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 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 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.
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!
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