Best Life Insurance for Seniors in September 2024

The U.S. life insurance market is a crowded one. By one estimate, more than 700 insurers vie for Americans’ life insurance premium dollars. Many of these companies market policies to seniors. We’ve reviewed several leading providers of senior life insurance, looking at the types of policies offered, maximum issue age, and more. If you’re in the market for senior life insurance, check out the following.

Our recommendations

Compare the best life insurance for seniors

Methodology

We gathered information from a number of life insurance companies, relying primarily on their websites. Third-party ratings and rankings information came from A.M. Best, the National Association of Insurance Commissioners (NAIC), and the J.D Power 2023 U.S. Individual Life Insurance Study.

To develop our “best for” ratings, we evaluated each company, focusing on standout features and/or high ratings.

It’s important to note that life insurance can be a complex product. Most of the carriers featured in our review offer multiple types of policies and numerous options. The best policy and company for you will depend on your needs. Consider working with a life insurance agent or financial planner to make sure you get coverage that is right for you and your family.

Alternatives to life insurance for seniors

While life insurance is often an important part of an individual’s financial portfolio, some alternatives may be worth considering.

Annuities

An annuity provides a guaranteed income stream in exchange for either a lump sum payment or a series of payments. Some annuities can be used to provide income during retirement or to cover specific expenses, such as long-term care costs or funeral expenses.

Prepaid funeral plans

Individuals who are thinking about life insurance as a way to save their family the burden of paying for a funeral can consider pre-paying. Many funeral providers offer this service.

Personal savings and investments

Those with significant savings and investments can consider setting aside funds to pay for end-of-life costs.

What should seniors look for in a life insurance policy?

Type of policy

Common policy types include term life, whole life, and universal life. A term life policy remains in force for only a set number of years. Whole and universal life policies remain in force until the policyholder’s death and include a cash value feature. Whole and universal life policies are typically much more expensive than term life.

Coverage amount

Coverage amount refers to the amount of money paid out as a death benefit. Most insurers offer a wide range of options, from just a few thousand to several million dollars.

Medical exam requirement

Those with health issues may want to opt for a policy without a medical exam. Note, however, that these policies tend to cost more. So, healthy individuals should strongly consider a policy with an exam requirement.

Cost

Keeping the policy in force means staying current with the annual premium payment. Individuals looking for life insurance should choose a policy they can afford.

Riders and other benefits

Common riders include accelerated death benefits for chronic conditions, and long-term care coverage. Applicants should check to see what’s offered.

Policy limitations

It’s common for life insurance policies to pay out only a minimal death benefit (usually the value of the premiums paid) if the policyholder dies within one or two years of the policy’s inception. Make sure to read the policy contract carefully to understand these and any other limitations.

Company reputation

A company’s reputation for financial stability and customer satisfaction are important. Applicants should check sources such as A.M. Best and J.D. Power to understand how the companies they’re considering stack up.

Factors that determine the cost of life insurance for seniors

As they do with any other type of policy, insurers consider a wide range of factors when calculating the cost of an individual life insurance policy. Some of these include:

Type of policy

Term life policies tend to cost less than whole life (or other cash value) policies.

Coverage amount

A policy with more coverage will cost more than one with less.

Applicant age, gender, and health

With all other factors equal, a younger and healthier person will likely pay less for life insurance. And women tend to pay less than men.

Policy riders and features

Adding optional riders and other features to a life insurance policy will drive up its cost.

Insurance company

Each insurance company factors in its own experience with its customers’ claims, company financial situation, and competitive landscape when determining policy premiums.

More about life insurance for seniors

Do seniors need life insurance?

It’s tempting to think of life insurance as something for younger people. But the fact is that many seniors may benefit from having a policy. Seniors may buy life insurance because they still have a mortgage or dependents. Or they may buy a “final expense” policy to ensure their family isn’t burdened by medical, funeral, and other end-of-life costs.

Types of life insurance plans for seniors

Guaranteed acceptance/no medical exam policies are often marketed aggressively toward the senior market. But seniors may find that they do have other options, including standard whole life and term life policies.

Ultimately, the type of insurance a senior pursues will depend on their (and their family’s) financial needs.

Senior life insurance age limits

Life insurance policies typically have a maximum age at which an applicant can still be approved for coverage. Policies that are more aggressively marketed toward seniors, such as guaranteed acceptance whole life, may have age limits of 80 or above. But standard term and whole life policies typically have lower age limits.

Understanding no-medical-exam life insurance for seniors

Standard term and whole life policies typically require a medical exam. It’s fairly straightforward. The applicant can expect to be weighed and have blood drawn, and answer some questions about their smoking status, health history, and current condition. The insurer will then use this information during its process of underwriting to determine what the policy should cost.

A no-medical-exam policy skips this step. Some no-medical-exam policies feature accelerated underwriting. With this, the applicant forgoes the exam, but still may have to answer some health questions. The insurer may also access health records from third-party databases.

Other no-medical-exam policies skip this step altogether, guaranteeing acceptance regardless of the applicant’s health history or current condition.The catch? Because the insurer doesn’t have valuable health information, they will likely charge more for the policy. So, while no-medical-exam policies are a common choice for senior life insurance shoppers, those in good health ought to consider policies that do require an exam.

TIME Stamp: Seniors buy life insurance, too

While you might think of life insurance as something purchased by a younger person, many companies market coverage to seniors. Policies can be used to provide financial security, pay off debts, or provide for end-of-life and funeral expenses.

Frequently asked questions (FAQ)

Does Medicare offer life insurance for seniors?

Medicare provides important health insurance benefits for those over age 65. However, the program does not offer life insurance.

Is it worth getting life insurance at age 70?

The decision to buy life insurance is highly individual, so the answer to the question is beyond the scope of this article. Those thinking of buying life insurance at age 70 may consider many factors, including their financial obligations and financial situation (savings, investments, etc.), family and dependents’ needs, health status, and financial goals. A financial planner or life insurance agent can help an insurance shopper sort through these.

Is it hard for seniors to get life insurance?

Getting life insurance as a senior can be a little more challenging than for someone younger. This is largely due to factors such as age and health. However, many companies do have life insurance products marketed to seniors, so getting coverage is definitely possible.