The Cheapest Life Insurance Companies for Seniors

MoneyGeek found that the cost of a senior’s life insurance policy can be as much as $667 per month and as low as $199.

While coverage may be expensive to purchase as a senior, it can help your family tackle any lingering financial obligations after you pass away. The funds can be used to cover your funeral expenses, debts you leave behind, your mortgage or education expenses for your children. In some cases, it can even be set aside for retirement.

The amount you pay for life insurance premiums depends on your age, gender, health status, lifestyle choices and type of policy. Since insurance providers consider older adults riskier to insure, their life insurance premiums are also higher.

While the cost of a policy varies depending on your policy type and personal profile, it’s possible to find cheap life insurance for seniors. Since some insurance providers offer better life insurance rates than others, shopping around and comparing quotes can help you find a deal that makes sense for you.

• The Cheapest Life Insurance Companies for Seniors
• Companies With the Cheapest Term Life Insurance
• Companies With the Cheapest Permanent Life Insurance
• Should You Still Get Life Insurance as a Senior?
• How Seniors Can Get Cheaper Life Insurance
• Methodology

Generally, the cost of life insurance policies varies depending on your personal profile and the type of policy. To help you find affordable life insurance for seniors — MoneyGeek researched the cheapest life insurance companies based on age, lifestyle and policy type.

A term life insurance policy covers you for a specified length of time. If you pass away during that period, your beneficiaries will receive a tax-free death benefit. Compared to a whole life policy, a term policy is much cheaper and less complicated. Some don’t require a health exam to qualify, and you can choose the policy’s length according to your needs.

The cheapest life insurance option for you will vary based on your age, gender, health status, smoking status and other factors.

MoneyGeek found that Transamerica offers the most affordable life insurance for seniors in their 60s, while State Farm is the lowest-cost option for 70 and 80-year-olds.

The premiums you pay for a life insurance policy increase with your age. The probability of developing severe health conditions increases each passing year, so older adults are considered riskier to insure. Our data shows that the cost of a 10-year term life insurance policy can increase by as much as 228% per decade.

Since the average life expectancy in the U.S. is about 78 years, and most insurance companies rarely insure up to age 85, MoneyGeek does not have data available for some term lengths in the table below.

The premiums for a term life insurance policy do not vary much between different states. MoneyGeek researched the cheapest life insurance companies in different locations and found that Mass Mutual most frequently offers affordable life insurance for seniors, with the lowest rates in 43 states. Transamerica is the best option in five states, while State Farm and AAA are tied with one each.

Since smokers(/) have an increased likelihood of developing lung disease and other health conditions during their lifetimes, life insurance providers consider them high-risk individuals and offer them higher premiums. For example, a life insurance policy for someone who smokes can cost as much as 283% more than one for someone who does not.

Transamerica offers the most affordable life insurance policy for senior smokers at an average cost of $667 per month. Mass Mutual offers the second-cheapest option at $753 per month, and Mutual of Omaha is the third-cheapest company for smokers, with average rates of $756 monthly.

Insurance providers generally determine your health ratings by considering your overall health, family’s medical history, body mass index (BMI), and lifestyle choices. If you receive a low health rating, you may have to pay as much as 90% more for a life insurance policy compared to an individual with excellent health.

Mutual of Omaha offers the most affordable life insurance policy for seniors with low health ratings at an average monthly rate of $232. Transamerica offers the second-cheapest option, averaging $289 each month. Progressive comes in third for affordable premiums for seniors with low health ratings at about $334 per month.

Since a high BMI can decrease lifespan and cause other health problems, life insurance premiums for people with high BMIs are generally higher than average. Insurance providers typically use BMI to determine rates, but some have their own guidelines, which can be more lenient. Companies that use BMI may sometimes classify people who have a high muscle mass percentage as obese.

Seniors with high BMIs could pay as much as 83% more than individuals with healthy BMIs. Mass Mutual offers the cheapest life insurance policies for individuals with high BMIs at an average cost of $226 per month. Mutual of Omaha is the second-cheapest provider at an average of $240 monthly, and Nationwide’s average monthly rate of $259 makes it the third-cheapest company.

A permanent life insurance policy offers you lifelong coverage as long as you pay your premiums on time. There are two kinds of permanent life coverage: whole life insurance and universal life insurance. A whole life policy has fixed premiums and death benefits, while a universal life policy offers more flexibility in both its death benefit and premiums.

While a permanent life policy generally costs more than a term life policy, it’s the best option for people who want lifetime coverage. In general, the cheapest life insurance company for you will vary based on your age, gender, health status, smoking habit and other personal factors.

Transamerica offers the most affordable term life insurance for seniors in their 60s, while State Farm is the cheapest option for 70-year-olds and 80-year-olds.

Whole life insurance quotes are generally more complex because they have two parts: life insurance and cash value. MoneyGeek ranked the following cheapest companies based on how affordable their term life policies are.

Since a whole life policy offers lifelong coverage and a cash value, it can cost two to seven times more than a term life insurance policy.

There are two types of life insurance policies available that do not require a health exam to qualify: guaranteed acceptance insurance and simplified issue insurance.

AAA offers the most affordable guaranteed acceptance policy at an average cost of $156 per month, while Mutual of Omaha has the second-cheapest option, averaging $164 monthly. AARP has the third-cheapest guaranteed issue policy, costing $172 per month on average.

Not many insurance companies offer simplified issue products, so quote data for simplified issue insurance is limited. However, MoneyGeek’s experts found out that Nationwide offers the most affordable simplified issue life insurance policies.

[Final expense insurance]https://www.moneygeek.com/insurance/life/best/final-expense-burial-funeral/) generally covers expenses associated with your death, like final medical bills or funeral expenses. This type of policy can also be called burial insurance or funeral insurance.

Information about final expense insurance premiums is limited, but MoneyGeek found that Transamerica offers the most affordable option for seniors. The company provides a tax-free death benefit and coverage ranging from $1,000 to $50,000.

For seniors, even the most affordable life insurance policies can have high premiums. Seniors are closer to reaching their life expectancy and may have health issues that shorten their lifespan. The sooner a company thinks it will pay out the policy, the riskier you are to insure, which increases how much you pay for life insurance. If you’re a senior and can finance your final expenses, you may not need to take out a life insurance policy at all.

If you’re thinking about getting a life insurance policy, it’s best to analyze your financial situation first. A life insurance policy may not be the best option for you if you have paid off all your debts, have sufficient sources of income and do not have any dependents or any other financial obligations left.

Before getting a life insurance policy, consider your needs and financial obligations to understand how much coverage you will need and avoid adding non-essential riders to your policy. It’s also a good idea to talk to a financial advisor who can help you find a policy that fits your needs.

MoneyGeek analyzed different life insurance companies to help you find the cheapest companies offering term and permanent life insurance policies. While a life insurance policy can be an excellent investment, it may make sense to forgo coverage depending on your circumstances. If you’re looking for cheap life insurance for seniors, it’s best to shop around and compare quotes from different providers.

MoneyGeek gathered the following most frequently asked questions about life insurance to help you make a better decision.

To obtain cost data for term life insurance policies, MoneyGeek collected quotes from 13 companies across all 50 states for ages 30–70, classifying individuals aged 60 and above as seniors. The same term life insurance cost data was used to determine which companies had the cheapest whole life insurance policies.