Every stage of life necessitates a distinct approach to life insurance. Younger folks who obtain life insurance usually have dependents in mind who would need ongoing financial assistance if they died. Seniors may consider life insurance later in life for various reasons, including paying funeral costs and existing debt, such as anticipated medical bills from a terminal disease.
A funeral may range in price from $5,000 (with cremation) to over $9,000 (without cremation) (with burial). Life insurance is an excellent strategy to guarantee that remaining family members are not burdened financially.
While it’s true that life insurance costs increase as you grow older, life insurance for seniors may be less costly than you think. Because there are fewer term life insurance alternatives for the elderly, most plans for seniors are permanent life insurance. As long as payments are paid, these plans will never expire.
We looked at plans from 25 insurers and analyzed essential factors, including pricing, customer service, perks, and limits, to find the best life insurance for seniors. Finally, we identified insurance providers that offer good coverage for senior citizens.
Mutual of Omaha
Mutual of Omaha, our top option for senior life insurance, provides term, whole, and universal life insurance with customizable policy features. Mutual of Omaha is known for its excellent customer service and satisfaction. In J.D. Power’s 2020 U.S. Life Insurance Study, they were placed fifth out of 23 life insurers.
A thorough website with easy-to-use tools for picking a policy and submitting claims, as well as phone help and the ability to meet with local agents, are all examples of excellent service. In addition, AM Best has given Mutual of Omaha an A+ (Superior) financial strength rating.3 You may put your faith in their abilities to carry out the policies they create.
Term life insurance plans are available up to the age of 80 and may be renewed once a year until the age of 95, with coverage beginning at $100,000. Whole life insurance is offered to people up to 85, with coverage choices ranging from $2,000 to $25,000. To begin coverage, whole life plans do not need a medical exam or other health-related information.
The price at Mutual of Omaha is pretty competitive. Term life insurance premiums aren’t the cheapest, but they’re also not the most costly.
Why Did We Pick It? Mutual of Omaha is the most senior-friendly, offering a variety of policies to applicants as young as 85 years old. A customer may contact the firm in three ways: online, over the phone, or in-person with a local representative. We found Mutual of Omaha the best value for the money out of all the companies we looked at.
Final expenditure insurance refers to whole life insurance plans with limited coverage designed to cover funerals and other end-of-life expenses. Guaranteed exclusive life insurance products from AIG are ideal for this purpose, with coverage ranging from $5,000 to $25,000.
Acceptance is assured for everyone up to the age of 80, with no medical checks required—putting AIG ahead of the competition since many other insurers have an age limit far earlier than 80.
AIG’s insurance provides extra protection by allowing access to policy benefits in the event of a chronic or terminal disease, in addition to offering peace of mind for funeral expenditures. While many insurers charge extra for living benefits, AIG provides this rider free of charge. Up to 50% of the entire insurance value may be spent for medical treatment, assistance, or any other expenditures, depending on the sickness.
AIG’s biggest flaw is its dismal customer service scores. The provider rates 15 out of 23 for total customer satisfaction in the J.D. Power 2020 U.S. Life Insurance Study.
Why We Picked It: AIG offers affordable last expenditure insurance to anybody up to the age of 80, years after other rivals have stopped selling coverage. AIG is the most excellent last expenditure insurance since it does not need a medical checkup and includes free-living benefits.
Banner Legal & General, established in the United Kingdom, has been in business since 1836. Since 1949, it has been operating in the United States. They purchased GEICO Life Insurance in 1983 and rebranded it Banner Life. Only five complaints were submitted against the firm in 2020, according to the National Association of Insurance Commissioners (NAIC). 4 AM Best has given the insurance an A+ (Superior) financial stability grade. 5
Banner is a life insurance company that sells term and universal life insurance under the Legal & General brand. However, the range of insurance provided is more restricted compared to other rivals, and customers may be irritated by the lack of clear policy information on the provider’s website.
Still, Banner is the apparent winner for seniors searching for the most terrific deal on term life insurance. While you must be 75 years old or younger to enroll, your coverage will last for the duration of your insurance.
Why Did We Pick It? As an applicant’s age increases, term life insurance plans get more costly, making it challenging to locate affordable coverage for seniors over 65. Banner offers affordable insurance choices, such as term life insurance, which may be purchased up to 75 and provides coverage until the policy expires. Banner is our top option for term life insurance in our evaluation.
MassMutual is a national insurance and financial services company that was formed in 1851. The organization has an AM Best rating of A++ (Superior), the best attainable for an insurance provider, and excels in both whole life and term plans. 6 However, for this evaluation, it is the best whole life insurance for seniors.
MassMutual offers a one-of-a-kind convertible policy that starts as term life insurance but may be converted to whole life insurance. The direct term is a kind of insurance acquired online by anyone up to the age of 64 and converted once they reach the issue age. Speak with a MassMutual representative about other whole life insurance products with death payouts above $25,000 for seniors. MassMutual whole life insurance requires a medical exam within 90 days of application. There are no guaranteed-issue plans available right now, and no living benefits are being offered.
While whole life insurance from MassMutual only makes financial sense if you plan to live long enough to pay the premiums for many years, they provide several advantages.
Why Did We Pick It? Traditional guaranteed whole life insurance for seniors has lower limits than MassMutual’s whole life plans. If you’re looking for a policy with a higher face value that won’t expire at the end of its Term, MassMutual is the apparent winner for best whole life insurance.