How Much Does Senior Life Insurance Cost?
The cost of life insurance for seniors is primarily affected by age and health. The type of coverage you buy and smoking status are also significant factors.
Here’s a look at term life insurance quotes for 70-year-old buyers of senior life insurance from the companies in our analysis. Buyers at age 70 will find it difficult to buy 20-year term life insurance, and likely won’t be able to find a 30-year term life insurance policy at all.
Senior Life Insurance Costs for Females
| Company | Term Life Insurance Policy Name | Cost Per Year: 70-Year-Old Female For $500,000 In Coverage For 10 Years | Cost Per Year: 70-Year-Old Female For $1,000,000 In Coverage For 10 Years |
|---|---|---|---|
| Protective | Classic Choice Term | $2,319 | $4,307 |
| Pacific Life | PL Promise Term | $2,319 | $4,325 |
| Equitable | Term Series 160 | $2,395 | $4,325 |
| Corebridge (American General) | Select-a-Term | $2,412 | $4,575 |
| Average | $2,361 | $4,383 |
As the golden years approach, ensuring financial security becomes paramount. While retirement marks a new chapter of life filled with leisure and relaxation, it also brings with it concerns about health care costs, final expenses, and leaving a legacy for loved ones. Senior life insurance serves as a safety net, providing peace of mind and financial stability during this stage of life. In 2024, several options stand out as the best senior life insurance policies in the USA, offering comprehensive coverage, competitive rates, and valuable benefits tailored to the needs of older adults.
- AARP Guaranteed Acceptance Life Insurance:
AARP, in collaboration with New York Life, offers guaranteed acceptance life insurance for seniors aged 50-80. One of its most appealing features is the absence of medical exams or health questions, ensuring coverage regardless of health status. Policyholders can choose coverage amounts ranging from $2,500 to $25,000, with premiums that remain fixed throughout the policy’s duration. Additionally, this policy includes a cash value component, allowing policyholders to build cash value over time that can be borrowed against if needed. - Transamerica Final Expense Whole Life Insurance:
Transamerica’s final expense whole life insurance caters specifically to seniors looking to cover end-of-life expenses such as funeral costs, medical bills, and outstanding debts. Available for individuals aged 50-85, this policy offers coverage amounts ranging from $1,000 to $50,000, with premiums that never increase and benefits that never decrease. Policyholders can also access an accelerated death benefit rider, allowing them to receive a portion of their death benefit early if diagnosed with a terminal illness. - State Farm Whole Life Insurance:
State Farm’s whole life insurance policies provide seniors with lifelong coverage and cash value accumulation. With flexible coverage options and competitive rates, State Farm offers policies tailored to meet individual needs and budgets. Seniors can choose coverage amounts and payment schedules that suit their preferences, with the option to customize their policies with additional riders for enhanced protection. State Farm’s reputation for financial stability and customer service further solidifies its position as one of the best options for senior life insurance in 2024. - Mutual of Omaha Guaranteed Universal Life Insurance:
Mutual of Omaha’s guaranteed universal life insurance offers seniors a combination of flexibility and stability. With guaranteed premiums and death benefits, this policy provides lifelong coverage without the risk of coverage lapsing due to missed payments or market fluctuations. Policyholders can choose coverage amounts and premium payment schedules based on their individual needs and budgetary constraints. Additionally, Mutual of Omaha’s strong financial ratings and long-standing reputation within the insurance industry make it a reliable choice for seniors seeking comprehensive life insurance coverage. - Prudential MyTerm Life Insurance:
Prudential’s MyTerm life insurance offers seniors affordable coverage with guaranteed level premiums for the duration of the term. Available for individuals aged 50-80, this policy provides coverage amounts ranging from $10,000 to $100,000, with term lengths of 10, 15, or 20 years. Seniors can choose the term length that best aligns with their financial obligations and coverage needs, with the option to convert to a permanent policy without undergoing additional medical underwriting. Prudential’s strong financial ratings and reputation for innovation make it a top contender in the senior life insurance market.
In conclusion, choosing the best senior life insurance policy in 2024 requires careful consideration of individual needs, budgetary constraints, and long-term financial goals. The aforementioned options represent some of the top choices available in the USA, offering comprehensive coverage, competitive rates, and valuable benefits tailored to the unique needs of older adults. By securing a reliable life insurance policy, seniors can enjoy peace of mind knowing that their loved ones will be financially protected and their legacy preserved for generations to come.
Methodology
To find the best life insurance for seniors, we evaluated both term life and permanent life insurance:
- For term life insurance analysis, we used our own research and also data provided by AccuQuote, a national online life insurance agency. AccuQuote has been in business for over 30 years and works with only top-rated insurers.
- For cash value life insurance analysis, we used data provided by Veralytic, an independent publisher of life insurance research and analytics. Veralytic measures the competitiveness of permanent life insurance products and can provide a customized policy analysis to your financial advisor.
Our ratings are based on:
Cost competitiveness of cash value policies (30% of score): This measures the level of premiums and internal policy charges for seniors, including the cost of insurance, fixed administration expenses and cash value-based wrap fees.
Reliability of policy illustrations (30% of score): We evaluated the reliability over time of the company’s illustrations for senior policyholders for permanent life insurance products.
Term life insurance rates (20% score): We used term life insurance rates for healthy buyers at age 70 for 10-year term life with coverage of $500,000.
Historical performance (10% of score): This measures the historical performance of the company’s investments that fuel cash value growth.
Financial strength (10% of score): This measure incorporates the insurer’s financial strength ratings from four major ratings agencies: AM Best, Fitch, Moody’s and Standard and Poor’s.
