Cheapest Life Insurance Companies for Seniors in January 2024 (2024)

FAQs

What is the cheapest term life insurance for seniors? ›

GEICO and Transamerica are the cheapest life insurance companies for older adults, offering an average rate of $175.74 per month for a 10-year term policy. They also provide the most affordable life insurance rates for seniors who smoke and those in poor health.

A unit of Colonial Penn coverage is the life insurance benefit amount you receive for $9.95 per month. Your age and gender determine the exact amount of insurance coverage a single unit provides. The older you are, the more units you will need to purchase in order to get an adequate death benefit.

Whole life insurance can be a good option for seniors because the guaranteed death benefit ensures that your loved ones will receive a generally tax-free gift when you pass away. In many cases, these policies also come with some “living benefits” that can come in handy if you experience health issues as you age.

One of the drawbacks of the Colonial Penn 995 plan is that full benefits are not paid until you've made payments for two years. If the insured person on the policy dies within the two-year waiting period, limited benefits will be paid based on the premiums already paid, plus 7% interest.

Although Colonial Penn is a stable insurer with an A- financial strength rating from AM Best,* the company received mixed marks in other areas. Part of this is due to limited offerings and a focus on no-exam policies that result in higher policyholder premiums.

Quotes from AARP through The Hartford are cheaper than rates offered by Allstate and State Farm, which are some of the most popular auto insurance companies in the United States.

What is the best insurance for seniors over 70? ›

The best senior life insurance company of 2024 is Protective, based on our analysis of rates, historical performance, cost competitiveness, financial strength and other key factors. Pacific Life is also a top-scoring life insurance company for seniors.

Permanent Life Insurance Coverage

AARP members can get an instant quote and apply online or by phone. Members can apply for up to $50,000 in life-long coverage. Guaranteed rates that never increase, and no medical exam, just health and other information. You can keep this insurance your entire life.

The primary benefit of an annuity is the pension-like stream of income you will receive in retirement. Payouts—While life insurance pays the death benefit in one lump sum, annuities typically pay benefits monthly over time when annuitized.

People are typically denied life insurance because they fall into a high-risk category. This is often due to health challenges like diabetes, obesity or a previous diagnosis of serious disease. There are also nonhealth reasons for being denied life insurance.

Simplified issue term life insurance is a term life insurance policy. It is easier to apply for and quicker to get because it requires less information than a standard term life insurance policy.

One of the key benefits of term life insurance is that it can be more affordable compared to whole life policies. This can make them a good choice if you're a senior in good health and looking to buy life insurance with lower rates than whole life or another type of permanent* policy.

Term life insurance is a great option for seniors if you have an idea of how long you may desire to have coverage for because you can choose the specific length of your plan. Typically, term life insurance plans can be 10, 20, or 30 years long.

The average cost of life insurance is $31 per month at age 25. But at age 65, a life insurance policy costs about $593 per month. Life insurance companies mostly base their rates on your age and health status, but they also factor in your job, your weight, whether you smoke and even your family health history.