Our experts have researched 10 life insurance providers and recommend 10 of the best options for seniors.
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10 Best Life Insurance Companies for Seniors in 2020
How We Chose Our Top List
There are seemingly countless life insurance options for seniors. So our experts researched the best insurance providers and plans, and distilled it down to the top 10 best life insurance for seniors in 2020. We considered everything from rates and benefits, to age limits, customer service, customer reviews, and more. If you’re on the market for a life insurance plan for yourself or a loved one, our top 10 list is dressed to impress.
Sample AIG life insurance rates are posted at the company website, but for 40-year-olds only. You can get a customized quote online or by calling AIG Direct.
AIG has a wide range of life insurance products for seniors worldwide. Up to age 85 they guarantee one version of whole-life coverage without an exam, though the maximum is just $25,000. Other AIG life insurance policies with health questions have $2 million limits. Customer service is reportedly improving.
A favorite life insurance company for seniors, Haven makes it easy to get a quote online. You don’t need to provide a name, email address or other personal information.
Prices vary a lot! Tobacco use has a huge impact on rates. Age, sex and state of residence are also factored into Haven Life insurance calculations. Thus for $1 million in coverage one senior might pay less than $200/month while another pays more than $2,000. Get your quote at HavenLife.com.
Haven Life is a top option for term life insurance with a renewability rider, and you can apply online. The cutoff age for initial application is 64. The most coverage is available for those applying before age 59.
Bestow term life insurance for seniors can be affordable, even though exam-free life insurance is typically expensive. For pricing you’ll need to apply online. The application takes about 10 minutes to complete.
Bestow makes it easy to buy term life insurance online. They’re proud to be test-free! Policies are valued at up to $1,000,000. However, the maximum term for senior applicants is 10 years. Bestow term life insurance policies aren’t renewable or convertible to permanent coverage.
Similar to other insurers, rates are highly dependent on gender with MassMutual. The company prefers that seniors pay premiums either semi-annually or annually. There is an additional charge for people who choose to pay monthly or quarterly. MassMutual may credit your policy with dividends that lower the premiums you’re responsible for, and expand the benefits pool. However, they are not guaranteed, and it’s typical that you must have had your policy for at least 11 years to start receiving dividends. Daily benefit amounts for care ranges from $50 to $400 per day and increase in $10 increments.
Seniors looking for long-term coverage may take advantage of MassMutual’s 6-year period offering. Otherwise, there are plenty of other options to consider. Keep in mind that your benefits can be restored more than once as long as you have not used up your total benefit amount. The enhanced elimination period rider may save you some money in the long run. For example, if you only use services for one day in a seven-day period, you can get the full week counted towards the elimination period.
Personalized quotes are available at the Prudential website.
Prudential is a well-established insurer with many products for seniors. You can apply online for an instant quote. Keep in mind though that coverage ends at age 95.
New York Life gave pricing quotes in 2018 for a 55-year-old married male covered under each of their four programs. In Bronze, he would be responsible for a monthly premium of $24.93; in Silver, he would pay $49.86; in Gold, it would cost $84.65; in Platinum, it would be $119.45. Keep in mind that these rates do not factor in inflation protection, but does factor in the 25% partner’s discount.
Seniors are partial to New York Life because their long-term care insurance options are easier to understand and follow. NYL Secure Care ensures that older people have financial peace of mind, while receiving the care they need to thrive in their final years.
American General provides quick quotes online. The only health questions asked involve your BMI (height and weight) and nicotine use. However, a medical exam and lifestyle check are then needed to lock in your rate.
Some factors that influence American General life insurance prices are risky behaviors such as skydiving, driving record, cholesterol ratio and amount of tobacco use.
American General sells term-life insurance backed by AIG. Quotes are given online but medical tests might be required. This insurance company offers high coverage but may have slow customer service.
For pricing information, you will have to get in touch with an agent. Unlike Mutual of Omaha, Transamerica does not have an online estimator. One thing to note is that premium rates vary by gender. Since women tend to live longer, they have higher long-term care expenses.
While costs are not found on Transamerica’s website, The American Association for Long-Term Care Insurance lists three TransCare III pricing estimates. A married couple aged 60 and 61 with a benefit amount of $162,000 each is responsible for paying a yearly premium of $2,242. On the other hand, a single male who is 57 years old pays $989. A single female the same age pays $1,507. These estimates do not factor in inflation protection.
If you live outside of California, you can expect Transamerica to provide relatively affordable policies with a good amount of options to choose from. Even though it’s not possible to get a quote from Transamerica’s website directly yet, you can get a rough idea of costs with the estimates above.
Colonial Penn issues insurance as units. You can purchase one to eight units for different levels of coverage. Instant quotes are given online.
Colonial Penn makes it easy for seniors to buy insurance online without medical tests. However, the coverage is low. Healthy adults could likely find more coverage for the same cost elsewhere.
Click “Get Started” on this page to run through various pricing scenarios. For example, take a 60-year-old nonsmoking female who pays $100,000 for the policy in a single payment.
She chooses indexed growth and a four-year LTC benefit period. At age 80, she’d receive a LTC benefit of $10,074 a month, translating to $120,889 a year. It pays to ask questions, though, because this model indicates that she gets no LTC benefit at age 85. If you click on, “Download Basic Illustration,” you do see that there are payouts at age 85 and beyond.
If you choose indexed growth, your policy is linked to major stock market indices, and you can lock in your benefit amount at any policy anniversary. Choosing indexed growth may feel risky, but based on past market performance, it’s a pretty safe risk.
You must have many thousands of dollars to invest in this type of long-term care insurance. If you do have that money, it’s a great vehicle for wealth preservation. Do take a look at life insurance/long-term care options from other companies, and compare prices and benefits.
Ease your search by learning a basic vocabulary of life insurance.
The death benefit is the amount of money that beneficiaries will receive when the policyholder dies. It’s also called the “face value” of an insurance policy.
Term life insurance provides coverage for a set period of time. Some common term lengths are one year, ten years, 20 years and 30 years. Some of these policies have flat rates. With others, your premiums could increase or decrease over the years.
A term life insurance policy remains in effect for as long as the policy term, as long as you pay the premiums. If you die during the term, then your beneficiaries should receive payouts. However, beware of sneaky policies that won’t provide any payment if you happen to die soon after signup. The death benefit can vary with time.
If you die after a term life policy expires, then generally no funds are available. Obviously this can be a drawback for many families, so many of the leading companies offer renewable term life policies. Keep in mind though that premiums will likely increase, and renewability might stop at a specified age such as 80 or 90 years.
Even better for many seniors, many term life insurance providers let you convert to a whole-life policy anytime before the policy expiration. It’s impossible to know what your family’s expenses will be in five, ten or twenty years… so choosing a term life policy that’s guaranteed renewable and/or convertible can bring peace of mind.
Obviously everyone’s situation is unique. In general though, term life insurance is best suited to younger adults. It could bring diminishing returns as you age.
Whole-life insurance provides coverage lifelong, as long as you pay your premiums. Some whole-life plans let you pay off a plan early to avoid the hassles of premiums when you’re older. In any case your beneficiaries will generally receive a set payment amount. This is in stark contrast to most term life plans that provide nothing in exchange for your premiums if you fortunately outlive the policy.
Standard whole-life plans are just one type of permanent insurance. Other permanent options called universal life, indexed universal life and variable universal life add cash-growth from interest or investments. The value of your portfolio will fluctuate, but your insurer will specify a minimum guaranteed rate of growth. Accrued funds can be applied to your premiums. You can also borrow against the account’s cash value, and you can withdraw the cash even if you cancel your life insurance policy. Beneficiaries will not be eligible to receive those funds though; only the death benefit portion of the policy is distributed to heirs.
Universal life insurance can draw cash from interest. Indexed universal life insurance is tied to the stock market but does not include a risk of loss. Variable universal life insurance involves stocks, bonds and mutual funds.
Along with the chance for tax-free cash growth, a main benefit of permanent life insurance plans may be extra flexibility, such as the option to increase your death benefit.
Downsides may be variable premiums and risk of loss. Also, it’s important to ensure that a minimum death benefit is guaranteed; without a rider, this benefit could be lost. This sort of life insurance should only be chosen as part of a well-rounded financial plan by someone who understands investments. Generally it’s best to open such a policy when you’re young, as this gives a chance for significant cash growth.
Insurance companies advertise guaranteed acceptance insurance for adults in specific age groups such as 50 to 85. These policies are offered without medical exams or health questions. However, the maximum coverage is typically $25,000. The coverage is generally meant to help with final expenses, not to help maintain a family’s mortgage, college tuition and so forth.
Final expense insurance is a similar option that may have lower rates, but medical history is considered when you apply.