Senior Plan Life Insurance: The Best Life Insurance for Seniors

Senior plan life insurance is a type of whole life insurance, and we’ve created a list of the top six life insurance companies below offering senior plan life insurance at affordable rates. It’s typically used for burial and final expenses that can run $7,000-$12,000 and is the best life insurance for seniors because it eases the financial burden on loved ones and gives peace of mind. Scroll down to get free quotes now.

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Schimri Yoyo is a financial advisor with active life and health insurance licenses in seven states. Born in Haiti. Reared in Brockton, MA. Matured in Philadelphia. Schimri is a proud graduate of Arcadia University, having earned both a Masters in Special Education and an MFA in Creative Writing from the castle-riddled campus in Glenside, PA. By personality and by profession, Schimri is an educator...

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UPDATED: Oct 17, 2020

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People think of life insurance as something younger people buy, but it can be useful later in life, too. It’s never a bad time to search for senior plan life insurance, as life insurance rates see their first dramatic price increases between the ages of 50–60, with rates for people over 65 often increasing significantly with each year of age. Many have searched for “senior over 50 life insurance” online showing just how frequently people are looking for the best life insurance for seniors.

Life insurance companies are meeting older people’s needs with a variety of life insurance plans. Many people are only familiar with senior plan life insurance as seen on TV, and trying to find life insurance for seniors seems overwhelming.

If you are asking yourself, “How much is life insurance for a 70-year-old?” or “How much does life insurance cost for seniors?”, this term life insurance calculator will help you determine how much coverage you’ll need. The article below will benefit you if you’re asking yourself, “Am I too old to buy a policy?” and “Who has the cheapest life insurance for seniors?”

This in-depth guide will give you a crash course on what you need to look for in an insurance company and coverage. We also make it easy for you to compare life insurance at the click of a button. It’s important to find the best life and health insurance for you.

Don’t wait — Click our FREE quote tool above to start reviewing senior whole life insurance quotes and senior plan life insurance rates now.

Table of Contents

Best Life Insurance Companies for Seniors Over 65 / What is the Best Life Insurance Policy for Over 60?

If you are asking yourself, What is the best life insurance for someone over 60, or What is the best life insurance for someone over 50? This table has the rates for the top life insurance companies for 65-year-olds.

Average Annual Life Insurance Rates for Single 65-Year-Olds by Gender and Tobacco Use
CompaniesFemale Non-smokerFemale SmokerMale Non-SmokerMale Smoker
State Farm Mutual$684.00$918.00$955.00$2,258.00
Massachusetts Mutual Life Insurance Co.$763.00$999.00$1,049.00 $2,066.00
Average$898.76$1,386.70 $1,308.00 $3,333.99
Lincoln National Corp.$903.00$1,665.00 $1,577.00 $4,671.00
New York Life Insurance Group$924.00$1,884.00 $1,416.00 $2,868.00
John Hancock$937.30$1,536.90 $1,380.00 $4,091.90
Prudential Financial Inc.$941.00$1,846.00 $1,412.00 $2,932.00
Aegon / TransAmerica$1,139.00 $1,761.00 $1,367.00 $4,451.00
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Here is a credit rating table for life insurance companies that are good for seniors.

Credit Ratings for Top Life Insurance Companies for Seniors
CompaniesA.M. BestStandard & Poor's (S&P)Fitch RatingsMoody'sJ.D. Power
AIGA (Excellent)A+ (Strong)A+ (Strong)A2 (Good)2 Power Circles
(The Rest)
BannerA+ (Superior)AA- (Very Strong)AA-(Very Strong)N/AN/A
Haven LifeA++ (Superior)N/AN/AN/AN/A
Mutual of OmahaA+ (Superior)AA- (Very Strong)AA (Very Strong)Aa3 (Excellent)2 Power Circles (The Rest)
New York Life (AARP)A++ (Superior)AA+ (Very Strong)AAA AAA4 Power Circles (Better than Most)
State FarmA++ (Superior)AA (Very Strong)N/AAa12018 Award Recipient (Among the Best)
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Sample rates for each life insurance company can be compared to each other to see who has the best rates.

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Haven Life

Haven Life only offers multiple types of term life insurance.

Haven Life offers coverage with no medical exam. Coverage with no medical exam is appealing to many older individuals because they can’t be denied because of their health.

Here’s a commercial from Haven Life.

Here are some the ratings that have been given to Haven Life:

  • A.M. Best has given the company a credit rating of A++. That rating is considered superior.
  • Fitch Ratings awarded Haven Life an AA-. This rating is very strong.
  • Moody’s has given the company an A1, which is considered good.
  • J.D. Power has awarded the company two power circles and ranked the company among the rest.

The company has a strong financial rating with A.M. Best despite being a new company.

State Farm

State Farm offers great customer service and numerous optional riders. Their company also has great name recognition. The company offers a guaranteed renewable term up to 95 years old.

Here’s one of State Farm’s commercials.

State Farm has multiple credit ratings from different companies.

  • A.M. Best has rated the company an A++.
  • Standard & Poor’s (S&P) has rated the company an AA.
  • Moody’s has rated the company an Aa1.
  • J.D. Power has awarded the company its 2018 Award.

The company ratings are strong.

Mutual of Omaha

Mutual of Omaha has highly customizable policies. The company has excellent customer service, and new policies are available up to age 74.

Mutual of Omaha life insurance for seniors can be appealing. You can learn more about the company from the video below.

Mutual of Omaha also has many ratings from various credit rating companies.

  • A.M. Best has a given Mutual of Omaha a rating of A+.
  • Standard & Poor’s (S&P) has rated the company an AA-.
  • Fitch Ratings gave the company an AA.
  • Moody’s has rated the company an Aa3.
  • J.D. Power has awarded the company two power circles.

Overall, company ratings are great.

New York Life (AARP)

New York Life has death benefits available for every budget. The company also offers affordable entry points for smaller policies. Multi-million dollar policies are also available as well as New York Life final expense.

New York Life insurance for seniors offers guaranteed term without a medical exam up to age 85.

Here are some secrets for a happy life from AARP.

The company’s partnership with AARP means many customers can feel more comfortable working with a group they know and trust.

New York Life has many credit ratings to compare.

  • A.M. Best has rated the company an A++.
  • Standard & Poor’s (S&P) rated the company an AA+.
  • Fitch Ratings awarded the company a rating of AAA.
  • Moody’s has given the company an AAA rating.
  • J.D. Power has awarded the company four power circles.

New York Life ratings are above average.

Banner Life

Banner Life offers flexible payment options. This means you can choose to pay off a whole life policy in 10–15 years.

Banner Life’s underwriting is more favorable than competitors toward traditionally high-risk groups. Those with a poor family history or pre-existing conditions are considered in the high-risk group.

Banner Life is a financially solid company. The company’s credit ratings are good.

  • A.M. Best has rated the company an A+.
  • Standard & Poor’s (S&P) has Banner at an AA-.
  • Fitch Ratings rated the company as an AA-.

Banner Life has fewer ratings than other companies mentioned.

AIG

AIG is also a good company for seniors. The company consistently has competitive rates despite the fact they have less stellar customer service.

This video from AIG gives you a basic breakdown of the difference between term life and whole life insurance.

AIG has great ratings from many credit rating agencies.

  • A.M. Best has given AIG an A.
  • Standard & Poor’s (S&P) has rated the company an A+.
  • Fitch Ratings rated the company an A+.
  • Moody’s has ranked the company an A2.
  • J.D. Power has awarded the company two power circles.

AIG is a reliable choice.

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Does life insurance make sense after 60?

Many people wonder, Should I buy life insurance in my 60s? The answer is yes.

If you’re in good health, then you’ll have many of the same options available to you as when you were younger. However, your premiums will probably be higher.

If you’re in poor health, then you’ll probably not have as many options available. For those who are in poorer health, there are guaranteed plans available.

What happens to life insurance when you retire?

If you get your insurance from your employer, then your benefits may end when you retire. Some companies will allow you to take over and continue to pay your life insurance. Often, people will buy their life insurance plans when they retire.

Life insurance plans are for your beneficiary.
How Life Insurance Death Benefits Work for Beneficiaries
Some life insurance policies will allow you access to living benefits — benefits that are available when you’re still alive. These benefits can be useful if you’re in debt or an unexpected illness arises.

It’s beneficial to access what life insurance benefits you have when you retire.

Social Security is often considered retirement but it also pays for disability and survivor benefits. Social Security can start paying you as early as the age of 62 or as late as 70 years old.

Even though many people are receiving Social Security benefits, they may still feel the need to buy life insurance.

Shopping for Senior Plan Life Insurance Quotes

Buying life insurance if you’re over 65 doesn’t have to be hard work, by researching different types of life insurance, it’s possible to save money.

There is a difference between having an independent agent or financial advisor and calling the insurance company directly. An independent agent or financial advisor works for you and will focus on life insurance products you need due to your financial circumstances or goals.

When you call an insurance company, the agent you talk to is an agent for the company you called. They can help you find insurance for you, but they are selling their company’s life insurance products. They can’t tell you about life insurance companies that offer better coverage or rates since they are hoping you’ll buy from them.

According to LIMRA’s 2019 Facts About Life, the top three reasons that Americans give for owning life insurance are to:

  • Cover burial and final expenses
  • Help replace lost wages or the income of the wage earner
  • Transfer wealth or leave an inheritance

Prepare yourself with knowledge by learning the basics. Many blogs can help you learn life insurance more in-depth. It’s also important to read all senior life insurance company reviews since you want to buy the best coverage, rates, and life insurance company.

This senior life insurance TV commercial will explain some life insurance basics.

How Coronavirus (COVID-19) Pandemic Affects Senior Life Insurance

Does life insurance cover coronavirus? COVID-19 has caused unexpected changes to life insurance policies, especially seniors. Companies have made different types of changes.

  • Prudential Financial and Protective Life have halted applications from individuals aged 80 years and older.
  • Lincoln National postponed approving policies for individuals who are 80 years old and other age groups as well.
  • Mutual of Omaha and Penn Mutual have both temporarily suspended applications from those who are 70 years old and older.
  • Securian Financial is no longer accepting applications for those who are 71 years and older until June 15.

Some companies have also suspended applications from those who are over 60 and who may have been eligible for coverage before the coronavirus pandemic. Diabetes and asthma are two health problems that may make getting life insurance approval harder.

Life Insurance for Seniors Over 75

There were 781 life insurance companies in the United States in 2017, which means you have a lot of options. If you’re in good health, you’ll have many of the same options available as when you were younger. You’ll usually just have higher premiums. If you’re in poor health, then there are some guaranteed term life insurance plans still available.

Many seniors believe that they aren’t eligible for life insurance as they get older. They ask, “Can you get life insurance on a 70-year-old?” The answer is that you can still buy life insurance over the age of 70. It’s also possible to get life insurance with no medical exam. The average life expectancy is 76 for men and 81 for females.

It’s possible to find life insurance with no medical exam at 80. Most companies don’t offer this option, but Colonial Penn life insurance has term insurance up to 90 years old.

Factors That Affect Your Rate for Life Insurance for Seniors Over 80

Many factors will affect your rates for life insurance over 80. Some factors that are extremely important if you are a senior are:

  • Age
  • Gender
  • Overall health
  • High-risk behaviors

While being older does not necessarily eliminate you from qualifying for life insurance, it will make your premiums higher. Life insurance premiums rise for every year that you get older. It’s always cheaper to buy life insurance at a younger age. This video will discuss how to identify factors that will affect life insurance.

Keep in mind, however, that while these are the most common factors to affect your rate, every company is different.

How to Get the Best Life Insurance for Seniors Over 85 / Finding the Best Life Insurance for 85 and Older

There are multiple things you can do to get affordable senior plan life insurance. Many of these factors will come up during the underwriting process. There may be limited underwriting, but there can also be a full life insurance underwriting process and medical exam. See guidelines here: life insurance underwriting guidelines.

These plans benefit some seniors who are in poorer health. These policies tend to be considered more expensive, but they are simpler than many other types of coverage.

If you have no chronic health issues, then you should opt for full underwriting. This will include a medical exam, but it can save you money.

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Types of Senior Life Insurance

Many types of life insurance options are available for seniors.

Term Life Insurance for Seniors

Term life insurance is insurance that is paid for and active for a specific amount of time, called a term. There are many term options, but they are often in 10-year, 20-year, and 30-year terms. Term options will probably become shorter as you get older.

Pros for term insurance include:

  • Options for no-exam insurance are often available.
  • Straightforward policies, with the same death benefit over the life of the term.
  • Premiums remain the same throughout the term.
  • If you already have a term policy, in many cases you can simply renew it as long as you keep everything the same.

There are many appealing aspects to purchasing term life insurance. Term life insurance won’t cover every need, and it does have cons.

Cons for term life insurance include:

  • Once the term ends, the insurance expires, and there is no death benefit.
  • There’s no accumulation of cash value.
  • Terms are often limited to 10,15, or 20-year limits based on age.
  • Death benefits available will be lower if you buy when you’re a senior citizen.
  • It can include waiting periods where premiums are paid for two or three years but no claim is allowed against the policy.
  • If you’re still living at the end of term, you’ll need to re-apply for a new policy.

At the end of your term, the company will often allow you to convert the coverage to a whole life policy at the same rate you’ve been paying for term life insurance.

Whole Life Insurance for Seniors

permanent life insurance is also called whole life insurance. This insurance is for your whole life. Once you purchase a policy then your premium won’t change, and you’re covered as long as you pay on time.

The pros of purchasing whole life insurance include:

  • Lifetime policies are guaranteed until you reach a specific age. In some cases, this can be up to 121 years old (Penn Mutual).
  • There are many types available — something for almost everyone.
  • Some, like guaranteed universal life, don’t build cash value over time, but are relatively inexpensive and allow you to keep your premiums fairly low.
  • Some companies offer optional add-ons, like chronic illness or nursing home riders.

While these are all good attributes that you want in a life insurance policy, the cons of whole life insurance may not fit all your needs. Some cons of purchasing whole life insurance are:

  • The cash value policies that accumulate are often very expensive if your age at issuance is over 70.
  • Death benefits are often for much lower amounts than when purchased younger.
  • Riders can be prohibitively expensive, and you may already have coverage separately or through your health insurance.
  • Borrowing from a cash value policy may end up costing you more than it earns you, depending on when you buy it, and when you borrow from it.
  • The underwriting process becomes more involved as you age. For example, many companies require an EKG when you apply in your 60s, and some are beginning to require cognitive testing if you apply in your 70s.
  • They often include waiting periods where premiums are paid for two or three years but no claim is allowed against the policy.

Other policies build cash value and can be borrowed against.

While whole life insurance is fairly comprehensive, it may not be appropriate for all needs.

Guaranteed Universal Life Insurance for Seniors

Guaranteed universal life insurance takes the premise of universal life and takes the market risks from it. The policy offers low premiums and an investment-savings element.

With guaranteed universal life insurance, even if the market performs negatively, your premiums won’t rise. This kind of policy is like having a whole life and term life insurance policy in one.

Burial Insurance & Senior Life Final Expense Insurance

Some seniors only buy burial or final expense insurance. This is because the end of life costs are expensive. Calculating the cost of a funeral includes more than you may think.

You’ll have to pay for more than basic funeral fees. There are many services and products available, and the costs will start adding up. Here is a list of services and products that you may not be considering the cost of:

  • Casket
  • Embalming
  • Burial vaults
  • Grave liners
  • Cash advances

This list does include any service that was outsourced. Some funeral homes let you know those costs upfront and some add it to your bill.

Transamerica Average Monthly Burial and Final Expense Rates for Seniors – $10,000 Coverage
AgeMaleFemale
60$43.81$33.72
65$56.53$41.62
70$74.66$53.99
75$100.03$72.89
80$140.22$104.11
85$200.43$148.62
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Burial and final expense insurance are designed to have this end cost of life accounted for. There are also positives and negatives to buying burial and final expense insurance.

Pros of buying burial and final expense insurance are:

  • These policies have much higher age limits than other life insurance policies. They can go up to the age of 85.
  • Burial and final expense insurance is usually the most affordable option for seniors in poor health and the coverage offers no waiting period.

The negative aspects of buying this kind of policy are:

  • Death benefits available are dramatically lower, typically $5,000 to $20,000.
  • The policies offer no living benefits or accumulated cash value. Living benefits are benefits that you can access when you’re still living. Many seniors prefer to have insurance with living benefits.

There are additional life insurance plans available for seniors.

Other Senior Plan Life Insurance Policies

Some companies offer hybrid policies designed specifically with seniors in mind and are often not available to people under 55.

Estate maximizer policies are whole life insurance purchased with a single payment like policies offered by Liberty Mutual.

There are survivorship policies, along with both whole and indexed universal policies available, like policies offered by Penn Mutual.

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Senior Plan Life Insurance: The Bottom Line

You’ve now learned the basics of life insurance for seniors. Insurance rates rise with age, so it’s important to purchase life insurance sooner rather than later. Be as healthy as you can to ensure the best rates available. If you’re in poor health, then look into guaranteed life insurance policies and policies that offer a no medical exam feature.

Now that you’ve learned all the coverage options and best life insurance companies for seniors, what are you waiting for? Get started instantly comparing senior plan life insurance with our FREE life insurance quote tool now.

Frequently Asked Questions: Senior Plan Life Insurance

These are some questions that are commonly asked about senior plan life insurance. These questions include:

#1 – At what age should you stop term life insurance?

Most life insurance companies expire their policies at the age of 95.

#2 – Can I cash out a term life policy?

Term life policies do not accrue cash value. This kind of policy will cash out to your beneficiaries if you die during the life of the term. If you do not die, then your policy will expire or you can convert the policy to whole life, permanent, policy. Whole life policies may have the option for cash value.

#3 – What happens if I outlive my term life insurance?

If you outlive your term life insurance then your policy will end. Before the policy ends, you can convert your existing policy to a permanent, or whole life, policy. This converted policy will have a lock-in rate. You will want to compare rates again at this time.

You should check and see how much another term policy will be because it may be cheaper than converting your existing policy. You can also shop around with different companies. Even if you are satisfied with your life insurance company, it will not hurt and see if another company is offering better coverage and/or rates. You can also check with them about senior life insurance return of premium.

References:

  1. https://www.acli.com/-/media/ACLI/Files/Fact-Books-Public/FullLifeInsurersFactBook2018.ashx?la=en
  2. https://www.ssa.gov/benefits/retirement/
  3. https://www.consumer.ftc.gov/articles/0301-funeral-costs-and-pricing-checklist

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