Best 7 life insurance companies for seniors in 2023

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Life insurance is best purchased early. Ironically, the need for life insurance grows with age. Many retirees start thinking seriously about life insurance to pay for funerals, leaving existing belongings, and taking care of their family after they're gone. But options shrink, and rates may rise exponentially with some life insurance providers. Nevertheless, depending on your life insurance goals, you may still have great options.

Acceptance gets harder as you age because a life insurance company looks at health conditions and other indicators you may not pay premiums for as long as it would like. This is why many life insurers get stricter as you age and eventually stop offering policies altogether. Others only provide small funeral expense policies. Our goal is to help readers with more limited options find a life insurance policy that makes sense.

Best for customer satisfaction: State Farm

Best for term life insurance: Mutual of Omaha

Best for retirement planning: New York Life

Best for end-of-life care: John Hancock

Best for buyers who need flexibility: USAA

Best for universal life: Prudential

Best for guaranteed issue: AIG

Compare the best life insurance for seniors

Best for customer satisfaction: State Farm

JD Power's life insurance study continues to rank State Farm Life Insurance as the top life insurance provider for customer satisfaction. It gathers thousands of consumer reviews and gives each insurer a score out of 1,000. State Farm offers a range of insurance products, including auto, life, pet, homeowners, and renters, with multi-policy discounts and other incentives to keep your insurance there.

Some policies exclude seniors over age 65 from applying for the first time. But all life insurance policies are quoted by licensed insurance agents employed by State Farm. Meeting with a State Farm agent allows buyers to communicate goals and needs and answer critical questions agents might have. In addition, qualifying seniors can access limited whole, term, and universal life policies. State Farm is among the companies also offering survivorship universal options. Essentially, spouses can get insured together, and a surviving spouse can continue to make payments and increase the death benefit. Both spouses can also take out loans and other withdrawals against the policy once they meet the requirements.

K of Clewiston, FL, a verified reviewer on ConsumerAffairs, said, "State Farm is the best insurance company out there. They have great Life Insurance Policies to fit your needs…..Also, their prices are the most reasonable out there."

Best for term life insurance: Mutual of Omaha

Mutual of Omaha Life Insurance remains one of the industry's most stable life insurance companies. Its size allows it to be more flexible in its underwriting for specific populations, including seniors. Regardless of your age, a licensed insurance agent can sort through your options and find one that makes sense.

However, its term life insurance policy stands out for seniors applying for the first time or younger buyers looking to renew term life policies. Term life insurance policies with Mutual of Omaha are renewable for qualifying applicants up to age 94. Of note, not all applicants will qualify to renew policies beyond any age, as approval is based on health history and other factors. Many life insurance policies also require a medical exam. However, Mutual of Omaha stands alone as it does not cut off term life buyers over 65.

One important thing to highlight is Mutual of Omaha's availability to resolve consumer issues, even when it's not the company's fault. For example, Roger of Eagle, AK, originally left a complaint on ConsumerAffairs, and the company promptly responded. He later updated his review, saying, "Thank You Mutual of Omaha! Physicians Mutual Dental has informed me of my mistake. You are a Fine Company serving the Life Insurance Needs of USA Citizens and Expats as well."

Best for retirement planning: New York Life

New York Life caters to a forward-thinking customer. It offers many robust investment options. So its agents are extensively trained to answer all questions about its policies. Questions could be as simple as what penalties you'll pay to take early withdrawals or loans from your life insurance policy.

Like other retirement planning vehicles, the earlier you start, the better. Premiums will be lower, and you can apply for a large payout. But if you can afford higher premiums at a later age, New York Life still offers comprehensive policies with loans and early withdrawal options to take you into retirement. Riders can also customize its coverage. For example, whole life customers can buy a living benefits rider to withdraw money in the event of a terminal illness. Buyers can also add an accidental death rider until age 70 for an extra death benefit for loved ones. This satisfies borrowers who want stability but like the idea of a higher payout should they die in their prime working years.

New York Life's knowledgeable agents are highlighted by William of Starks, Louisiana, on ConsumerAffairs, saying, "They are willing to help and pay without hassle. They make sure all your needs are met. They check with you often to make sure your policy is up to date. If at anytime there are questions that need addressing they are readily available to help."

Best for end-of-life care: John Hancock

Life insurance is traditionally thought of as a death benefit option. You pay into the policy for years, and your beneficiaries file a claim for a payout once you're gone. Some policies still work that way. John Hancock Life Insurance is among many life insurance companies offering an accelerated death benefit or "living benefits." Even if you don't want to use your life insurance for retirement planning, you have early withdrawal options to keep you comfortable in the event of a terminal illness. Buyers can exercise the rider at any age as long as waiting periods and other terms are met.

If you develop a qualifying condition, John Hancock will pay 50-100% of your qualifying death benefit while you're still alive. However, it caps accelerated death benefit claims at $1 million if you expect to live a year or less. This could help balance costly medical bills and end-of-life costs beyond what social security or disability payments would comfortably cover.

Best for buyers who need flexibility: USAA

USAA Life Insurance policies are available to Americans from all walks of life, including military and non-military buyers. However, it offers unique whole life coverage to active duty military members beyond the government's equivalent of employer life insurance. USAA policies stick with the buyer wherever they work. With options for active duty military members, USAA is common among veterans with combat-related illnesses and disabilities sustained during deployment. Of course, buyers purchase these policies before the conditions become apparent.

USAA is among the limited life insurance providers still offering coverage with a history of cancer. Of course, not all buyers will qualify, and policy options are limited. Accounting for state laws, USAA life insurance policies may also pay out after a drug overdose (frequency may increase with more daily medications to treat age-related conditions) when other life insurance companies refuse. For seniors looking for a bit of flexibility, USAA could be an ideal option.

Best for universal life: Prudential

Prudential Life Insurance offers survivorship options for life insurance shoppers. Unlike a standard life insurance policy, it covers two people. When one person passes, the policy continues growing as long as the surviving spouse continues making payments. The policy can increase to $65 million with a maximum age of 85. The two insureds cannot have an age gap of more than 25 years.

The PruLife SUL Protector program encompasses multiple categories such as the Preferred Best, Preferred Smoker, and Preferred Non-Tobacco. Universal policies with Prudential do allow loans. So both parties can pull money out of the policy via loans. It would simply reduce the final death benefit.

Best for guaranteed issue: AIG

Guaranteed issue: two words many seniors and even younger applicants aren't used to hearing about life insurance. Seniors aged 50-80 enjoy guaranteed coverage with no medical exam, and the application is 100% online. In short, it means what it sounds like. Life Insurance cannot deny your application if you fall within the set age limits.

Policies are small, maxing out at $25,000. So this would be appropriate for funeral expenses and/or a small death benefit for surviving family members.

Best life insurance companies for seniors ranked by customer satisfaction

JD Power conducts an annual study of life insurance based on reported customer satisfaction. Then it assigns companies a score out of 1,000, listing the top performers on its website. So if you're shopping for life insurance, the following companies are the ones JD Power readers had positive experiences with.

Why trust our recommendations?

We act as both experts and buyers in insurance. A licensed insurance agent reviews new guides and reviews for accuracy to avoid common misnomers. We aim for readers to walk away with more knowledge about the type of insurance and companies that may provide better coverage and customer satisfaction. Life insurance is about the peace of mind of knowing your family can pay for retirement, funeral, and other costs based on the terms of the policy you buy.

Each life insurance company has underwriting guidelines to control risk and ensure financial stability. But as insurance guidelines evolve, companies can offer coverage to more diverse buyers. Therefore, our reviews are subject to change as life insurance companies change. While we are open to feedback from different companies, agents, underwriters, or providers do not dictate our opinions.

Our methodology

Our life insurance ratings are based on a few key factors. To ensure a fair and even playing field for insurance companies and customers, we look at customer satisfaction, financial stability, types of policies offered, average premiums, coverage exclusions, and more. We also factor in recent controversies and ways an insurance company may engage with and improve its community.

Factors such as customer satisfaction and average premiums are equally weighted. However, we are aware not all charitable efforts are recognized, and not all controversies are based on facts. So a company's engagement with its community and recent controversies are considered separately.

How to pick the best life insurance policy for seniors

Each person's experience with life insurance is unique. Preexisting conditions, desired death benefits, and other factors influence a customer's expectations. We review individual life insurance products and offer opinions, but we recommend getting three quotes on life insurance policies. Then compare your quotes side by side. A company can answer questions about its policies. But a quote allows you to compare pricing, death benefits, and more. You can also ask agents about accelerated benefits and if the company provides those automatically or as riders at an additional cost.

Once you've compared three companies on the same measures, you can make an informed decision. A life insurance agent can then guide you through the process. This includes warning you if you are at risk of being denied and may want to shop elsewhere.

FAQs

Why is there an age limit on life insurance policies?

Ultimately, any insurance is a calculation of risk. What are the chances a life insurance company will have to pay you more than it got through premiums and subsequent investments? As you age, an insurer's chances of a loss grow exponentially. As such, companies place stricter limits on coverage or don't cover seniors.

Why do I need life insurance?

Traditional life insurance policies pay out death benefits to your beneficiaries. Beneficiaries could use payments to pay off old debt, pay for funerals, and set loved ones up financially. Life insurance is vital for people with young children and stay-at-home parents (it can cover lost income or services such as child care, cleaning, etc.). In addition, many buyers invest in life insurance for retirement. It's all about being financially prepared for the future.

How much life insurance should I buy for my needs?

How much you need and how much you can get are important considerations. The coverage you're eligible for will change with age and based on other factors. Online calculators can give you a rough estimate. But a life insurance agent can run a customized quote on the amount of coverage you might need to achieve your financial goals.

How does term life work for senior buyers?

Term life insurance is a temporary life insurance policy. It allows buyers to get more coverage with lower premiums. The risk is you get no benefit if you live beyond the policy's expiration. Accelerated death benefits are generally not included. However, term life insurance providers may offer riders for increased coverage for a term with a whole life base or offer accelerated death benefits in specific circumstances.