While there isn’t one kind of life insurance that’s best for older adults, there are likely types of coverage that fit your needs better than others.
In reality, the life insurance that someone should have (or can get) depends on a range of factors specific to that person, such as their health and age, whether they have any dependents, their assets and debt, what they can afford, and more.
Life insurance terms you should know
Beneficiaries: The people you name on your life insurance policy to receive the lump sum of money — also known as the death benefit — when you die.
Cash value: The portion of a permanent life insurance policy’s monetary value that grows tax-deferred over the life of the policy.
Death benefit: The amount of money the life insurance company will pay your beneficiaries when you die.
Face amount: The dollar amount, or death benefit, your beneficiaries receive if you die while your life insurance policy is active.
Insured: The person who is covered by the insurance policy.
Policy: The legal document that includes the terms and conditions of your life insurance contract.
Policyholder: The person who owns an insurance policy. Usually, this is the same person as the insured.
Permanent life insurance: A type of life insurance that lasts for the rest of your life and usually includes a cash value account.
Premium: The amount you pay your insurance company to keep your coverage active. Premiums are typically paid monthly or annually.
Riders: Add-ons to a life insurance policy that provide more robust coverage, sometimes for an extra cost.
Term life insurance: A life insurance policy that lasts for a set number of years before it expires. If you die before the term is up, your beneficiaries receive a death benefit.
Underwriting: The process where an insurance company evaluates the risk of insuring you and determines your final rate.
How do you know which type of life insurance is best for you?
If you’re unsure about which type of life insurance to get at your age, ask yourself how you want to use your policy’s death benefit. As an older adult, you may have to decide whether you want to:
Cover your outstanding debt so your loved ones don’t have to worry about it.
Leave enough money to your beneficiaries to support them for years.
Protect your high net worth from estate taxes.
Pay for your funeral and burial services.
Your answer can help you decide whether you need term life insurance, affordable coverage that pays out only if you die during a set period of time, or permanent life insurance, which has different benefits depending on the exact kind of policy you have and is guaranteed to pay out no matter when you die.
Beyond that, it’s a good idea to speak with an independent broker from Policygenius for answers about which types of life insurance may fit with your specific needs.
What type of life insurance should older adults have?
As an older adult, one of these types of life insurance may be right for you.
Type of life insurance | Permanent? | How it works | Who may benefit |
|---|---|---|---|
No | Pays a benefit if you die while the policy is active. | Someone seeking affordable coverage that only lasts a set period of time. | |
Yes | Has a death benefit as well as a cash-value portion that gains value while you’re alive. | High-income and high net-worth people, and people with dependents who require long-term care, who can benefit from the extra savings that the cash-value portion offers. | |
Yes | Has a fixed death benefit and premiums, as well as a minor cash-value portion. | Someone who wants permanent coverage and the ability to customize their premium and the life of their policy. | |
Yes | Has a non-fixed death benefit and a cash-value portion that changes value based on the performance of a market index. | Someone who is comfortable with moderate risk in exchange for potentially higher returns. | |
Yes | Has a non-fixed death benefit and a cash-value portion that changes value based on sub-accounts, such as mutual funds. | Someone who is comfortable with moderate risk in exchange for potentially higher returns. | |
Yes | Pays a small death benefit to your beneficiaries that can help pay for end-of-life expenses. | Someone who can’t qualify for traditional term or permanent coverage due to age or medical history. |
What if you don’t want to take a medical exam?
You may want to consider no-medical exam life insurance if your age or health no longer allow you to qualify for traditional life insurance.
Basically, no-medical exam life insurance is exactly what it sounds like: You can get a policy with enough death benefits to cover end-of-life expenses without going through a medical exam.
Keep in mind that as an older adult, guaranteed issue and simplified life insurance plans (two common no-med options) will restrict the benefits your beneficiaries receive if you die within the first couple of years that your policy is active.
What are the best life insurance companies for older adults?
In general, MassMutual, Protective, Pacific Life, Mutual of Omaha, and Prudential are the best life insurance companies for many older adults — though your age and coverage needs will affect which insurer in particular is best for you.
Insurer | Policygenius rating | Best for | AM Best rating | Max. issue age | |
4.9/5 ★ | Whole life | A++ | 70 | ||
4.8/5 ★ | Affordability | A+ | 80 | ||
4.8/5 ★ | People over 60, people over 70 | A+ | 80 | ||
4.5/5 ★ | Final expense, people over 80 | A+ | 85 | ||
4.1/5 ★ | Seniors, term life | A+ | 75 |
Methodology
Why you can trust our picks
Our recommendations are based on internal and external expert analysis, as well as our Policygenius Life Insurance Price Index, which uses real-time data from leading life insurance companies to determine pricing trends. When reviewing a life insurance company, our editorial team uses a proprietary scoring rubric with five factors — price, policy details, financial strength, transparency, and customer experience — to assign an unbiased rating between one and five stars. These ratings are also taken into consideration as part of our company recommendations. We don’t get paid for our reviews.
Our reviews and recommendations can help you find a reliable insurer for your family’s financial protection, but the best life insurance company for you depends on multiple factors. A licensed agent at Policygenius can support you during the application process to ensure you get the right coverage for your circumstances at the most competitive price.
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