10 Best Life Insurance Companies For Seniors In May, 2024

Mutual of Omaha was selected Best Overall for several reasons. First, it is committed to the senior market. Older adults have been its preferred market for decades, as evidenced by its development of first-rate health and life insurance policies for seniors.

Second, its senior product line is consistently among the best. The elderly can find both simplified and guaranteed issue life products from Mutual of Omaha at competitive rates. The company’s career agents work personally with their clients to select the right policy.

Simplified issue life insurance doesn’t require a medical exam, but you will have to answer health-related questions on your application. Based on your answers, coverage can be denied.

Guaranteed issue not only doesn’t require a medical exam, but you also aren’t asked any medical questions on your application. You are guaranteed to be issued a policy, hence the name.

Based in Omaha, Nebraska, Mutual of Omaha is a household name for seniors who grew up watching its flagship program, Wild Kingdom. The company has one of the most respected names in the insurance industry.

Price is an issue for everyone but is probably most pronounced for seniors. Transamerica typically is among the most competitive for most age groups, particularly for seniors. It sells its policies through independent agents, many of whom have done your homework for you if you’re a price-oriented life insurance shopper.

Transamerica’s life insurance may be the cheapest life insurance for seniors, but it isn’t guaranteed to be issued. And, lower face amounts under $25,000 aren’t available. Transamerica will work well for you if you’re a healthy senior looking for affordable life insurance.

A high Body Mass Index (BMI) can decrease your 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 and consider other factors more important. Companies that use BMI as a rating factor sometimes classify people with a high muscle mass percentage as obese because of their high BMI.

MassMutual does a good job of not only fairly underwriting and reconsidering the rates for individuals with a high muscle mass percentage, but it also has the cheapest rates for individuals with High BMIs.

Since smokers have an increased likelihood of developing lung and heart disease and other health conditions during their lifetimes, life insurers consider them high-risk individuals and charge them higher premiums.

For example, a life insurance policy for someone who smokes can cost as much as 285% more than one for someone who doesn’t.

Transamerica offers the most affordable life insurance for smokers. Like their competitors, they charge smokers much higher premiums than nonsmokers because of the shorter life spans of smokers. Its policies are not simplified or guaranteed issue.

AARP offers affordable life insurance plans to adults over age 50, but AARP is more than an insurance provider for seniors. It also offers a wide range of financial and educational services for older adults.

AARP life insurance, underwritten by New York Life, is one of the cheapest life insurance providers for the elderly, especially considering that it doesn’t offer life insurance to anyone under the age of 50. Most other insurers offer plans to anyone 18 years or older, which helps subsidize their senior life business that has many more death claims.

New York Life’s guaranteed whole life insurance plan not only pays a death benefit, but it also builds cash value. N.Y. Life’s history of paying dividends to policyholders, which are applied to the cash value portion of your policy, is among the most consistent in the life insurance industry.

These reasons make AARP the best whole life insurance for seniors.

Underwriters are one of the key employees of any life insurance company, and they are faced daily with making decisions to approve or deny coverage to individuals with pre-existing health conditions.

Mutual of Omaha’s underwriting department, with which I have personal experience, is very fair when underwriting and examining applications for those with a lengthy medical history.

If you do have a pre-existing condition that keeps you from qualifying for standard coverage, Mutual of Omaha offers a guaranteed issue policy for seniors with health challenges.

It doesn’t require you to answer health questions or undergo a medical examination. Pricing is on the higher side, but the company is also taking on the additional risk of early claims.

By offering a simplified issue life insurance policy, Nationwide satisfies an important need for many seniors in good, not great, health – affordable life insurance they can qualify for.

Simplified issue costs less than guaranteed issue life because although a medical exam isn’t required, there are medical questions on an application that need to be answered. This gives the insurance company more information on which to decide about rates and insurability.

Simplified issue life insurance is not guaranteed to be issued. You can be denied coverage based on your answers on the application about pre-existing medical conditions. If you are declined coverage, you can apply for guaranteed issue coverage, though you will pay a higher rate.

Though it’s not a household name, Foresters (Independent Order of Foresters) offers the most affordable life insurance for seniors age 80 and older. The premiums for seniors in this age group are the steepest you’ll find because of their statistically shorter life expectancy.

Most insurance companies won’t issue a new policy to anyone over age 80, but Foresters does, even though for many people this age, the premiums may not be affordable.

Many octogenarians want to buy life insurance for final expense insurance that provides their survivor’s cash to pay funeral costs and other final expenses. The average face amount for this group is $10,000.

Many adults in their 70s buy life insurance, and they do so for a couple of reasons. First, they no longer have life insurance from their employer. Many new retirees are now in their 70s, and they leave their group life policy behind when they leave if it’s not portable or convertible.

Second, after spending down their pensions, some seniors realize that they aren’t going to be leaving behind as much money as they originally thought they were, necessitating the need for more life insurance.

Lincoln National doesn’t aggressively advertise, but it is rated “A (Excellent)” by AM Best for its financial strength and ability to pay claims. Its pricing indicates an interest in the 70+ market.

As you’ve probably noticed, Transamerica pops up in many categories for having among the lowest premiums for life insurance. This includes senior term life insurance, which many elderly people still want to buy.

Transamerica is a well-known name in the senior market, and some seniors want low-priced term insurance with higher face amounts to provide cash for final expenses or pay off a mortgage if they die.

They also often want to leave money behind for grandchildren and their education costs. This is what Transamerica offers, making it our pick for the best term life insurance for seniors.

It should be noted that Transamerica’s term life policies for seniors are not simplified or guaranteed issue products.