Life Insurance for Seniors: The 7 Best Companies

Seniors without life insurance should begin the search to find life insurance as it is essential for everyone to have. It’s important for seniors to have life insurance to ensure that their spouse and family has financial support. People under the age of 70 can get term life insurance policies at affordable rates, especially if they are in good health. However, even seniors over 80 can get affordable life insurance.

Keep reading to find out the best life insurance for seniors.

1. MassMutual

Pros

1. 1. 1. Coverage options from $5,000 to $25,000
      2. Guaranteed acceptance up to 80 years old
      3. Accelerated chronic and terminal illness death benefits included at no additional cost

Cons

1. 1. 1. Limited benefits for the first two years
      2. Living benefits capped at 50% of death benefit amount
      3. Negative customer service reviews

MassMutual has a unique convertible policy that starts out as term life insurance that can be later converted into a whole life insurance policy. This insurance plan, called Temporary Direct, can be purchased online by applicants up to age 64. It is then convertible beyond the issue age. You can also get other whole life insurance policies for death benefits with over $25,000 for seniors by speaking with a MassMutual agent.

While MassMutual’s whole life policies only make financial sense if you will live long enough to pay the premiums for several years, they do have several advantages. Firstly, you can borrow against the cash value of the policy. As well, your beneficiaries will receive a guaranteed death benefit no matter how long you live. You can even earn dividends in the meantime.

MassMutual whole life policies have higher limits than traditional guaranteed whole life policies for seniors. Available to people ages 18 to 85, MassMutual’s universal life insurance policy lasts your entire lifetime, with coverage starting at $50,000. It also offers flexible premiums, which can be attractive for people with fluctuating incomes.

2. New York Life

Pros 

1. 1. 1. Ranks above average in J.D. Power’s 2021 Customer Satisfaction Study for Life Insurance
      2. Attracted fewer complaints from state regulators than expected for a company of its size
      3. Long history of paying dividends
      4. Policies available to applicants over 85 years old

Cons 

1. 1. 1. Quotes are not available online
      2. Maximum term period of 20 years

New York Life has paid dividends for over 168 consecutive years, with an excellent reputation and financial stability. Plus, it issues policies for 90-year-old applicants, whereas many companies won’t issue policies for seniors over 85.

New York Life offers term life, whole life, and universal life insurance policies. It also offers a diverse mix of riders and options for plan customization.

Note that the longest term for term life insurance available from New York Life is a 20 year term. Most of the other companies reviewed offer longer 30-year policies. Unfortunately, it is difficult to find policy-specific information on the website, so it may be difficult to find information to inform your decision online. 

3. State Farm

Pros 

1. 1. 1. Attracted fewer life insurance complaints from state regulators than expected for a company of its size
      2. Wide range of term products, including instant response life insurance
      3. Ranked #1 in J.D. Power’s 2020 Customer Satisfaction Study for Life Insurance

Cons

1. 1. 1. Life insurance policies are not available in Massachusetts and Rhode Island 
      2. Some restrictions for Android smartphones when accessing policy details through the online portal

Choosing a provider to meet your specific needs is critical, and State Farm offers many options for insurance coverage.

State Farm offers many products in the term, whole and universal life insurance categories. This  means that potential customers can purchase coverage that meets their particular needs and, in most cases, customize policies through endorsements.

It is also one of the cheapest insurance companies on our rankings, with a monthly premium sample of $62.19 for a $1 million 20-year term insurance policy for a nonsmoking, 35-year-old applicant with average health. You can pay premiums online, by automatic billing, by mail, or in person. Currently, State Farm Life Insurance is available in all states except Massachusetts and Rhode Island.

4. Northwestern Mutual

Pros 

1. 1. 1. Far fewer complaints to state regulators than expected for a company of its size
      2. Highly rated for customer satisfaction in the J.D. Power study
      3. Systematically pays a dividend to eligible customers

Cons

1. 1. 1. The company’s website does not provide details on coverage amounts, durations, or riders
      2. Very few term riders are available

Northwestern Mutual offers term and permanent life insurance policies. Term policies end after a certain amount of time and permanent policies create cash value that can be used for expenses such as tuition.

Term policies are short-term plans, lasting 10 to 20 years, until you turn 80. You have the option to convert the policy to a full life policy. The permanent policies of the company include whole and universal. There are a variety of add-ons, which will cost extra money.

You can get a rate estimate using Northwestern Mutual’s online calculator. But if you want to receive a detailed quote or start the application process, you will need to contact an authorized agent.

5. USAA

Pros 

1. 1. 1. Fewer life insurance complaints to state regulators than expected for a company of its size
      2. Some policies include free benefits, such as a $25,000 critical injury payment
      3. Ability to add coverage after a major life event

Cons

1. 1. 1. Some policies are not available in Connecticut, New York, or Montana

USAA specializes in financial products and services for military members and their families. However, they are not the only ones who can purchase life insurance from the USAA. Members of the general public can apply for a $100,000 term life insurance policy for as little as $12 per month. And, if you already have a term life insurance policy, you can add a Life Event Rider that allows you to increase your additional insurance coverage without additional underwriting.

You can also get a term life insurance policy from USAA while up to age 70. The company’s three permanent life insurance policies are available up to age 85. 

You can additionally convert your term life insurance policy to one of USAA’s whole or universal policies while with the company. This can be an advantage if your coverage needs to change while your term policy is active.

There are no local brokers or agents for USAA insurance. You will need to get quotes and answer your questions over the phone or online.

6. Mutual of Omaha

Pros

1. 1. 1. Excellent customer service ratings
      2. Competitive prices
      3. Get a policy up to age 85

Cons

1. 1. 1. Medical exam required for some policies
      2. Some policies must be purchased through an agent

Mutual of Omaha offers term, whole, and universal life insurance with flexible policy provisions. Mutual of Omaha has a strong reputation for customer service and satisfaction. 

Term life insurance policies are issued up to age 80. They can be renewed annually up to age 95 with coverage starting at $100,000. Whole life insurance policies are available for applicants up to age 85 with coverage options ranging from $2,000 to $25,000. Whole life policies do not require a medical exam or health information to begin coverage.

Mutual of Omaha is quite competitive in its prices. Term life insurance premiums aren’t the lowest available, but they aren’t too expensive either.

7. Banner Life[h2line]

Pros

1. 1. 1. Extremely competitive pricing
      2. Few customer complaints

Cons

1. 1. 1. Must be 75 or younger to register
      2. Limited policy options

Operating under the Legal & General brand, Banner Life offers term and universal life insurance. However, the scope of available policies is more limited than some competitors. Consumers may be frustrated by the lack of clear policy information on the company’s website.

However, for seniors looking for the best price on term life insurance, Banner Life is the clear winner. Although you must be 75 or younger to enroll, your coverage will continue beyond that for the duration of your policy.

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Author Stéphanie Bédard-Châteauneuf

About the author: Stéphanie Bédard-Châteauneuf has over four years of experience writing financial content for various websites. Over the years, Stephanie has covered various industries, with a primary focus on consumer stocks, cannabis stocks, tech stocks, and personal finance. This stock lover likes to invest for the long-term. Stephanie has an MBA in finance.