Recognizing the importance of life insurance is pivotal across all age groups. Typically, younger generations secure life insurance to provide financial safety nets for their dependents.
However, as individuals enter their senior years, their reasons for seeking life insurance may shift. They might want to manage residual debts, handle medical bills due to terminal illnesses, or even address funeral-related expenses. The costs associated with a funeral, including cremation and burial, can fall between $6,000 and $10,000. Hence, possessing life insurance proves prudent, easing the financial weight on surviving family members. While there’s a common misconception that life insurance becomes prohibitively expensive with age, seniors might find more affordable rates than anticipated. So, if you’re wondering, “What are the best life insurances for seniors?”, read on. We’ve curated a list based on coverage, cost, and other crucial aspects.
Mutual of Omaha.
Headquarters: Nebraska, USA.
Highlights of Omaha Mutual.
Mutual of Omaha stands out with its diverse range of insurance options for seniors, spanning term life, whole life, and universal life policies. Seniors up to the age of 85 can avail of their term life policies, which can be renewed annually till they reach 95, starting at coverage of $100,000.
Their whole life insurance offers coverage from $2,000 to $25,000 and accepts clients up to 85 without requiring any medical examinations. With an exceptional track record in customer service, Mutual of Omaha was positioned fifth in JD Power’s 2020 life insurance survey. Their robust online portal, efficient phone support, and dedicated local agents enhance the client experience. Their commendable financial prowess has earned them an A+ from AM Best.
Headquarters: New York, USA.
Highlights of AIG.
AIG’s signature offering for seniors is the whole life’s final expense insurance. Tailored for seniors up to 80 years, it offers coverages ranging from $5,000 to $25,000 without medical screening. A unique facet of AIG is the policyholder’s ability to access benefits during chronic illnesses without incurring extra fees. This provision allows clients to utilize up to half of their policy for medical support, contingent on the illness type. In 2020, AIG secured the 15th spot among 23 life insurers in JD Power’s rankings.
Principal life insurance.
Headquarters: Des Moines, Iowa, USA.
Highlights of principal life insurance.
Originating as a life insurer in 1879, Principal Life Insurance has expanded to offer five policy types: universal, variable universal, indexed universal, survivorship, and term life. Serving 34 million global clients, their efforts have garnered an A+ from AM Best. Ideal for individuals seeking substantial life insurance, they provide policies starting at $200,000, facilitating generational wealth creation, endowment setups, or trust funding. Catering to a broad age spectrum, from 20-year-olds to seniors up to 80, their policies can be renewed annually until the insured turns 95.
Headquarters: Cedar Rapids, Iowa, USA.
Highlights of Transamerica.
Established in 1904, Transamerica boasts an enduring A-rating from AM Best. Their insurance suite offers term life insurance to seniors up to 80 and final expense insurance up to 85 years — a rare feat in the industry. Their final expense policies, especially, offer more substantial death benefits than competitors. Coverage varies based on age brackets: 56-65 years ($40,000), 66-75 years ($30,000), and 76-85 years ($25,000). Notably, most policies grant immediate access to full benefits, whereas other insurers may impose a two-year waiting period.