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The Best Term Life Insurance for Seniors in 2022

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Insurance companies often tailor their term policies toward younger applicants, but fortunately, you can still find great term life insurance policies for seniors. We narrowed down dozens of providers and policies to find the best term life insurance for seniors in 2022. Read on to learn more!

  • 1. Allstate

    Overview

    Allstate offers many different types of life insurance, but it still stands out for having one of the best term life insurance policies on the market. If you are worried about age restrictions, Allstate is one of the best in the business since it offers term life insurance policies to consumers until the age of 80. The terms vary between 10 and 30 years, and while they are not provided directly by Allstate, the company uses trusted partners to underwrite its life insurance policies.

    Did You Know: Allstate is one of the few major insurance providers to open its term life insurance policies to people up to the age of 80.

    Allstate’s term life insurance policies stand out for their competitive pricing. The varied plan types also allow you to get some or all of your premiums refunded if you outlive your policy, convert to a whole life plan, or even renew your plan.

    Pros
    • Competitive term life premiums
    • Some policies are refundable
    • Both renewable and convertible plans
    Cons
    • Certain plans have premiums that increase over time
    • Health issues can delay application status
    • Life insurance only offered through Allstate partners

    Final Thoughts

    Not only does Allstate have a long history of trusted service and strong financial credentials, but it also offers the best term life insurance for older adults. Some consumers may not like that the provider does not underwrite its own policies, but all of Allstate’s partners are fully accredited and reviewed by Allstate for compliance and reliability. In short, Allstate may outsource its life insurance policies, but it still offers affordable, flexible term life insurance plans for seniors.

  • 2. USAA

    Overview

    USAA offers term life insurance policies to military service members, veterans, and their direct family members. Since it is designed for military service members and their families, it can meet specific needs that most other insurance providers cannot. Additionally, USAA is well-regarded for its excellent customer service and a plethora of high-quality, flexible term policies.

    Did You Know: USAA offers hundreds of resources, assistance programs, and senior discounts to active duty military members, veterans, and their families.

    Though USAA offers affordable term life insurance, there are some drawbacks, especially if you are thinking about getting a plan much later in life. You cannot purchase a USAA term life insurance policy after the age of 70. However, this still gives you time to consider how term life insurance could become an important part of your retirement plan.

    Pros
    • Fixed monthly payments
    • Guaranteed coverage after leaving the military
    • Income annuity options
    Cons
    • Relatively low age limit
    • Some policies are not applicable nationwide
    • Available only to military personnel, veterans, and their family members

    Final Thoughts

    Term life insurance from USAA is one of the best options for retired military veterans and their family members. You can make fixed monthly payments or opt for an income annuity plan in which you pay a lump sum and then get a guaranteed income for the remainder of your policy. Either way, USAA gives you plenty of options to customize your life insurance policy. Just remember that you need to apply before you turn 70 or you could miss out.

  • 3. AARP

    Overview

    AARP offers many different services, products, and educational resources to people over the age of 50 — including term life insurance. You have to pay a small annual fee for AARP membership, but the benefits far outweigh the costs. This is especially true if you opt for one of AARP’s low-cost term life insurance plans.

    Did You Know: AARP has been helping older adults navigate their financial lives for over half a century.

    Term life insurance policies with AARP start as low as $11 (for women) or $12 (for men). You don’t have to worry about taking a medical exam when you apply. You can expect your premiums to go up once every five years, and you will also need to factor in the cost of an AARP membership.

    Pros
    • Extremely low premiums
    • No medical exams required
    • Death benefits starting as low as $10,000
    Cons
    • Not available in Arkansas, Oregon, or Louisiana
    • Premiums increase every five years
    • Must be an AARP member to apply

    Final Thoughts

    The cost of AARP membership equates to roughly $1-$2 per month, plus the cost of your term life insurance policy. You can get your membership and a term policy for as little as $13 per month, which is far cheaper than most other major providers. Just remember that these rates are dependent on your age, and they will not remain constant throughout the life of your term policy. Instead, you will see automatic increases once every five years.

  • 4. Liberty Mutual

    Overview

    Liberty Mutual is a trusted provider of fixed annuities, whole, and term life insurance. The provider guarantees that your premiums will not change over the life of your term policy. This means that you can easily create a monthly budget for the next 10, 15, 20, or 30 years (depending on the length of your plan) without needing to make adjustments for increasing premiums.

    Did You Know: Liberty Mutual offers various optional add-ons or “riders” for its term life insurance policies.

    While younger applicants have the option to go through a fast-tracked application process with Simplified Issue policies, seniors still have to go through the standard application process (including a medical exam). The cut-off age for term life applicants is 65. You can still get a term life policy that would keep you covered for up to 30 years, but you will need to plan ahead to ensure that you can still get the policy you want.

    Pros
    • Renewable term policies
    • Guaranteed conversion to whole life
    • Premiums do not change over time
    Cons
    • Low age limit for seniors
    • Premiums start relatively high
    • No option to apply online

    Final Thoughts

    Term life insurance with Liberty Mutual is ideal for people who want the option to change, convert, or add riders to their insurance policy. While the low age limit makes it difficult or even impossible for retirees to get a policy, you can still qualify for a high-quality plan before the age of 65. You can also rest easy knowing that, even though Liberty Mutual is not the cheapest provider, your premiums will not go up during the lifespan of your term policy.

  • 5. State Farm

    Overview

    State Farm is a major provider of both term and whole life insurance. It is best known for offering affordable plans and, in many cases, the option to get a return on your premiums. This means that if you choose a plan that qualifies and you outlive your plan, the provider will pay back all of the premiums you have paid. While this is limited to applicants under the age of 60, it still eliminates any risks associated with a term life insurance policy.

    FYI: You can learn more about choosing the right policy for you by checking out our comprehensive guide to life insurance and our list of the best life insurance plans for seniors.

    While State Farm’s return of premiums guarantee is hard to beat, its term life insurance policies have various age and location-related restrictions. State Farm term policies are available throughout most of the United States, but the age restrictions are more limiting. The age limit is 75 for 10-year policies, 65 for 20-year policies, and 45 for 30-year policies.

    Pros
    • Low monthly premiums
    • Guaranteed conversion to whole life
    • Many term policies offer return of premiums
    Cons
    • Seniors are limited to 10- or 20-year policies
    • Not available in New York, Massachusetts, or Wisconsin
    • Must be purchased through a State Farm agent over the phone

    Final Thoughts

    As long as you have not turned 60 yet, it is relatively easy to qualify for one of State Farm’s return of premiums term policies. Even if you don’t qualify, State Farm still offers plenty of high-quality insurance plans for people up to the age of 75. Just be sure to check with a State Farm agent to ensure that term life insurance is available in your area.

How We Chose the Best Term Life Insurance Companies for Seniors

To ensure that we provide you with the best possible options, we researched and considered many different aspects of the provider’s offerings and the customer experience, including:

  • Cost of coverage (premiums)
  • Changes in costs over time
  • Diversity and availability of term policies
  • Age restrictions
  • Customer service quality
  • Plan flexibility
  • Ability to convert to whole or permanent life insurance
Starting premiums* Age limit (term) Additional benefits
Allstate $25 per month 80 Strong financial ratings, some refundable policies
USAA $15 per month 70 Fixed monthly payments
AARP $12 per month 80 Access to AARP resources
Liberty Mutual $31 per month 65 Fixed monthly payments
State Farm $15 per month 75 Easy conversion from term to whole life

*Premiums for term life insurance plans of 20 years, ranging between $100,000 and $250,000 in coverage (as of 2022). These are the lowest available premiums; actual premiums will vary based on age, location, health, and other factors.

How Does Term Life Insurance Work?

Term life insurance is pretty straightforward. You choose the length of time you would like coverage (typically ranging between 10 and 30 years) and pay a monthly premium. If you outlive your coverage, you often have the option to renew your plan or convert to a whole life policy. However, some carriers do not grant either of these benefits. So, if you outlive your coverage, you will not get any payout.

Unlike many whole life insurance policies, term policies do not have the ability to accrue cash value. Instead, they simply provide the possibility of a death benefit payout if you do not outlive the term of your policy. Like a whole life policy, you can choose the amount of your death benefit. Death benefits vary widely, with some as low as $5,000 and others as high as $10 million.

How Much Does Term Life Insurance Cost?

The cost of term life insurance is generally lower than whole life insurance because it only offers a death benefit. The exact costs depend on the provider, your age, health, gender, location, and any add-ons to your plan. The current average cost of $250,000 coverage for a 60-year-old applicant is $66 per month.1 This average increases with age, but many term life insurance providers offer fixed monthly premiums for the duration of the policy. That means you could end up saving thousands on term life insurance premiums by purchasing a plan as soon as possible.

Term vs. Whole Life Insurance

As the names imply, term life insurance only lasts for a select term, while whole life insurance lasts for the rest of your life (as long as you stay current with the payments). As previously mentioned, whole life insurance is typically more expensive, but it also ensures that your beneficiaries will get a payout. This is not always guaranteed with a term life insurance plan, as you could always outlive your coverage.

Many whole life insurance plans accrue value over time. You can make withdrawals against your death benefits to help pay for medical costs or other expenses. For this reason, whole life insurance can provide greater financial security for you and your beneficiaries.

This doesn’t mean that whole life insurance is better than term life insurance; it just depends on your budget and needs. Typically, term life insurance is best for those who want short-term coverage to protect their family. For example, if you have major financial obligations like a mortgage or dependents, a term plan may be the most affordable and practical option. Alternatively, if you want to guarantee a death benefit without the need to convert or renew your plan, you can opt for a whole life insurance plan.

Tips for Choosing the Best Term Life Insurance for Seniors

The term policies listed above provide some great options, but you may still want to do your own research. Here are a few tips to help you choose the best term life insurance policy for you:

  • Read the fine print to see if and when you can renew or convert your policy.
  • Shop around to find the best balance between a larger payout and a lower premium.
  • Consider the needs of your beneficiaries before choosing how much coverage you need.
  • Ask your provider if they offer fixed monthly premiums; if not, you can expect your premiums to go up every year.
  • Every insurance provider has its own advantages and disadvantages; think about the things that matter the most to you (premiums, customer service, plan variety, etc.) before choosing a plan.
  • Think about how life insurance can work as part of your overall retirement and estate-planning goals.

Frequently Asked Questions About Term Life Insurance

  • What happens to term life insurance at the end of the term?

    In most cases, the insurance policy expires, meaning that you no longer have coverage. Your provider may send you a notice that your coverage has expired. However, if you have renewed your policy, it will begin with new terms (and premiums) as soon as your old policy ends.

  • Which is better: term life or whole life insurance?

    It depends on your needs and budget. Term life insurance tends to be best for people who have significant financial obligations (like debt) and want affordable, short-term coverage. Whole life insurance is best for those who want a guaranteed death benefit and the ability to withdraw funds early.

  • Do you lose money with term life insurance?

    You only lose money with a term life insurance policy if you outlive your policy and your provider does not offer any options to renew your plan, convert to whole life insurance, or even return your paid premiums to you. Most providers give you the option to continue your life insurance in some form so that your beneficiaries can get a death benefit.

  • At what age should you stop term life insurance?

    Most providers will not continue a term life insurance policy past the age of 95. If you believe you will outlive your term life insurance policy, you should probably try to convert to a whole life policy before you turn 80, as most providers have a strict cut-off deadline at or before the age of 80.

Written By

Jeff Hoyt

Editor in Chief

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

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