Life Insurance
BestFor ParentsLife InsuranceMoneyGeek ranked insurance companies offering life insurance for parents. These are the top companies based on MoneyGeek’s analysis for sample profiles. The best life insurance for you may differ depending on your specific needs and circumstances.
BestFor ParentsLife InsuranceBest Life Insurance Companies for Parents in 2023
Best Overall - State Farm
Best for Serious Health Concerns - Mutual of Omaha
Best for Veterans - Prudential
Best for New Parents - Mass Mutual
When looking for life insurance for elderly parents, it’s possible to get a policy that doesn’t require a medical exam. Examples of these include simplified issue and guaranteed acceptance life insurance.
MoneyGeek chose the top companies based on their ability to provide outstanding service with minimal friction to seniors with serious health concerns.
Comparing life insurance options and your profile will help you maximize the benefits based on your specific needs.
Key Takeaways
Life insurance can help pay debts, mortgages and final expenses. It can also supplement your retirement savings. However, a life insurance policy can be costly for seniors.
The best option for elderly parents may be a final expense insurance policy.
Those with serious health concerns should consider getting a simplified issue or guaranteed acceptance life insurance. These policies don’t require medical exams.
HOW WE RANKED INSURANCE COMPANIES
To come up with our ranking scores, we incorporated data from J.D. Power, AM Best, NAIC, and our own MoneyGeek affordability score, which we created by manually gathering thousands of quotes across major providers.
To determine the winners for the above categories, we used our qualitative research data to determine the best companies for seniors, veterans, and new parents based on each company’s product offering and support features.
Best Overall: State Farm
pros
Multiple policy offerings to fit your needs and budget
Offers coverage without a medical exam
Allows qualified individuals to get renewable policies up to age 95
cons
Age and benefit restrictions for a policy with no medical exam
No guaranteed acceptance and simplified issue products
Application process may take weeks
COMPANY HIGHLIGHTS
State Farm offers different life insurance policies for parents, including term, whole, universal, final expense and single premium policies. For individuals looking for a policy that doesn’t require a medical exam, the Instant Answer Term life insurance may be a good option. This type of policy also offers a same-day application process.
Unlike other companies, State Farm doesn’t have guaranteed acceptance and simplified issue products. That said, it allows term policyholders to renew their plan annually up to age 95.
State Farm is MoneyGeek’s pick for the overall top company for elderly parents. The company scored 97.4 out of 100, driven by a high J.D. Power customer satisfaction rating of 822 out of 1,000 and A.M. Best financial stability rating of A++.
Policy Types Offered:
- Select Term
- Instant Answer Term
- Whole Life
- Universal Life
- Final Expense
- Single Premium
- Return of Premium Term
- Survivorship Universal
- Joint Universal
- Limited Pay Life
Best Final Expense for Seniors: AIG
pros
Offers Guaranteed Issue Whole Life that doesn’t require a medical exam
Various policies and riders
Temporary coverage up to $1 million
cons
Medical exam may still be necessary for other life insurance products
The application to activation process may take two weeks
COMPANY HIGHLIGHTS
AIG offers a variety of life insurance products, including Guaranteed Issue Whole Life. This is a great option for those looking for final-expense life insurance for elderly parents. Policyholders can also get up to $25,000 in coverage without the need to pass a medical exam. Guaranteed acceptance is available to individuals ages 50 – 80.
The company also offers different riders and products. For instance, quality of life insurance can provide financial support to beneficiaries if the policyholder is diagnosed with a chronic, critical or terminal illness.
Based on MoneyGeek’s analysis, AIG offers the best final expense for seniors. The company has an overall MoneyGeek score of 77.2 out of 100, J.D. Power customer satisfaction rating of 729 out of 1,000 and AM Best financial stability rating of A.
Policy Types Offered:
- Accidental Death
- Guaranteed Issue Whole Life
- Whole Life
- Term Life Insurance
- Quality of Life Plans
- Universal Life
Best for Serious Health Concerns: Mutual of Omaha
pros
Offers different options for seniors
Available riders for those with serious health conditions
Offers policies that don’t require a medical exam
cons
Online quote tool is only for term life insurance
Limited online resources
Other types of policies require a medical exam
COMPANY HIGHLIGHTS
Finding life insurance for elderly parents with serious health concerns can be challenging. Mutual of Omaha’s guaranteed whole life policy and accidental death insurance can be good options. These plans don’t require a medical exam.
The company offers a variety of life insurance policies. Term life insurance policyholders may opt to convert to permanent without completing a second medical exam.
Applicants with serious health conditions may choose Guaranteed Plus Whole Life insurance, which doesn’t require a medical exam or health questions. Those ages 45 – 85 can get $2,500 – $25,000 permanent life insurance coverage. Age and health status won’t affect the cost of premiums for this type of policy. Additionally, policyholders can build cash value.
Another product that seniors with serious health conditions may find beneficial is accidental death insurance. It has guaranteed acceptance, meaning there’s no need for a medical exam. Beneficiaries will receive financial support if the policyholder dies of an accident. This policy is available to individuals ages 18 – 70 and can be renewed up to the age of 80.
MoneyGeek ranked top insurers and found Mutual of Omaha to be the best for seniors with serious health concerns. Overall, it garnered a score of 90.8 out of 100. The company also got high ratings for customer satisfaction (795 out of 1,000) and financial stability (A+).
Policy Types Offered:
- Guaranteed Plus Whole Life
- Accidental Death Insurance
- Living Promise Graded Benefit Plan
- Living Promise Level Benefit Plan
- Term Life Answers
- Life Protection Advantage
- Income Advantage
- AccumUL Answers
- Term Life Express
Best for Veterans: Prudential
pros
Works with Veterans Affairs
Automatic coverage for qualified service members
Free coverage for dependent children
cons
Veterans/former service members only have 240 days to apply after separation
Coverage caps
Online quote tool is for term life insurance only
COMPANY HIGHLIGHTS
Individuals looking for life insurance for parents who are former or current members of the military may want to consider Prudential. The company works directly with Veterans Affairs (VA) to offer different types of policies, such as the Servicemembers’ Group Life Insurance (SGLI), Family Servicemembers’ Group Life Insurance (FSGLI) and Veterans’ Group Life Insurance (VGLI).
SGLI is available to active service members, veterans and their family members. Qualified military members automatically get coverage that can be increased up to $400,000. Payment of premiums will be taken from the policyholder’s base pay.
FSGLI is for spouses and dependent children of active-duty members. Qualified children may be eligible for a $10,000 free life insurance coverage. Qualified spouses can get up to $100,000 in coverage.
VGLI is offered to former service members. To access this product, the veteran must purchase the policy within 240 days of separation from military service. Policyholders can get up to $400,000 term life insurance coverage, which is convertible to permanent insurance.
Premium rates for all military-specific products are predetermined and will depend on the age of the policyholder at the signup date and the coverage amount.
Aside from having products for active-duty and former members of the military, Prudential is MoneyGeek’s pick for the best insurer for veterans because of its J.D. Power customer satisfaction rating of 753 out of 1,000 and AM Best financial stability rating of A+. Overall, the company got a MoneyGeek score of 82.8 out of 100.
Policy Types Offered:
- Servicemembers’ Group Life Insurance (SGLI)
- Family Servicemembers’ Group Life Insurance (FSGLI)
- Veterans’ Group Life Insurance (VGLI)
- Simple Term
- Term Essential
- Term Elite
- PruTerm One
- PruLife Return of Premium Term
- PruLife Essential UL
- PruLife SUL Protector
- PruLife Founders Plus UL
- PruLife Index Advantage UL
- PruLife SVUL Protector
- PruLife Custom Premium II
- VUL Protector
Best for New Parents: MassMutual
pros
Various life insurance options
Up to $ 1 million temporary coverage until full coverage activation
Long-term care benefits available
cons
Online quote tool isn’t available to all policy types
Medical exam may be necessary
COMPANY HIGHLIGHTS
MassMutual provides life insurance policy options for new parents. The company offers Direct Term, with up to $3 million coverage, to individuals who are between the ages of 18–64. Healthy individuals may get instant approval without a medical exam.
Additionally, applicants have the option get up to $1 million in temporary coverage until the activation of full coverage or cancellation of policy application.
Term life insurance policyholders may choose to convert to permanent coverage without having to go through additional medical exams. This conversion period depends on the date the policy was purchased and the age of the policyholder, and can be anywhere from 2 – 10 years.
New parents who are worried about health issues may choose CareChoice Select. This product offers long-term care benefits covering nursing home stays, hospital costs and other medical expenses.
Low-income parents and legal guardians ages 19 – 42 may consider MassMutual’s LifeBridge program. If you qualify, you may get free 10-year life insurance with $50,000 in coverage.
New parents concerned about insurance costs may also find MassMutual a good option. The insurance provider is among the top three most affordable life insurance providers for a 25-year-old with a 20-year term life insurance in all states, with average rates ranging from $14.57 – $20.10 per month.
Overall, MassMutual received a MoneyGeek score of 84.5 out of 100. It has a high financial stability rating of A++ from AM Best. Meanwhile, the company’s J.D. Power customer satisfaction rating is 782 out of 1,000.
Policy Types Offered:
- Direct term
- 10, 15, 20, 25 and 30-year term
- Whole life
- Universal life
- Variable universal life
- CareChoice Select
- CareChoice One
- LifeBridge Program
Is it Worth Buying Life Insurance for Your Parents?
Life insurance can help pay off your parents’ final expenses and debts. But it may not be worth it to get life insurance for your parents, especially if you aren’t dependent on their income.
Buying insurance for yourself is often a better option. It may also not be worthwhile to purchase life insurance for a parent if you have enough savings to cover the cost of final expenses.
LIFE INSURANCE CAN BE EXPENSIVE
Life insurance can be expensive for elderly parents. Instead of paying costly premiums, it may be better to save the money and invest it for better flexibility. Additionally, you won’t have to deal with complicated paperwork.
Which Life Insurance Policy Types Are Best for Parents?
It’s often harder to insure elderly parents because of their age. Insurance providers often correlate old age to health concerns. If you think it’s necessary to purchase life insurance for elderly parents to cover possible final expenses, policies like the simplified issue and guaranteed acceptance are ideal.
Although standard life insurance policies, such as term, whole and universal, are also valid choices, the following are recommended for seniors:
Term Life Insurance
Term life insurance provides temporary coverage for a fixed cost. Generally, this is the best option for parents because of its affordability in comparison with other life insurance types. New parents can choose this for cheaper premiums so they can have extra money to save or invest.
Although seniors may not always get accepted for term life insurance, it’s often smart to try applying for this first.
Simplified Issue Life Insurance
Parents looking for coverage that doesn’t require a medical exam may find simplified issue life insurance the best option. This type of coverage is ideal for people with serious health concerns.
Depending on the insurance company, applicants may still need to answer some health-related questions. Additionally, insurers may also reject applicants.
Since there is no need for a medical exam, the application process for simplified issue life insurance is typically faster. However, premium rates are often higher than traditional policies.
Guaranteed Acceptance Life Insurance
Guaranteed acceptance life insurance is a type of whole life insurance that offers approval regardless of the applicant’s health status. It doesn’t require medical exams or health questions. Typically, seniors between 50 – 80 years old get instant approval as long as they complete the application process.
This type of policy is best for those who need coverage but have been denied simplified issue life insurance due to serious health issues.
Guaranteed acceptance coverage usually has low coverage and high premiums.
SHOP AROUND FOR LIFE INSURANCE
You should consider various factors when looking for the best life insurance for parents. Shopping around and comparing coverage and features can help you choose the right policy.
For many parents, term life insurance may be the best option. Instead of paying higher premiums to get whole life insurance, consider investing the rest of the money into a high-interest savings account or low-risk investment.
How Much Life Insurance Coverage Do You Need?
The right amount of life insurance coverage depends on individualized factors. Considering your needs and circumstances will help you determine how much coverage you will need.
As a rule of thumb, an individual should purchase a policy with coverage amounting to 10X their salary. However, this doesn’t apply to seniors who may no longer be employed.
Below are some of the considerations that can help evaluate your coverage needs.
Factors to Consider
According to the National Funeral Directors Association, the national median funeral cost with viewing and burial is $7,848 in 2021. With rising costs, final expenses can be around $10,000 in the next few years.
You wouldn’t want to leave your loved ones with a financial burden. Include all your debts when calculating your life insurance coverage amount.
Life insurance can help with estate planning. Your beneficiaries can use the proceeds from your policy to pay off estate or inheritance taxes. Furthermore, life insurance proceeds are typically tax-free.
FOR NEW PARENTS
For new parents, life insurance ensures financial protection for their children. When calculating coverage needs, it’s best to multiply your annual salary by 10. Make sure you consider expected or planned financial obligations, such as college funds and your mortgage.
You may also want to consider your children’s possible future expenses like special care needs and higher education. If you have student loans and other debt, include them in your calculation as well to prevent leaving behind a huge financial burden on your loved ones.
How Do You Buy Life Insurance for Your Parents?
Buying life insurance for your parents can help cover possible end-of-life expenses, such as medical and funeral costs. However, buying a policy for your parents isn’t as simple as getting a policy for yourself. There are multiple steps you need to accomplish.
Below is a simple guide to help you get started.
1
Get your parents' permission.
You can’t purchase a policy without your parents’ knowledge. You need to ask for their consent.
Start the conversation about life insurance with them. Discuss their options and inform them about why you’re considering getting a policy for them.
If they agree to buy life insurance, you can proceed with the next steps.
2
Prepare to demonstrate insurable interest
When buying life insurance on behalf of your parents, you’ll need to demonstrate your insurable interest. You have to prove that the death of the person you want to insure will financially impact you.
Typically, this process includes the submission of identification and a phone interview. Some companies may also require a medical exam.
3
Shop around for a good deal
The best way to find the right life insurance policy is to shop around. Compare policy features, coverage and rates. Ideally, you should get quotes from at least three insurance companies to get a good idea of how much your parents’ policy will cost.
Make sure you get proper coverage by calculating possible financial obligations that your parents may leave behind. If they’re the ones to pay the premiums, ask them how much they can afford. It’s also important for you to check if they have current or anticipated health issues.
4
Complete the application process with them
Choose the insurance company that gives you the best offer. Ask the agent about their application process. Prepare all necessary information and documents. Verify if a medical exam is necessary.
Depending on the insurance company, the application may be completed online, over the phone or in person. The approval and activation timeline also vary per insurer.
When completing the application process, it’s best to work with your parents. This ensures that they’re aware of what their policy covers.
GET PERMISSION
It’s important to note that getting life insurance for your parents requires their permission. You can’t purchase a policy on their behalf without their consent. Insurance companies will verify if your parents have approved the purchase to avoid fraud.
Compare Life Insurance Rates
Ensure you are getting the best rate for your insurance. Compare quotes from the top insurance companies.
Frequently Asked Questions
Depending on your situation, purchasing life insurance for your parents can be beneficial. MoneyGeek answers some frequently asked questions about parental insurance to help you make a well-informed decision.
Life Insurance
- Can you purchase life insurance for your parent? In what cases?
- Why would you want to purchase life insurance for an older parent?
- What types of life insurance policies are best suited for senior citizens?
- Is it better to buy an individual or joint policy for elderly parents? Can you provide an example of a situation where one is better than the other?
Mike Hunsberger, ChFC®, CFP®, CCFC
Founder at Next Mission Financial Planning
Dan Kresh
Financial Advisor, CFP® FPQP®, at Creative Wealth Management, LLC
Autumn Lax
Financial Advisor, CFP® at Drucker Wealth Management
Kenneth Romanowski, MBA, CTFA(Ret.), CFP Board Emeritus® Member
Adjunct Faculty, Rosemont College and Retired Senior Financial Advisor
Chuck Czajka
CEO of Macro Money Concepts
Nicholas Ockenga, AIF®, CFP®
Financial Planner at Sentinel Group
Ryan Klekar, CFP®, CTFA
Sr. Wealth Advisor & Shareholder at Truepoint Wealth Counsel
Robert Bain
Director of Insurance at Edelman Financial Engines
Brandon Hartsel
President at Fiduciary Insurance Group
Kate Brownstein
Sr. Financial Planner & Shareholder at Truepoint Wealth Counsel
Sarah Kang
Financial Planner at UAK Diversified Wealth Management
Mark Struthers, CFA, CFP
Founder and Lead Advisor at Sona Wealth
Steve Parrish
RICP®, Co-Director at The American College Center for Retirement Income
Chad Nehring
Certified Financial Planner
About Mark Fitzpatrick
sources
- J.D. Power. "2021 U.S. Individual Life Insurance Study." Accessed October 3, 2022.
- National Funeral Directors Association. "Statistics." Accessed October 3, 2022.