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Though there are term life insurance policies for seniors, the majority are designed for young families with substantial financial obligations. Once you near retirement, you will likely have less debt and fewer expenses to manage. As a result, you may want to consider spending a little bit more on your monthly premiums to get whole life insurance. This way, you guarantee that your beneficiaries will get a death benefit, regardless of how long you live. Many whole life insurance plans offer extra benefits, including the ability to accrue cash value and withdraw money from your plan early.
Shopping for the best whole life insurance policy for you and your loved ones requires careful planning. We’ve researched the best whole life insurance providers for seniors to make the process a bit easier. In this guide, we rank the best whole life insurance for seniors in 2022, including what each provider offers, pricing, and the advantages and disadvantages of different policies. So, let’s get started!
If you want a whole life insurance policy that is guaranteed to grow in value and provide a sizable death benefit, Allstate is a great provider. You can get large coverage for affordable rates, while still accruing cash value with each and every payment. However, if you have existing health problems, you may find it difficult to get a plan through Allstate, as they do not offer Guaranteed Issue on any of their policies.
State Farm goes to great lengths to protect seniors who want to mitigate risk in their lives with a whole life insurance plan. Not only are the plans designed to pay out death benefits, they also give certain protections against unexpected events like accidental deaths or illness. While getting a whole life plan through State Farm may not be as easy as it is with some other providers (you cannot apply online), it is still one of the best options for seniors who want to build security for their family’s future.
USAA may only be available to military personnel and their direct family members, but it still outperforms many of the largest insurance providers in the country. USAA has competitive rates, flexible plan options, plenty of growth potential through tax-deferred cash value plans, and fixed monthly payments. On top of those benefits, you get some of the best customer service in the business. This makes the process of choosing and maintaining a whole life insurance plan even easier for older adults.
Progressive tries to make it as easy as possible for anyone, including seniors, to get an affordable whole life insurance policy. Though the age limit is low, you can still get a whole life plan at a good price if you apply before you turn 65. You can even get a quote and apply online in a matter of minutes.
Farmers makes it easy for older adults to find a plan that matches their budget and long-term goals. Even if you have been retired for years, Farmers allows anyone up to the age of 80 to apply for a plan with no limits on coverage. Whether you need $150,000 or $5 million as a death benefit for your beneficiaries, Farmers can provide a reliable, accessible plan for you.
AARP ranks among the best life insurance for seniors, assuming that you are willing to pay a little extra for an AARP membership. The Guaranteed Issue means that you won’t have to take any medical exams or worry about getting denied due to preexisting conditions. However, if you are looking for a whole life insurance policy with a large death benefit, AARP may not be the best choice, as there are currently no plans available that offer more than $100,000.
Finding the best whole life insurance for seniors is not just about finding the cheapest plan or the providers with the best reviews (though these are factors that we consider). Instead, we focus on the specific needs of most seniors. Many retirees live on fixed incomes and want affordable, straightforward whole life insurance policies, ensuring that their loved ones will be financially stable once they are gone. We focused our research on key factors like premiums, age limits, medical exam requirements, nationwide availability, customer service, and the variety of whole life policy add-ons.
|Starting premiums*||Age limit||Additional benefits|
|Allstate||$25 per month||80||Strong financial ratings|
|State Farm||$15 per month||85||Excellent risk protection|
|USAA||$15 per month||70||Great customer reviews|
|Progressive||$16 per month||65||Fast online quotes|
|Farmers||$20 per month||80||No coverage limits|
|AARP||$12 per month||80||Access to AARP resources|
*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.
Whole life guarantees a death benefit to beneficiaries upon the death of the insured person. Additionally, most whole life insurance policies have a savings factor, which uses a fixed interest rate to accrue cash value over time. This is one of the primary advantages whole life insurance has over term life insurance, as term life insurance does not accrue cash value.
Pro Tip: Visit our comprehensive guide to life insurance to learn more before making your decision!
While the exact terms and benefits can vary from one provider (or policy) to another, all whole life policies require you to pay monthly premiums in exchange for a specific dollar value of coverage that lasts for life. Some providers offer a cutoff age after which your death benefits will be paid out. Due to the enhanced benefits, whole life insurance is usually costlier than term life insurance.
The majority of whole life insurance policies get more expensive as you get older. That said, some providers do offer fixed monthly payments that start higher and never change, regardless of how long you live. Your location, gender, and overall health can also affect the price of your monthly premiums. As of the latest data, the average cost of a whole life plan for a 70-year-old nonsmoker is roughly $237 per month.1 This is more than double the cost of a term life insurance plan for the same age group.
Many seniors start with a term life insurance plan and then switch to a whole life plan. This is often the best strategy (assuming that your provider allows you to convert your plan) because it lets you benefit from the lower premiums of term life insurance before switching to a plan that accrues cash value and guarantees a death benefit. That said, this may not be the best strategy for all seniors.
If you are on a fixed income (like Social Security), you may also want a low-cost, fixed payment life insurance plan. In this case, you are probably better off getting a term plan. Alternatively, if you have the funds to pay for higher premiums and you want the value of your policy to grow, a whole life insurance policy is the best option. It all depends on your budget, needs, and short- and long-term goals.
Here are a few tips to help you choose the best whole life insurance for you:
Whole life insurance simply means that you are covered until the day you die (as long as you are current on your premiums). Your beneficiaries get an agreed-upon death benefit once you are gone.
Yes, AARP does offer whole life insurance. It is one of the few providers that offers whole life insurance to seniors without any medical exam requirements.
The best provider or policy for you will depend on various factors, including your budget, age, and your beneficiaries’ wants and needs.
The primary disadvantage of whole life insurance is the high cost of monthly premiums. Additionally, most whole life insurance policies are not as flexible as term or universal life insurance.
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
Progressive. (2022). How much does life insurance cost?