Life insurance helps seniors cover final expenses, replace income or leave a legacy, making it an important part of late-life financial planning.
GEICO, State Farm and Transamerica are top providers for seniors, offering strong term, whole life and budget-friendly options based on different needs.
Choosing the right policy depends on your age, health and financial goals. Compare premiums, coverage types and medical exam requirements to find your fit.
GEICO provides the best term life insurance for seniors, with a MoneyGeek score of 97 and an average monthly cost of $176 for a 10-year, $250K policy.
Seniors often seek life insurance to secure their family's financial future. However, compared to younger individuals, they may encounter a different buying process, including higher premiums and more stringent health evaluations.
Company | Best For | MoneyGeek Score | Monthly Premium (10-Year Term, $250K) | Key Strengths |
|---|---|---|---|---|
GEICO | Term Life & Customer Satisfaction | 97 | $176 | High satisfaction, affordable term coverage |
State Farm | Whole Life & Final Expense Coverage | 99 | $192 | Comprehensive lifetime coverage, strong support |
Transamerica | Budget-Friendly Senior Coverage | 97 | $176 | Affordable rates, flexible policy options |
GEICO is the best term life insurance provider for seniors, with a MoneyGeek score of 97. It offers affordability and reliability for an average monthly cost of $176 for a 10-year, $250K policy. Term life insurance is popular among seniors for its straightforward coverage and lower premiums.
GEICO and Progressive both earned perfect customer satisfaction scores, but GEICO takes the lead in the category due to its higher overall MoneyGeek score.
Competitive monthly cost for term life for seniors
A++ AM Best rating
Low rate of customer complaints
Limited product diversity, primarily offering term life
Buying process could be more streamlined
No in-house policy issuance
With a MoneyGeek score of 97, GEICO is the top pick for term life insurance for seniors and earned high marks for customer satisfaction. Teaming up with providers like Ladder Life, GEICO offers flexible term coverage from $100K to $8 million with terms spanning 10 to 30 years. With 87 years of industry experience and an AM Best A++ rating (Superior), GEICO serves a wide range of customers. Its financial stability, further represented by Ladder Life's A+ (Superior) AM Best rating, and minimal customer complaints make it a dependable choice. Moreover, GEICO's seamless customer journey and dedication to satisfaction make it a standout option for seniors looking for the best life insurance policy.
State Farm is our choice for both the best whole life insurance for seniors and the best final expense insurance for seniors, earning a MoneyGeek score of 99 in both categories.
Whole life insurance may be valuable to seniors for its lifetime coverage and cash value component, which can be an additional financial resource in retirement. Final expense life insurance covers end-of-life costs such as funeral and medical expenses.
A++ AM Best rating
Extensive product diversity, including whole life options
Multiple payment options for customer convenience
Customer satisfaction score could be improved
No 24/7 online chat support available
Whole life options may be complex for some
State Farm ranks as the best whole life insurance provider for seniors and the preferred choice for final expense coverage, with a MoneyGeek score of 99 in both. With over a century of experience, State Farm offers various insurance products, including term life, whole life, universal life and final expense coverage. Its A++ AM Best rating shows its financial stability and trustworthiness.
Seniors will find the flexibility of State Farm's whole life insurance appealing, with options like single premium payments and premiums payable up to age 100. The availability of Limited Pay Whole Life, with terms of 10, 15 or 20 years, adds to its appeal. State Farm provides final expense insurance coverage between $10,000 and $15,000 and guarantees a return of premium and interest if death occurs from natural causes within the first two years. While it could improve its customer satisfaction ratings, State Farm's century-long legacy, financial stability and straightforward purchasing process make it a reliable choice for the best life insurance for senior citizens.
Transamerica is the best choice for affordable life insurance for seniors, with a monthly cost of $176 for a term life policy. While GEICO and Allstate offer the same rate, Transamerica's overall MoneyGeek score of 97 in this category makes it the go-to option for cost-effective coverage.
Competitive monthly rate for term life policy
A rating from AM Best
Diverse product offerings, including term-to-permanent conversion options
Higher-than-average customer complaint ratio
No mobile app for easy policy management
With a MoneyGeek score of 97 and a monthly cost of $176, Transamerica is the best affordable term life insurance option for seniors. Its 95-year history and an AM Best rating provide policyholders with financial security. The company offers term policies with coverage of up to $10 million and the flexibility to convert to permanent plans. While it has some customer service challenges and lacks a mobile app, Transamerica's competitive pricing and policy flexibility make it a good choice for budget-conscious seniors.
Buying life insurance as a senior can be confusing, but this guide simplifies the process. Whether you’re looking to cover final expenses, support your spouse or leave a legacy, the sections below explain your options. From comparing term and whole life policies to evaluating costs and health requirements, this guide will help you find the right plan for your age, budget and goals.
When you're searching for a life insurance policy as a senior, there are several features to consider:
If you're considering term life insurance, the term should align with your financial planning horizon. Whole and universal life insurance offer lifelong coverage, which may be more suitable for long-term financial planning.
Premiums generally increase with age, so finding a policy that balances cost and coverage is beneficial. Fixed premiums, which don't increase over time, can be a valuable feature for budgeting.
Some policies require a medical exam, while others offer simplified issue or guaranteed issue options that skip the medical exam. These can be useful if you have pre-existing health conditions, but they usually come with higher premiums.
Look for riders that may be beneficial, such as accelerated death benefits. This feature allows you to access a portion of the death benefit if you're diagnosed with a terminal illness.
By focusing on these features, you can tailor your life insurance policy to better fit your personal needs and circumstances.
Determining the right amount of life insurance for seniors involves assessing financial needs and obligations. A common strategy is the "DIME" method, which stands for debt, income, mortgage and education. Add up your debts, including medical bills and loans, the income you'd like to replace, any remaining mortgage balance and future educational expenses for grandchildren or others. The sum will give you a ballpark figure for the coverage you might need.
Another approach is the "income replacement" method, where you multiply your annual income by a specific number of years, often five to 10, to provide a financial cushion for your loved ones. Seniors may also want to include potential medical expenses and funeral costs in their calculations. Given that premiums are generally higher for older individuals, balancing adequate coverage with affordability becomes key in purchasing the right amount of insurance and selecting the best life insurance policy for seniors.
Several factors influence the cost of life insurance for seniors, with age being a significant determinant. As you age, premiums rise to account for increased health risks.
For example, the average cost of a 10-year term policy with $250K in coverage is $91 per month for a 60-year-old. This cost jumps to $243 per month for a 70-year-old.
Other factors that can impact the cost of life insurance for seniors include your overall health, lifestyle choices like smoking and the type of policy you choose. Consider these variables when considering a policy to get the best affordable life insurance for seniors. The table below shows how the average monthly cost of term life insurance varies by age and term length.
| 50 | $45 |
| 60 | $91 |
| 70 | $243 |
Term life insurance is often the best for seniors, especially if you're looking for straightforward coverage without bells and whistles. It provides coverage for a specific period, say 10 or 20 years, and pays out a death benefit to your beneficiaries if you pass away during that term. It's generally more affordable and accessible than other types.
However, you might also consider whole life insurance, which offers a death benefit and a cash value component that grows over time. This can be a good option if you're interested in an investment-like feature. Universal life insurance is another option, offering flexible premiums and the ability to adjust your death benefit.
Seniors might also consider the following types of life insurance:
Policy Type | Description |
|---|---|
Guaranteed Universal Life | This hybrid policy offers the permanent coverage of whole life but with lower premiums, making it more budget-friendly while still providing a death benefit. |
Final Expense Insurance | Specifically designed to cover funeral and burial costs, this policy type offers lower coverage amounts and is easier to qualify for, even with health issues. |
Guaranteed Issue Life Insurance | Ideal for policyholders with significant health concerns, this policy requires no medical exam but comes with higher premiums and lower coverage amounts. |
Indexed Universal Life | Indexed universal life offers flexible premiums and a cash value component tied to a market index, allowing for potential growth over time, which can be useful for estate planning. |
Joint Life Insurance | For couples looking to leave a financial legacy, this policy pays out upon the second partner's death and is often used for estate tax planning or charitable giving. |
Each type has its merits and drawbacks, so consider your financial goals, the needs of your beneficiaries and your budget when choosing the best life insurance policy for seniors.
Whether seniors need a life insurance policy depends on individual circumstances. Life insurance can help beneficiaries cover funeral expenses and medical bills and provide an inheritance. However, the need for such a policy may diminish if you've already set aside sufficient funds for these purposes or if your children are financially independent.
When deciding on life insurance in your later years, consider several factors. First, evaluate your financial obligations and how they would impact your family if you were no longer around. Second, consider the cost; premiums are higher for seniors, and some policies may require medical exams.
Finally, assess the type of coverage that suits your needs — term, whole or universal life insurance. Each has pros and cons, so weigh them carefully to decide the best life insurance policy for seniors.
Life insurance can offer seniors peace of mind by covering final expenses, replacing lost income or leaving a financial legacy. GEICO stands out for term life coverage with strong customer satisfaction, while State Farm is the top choice for whole life and final expense policies. For seniors on a budget, Transamerica offers affordable and flexible coverage. By comparing policy types, premiums and provider reputations, you can choose the right plan to meet your needs and protect your loved ones.
The following frequently asked questions aim to guide you toward a more informed decision when purchasing the best life insurance for seniors.
GEICO leads as the best term life insurance for seniors, with a MoneyGeek score of 97 and an average monthly premium of $176 for a 10-year, $250K policy. GEICO is also the cheapest option, alongside Transamerica and Allstate, which both offer an average monthly cost of $176 for the same term life coverage.
The cost of life insurance for seniors varies, primarily influenced by the policyholder's age and health. For instance, a 60-year-old might pay an average of $91 per month for a 10-year, $250K term policy, while a 70-year-old could see rates increase to $243 per month. Lifestyle choices and policy types also affect pricing.
Term life insurance is often the best life insurance for seniors due to its affordability and straightforward coverage. It provides a set benefit for a specific period, which makes aligning with financial goals, like mortgage payoff or supporting dependents, easier without the complexities of cash value components.
Term life insurance can be worth it for seniors seeking affordable, temporary coverage. It's ideal for those who want to protect loved ones financially, cover end-of-life expenses or leave an inheritance without the long-term commitment or higher premiums associated with whole or universal life policies.
During the application process, most life insurer health questionnaires will include a few COVID-19 questions. Previously having COVID-19 should not impact your ability to purchase new life insurance coverage, according to the Insurance Information Institute. However, if you are experiencing Long COVID, where symptoms or issues persist, that may be considered a chronic condition and could impact the rate you are charged.
MoneyGeek created a scoring system to compare life insurance companies across five categories and ranked them based on their scores. We chose to review these companies based on their broad national coverage and ability to provide online quotes.
MoneyGeek’s Scoring System
In our unique scoring system, companies can earn up to five points in each of the five categories. We then use these category scores to calculate an overall MoneyGeek score out of 100. We applied the following weightings to score insurers:
Each company’s score incorporates:
Sample Customer Profile
MoneyGeek used a standard profile to obtain life insurance quotes for seniors:
Premiums are based on the standard profile unless otherwise noted.
We modified the profile by age, gender, height, weight, tobacco use, health rating and geographic location to collect various quotes and determine the best life insurance company for several types of customers. We also collected quotes for term life insurance with varying term lengths and coverage amounts.
Additionally, we identified trends in the data set and used those patterns to calculate projections and extend the data beyond what was originally collected.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
