Skip to main content

The Most Affordable Life Insurance Options For Seniors In The United States

4 minute read

By Ryan Pratt

Life insurance is a key aspect of financial planning, particularly for seniors. It offers peace of mind, knowing that loved ones will be financially secure after one’s passing. Many seniors face obstacles when seeking affordable life insurance but you do have options!

Types of Life Insurance Available in the U.S.

Understanding the diverse life insurance options in the United States is vital for choosing a policy that aligns with your needs. Here are the primary life insurance types available to seniors today:

Term life insurance: Due to its affordability and the simplicity of providing coverage for a specific period, term life insurance is popular among seniors. However, it’s important to remember that coverage ceases once the term ends, necessitating the purchase of a new, potentially more expensive policy.

Guaranteed Universal Life Insurance (GUL): While more costly than term life, GUL provides coverage until a certain age with fixed premiums. It’s more affordable than other permanent options due to its lack of cash value accumulation.

Final expense insurance: This option is aimed specifically at seniors, since it covers end-of-life expenses. These policies are easier to qualify for and offer death benefits, resulting in lower premiums. However, they may not provide sufficient coverage for larger debts or income replacement.

No medical exam life insurance: This package, which includes simplified and guaranteed issue policies, offers coverage without a medical exam. Despite being more expensive due to increased insurer risk, these policies can be a solution for seniors with health concerns struggling to find affordable coverage.

Group life insurance: Some associations, such as AARP, offer group life insurance at reduced rates. These plans might have lower coverage limits and may not be transferable if one leaves the association.

Factors That Affect the Price of Life Insurance

A variety of factors contribute to the price of a life insurance policy, including:

Type of policy

Generally, term life insurance policies, which provide coverage for a set duration, are more affordable than permanent policies such as whole, universal, and variable life insurance.

The rationale is that term life insurance poses a lower risk to insurers. After all, the policy only covers the insured for a designated term, reducing the likelihood of a death benefit payout.

Gender

Traditionally, women have benefited from lower premiums, attributed to their longer life expectancy, thus reducing the insurer’s risk of a death benefit payout.

Age and health

Younger and healthier individuals present a lower risk for insurers, often resulting in lower premiums. Conversely, those with pre-existing medical conditions or high-risk lifestyles, such as smokers, may confront higher premiums due to their elevated risk profile.

Scope of coverage

As a rule, the greater the coverage, the higher the premiums. Nonetheless, it’s critical to strike a balance, ensuring sufficient coverage to protect loved ones financially in the event of the policyholder’s death.

As we look at life insurance providers who are known for their affordable senior policies, let’s remember that adequacy of coverage should always trump the cost.

AIG

American International Group (AIG) is a renowned choice for life insurance among American seniors. A pillar of stability and experience, AIG has been serving policyholders for over a century, showcasing its endurance and reliability.

AIG offers a wide array of life insurance products, with affordable rates, including term, whole, and universal life insurance, along with guaranteed issue whole life insurance, ensuring seniors can find a policy that aligns with their unique needs.

Transamerica

Transamerica offers competitive term life insurance rates for seniors, especially those in their 60s, providing cost-effective financial security for their loved ones.

For 60-year-olds, Transamerica offers competitive average monthly rates.

State Farm

State Farm offers affordable life insurance for seniors, particularly those in their 70s and 80s. Their plans ensure financial security with manageable premiums for these age groups.

For seniors aged 70 and above, State Farm provides the most economical options, offering affordable monthly rates for a 10-year term policy. Unfortunately, 15-year and 20-year term policies are not available for these age groups through State Farm.

Penn Mutual

Penn Mutual provides a variety of life insurance policies suitable for seniors, including term, whole, and universal life options. Offering enhanced flexibility compared to other providers, Penn Mutual allows term life insurance policyholders to convert to any available permanent life insurance policy.

In addition, their cash value policies are cost-competitive, enabling customers to secure a higher death benefit for their premium. Keep in mind that Penn Mutual sets a maximum issue age of 70 for its non-convertible term life insurance policies.

Mutual of Omaha

Known for its financial stability and long-standing reputation, Mutual of Omaha has been serving clients for over a century, demonstrating its commitment and reliability. The company provides various insurance products, including term, whole, and universal life insurance, ensuring that seniors can find coverage that best fits their needs.

Their policies also offer flexibility, accommodating different budgets and circumstances. They feature no medical exam policies, a significant consideration for seniors with health concerns.

Shopping Around For Best Rates

Regardless of the type of life insurance chosen, seniors should shop around for the best rates. Each insurance company uses different underwriting guidelines, so rates can vary significantly. Using an independent insurance agent or online comparison tools can help find the most affordable policy.

Also, maintaining a healthy lifestyle can lower premiums. Most insurers consider factors like smoking status, weight, and existing medical conditions. By managing these factors, seniors can secure lower insurance premiums.

Research Pays Off

Life insurance is crucial for financial security, but it doesn’t need to be overly expensive for seniors. By considering these options and comparing the top providers, older adults can find an affordable policy that meets their needs.

As always, it is essential to consult with a qualified insurance professional to discuss individual needs and circumstances. With a little time and research, you can have peace of mind knowing that the financial security of your loved ones is in good hands.

Shutterstock: G-Stock Studio

Ryan Pratt

Contributor

Explore

Filing For Unemployment Insurance: Everything You Need To Know Insurance

Filing For Unemployment Insurance: Everything You Need To Know

Losing a job is never easy. This is especially true if it caught you by surprise or you received little (or no) severance pay from your former employer. Thankfully, unemployment insurance is designed to help alleviate your immediate financial concerns while you look for another job. The pandemic has caused a massive amount of economic […]

Read More about Filing For Unemployment Insurance: Everything You Need To Know

5 minute read

Adding a Teen Driver to Your Insurance (Without Breaking the Bank) Teen driver with car insurance Auto Insurance

Adding a Teen Driver to Your Insurance (Without Breaking the Bank)

Teenagers learning to drive is a rite of passage. It’s one that parents dread, but their teens can’t wait for. I remember how I couldn’t even fall asleep the night before when my parents told me I could get behind the wheel the next day. It was just that exciting for me! I’m sure I […]

Read More about Adding a Teen Driver to Your Insurance (Without Breaking the Bank)

6 minute read

Auto Insurance: How to Get What Your Car Is Worth When It’s Been Totaled Car accident between two vehicles Auto Insurance

Auto Insurance: How to Get What Your Car Is Worth When It’s Been Totaled

I still remember the accident like it was yesterday. We were packing up to go home after graduation. I was following my friend in his own car. Then out of nowhere, he swirled to the left and back onto his lane. Instead of focusing on what he was trying to avoid, my eyes were fixated […]

Read More about Auto Insurance: How to Get What Your Car Is Worth When It’s Been Totaled

6 minute read

Does it Make Sense to Get Life Insurance For Your Children? Two Parents Playing Outside with Child Life Insurance

Does it Make Sense to Get Life Insurance For Your Children?

Generally speaking, it doesn’t usually make sense to purchase life insurance for your children. While losing a child is devastating for any parent, no family is likely to be reliant on a minor’s income for survival. However, there are some special circumstances where buying life insurance on your child makes sense. At the very least, […]

Read More about Does it Make Sense to Get Life Insurance For Your Children?

5 minute read

Should You Still Buy Life Insurance If You’re Single? Man Sitting in Room of Moving Boxes Insurance

Should You Still Buy Life Insurance If You’re Single?

I’ll be honest with you. I’m still relatively young and I’ve never thought about getting life insurance until recently, despite being the sole breadwinner in the family. Frankly, finances could be tough for my wife and our two young kids if something were to happen to me. Despite those facts, having a policy would still […]

Read More about Should You Still Buy Life Insurance If You’re Single?

5 minute read

Easy Ways to Lower Your Car Insurance Premiums Red Toy Car on Folded Cash Auto Insurance

Easy Ways to Lower Your Car Insurance Premiums

Money-saving tactics are the subject of hundreds of Google searches these days. So it’s no surprise you might be looking at your car insurance premiums and wondering, “How can I save money here too?” After all, with so many companies advertising give-backs, there might be more than just extra dimes and nickels hiding in your […]

Read More about Easy Ways to Lower Your Car Insurance Premiums

6 minute read

See all in Insurance