Top 5 Best Life Insurance Plans for Seniors

Thinking about what happens after you die is difficult, but the older you become, the more important it is. You do not want your family to have a financial burden after you pass away. The longer you wait to get life insurance, the more difficult it becomes. Most life insurance plans provide policies that not only provide for your families after you pass away, but they also assist with funeral costs, which normally cost several thousand dollars.

Picking life insurance is not easy. There are additional challenges the older you are. Many life insurance companies either outright refuse senior insurance plans, or offer unfair policies. Fortunately, there are many life insurance companies catering specifically towards seniors. Before you decide on a life insurance policy, make sure you understand all the details of the plan, including types of policies, basic insurance terminology and five of the top agencies providing senior life insurance policies.

Types of Life Insurance Policies:

There are four primary types of life insurance policies, each with their own strengths and disadvantages. The first type is a term life insurance policy. Each of these plans has a limited term where the plan applies. If you live beyond the term, there is no payout when you die. As a senior, you want to select a longer term to ensure your family gets a payout.

Whole life insurance plans last for as long as you are alive, with no possible expiration date. Because these plans do not expire, they are normally more expensive, and may be difficult to afford as a senior. Another benefit of whole life insurance policies is once you build up enough in the account, you can borrow against it.

Universal life insurance policies are similar to whole life plans, but you are unable to borrow against them. The value of the plan does not increase over time. As long as you pay the monthly premiums, the plan lasts until you pass away.

The last type of life insurance is an indexed universal life policy. With this policy, your monthly premium is invested into the stock market. The value of your policy increases the better your stocks do. It is considered one of the riskiest types of insurance plans, especially for seniors, who do not have as much time to recover if there is a drop in the market. If you are considering this plan, make sure you speak with an investor and financial advisor to decide whether the plan is worth the risk.

When to Choose a New Life Insurance Policy:

There are several circumstances where you need to choose a new life insurance policy. Many employees receive life insurance benefits while they are employed, but if they are laid off or retire, they lose these benefits. If you previously had a life insurance plan and recently retired, make sure to check your plan is still valid.

Even if you know you have a private life insurance plan, it is a good idea to check the plan after you retire. Some life insurance policies change over time. If you got your plan years ago, it is possible your plan has new benefits, or there may be other policies offered by the company that interest you. This is especially important if your family has changed since you set up the policy. For example, you may want an extended coverage policy which has benefits for your grandchildren.

Fidelity Life:

Fidelity Life provides health insurance plans exclusively for senior citizens. It is one of the oldest insurance agencies, first opening in 1896. Two of the best packages are RAPIDecision Senior Whole Life and RAPIDecision Senior Life Term. These insurance plans are available to any senior over the age of 50. Both of the plans are customizable. When you set up an insurance policy, you can speak with an agent to explain your family and lifestyle to come up with the best and most affordable plan. For an average plan, the monthly premiums are around $55 to $60. Many of the plans require a medical exam or completing a questionnaire, but you can request a policy without these requirements.

Mutual of Omaha:

Mutual of Omaha has a unique package deal specifically for senior citizens. This plan allows you to take a term insurance policy, but you may extend your plan each year after turning 80, up until you turn 95. If you are still alive at 95, there are options to convert the plan into a permanent policy. Mutual of Omaha does not require any medical exams or questionnaires before you sign up for a policy. Rates vary depending on where you live, but you can expect to pay $40 a month on average.


AIG Life Insurance uses a unique model to create insurance policies for seniors. When you sign up with AIG, you create a custom policy. For the majority of the policies, you must complete a medical exam before getting a policy, though there are some policies without this requirement. On average, AIG insurance costs $40 to $50 every month.

Principal Life:

Principal Life has both term and permanent life insurance policies available. As an insurance company, Principal Life is known for working with employers, but there are several individual plans available as well. If you are getting a plan on your own, you must go through a medical exam. Principal places a greater emphasis on investing your premiums to get the most of your policy. As a result, it is a little pricier than other insurance policies, costing between $70 to $100 depending on your age and health.


Transamerica offers extensive plans for all four types of life insurance. As a senior, you are required to complete a medical exam before signing up for Transamerica insurance. Term policies range from 10 to 30 years, increasing by five-year increments. For most policies, you must go through an agent to get a quote, but Transamerica is considered one of the more affordable insurance companies, with plans costing around $35 to $45 for seniors.