As you approach the golden years of your life, your financial plans are likely to change too. No matter how much you plan for retirement, there may be circumstances out of your control which require you to think about purchasing greater financial protection from a life insurance policy. Purchasing life insurance, even if you are over the age of 55, may be one option to help protect your finances in your later years.
Life insurance in your 50s and beyond looks quite different versus purchasing it in your 20s. Not only do your needs as an individual change, such as planning for future medical care, but you may want a permanent policy instead of term insurance. Purchasing a life insurance policy at any age is an important financial decision. To help you with this, we’ve put together a list of the best life insurance for seniors after examining the customer satisfaction rankings, ability to payout claims and financial strength, plus the best coverage options for seniors.
The 5 Top Life Insurance for Seniors
- State Farm: Best Customer Service
- Northwestern Mutual: Best Online Tools
- Nationwide: Best Coverage Options
- New York Life: Best Living Benefits
- Mutual of Omaha: Best Guaranteed Acceptance
Compare the Best Life Insurance Companies for Seniors
| AM BEST FINANCIAL STRENGTH AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | J.D. POWER OVERALL CUSTOMER SATISFACTION J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
|---|---|---|---|
| Pin Mutual of Omaha | A+ | 795 | |
| Pin Nationwide | A+ | 813 | |
| Pin New York Life | A++ | 777 | |
| Pin Northwestern Mutual | A++ | 807 | |
| Pin State Farm | A++ | 822 |
2021 J.D. Power U.S. Individual Life Insurance Study
Information accurate as of 4/20/2022
Best Guaranteed Acceptance
Why we chose it
Pros
- Policy benefits start at $2,000
- Purchase whole life coverage online
- Offers guaranteed acceptance insurance up to $25,000
Cons
- Limited coverage options if enrolling after age 80
- No online quotes for term and universal policies
- Outdated customer service channels
Insurance products offered
- Term life
- Whole life
- Universal life
- Children’s whole life
- Accidental death
- Guaranteed acceptance
Unique features
Seniors interested in protecting future generations may want to look into Mutual of Omaha’s standalone children’s whole life policy.
*J.D. Power’s 2021 Life Insurance Study. Based on a 1,000-point scale.
Further Reading on Mutual of Omaha
Best Coverage Options
Why we chose it
Pros
- Diverse policy types
- Long-term care coverage available
- Offers online quotes
Cons
- No guaranteed acceptance option
- Complex policy types are hard to understand
- Online payment options only available for some policy types
Insurance products offered
- Term life
- Whole life
- Universal life
- Variable life
- Long-term care
Unique features
Riders are available to include spouses and children in the coverage you choose.
*J.D. Power’s 2021 Life Insurance Study. Based on a 1,000-point scale.
Further Reading on Nationwide
Best Living Benefits
Why we chose it
Pros
- Coverage options for disability and illness
- Purchase a policy up to age 90
- Partners with AARP
Cons
- Policy terms aren’t very flexible
- Has to be purchased through a financial advisor
- No online support
Insurance products offered
- Term life
- Whole life
- Universal life
- Variable life
Unique features
New York Life offers an interesting variable life policy that isn’t included in most competitors’ lineups.
*J.D. Power’s 2021 Life Insurance Study. Based on a 1,000-point scale.
Further Reading on New York Life
Best Online Tools
Why we chose it
Pros
- Helpful online calculator
- Offers long-term care planning
- Available in all 50 states
Cons
- Requires working with an advisor
- No final expense policy
- Limited policy information online
Insurance products offered
- Term life
- whole life
- Universal life
- Long-term care
Unique features
Northwestern Mutual advisors can help you tailor your policy to specific needs like retirement and estate planning.
*J.D. Power’s 2021 Life Insurance Study. Based on a 1,000-point scale.
Further Reading on Northwestern Mutual
Best Customer Service
Why we chose it
Pros
- Excellent customer service ratings
- High coverage limits
- Final expense quotes available online
Cons
- Limited website functionality
- Must purchase through an agent
- Not available in Massachusetts
Insurance products offered
- Term life
- Whole life
- Universal life
Unique features
State Farm offers flexible payment terms, letting you choose between a single premium or spreading payments out over 10, 15 or 20 years.
*J.D. Power’s 2021 Life Insurance Study. Based on a 1,000-point scale.
Further Reading on State Farm
Guide to Life Insurance for Seniors
Life Insurance Options for Seniors
Seniors can choose from several different types of life insurance that vary in coverage and cost. The policy you choose will depend on your budget and your financial goals.
- Term life: Term life insurance is a type of life insurance that lasts for a specific period of time, often between 10 and 30 years. This type of insurance isn’t as popular for seniors since the cost of coverage increases with age, but some companies are willing to issue policies up to age 80.
- Whole life: Most seniors choose whole life insurance as it lasts for your entire life as long as you continue to pay premiums. Whole life policies are often taken out to secure adequate financial coverage for your beneficiaries to cover remaining expenses and bills.
- Universal life: Like whole life insurance, universal insurance lasts for the rest of your lifetime, as long as premiums are paid. While premiums are more flexible, the death benefit depends on market performance so it’s generally considered riskier.
- Variable life: This type of policy gives you both life insurance and a financial account that you can invest in stocks, bonds and mutual funds. This is generally considered the riskiest type of life insurance.
- Long-term care coverage: If you’re worried about family members being burdened with expenses should you become seriously ill, a long-term care policy can ensure you’ll get the treatment you need.
- Guaranteed acceptance insurance: Also called guaranteed issue insurance, this type of whole life policy may be worth looking into if you’ve been diagnosed with a medical condition that makes passing a medical exam for a standard policy difficult.
Life Insurance Riders and Features for Seniors
Not every life insurance policy fits every person or family’s unique needs. Riders are one way that insurance companies offer a greater variety of options to their customers. Each rider covers certain situations or circumstances that aren’t covered in base policies. For example, riders might offer financial benefits to policyholders if they get seriously ill, or waive monthly premiums in the event policyholders become disabled. Typically, these riders incur an additional cost.
- Accelerated death benefit: This benefit allows you to use some of your life insurance death benefits, tax-free, while you’re still alive. Some common circumstances that this benefit applies to include terminal illness, a life-threatening diagnosis, or confinement to a nursing home and requiring help with basic daily activities.
- Accidental death and dismemberment: Should you suffer an accident that results in death or causes a serious condition such as paralysis, this benefit typically offers additional benefits to the regular life insurance policy. Death due to an illness or other natural causes aren’t usually covered by this insurance.
- Waiver of premium: In an insurance policy, this clause indicates that the policyholder doesn’t need to continue paying the premium if they become disabled for an extended period of time.
- Chronic care: This rider allows policyholders to pay for the treatment of serious, permanent illnesses. To apply for this benefit, a doctor may be required to certify the severity of the illness.
- Living death benefit: A living death benefit rider is another phrase for an accelerated death benefit and offers policyholders tax-free benefits while they’re still living.
Learn more details about riders and how they work on our full page about life insurance riders.
Do you need life insurance after 70?
If you’re over the age of 70, most insurance companies will still issue you a whole life policy – and some even offer term insurance. However, coverage gets more expensive as you age.
Buying life insurance in your 20s vs. your 50s
If you purchased life insurance in your 20s, you probably looked for a term policy with a high benefit that would cover your financial obligations in case you passed away prematurely. When you reach your 50s, however, you may be more interested in covering future medical expenses and preserving wealth for future generations. Permanent life insurance may be more suited to the longer term needs of those in their 50s and beyond.
How easy is it to get life insurance after 50?
Getting life insurance after 50 isn’t impossible. Most life insurers offer specific policies tailored to seniors based on what you’re hoping to achieve with coverage. Typically, you’ll need to undergo a medical exam before the insurance company will issue you a policy. However, some companies (such as Mutual of Omaha) offer guaranteed acceptance life insurance, which doesn’t require an exam.
FAQs
About the Authors
Sara Coleman is a personal finance freelance writer based in Charlotte, NC. A Journalism Major who studied at the University of Georgia, she enjoys creating approachable content. She’s written for sites such as WorkingMother, BetterYouMag, and SmartMoneyMamas. She loves spending time with her husband and 3 kids, and has a healthy obsession with coffee.
