Our experts researched the best affordable life insurance for seniors and narrowed the list down to their top four picks
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If you are a retiree or soon-to-be retiree looking for a life insurance plan, you definitely want to get the most bang for your buck. Premiums generally go up as you age, so finding cheap plans can be difficult. Finding affordable plans that also offer good benefits can be even harder. We have researched the best cheap life insurance providers for seniors in 2022 to help you find an affordable plan that meets your needs!
AARP offers affordable life insurance plans to adults over the age of 50, but AARP is not just an insurance provider. The organization offers a wide range of financial and educational services for older adults. However, their services are limited to fee-paying AARP members. Fortunately, the standard fee to join AARP is just $16 per year (about $1.33 per month), with cheaper options available if you sign up for more than one year at a time.
Did You Know: If you sign up for AARP and turn on “Automatic Renewal,” you can pay as little as $12 per year for your membership!
AARP is one the cheapest life insurance providers for seniors, especially considering that it does not offer life insurance to anyone under the age of 50. Most other providers offer plans to anyone 18 years or older, yet their cheapest plans still hover between $15 and $20 per month (and go up as you age). Alternatively, AARP offers plans starting at $12 per month for people between the ages of 50 and 55. AARP is the most affordable life insurance provider for seniors, even when you factor in membership fees.
AARP offers some of the best life insurance for seniors, as the entire organization is dedicated to older adults and their well-being. Most other large insurance providers are focused on younger applicants, who often pose less of a risk (especially with life insurance plans). If you are looking for low-cost insurance tailored to the needs of older adults and educational resources bundled under the same provider, AARP is your best option.
State Farm is widely known as a respected and reliable auto insurance provider. But you might not know that they also offer a wide range of insurance policies, including term, universal, and whole life insurance. In addition to its low starting premiums — just $15 per month for young, healthy applicants — State Farm is one of the only providers to offer life insurance plans to seniors over the age of 80.
Did You Know: State Farm is one of the only major life insurance providers to offer new whole life plans to seniors up to 85 years old!
Prices increase with age, and most seniors should expect to pay at least $75 per month for State Farm life insurance. When compared to other providers, this is still very affordable. As an added bonus, State Farm makes it easy to switch from term life to a whole life insurance policy with just a quick phone call.
State Farm life insurance is not available in Massachusetts or Rhode Island, but it is available to the vast majority of Americans. While its premiums are a bit more expensive than those of providers like AARP, it still offers some of the best deals for seniors. If you prefer to handle everything online, State Farm may not be the best provider for you; any new plans or plan changes must be done over the phone via a State Farm agent. Nonetheless, State Farm is a reliable, affordable life insurance provider for seniors, especially those who choose to purchase a policy later in life.
USAA offers life insurance policies to military service members, veterans, and their direct family members. Among military personnel, USAA is widely regarded as one of the top insurance providers, thanks in large part to its flexible plans and excellent customer service. USAA also makes it easy for military families to switch from term to whole life insurance at any time.
Did You Know: USAA offers hundreds of resources, assistance programs, and senior discounts to active duty military members, veterans, and military families.
While plans start at $15 per month, seniors can expect to pay upwards of $77 per month for their life insurance plan. This is still very affordable, but it is important to note that it is not available to all older adults. The main drawback of USAA life insurance is the relatively low age limit of 70. If you decide that you want life insurance after you’ve turned 70, you will need to go with another provider, even if you are a veteran.
If you are a veteran or the family member of a service member, you should consider USAA life insurance. Just as AARP is specifically designed to meet the needs of seniors, USAA is specifically designed to meet the needs of military families. However, you will have to contend with the age limitations when choosing a policy. USAA implements a strict cut-off for life insurance at the age of 70, so if you want USAA life insurance, make sure to plan in advance!
Progressive is a nationwide insurance provider that has the widest range of plans and policy add-ons of any other provider on this list. The basic life insurance plans include term, whole, universal, and final expense life, but most of these can be customized to fit your needs. One potential drawback of Progressive life insurance is that it is not underwritten by Progressive. Instead, it is outsourced to one of Progressive’s partners. Nonetheless, Progressive is one of the few major providers to offer plans starting at less than $20 per month ($80 per month for seniors).
Did You Know: Certain whole life and universal life insurance plans offered through Progressive accrue cash value over time. This means that you can withdraw from your death benefits if you need to pay for medical bills or other large expenses.
Progressive life insurance is best for seniors who know that they want to purchase life insurance before retirement. Why? Because the age limit on life insurance policies is just 65, making it impossible for most retirees to acquire a new plan. Still, Progressive offers quality plan options, affordable pricing, and simple sign-up options to entice younger seniors.
Like every insurance provider, Progressive has its advantages and disadvantages. For seniors, the primary disadvantage is the age limit. If you don’t plan ahead, you could miss out on a great insurance plan that is customized to fit your needs, and some seniors may not like that Progressive does not underwrite its own policies. However, Progressive still offers more plan options than almost any other provider on the market, in addition to providing some of the lowest rates available.
Many seniors rely on Social Security to live and pay their bills, so adding an extra cost to the monthly budget is no small undertaking. We researched all of the best life insurance providers with affordable plans. Then we took a closer look to find out if they were suitable for seniors and their needs. Our list includes only those providers with rates starting under $20 per month (based on age, location, health, and other factors). While affordable rates are important, we also considered other relevant factors for seniors, including age limits, medical exam requirements, nationwide availability, customer service, variety of policy options, and ease of use.
Pro Tip: Want to learn more about life insurance? Visit our guide to life insurance for seniors.
| Starting premium* | Average senior premium (age 65)* | Age limit (whole) | Age limit (term) | Types of plans | |
|---|---|---|---|---|---|
| AARP | $12 per month | $60 per month | 80 | 80 | Term, whole |
| State Farm | $15 per month | $75 per month | 85 | 74 | Term, universal, whole |
| USAA | $15 per month | $77 per month | 70 | 70 | Term, universal, whole, final expense |
| Progressive | $16 per month | $80 per month | 65 | 65 | Term, universal, whole, final expense |
* Premium for a 20-year term life insurance plan with $250,000 in coverage (as of 2022). Actual premium will vary based on age, gender, location, health, and other factors.
The cost of life insurance varies based on your age. Your health and tobacco use also play a role. Though some life insurance providers do not require a medical exam, the vast majority do. If you are over the age of 50 and have one or more chronic health issues, you can expect to pay more.
The cost will depend on various other factors, including your location, the type of insurance plan, and the death benefit. For example, a plan that pays out $100,000 will be much cheaper than a plan that pays out $1 million. You’ll need to do a cost-benefit analysis when choosing a plan that is within your budget but also provides the necessary benefits to your beneficiaries.
Did You Know: Due to average life expectancies, men typically pay more for life insurance than women.
The average rates for nonsmokers rest somewhere around $132 per month. While some insurance plans set the premium for the life of the policy, others increase the premium as you age. The majority of life insurance plans cost more over time. While you may start off paying $80 per month when you sign up at the age of 65, you could be paying more than $250 per month by the time you turn 85. Again, it is difficult to predict, as each provider, plan, and individual policyholder are different.
While all of the providers above offer great life insurance options for seniors, you shouldn’t just take our word for it. Always do your own research to see where you can find the best deal. Here are a few tips to help you out:
Finding the cheapest premiums does not mean that you have also found the best life insurance. Always make sure that your insurance provider is reputable and has good reviews from both individuals and independent rating firms. Here are a few tips to help you have greater confidence in your choice:
Since graduating from Harvard with an honors degree in Statistics, Jeff has been creating content in print, online, and on television. Much of his work has been dedicated to informing seniors on how to live better lives. As Editor-in-Chief of the personal… Learn More About Jeff Hoyt
