Our Picks for the Best Life Insurance for Seniors
Summary: Best Senior Life Insurance Companies
How Much Does Senior Life Insurance Cost?
The average yearly cost of a 10-year term life policy for healthy 70-year-old adults ranges from $1,196 to well over $9,355. Which end of that range you should expect depends on factors like your age, health, smoking status, the type and amount of coverage you buy and the insurance company you choose.
Here’s a look at term life insurance quotes for 70-year-old buyers of senior life insurance from the top ranking companies in our analysis. Seniors over 70 will find it difficult to buy 20-year term life insurance and likely won’t be able to find a 30-year term life insurance policy at all, so we’ve provided you rates for a 10-year term.
Senior Life Insurance Costs for Females
| Company | Term life insurance policy name | Cost per year: 70-year-old female for $250,000 in coverage for 10 years | Cost per year: 70-year-old female for $500,000 in coverage for 10 years | Cost per year: 70-year-old female for $1,000,000 in coverage for 10 years |
|---|---|---|---|---|
| Classic Choice Term | $1,283 | $2,319 | $4,307 | |
| PL Promise Term | $1,382 | $2,319 | $4,325 | |
| Minnesota Life | Advantage Elite Select Life | $1,268 | $2,460 | $4,845 |
| Average cost per year | $1,311 | $2,366 | $4,492 |
Senior Life Insurance Costs for Males
| Company | Term life insurance policy name | Cost per year: 70-year-old male for $250,000 in coverage for 10 years | Cost per year: 70-year-old male for $500,000 in coverage for 10 years | Cost per year: 70-year-old male for $1,000,000 in coverage for 10 years |
|---|---|---|---|---|
| PL Promise Term | $2,066 | $3,683 | $7,038 | |
| Classic Choice Term | $2,066 | $3,684 | $6,930 | |
| Minnesota Life | Advantage Elite Select Life | $2098 | $4,120 | $8,165 |
| Average cost per year | $2,076 | $3,829 | $7,378 |
Types of Life Insurance for Seniors
Senior life insurance buyers can choose among the same types of life insurance as anyone else. All of Forbes Advisor’s top-rated life insurance companies for seniors offer term, cash value and no-exam life insurance.
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Cheapest Life Insurance for Seniors
Based on our analysis, Penn Mutual and Transamerica are the cheapest life insurance companies for healthy 70-year-old buyers. These companies had the most inexpensive rates for term life insurance for 70-year-old seniors among the companies we analyzed.
However, it is important to understand that personal health and other details impact cost, and affordability for retired seniors may look different than for those working. No one company will offer cheap life insurance for every individual.
Cheapest Life Insurance for Seniors: 70-Year-Old Female Buyers
| Company and policy | Policy term and coverage | Annual cost |
|---|---|---|
| : Non-Convertible Term | 10-year $250,000 policy | $1,197 |
| Penn Mutual: Non-Convertible Term | 10-year $500,000 policy | $2,318 |
| Penn Mutual: Non-Convertible Term | 10-year $1 million policy | $4,306 |
| Penn Mutual: Non-Convertible Term | 10-year $2 million policy | $8,541 |
Cheapest Life Insurance for Seniors: 70-Year-Old Male Buyers
| Company and policy | Policy term and coverage | Annual cost |
|---|---|---|
| : Non-Convertible Term | 10-year $250,000 policy | $1,872 |
| : Trendsetter Super | 10-year $500,000 policy | $3,390 |
| Transamerica: Trendsetter Super | 10-year $1 million policy | $6,390 |
| Transamerica: Trendsetter Super | 10-year $2 million policy | $12,750 |
Is Life Insurance for Seniors Worth It?
Senior life insurance can be worth it when its payout will:
- Help beneficiaries pay for expenses such as funeral costs, medical bills and remaining debts.
- Provide funds for your spouse to live off of if you were living on a pension that doesn’t have survivor benefits.
- Provide an inheritance to your children, grandchildren or others.
- Help heirs pay estate taxes on large estates.
We Answer Your Questions
Ashlee Valentine
Insurance Editor
Les Masterson
Insurance Editor
Michelle Megna
Insurance Lead Editor
I am turning 75 next month and am regretting that I’ve never purchased life insurance. Is it too late?
– Robert M., Dayton, Ohio
Although your options will be limited and pricey, buying life insurance at or over 75, you can still purchase a guaranteed issue policy. Those policies come with guaranteed approval but low coverage amounts, graded death benefits and high premiums.
Insurance Editor
If I access my living benefits now to help with long-term care, how will this affect my death benefit?
– Walter R., Lexington, Kentucky
When you access your life insurance policy’s living benefits, you are accessing your death benefit early. That means any use of living benefits will decrease the death benefit that will be paid to your beneficiaries.
Insurance Editor
What happens if my life insurance beneficiary dies before I do?
– Albert R., Laramie, Wyoming
If your primary beneficiary dies and you have specified a contingent beneficiary, the payout will go to that person. If you do not have any other beneficiaries listed in the policy, the payout will go to your estate. If your death benefit goes into your estate, it can be subject to estate taxes and creditor claims. So, if your primary or contingent beneficiary passes away, it’s smart to name someone else on the policy.
Insurance Lead Editor
Related: Is Life Insurance Worth It?
Methodology
To find the best life insurance for seniors, we evaluated both term life and permanent life insurance:
- For term life insurance analysis, we used our own research.
- For cash value life insurance analysis, we used data provided by Veralytic, an independent publisher of life insurance research and analytics. Veralytic measures the competitiveness of permanent life insurance products and can provide a customized policy analysis to your financial advisor.
Our ratings are based on:
Cost competitiveness of cash value policies (30% of score): This measures the level of premiums and internal policy charges for seniors, including the cost of insurance, fixed administration expenses and cash value-based wrap fees.
Reliability of policy illustrations (30% of score): We evaluated the reliability over time of the company’s illustrations for senior policyholders for permanent life insurance products.
Term life insurance rates (20% score): We used term life insurance rates for healthy buyers at age 70 for 10-year term life with coverage of $250,000, $500,000 and $1 million.
Historical performance (10% of score): This measures the historical performance of the company’s investments that fuel cash value growth.
Financial strength (10% of score): This measure incorporates the insurer’s financial strength ratings from four major ratings agencies: AM Best, Fitch, Moody’s and Standard and Poor’s.
Read more: How Forbes Advisor rates life insurance companies
Compare Senior Life Insurance
Best Senior Life Insurance Frequently Asked Questions (FAQs)
Is there an age limit to buy life insurance?
Life insurance companies set maximum age limits, depending on the type of policy. For example, for Corebridge Financial’s Select-a-Term policy, the maximum issue age is 80 while Equitable’s maximum issue age for a 10-year term is 75. If you are over 80, guaranteed issue policies will most likely be your only option.
The younger you can buy life insurance, the more policy options you’ll have to compare.
At what age should you stop buying life insurance?
The need for life insurance doesn’t end upon reaching a certain age. Certain types of life insurance may even include long term care benefits to assist with senior care. But here are some situations where it makes sense to cancel your life insurance policy:
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- The cost outweighs the death benefit that will be paid to your beneficiaries.
- Your financial status has changed, and the death benefit will no longer be needed to cover debts, income or final expenses.
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Are there life insurance policies designed specifically for seniors?
These two policy types are especially for senior life insurance buyers:
Guaranteed issue life insurance. These policies are offered with the promise that you can’t be turned down and won’t be asked any health questions. The trade-off is that maximum coverage amounts tend to be small, and if you die in the first two or three years after purchase your beneficiaries won’t get the full death benefit. This is known as a graded death benefit.
Guaranteed issue life insurance is pricey for the amount of insurance you’re getting, but it’s designed for seniors who have health issues.
Burial insurance. Also known as final expense insurance, burial insurance is available only in small amounts and is designed for seniors in poor health and with limited budgets. It’s meant to cover a funeral and final expenses.
What is the best life insurance for a senior in poor health?
You can buy a guaranteed issue life insurance plan without any health questions or an exam. These policies offer low amounts of coverage but are designed for people looking to cover a funeral and other smaller expenses.
Note that guaranteed issue policies have “graded death benefits.” If you pass away within the first two or three years of owning the policy, the death benefit will not be paid to your beneficiaries. Instead, the policy will usually refund your premiums plus interest.
Why is life insurance more expensive for seniors?
Life insurance companies assess risk to determine life insurance rates. The company’s likelihood of paying out a death benefit for your policy increases as you age, and they charge a higher premium to make up for the higher risk. Seniors are also more likely to have chronic health conditions, increasing the risk of death. If you’re a senior buying a policy for yourself, or you’re buying a policy for older parents, you should expect higher rates.
