coverage | |
AIG
Rating image, 4.00 out of 5 stars.
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Great For: Best for direct savings | |
Northwestern Mutual
Rating image, 5.00 out of 5 stars.
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Great For: Best for multiple coverage options | |
MassMutual
Rating image, 4.00 out of 5 stars.
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Great For: Best for financial backing strength | |
Gerber
Rating image, 4.00 out of 5 stars.
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Great For: Best for no exam policies |
FAQs
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If life insurance provides a senior with a greater sense of well-being and peace of mind, it is absolutely worth it.
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Whether a senior needs a medical exam to buy life insurance depends on two things: The insurance company and the type of policy. It's important to note that premiums on no-exam policies are more expensive than on traditionally underwritten policies. However, if a senior would have trouble passing a traditional examination, a no-exam policy offers an alternative way to secure life insurance.
Our Insurance Expert
Dana George has a BA in Management and Organization Development from Spring Arbor University. For more than 25 years, she has written and reported on business and finance, and she's still passionate about her work. Dana and her husband recently moved to Champaign, Illinois, home of the Fighting Illini. And though she finds the color orange unflattering on most people, she thinks they'll enjoy Champaign tremendously.
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