Best Life Insurance for Seniors in February 2024


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Updated: May 22, 2024

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Seniors often seek life insurance to secure their family's financial future. However, they may encounter a different buying process, including higher premiums and more stringent health evaluations, compared to younger individuals. With a MoneyGeek score of 97, GEICO provides the best term life insurance for seniors at an average monthly cost of $176 for a 10-year, $250,000 policy.

Why Trust MoneyGeek? We analyzed 1,488 life insurance quotes alongside customer satisfaction, financial stability reports, product offerings and more to determine the best life insurance for seniors.

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Coverage costs and company information for life insurance providers were updated in 2024.

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Best for Term Life Insurance and Customer Satisfaction for Seniors

GEICO is our top choice for best term life insurance for seniors based on its MoneyGeek score of 97. With an average monthly cost of $176 for a 10-year, $250,000 policy, it offers a blend of affordability and reliability. Term life insurance is popular among seniors for its straightforward coverage and lower premiums.

GEICO and Progressive both earned perfect scores in the customer satisfaction category, but GEICO takes the lead as MoneyGeek's top choice in customer satisfaction due to its higher overall MoneyGeek score.

How was this MoneyGeek score calculated?

Best for Term Life Insurance and Customer Satisfaction: GEICO

GEICO

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Competitive monthly cost for term life for seniors

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A++ AM Best rating

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Low rate of customer complaints

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Limited product diversity, primarily offering term life

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Buying process could be more streamlined

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No in-house policy issuance

COMPANY HIGHLIGHTS

With a MoneyGeek score of 97, GEICO is the top pick for term life insurance for seniors and earned high marks for customer satisfaction. Teaming up with providers like Ladder Life, GEICO offers versatile term coverage from $100,000 to $8 million with terms spanning 10 to 30 years. With 87 years of industry experience and an AM Best A++ rating (Superior), GEICO tailors its offerings to a diverse clientele. Its robust financial stability, further represented by Ladder Life's A+ (Superior) AM Best rating and minimal customer complaints establish it as a dependable choice. Moreover, GEICO's seamless customer journey and dedication to satisfaction make it a standout option for seniors looking for the best life insurance policy.

Best for Whole Life and Final Expense Insurance for Seniors

State Farm is our choice for both the best whole life insurance for seniors and the best final expense insurance for seniors, earning a MoneyGeek score of 99 in both categories.

Whole life insurance may be valuable to seniors for its lifetime coverage and cash value component, which can serve as an additional financial resource in retirement. Final expense life insurance is designed to cover end-of-life costs such as funeral expenses and medical bills.

How was this MoneyGeek score calculated?

Best for Whole Life and Final Expense: State Farm

State Farm

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A++ AM Best rating

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Extensive product diversity, including whole life options

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Multiple payment options for customer convenience

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Customer satisfaction score could be improved

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No 24/7 online chat support available

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Whole life options may be complex for some

COMPANY HIGHLIGHTS

State Farm secures its position as the best whole life insurance for seniors and the preferred choice for final expense coverage, with an impressive MoneyGeek score of 99 in these areas. With over a century of experience, State Farm offers various insurance products, including term life, whole life, universal life and final expense coverage. Its A++ AM Best rating underscores its financial stability and trustworthiness.

Seniors may appreciate the flexibility of State Farm's whole life insurance, featuring options like single premium payments and premiums payable up to age 100. The availability of Limited Pay Whole Life, with terms of 10, 15 or 20 years, enhances its appeal. State Farm provides final expense insurance coverage between $10,000 and $15,000 and guarantees a return of premium and interest if death occurs from natural causes within the first two years. While it could improve its customer satisfaction ratings, State Farm's century-long legacy, financial stability and straightforward purchasing process make it a secure choice for the best life insurance for senior citizens.

Best Affordable Life Insurance for Seniors

Transamerica is the best choice for affordable life insurance for seniors, with a monthly cost of $176 for a term life policy. While GEICO and Allstate offer the same rate, Transamerica's overall MoneyGeek score of 97 in this category makes it the go-to option for cost-effective coverage.

How was this MoneyGeek score calculated?

Best Affordable Life Insurance: Transamerica

Transamerica

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Competitive monthly rate for term life policy

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A rating from AM Best

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Diverse product offerings, including term-to-permanent conversion options

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Higher-than-average customer complaint ratio

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No mobile app for easy policy management

COMPANY HIGHLIGHTS

With a MoneyGeek score of 97 and a monthly cost of $176, Transamerica stands out as the best affordable term life insurance option for seniors. Its 95-year history and an AM Best rating offer policyholders financial security. The company provides term policies with coverage of up to $10 million and the flexibility to convert to permanent plans. While it has some customer service challenges and lacks a mobile app, Transamerica's competitive pricing and policy flexibility make it a compelling choice for budget-conscious seniors.

Compare Life Insurance Rates

Ensure you’re getting the best rate for your life insurance. Compare quotes from top providers to find the most affordable life insurance coverage for your needs.

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Do Seniors Need Life Insurance?

Whether seniors need a life insurance policy depends on individual circumstances. Life insurance can help beneficiaries cover funeral expenses and medical bills and provide an inheritance. However, the need for such a policy may diminish if you've already set aside sufficient funds for these purposes or if your children are financially independent.

When deciding on life insurance in your later years, consider several factors. First, evaluate your financial obligations and how they would impact your family if you were no longer around. Second, consider the cost; premiums tend to be higher for seniors, and some policies may require medical exams.

Lastly, assess the type of coverage that suits your needs — term, whole or universal life insurance. Each has pros and cons, so weigh them carefully to make an informed decision in finding the best life insurance policy for seniors.

How Much Life Insurance Seniors Need

Determining the right amount of life insurance for seniors involves an assessment of financial needs and obligations. A common strategy is the "DIME" method, which stands for debt, income, mortgage and education. Add up your debts, including medical bills and loans, the income you'd like to replace, any remaining mortgage balance and future educational expenses for grandchildren or others. The sum will give you a ballpark figure for the coverage you might need.

Another approach is the "income replacement" method, where you multiply your annual income by a specific number of years — often five to 10 — to provide a financial cushion for your loved ones. Keep in mind that seniors may also want to include potential medical expenses and funeral costs in their calculations. Given that premiums are generally higher for older individuals, balancing adequate coverage with affordability becomes key in purchasing the right amount of insurance and selecting the best life insurance policy for seniors.

How Much Life Insurance Do You Need?

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Cost of Life Insurance for Seniors

Several factors influence the cost of life insurance for seniors, with age being a significant determinant. As you age, premiums typically rise to account for increased health risks.

For example, the average cost of a 10-year term policy with $250,000 in coverage is $91 per month for a 60-year-old. This cost jumps significantly to $243 per month for a 70-year-old.

Other factors that can impact the cost of life insurance for seniors include your overall health, lifestyle choices like smoking and the type of policy you choose. Consider these variables when shopping for a policy to ensure you get the best affordable life insurance for seniors. The table below illustrates how the average monthly cost of term life insurance varies by age and term length.

Data filtered by:Results filtered by:
Term Length:
Term Length:10-Year Term
50Average Monthly Cost$45
60Average Monthly Cost$91
70Average Monthly Cost$243

Best Type of Life Insurance for Seniors

Term life insurance is often the best type of life insurance for seniors, especially if you're looking for straightforward coverage without bells and whistles. It provides coverage for a specific period, say 10 or 20 years and pays out a death benefit to your beneficiaries if you pass away during that term. It's generally more affordable and more accessible than other types.

However, you might also consider whole life insurance, which offers a death benefit and a cash value component that grows over time. This can be a good option if you're interested in an investment-like feature. Universal life insurance is another avenue, offering flexible premiums and the ability to adjust your death benefit.

Seniors might also consider the following types of life insurance:

  • Guaranteed Universal Life: This hybrid policy offers the permanent coverage of whole life but with lower premiums, making it more budget-friendly while still providing a death benefit.
  • Final Expense Insurance: Specifically designed to cover funeral and burial costs, this policy type offers lower coverage amounts and is easier to qualify for, even with health issues.
  • Guaranteed Issue Life Insurance: Ideal for policyholders with significant health concerns, this policy requires no medical exam but comes with higher premiums and lower coverage amounts.
  • Indexed Universal Life: Indexed universal life offers flexible premiums and a cash value component tied to a market index, allowing for potential growth over time, which can be useful for estate planning.
  • Joint Life Insurance: For couples looking to leave a financial legacy, this policy pays out upon the second partner's death and is often used for estate tax planning or charitable giving.

Each type has its merits and drawbacks, so consider your financial goals, the needs of your beneficiaries and your budget to make an informed decision when choosing the best life insurance policy for seniors.

Compare Life Insurance Rates

Ensure you’re getting the best rate for your life insurance. Compare quotes from top providers to find the most affordable life insurance coverage for your needs.

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Insurance Rates

What to Look for in a Life Insurance Policy for Seniors

When you're searching for a life insurance policy as a senior, there are several features to keep an eye on:

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    Term Length or Duration

    If you're considering term life insurance, the term should align with your financial planning horizon. Whole and universal life insurance offers lifelong coverage, which may be more suitable for long-term financial planning.

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    Affordability

    Premiums generally increase with age, so finding a policy that balances cost and coverage is beneficial. Fixed premiums, which don't increase over time, can be a valuable feature for budgeting.

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    Underwriting Process

    Some policies require a medical exam, while others offer simplified issue or guaranteed issue options that forgo the medical exam. These can be useful if you have pre-existing health conditions, but they usually come with higher premiums.

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    Riders and Additional Features

    Look for riders that may be beneficial, such as accelerated death benefits. This feature allows you to access a portion of the death benefit if you're diagnosed with a terminal illness.

By focusing on these features, you can tailor your life insurance policy to better fit your personal needs and circumstances.

FAQ

The following frequently asked questions aim to guide you toward a more informed decision when purchasing the best life insurance for seniors.

What are the best life insurance companies for seniors?
How much does life insurance cost for seniors?
What type of life insurance is best for seniors?
Is term life insurance worth it for seniors?
Does Long COVID impact eligibility for purchasing life insurance?

Expert Advice: Finding the Best Life Insurance for Seniors

  1. How can seniors determine what type of life insurance policy is the best fit for them?
  2. Why might the best type of life insurance policy be different for older seniors versus younger seniors?
  3. Beyond cost and policy type, what other factors should seniors consider when looking for the best life insurance?
Rob Bolden
Rob Bolden
Dan Kresh, CFP®
Dan Kresh, CFP®Financial Advisor at Creative Wealth Management, LLC
David T. Morgan, CFP
David T. Morgan, CFPManaging Partner at The High Net Worth Advisory Group, LLC
Dr. Andrew Burnstine
Dr. Andrew BurnstineAssociate Professor of Marketing at Lynn University
Mathew Kryder, MBA, CLTC
Mathew Kryder, MBA, CLTCInsurance Advisor at Petschauer Insurance
DeeDee Baze, CFP®
DeeDee Baze, CFP®Owner at Alphemita Financial Services
James R. Langabeer, Ph.D.
James R. Langabeer, Ph.D.Professor of Emergency Medicine and Biomedical Informatics at the University of Texas Health Science Center at Houston
Steve Parrish, RICP®
Steve Parrish, RICP®Co-Director at The American College Center for Retirement Income
Geoffrey Hill
Geoffrey HillCEO & Principal Advisor at Raisonné & Hammer Price Corporation
Claire Mork
Claire MorkDirector of Financial Planning at Edelman Financial Engines
Tony Steuer, CLU, LA, CPFFE
Tony Steuer, CLU, LA, CPFFEAuthor & Financial Wellness Advocate
Gordon Conwell III
Gordon Conwell IIIProfessional Life Insurance Specialist at American Term
Linda Chavez
Linda ChavezFounder & CEO of Seniors Life Insurance Finder

About Melissa Wylie


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Melissa Wylie is the Content and SEO Manager at MoneyGeek, with nearly a decade of editorial experience and six years of work in financial content focused on small businesses. She previously held SEO positions at Bankrate and LendingTree, with bylines on ValuePenguin and MagnifyMoney.

Wylie has a journalism degree from the University of North Texas. Her strong foundation in journalism helps her craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.