The Top 9 Life Insurance Companies in 2023
Mutual of Omaha
Mutual of Omaha is ranked as our best life insurance company of 2023 with an impressive score of 4.5/5 points. This company’s strengths are seen most clearly in the Riders and Customizations metric, where Mutual of Omaha scored 10/10 points. Mutual of Omaha also has particularly impressive results in the Senior Friendliness category. Even in categories that it wasn’t as clearly dominant in, such as Ratings and Reviews or Financial Options, Mutual of Omaha’s lowest score was a very respectable 5/10.
How Mutual of Omaha Scored
Senior Friendliness: 8.4/10
With 8.4/10 points in this metric, Mutual of Omaha ranked in first place. This company offers about 8 different policies that seniors can qualify for, and many of those policies are available for those up to age 80, although the whole life option is available even to age 85. Competitors’ age cutoffs fall within about 15 years of either side of Mutual of Omaha’s cutoffs. We found that Mutual of Omaha offers some policies that are ideal for seniors because they are not fully underwritten. The Guaranteed Whole Life policy in particular is a good choice because it has no medical exams and no or few health questions.
Ratings and Reviews: 5.7/10
With 5.7/10 points, Mutual of Omaha ranked in fifth place for Ratings and Reviews. In the J.D. Power life insurance survey, it scored an exceptional 795/1000 points on that scale, making it fourth highest in that submetric. In some other rankings, such as S&P Global and A.M. Best, Mutual of Omaha scored on the lower end of the companies on our list. A.M. Best ranks Mutual of Omaha in the “superior” range of A+ but does not award the A++ honor, and S&P global characterizes Mutual of Omaha as “strong” with an A+ but does not award the highest honor of AA+.
Mutual of Omaha scored in the middle for Costs and Financial Options, earning 5/10 points. Mutual of Omaha does offer a nice range of death benefit options through its variety of senior policies. Seniors can obtain a low policy of $25,000 or can go as high as $1,000,000. While not the largest range available, this will suit many. Although this is a mutual company, Mutual of Omaha currently does not offer dividends for its life insurance policies, unlike some competitors.
Riders and Customizations: 10/10
Mutual of Omaha received the best possible score, earning 10/10 points for Riders and Customizations. This company had at least one option for each of the six riders and customizations that we researched. In addition to fairly standard options such as an accelerated death benefit, Mutual of Omaha has a long term care rider for those who want funding options for potential nursing home stays or other aging-related needs. Mutual of Omaha is also notable for being one of only a few companies to offer an accidental death rider to seniors. When asking an agent about Mutual of Omaha riders, keep in mind that most will cost you extra and that not all policies have the same rider options or terms.
Mutual of Omaha scored 6.7/10 points for its online services, ranking in third place. Overall, this company has a great website, offering an online login with electronic bill pay, an agent locator tool, and an insurance needs calculator tool. It also offers estimated quotes for term policies and for its guaranteed issue policy. Since Mutual of Omaha does not have a mobile app login option for policyholders, it lost some points in that submetric.
A Snapshot of Mutual of Omaha’s History:
- Started: 1909
- Headquarters: Omaha, NE
- Related Companies: Omaha Insurance Company (subsidiary offering Medicare Supplements), Companion Life Insurance Company (a subsidiary specific to New York State), and more
The Mutual of Omaha Shopping Experience
Mutual of Omaha sells its policies through independent agents, meaning that you can usually get quotes for Mutual of Omaha and other brands at the same time. The Mutual of Omaha website has an agent locator tool that will allow you to search for a local agent (often called a “producer”) based on your zip code. It’s typically easy to find Mutual of Omaha quotes through online brokers, too, so customers have options when looking for a policy from this brand. Coverage options can vary by state, but this is a national company.
Pros and Cons of Mutual of Omaha Life Insurance
|
Pros
|
Cons
|
|
Has about 8 policy options for seniors, many for people up to age 80 and a whole life option for those up to age 85
|
No mobile app login option available
|
|
Guaranteed whole life policy option requires no medical exams and no or few health questions
|
No dividends available for its life insurance policies
|
|
Offers standard accelerated death benefit as well as specialized riders for nursing home stays or other needs
|
Earned lower S&P Global and A.M. Best rankings than other companies
|
|
One of the few companies that has an accidental death rider for seniors
|
Has a somewhat limited death benefit range of $25,000 to $1,000,000
|
|
Scored exceptionally high points in the J.D. Power life insurance survey
|
|
New York Life
New York Life ranked in second place among the companies that we reviewed with a score of 4.5/5 possible points. This company was remarkably strong in the Senior Friendliness subcategory with a score of 10/10, and holds a high score within Ratings and Reviews. In other subcategories, this company’s score fell in the middle.
How New York Life Scored
Senior Friendliness: 10/10
With the best score in this subcategory, New York Life scored 1.6 points higher than its nearest competitor, Mutual of Omaha. Although this company’s maximum issue age for term policies was a bit lower than average (capping at 75), its other types of policies had unusually high maximum issue ages of 90. With 9 options, this brand also had the second-highest number of policies that seniors are eligible to apply for. Some plans from this brand, particularly the plans offered in partnership with AARP, have simplified underwriting, and all but the most gravely ill can usually qualify for the Easy Acceptance plan. This brand is one of just three on our list to offer such a senior-friendly option.
Ratings and Reviews: 8.6/10
Scoring 8.6/10 points, New York Life ranked in second place. With an A++ from A.M. Best and an AA+ from S&P Global, it earned the highest possible score for both of those submetrics. Its Fortune 500 place of 67 is another marker of the company’s commercial success. However, this brand’s J.D. Power score of 777 fell slightly on the lower end for the companies we reviewed. The customer ratings of its headquarters on Google reviews were also fairly low, with 2.9/5 stars. With only 48 reviews on that Google profile, however, the rating may not be entirely representative of the customer base.
Financial Options: 3.3/10
New York Life’s score for Costs and Financial options was somewhat lackluster, with 3.3/10 points. This brand ranked in sixth place in this metric. New York Life does not provide a term life quote tool on its website, and this lack of transparency damages the brand’s financial score. On the plus side, seniors will be happy to know that some New York Life insurance plans may be eligible for dividends. This brand also has a nice range of low death benefit options, with the bulk of their senior plans ranging from $25,000-$250,000. Some seniors may be eligible for higher death benefits upon inquiry.
Riders and Customizations: 6/10
New York Life offers great options for customizing policies, and it scored 6/10 points in this submetric, ranking in third place. Like most competitors, New York life offers options for an accelerated death benefit and for the conversion of term policies into whole policies within certain parameters. It also offers an accidental death rider, and its accelerated death benefit can cover chronic illness as well as terminal illness in some cases. New York Life does not appear to offer a return of premium rider or a guaranteed insurability rider to seniors. Note that the terms and availability of some New York Life riders can be somewhat unclear and difficult to understand.
New York Life scored 0/10 points for Online Services, offering very little to its customers online. In addition to having a website that has limited policy information, this brand also does not offer online quotes, an app, or an agent locator. It does offer a contact form so that seniors can have an agent call them back. Policyholders can log in to an account on their desktop or on a mobile internet browser, and they will find more helpful features, including bill pay options, once logged in.
A Snapshot of New York Life’s History:
- Started: 1845
- Headquarters: New York City, New York
- Related Companies: AARP (business partner), New York Life Direct (subsidiary)
The New York Life Shopping Experience
New York Life sells its policies exclusively through its own agents who do not sell other life insurance brands. It has a network of over 12,000 agents, and its website has a contact form for getting in touch with the agent nearest to you. This brand sells in all states, but sometimes specific riders and policies are limited. Seniors should note that New York Life also offers some policies in partnership with AARP, and these policies are sold through New York Life agents, not the AARP website.
Pros and Cons of New York Life Insurance
|
Pros
|
Cons
|
|
Offers 9 policies that seniors may be eligible for
|
No online quotes available
|
|
Most seniors without grave illnesses qualify for the Easy Acceptance plan
|
Rider terms and availability may be confusing and hard to understand
|
|
Earned the highest possible scores from A.M. Best and S&P Global
|
Website has limited policy information and no agent locator tool
|
|
Offers an accidental death rider and an accelerated death benefit that may cover some chronic and terminal illnesses
|
Specific riders and policies may be limited in certain states
|
|
Some insurance plans may be eligible for dividends
|
|
John Hancock
John Hancock ranked in third place with a score of 3.8/5 points overall. Although it did not rank best in any one submetric, it scored very highly in both the Financial Options and the Riders and Customizations metrics. John Hancock did not fare as well in the Online Services metric, mainly due to the fact that customers cannot access some basic services without first being asked to provide their contact information.
How John Hancock Scored
Senior Friendliness: 4.2/10
When it comes to Senior Friendliness, John Hancock scored 4.2/10 points and ranked in fifth place. With a maximum term whole life age of 80, this brand caters less to elderly clients than many other companies on our list. However, for complex policies like Universal Life, John Hancock has options for those up to age 90. John Hancock also has only about seven policies that seniors can qualify for, compared to up to 11 policies for seniors at some other brands. Despite these disadvantages, this brand does offer a guaranteed issue policy that’s especially senior-friendly due to its easy qualification process.
Ratings and Reviews: 2.9/10
This brand’s ratings and reviews were mixed, and it scored 2.9/10 points overall, earning sixth place. With a good but not stellar rating of A+ from A.M. Best (A++ is highest) and a similar AA- from S&P Global (AA+ is best for American companies under this system), this brand was neither worst nor best when measured by financial standards. It did not rank on the Fortune 500 list in 2021, though in the early 2000s it had been on that list. This brand’s J.D. Power score of 781 ranked fifth of the companies reviewed, and its Google reviews score was good but unreliable since there were only two reviews posted.
John Hancock is a great choice for low costs and financial options, ranking in first place with 10/10 points. Some seniors can earn even lower prices by participating in a healthy lifestyle program called Vitality. John Hancock offers the highest maximum death benefit we saw listed, with the option of $65 million. It also offers the second-lowest option, for those who just want something small. Its smaller death benefits can go as low as $2,000 for the Final Expense policy. Unfortunately, no John Hancock policies have the potential for paying dividends.
Riders and Customizations: 8/10
With a score of 8/10, John Hancock ranks in second place for Riders and Customizations. Perhaps of greatest interest to seniors is that this brand has a long term care rider. Other possibilities include a return of premium option on some UL policies and an accelerated death benefit included automatically in most policies. In some cases, a term policy can be easily converted to a whole one. John Hancock does not offer an accidental death rider or a guaranteed insurability rider to seniors.
John Hancock scored 1.67/10 for its online services, ranking in sixth place. While it has a nice looking website, its services are limited. If you want a quote or want to talk to an agent, you’ll need to provide your contact information and wait for someone to get back to you, something that many seniors don’t prefer doing. Thankfully, term quotes for this brand are fairly easy to obtain without contact information from some online brokers, and we were able to get a sample quote despite some difficulties. This brand does provide a handy insurance needs calculator, and policyholders are able to log into the website for services such as online bill pay.
A Snapshot of John Hancock History:
- Started: 1862
- Headquarters: Boston, MA
- Related Companies: Manulife Financial (Canadian parent company)
The John Hancock Shopping Experience
John Hancock policies can be purchased through agents/brokers that sell a variety of life insurance brands. To obtain a quote and get in touch with an agent, customers can fill out an online contact form that will pass customer information along to a nearby provider, or they can directly call one of the company’s Coverage Coaches through the provided phone number. It’s usually easy to obtain quotes for John Hancock policies through online brokers. Seniors should ask their local agent about participating in the Vitality program which rewards customers for maintaining healthy habits like exercise and meditation.
Pros and Cons of John Hancock Life Insurance
|
Pros
|
Cons
|
|
Has the highest maximum death benefit of $65 million and also the second-lowest death benefit option
|
Customers must provide their contact information before they can use certain features on the website
|
|
Seniors can save money with the Vitality healthy lifestyle program
|
Maximum term whole life policy age of 80
|
|
Has a senior-friendly guaranteed issue policy that is easy to qualify for
|
Only offers 7 policies that seniors may qualify for
|
|
Complex policies like the Universal Life policy have options for those up to age 90
|
No policies pay dividends
|
|
No accidental death rider or guaranteed insurability rider for seniors
|
|
Transamerica
Transamerica tied for fourth on our list, scoring 3.5/5 possible points overall. This brand’s strongest performance was in the Senior Friendliness metric, where it was third best thanks to its higher-than-average number of policies that seniors can qualify for, among other factors. Transamerica is also competitive in Financial Options and Riders and Customizations, but it ranked poorly in Ratings and Reviews.
How Transamerica Scored
Senior Friendliness: 7/10
Transamerica ranked in third place in this metric with a score of 7/10 points. With nine different policy options for seniors in term, whole, and universal life/other categories, this brand has the second-highest number of options. Its maximum issue age was 85 for all three categories. This brand was less transparent than average on what term lengths are available to seniors, but at least 10 years if not more is available. Although this brand does not offer anything labeled a “guaranteed issue” policy, its final expense policy is very easy to qualify for since it has no medical exam or tests and can be approved in one day in many cases.
Ratings and Reviews: 0/10
Transamerica ranked lowest out of nine reviewed companies in this metric, scoring 0/10 points. Its scores were either lowest or tied for lowest in each submetric that we looked at. It’s important for seniors to understand that with an A (A++ is highest) from A.M. Best and an A+ (AA+ is highest) from S&P Global, this brand is still definitely considered financially stable, but it simply is not as well-positioned as the competitors we analyzed. However, Transamerica’s Google rating of just 3.3/5 stars for 80 posted reviews is an indicator of lower-than-average customer satisfaction. The brand’s customer satisfaction score of 747 from J.D. Power is also a concerning indicator.
Financial Options: 8.4/10
Transamerica ranked in second place for Financial Options with 8.4/10 points. While it’s disappointing that none of this brand’s policies have the potential to earn dividends, this brand is strong in other respects. Most notably, the maximum death benefit of 2 million dollars for seniors provides a great option for those who need a large amount of coverage. Some seniors may even be eligible for a larger death benefit, depending on income and other factors.
Riders and Customizations: 6/10
Transamerica tied for third place along with New York Life with a score of 6/10. While customers may have some issues finding accurate information on riders from this brand, overall Transamerica offers some very good options including a long term care benefit, and accidental death benefit, and an automatically included accelerated death benefit. Some riders are limited to just a few policies, and the final expense policy may be the best option for finding a range of riders for seniors. Seniors should be aware that most riders will cost an extra amount per month on top of their premium.
This brand ranks in fifth place for its online services, scoring 3.34/10 points. Transamerica has an online login for policyholders, but its bill pay feature charges steep fees and isn’t set up to process automated payments, unlike most competitors. Moreover, while Transamerica does have a mobile app, that app is only for managing retirement accounts and has little to no insurance management tools at this time. Transamerica’s website does have some useful features, however. The website has an agent search engine, tools for calculating insurance needs, and a tool for getting term life insurance sample quotes.
A Snapshot of Transamerica’s History:
Started: 1928
Headquarters: Baltimore, MD
Related Companies: Aegon (Dutch parent company)
The Transamerica Shopping Experience
Transamerica policies are available coast to coast through agent offices that specialize in Transamerica policies only. In some areas, there are no local offices but you can still make a purchase easily by calling and getting connected with a phone-only Transamerica agent. In some cases you may be able to also complete applications online, and term quotes are available on the website.
Pros and Cons of Transamerica Insurance
|
Pros
|
Cons
|
|
Has 9 policy options for seniors, which is the second highest number of companies reviewed
|
A Google rating of 3.3/5 stars and a J.D. Power score of 747 show less-than-average customer satisfaction
|
|
Maximum issue age of 85 for policies in term, whole, and universal life/other categories
|
No policies pay dividends
|
|
Maximum death benefit for seniors of $2 million or more
|
Most riders have monthly costs that must be paid on top of premiums
|
|
Offers a long term care benefit, an accidental death benefit, and an accelerated death benefit
|
Online bill pay has large fees and does not process automatic payments
|
|
Website includes an agent search engine, insurance needs calculating tools, and term life insurance sample quotes
|
Mobile app is mainly intended for retirement account management, not insurance management
|
State Farm
State Farm tied for fourth overall, scoring 3.5/5 possible points. This company struggled to rank competitively in terms of costs and policy customizations, and it also did not have the widest range of senior options. However, State Farm did rank extremely well for both Ratings and Reviews and Online Services.
How State Farm Scored
Senior Friendliness: 1.4/10
State Farm ranked in seventh place along with Protective for its Senior Friendliness, scoring 1.4/10 points. This brand had low issue age caps, with no policies available to those over 85. Its term policy age limit was 70, especially low compared to some brands that can offer policies to those 90+. Overall, State Farm had seven policies for seniors. While this brand did not have a guaranteed issue policy, its final expense whole life option is available with no medical exams, making the application simple.
Ratings and Reviews: 10/10
State Farm tied for first place for Ratings and Reviews, scoring 10/10 points. With an A.M. Best rating of A++ and a very respectable second-best rating of AA from S&P Global, this brand is a very safe choice financially. It also ranks as number 39 on the Fortune 500 list, indicating high profitability. State Farm’s score of 822 from J.D. Power made the company the leader in that submetric, and its 4.2/5 Google stars indicate customer satisfaction.
State Farm tied for fourth in Financial Options with 5/10 points. As far as death benefits go, State Farm has a decent but somewhat small range available to seniors with options from $10,000-$250,000. Some seniors may be able to qualify for a higher amount if they work with a local agent. Seniors should note that some policies may be eligible for earning dividends.
Riders and Customizations: 0/10
State Farm earned 0/10 points in Riders and Customization, ranking in last place. This brand does offer a nice range of riders, but unfortunately, the cutoff ages for most are quite low. State Farm was also the only company on our list to not routinely offer an accelerated death benefit for seniors. This benefit may be available in limited cases, but seniors will need to ask their agents about specifics. Convertible term is not an option for seniors. Overall, the only popular rider option for seniors was a long term care option called the Flexible Care Benefit Rider.
State Farm ranked in second place for its online services with 8.34/10 points. We found the State Farm website to be more informative and helpful than most other insurance company websites. State Farm makes an effort to make its policies easy to understand. This brand also has an online quote tool, needs calculator, and agent locator, and policyholders can log in to an online account to review their policy and pay bills. State Farm was one of just a few companies to offer an app for account management as well. Seniors should note that State Farm quotes are not available from online brokers.
A Snapshot of History:
- Started: 1922
- Headquarters: Bloomington, Illinois
- Related Companies: State Farm Life Insurance Company (subsidiary), State Farm Life and Accident Assurance Company (subsidiary), and more
The State Farm Shopping Experience
State Farm offers its potential customers a lot of information to take in online, but it also has numerous offices across the nation to help customers make the right life insurance choice. This brand has an impressive number of agents- 19,000- as well as 58,000 employees that keep the company running and paying out claims. State Farm policies are not available through brokers, so you won’t be able to use some of the popular online tools that are out there to directly compare State Farm to other companies. Seniors should note that State Farm is not currently offering life insurance in Massachusetts.
Pros and Cons of State Farm Life Insurance
|
Pros
|
Cons
|
|
A.M. Best and S&P Global ratings show financial stability and Google ratings indicate customer satisfaction
|
No policies for those aged over 85 years
|
|
Offers a Flexible Care Benefit Rider for long term care
|
Term policy age limit of 70, which is very low compared to other brands
|
|
Final expense whole life policy is easy to apply to with no medical exams required
|
No accelerated death benefit routinely provided to seniors and low age cutoffs for most riders
|
|
Some policies may pay dividends
|
No life insurance offered in the state of Massachusetts
|
|
Has an online quote tool, insurance needs calculator, and agent locator
|
No guaranteed issue policy
|
Principal
Principal ranked well, earning fifth place with a score of 3.3/5 stars. This company ranked in first place along with Nationwide and Protective for Online Services. It also scored quite well in the Financial Options metric, thanks largely to its competitive term quotes. Principal offers relatively few options for Riders and Customizations and came in at second to last place in that category.
How Principal Scored
Senior Friendliness: 8.4/10
With 8.4/10 points in this metric, Mutual of Omaha ranked in second place. This company offers about 8 different policies that seniors can qualify for, and many of those policies are available for those up to age 80, although the whole life option is available even to age 85. Competitors’ age cutoffs fall within about 15 years of either side of Mutual of Omaha’s cutoffs. We found that Mutual of Omaha offers some policies that are ideal for seniors because they are not fully underwritten. The Guaranteed Whole Life policy in particular is a good choice because it has no medical exams and no or few health questions.
Ratings and Reviews: 4.3/10
Principal is a well-liked and financially stable company, but it scored 4.3/10 points in this category due to its below-average S&P Global and A.M. ratings. With both of those agencies, it scored A+. While the agency’s scales are different, A+ for both is considered strong but is a few notches below the highest possible score. Principal’s customer satisfaction rating from J.D. Power was more impressive, coming in at 7th place with 776 points compared to the leading 822 points in that category. Principal also had 4.2/5 stars for Google reviews and was ranked number 206 on the Fortune 500 list.
Financial Options: 3.3/10
In this metric, Principal tied for fifth place with a score of 3.3/10 points. The range of death benefits available to seniors from Principal is $10,000-$50,000,000. The low end is far from the lowest on the market, but the high end is the second-highest available on our list. For seniors looking to make a large purchase, this company is a great choice. When shopping, seniors should keep in mind that Principal does not have any insurance policies that pay dividends.
Riders and Customizations: 10/10
Mutual of Omaha received the best possible score, earning 10/10 points for Riders and Customizations. This company had at least one option for each of the six riders and customizations that we researched. In addition to fairly standard options such as an accelerated death benefit, Mutual of Omaha has a long term care rider for those who want funding options for potential nursing home stays or other aging-related needs. Mutual of Omaha is also notable for being one of only a few companies to offer an accidental death rider to seniors. When asking an agent about Mutual of Omaha riders, keep in mind that most will cost you extra and that not all policies have the same rider options or terms.
Principal did extremely well in this submetric, scoring 10/10 points and ranking in first place along with Nationwide and Protective. Anyone shopping online can use this company’s quote tool or life insurance needs calculator. Quotes are also frequently available through online brokers if you prefer to shop around. Policyholders can log into their accounts online or on the app to pay bills and perform other functions. App capabilities may be somewhat limited, however. Seniors looking at this company should keep in mind that the agent locator tool is limited. The website will prompt you to provide your contact information so that an agent can reach out to you later.
A Snapshot of Principal’s History:
- Started: 1879
- Headquarters: Des Moines, IA
- Related Companies: Principal Mutual Fund (subsidiary)
The Principal Shopping Experience
Principal policies are sold through independent agents/brokers, so it’s easy to obtain a Principal quote while getting quotes for other brands at the same time. An online contact form can help you get in touch with an agent, or you can call Principal and ask to be connected to someone local. Getting online quotes is easy for term policies, though with other policies you’ll typically need to speak with an agent. Policy availability can generally be described as “national,” but there is some variation in availability.
Pros and Principal Life Insurance
|
Pros
|
Cons
|
|
Earned the 7th highest J.D. Power score and ranked in 206th place on the Fortune 500 list
|
No long term care rider, accidental death rider, or rider that guarantees insurability available to seniors
|
|
Death benefits available to seniors range from $10,000 to $50,000,000
|
Accelerated underwriting option not provided to those over age 60
|
|
Up to 20 years of term coverage for those aged 65 and 10-15 years of term coverage for older seniors
|
Below-average S&P Global and A.M. ratings
|
|
Large issue age cap for term policies with short-term coverage available even to those aged 99 years
|
No whole life option for seniors
|
|
Online services include a quote tool and an insurance needs calculator
|
No insurance policies pay dividends
|
Nationwide
Nationwide tied with Protective in sixth place overall with a score of 3/5 points. In the majority of metrics, this brand ranked between 6th and 8th place. However, it ranked in first place along with Principal and Nationwide for its superior Online Services. Nationwide’s Riders and Customizations options were also fairly good, with Nationwide ranking in fourth place for that metric.
How Nationwide Scored
Senior Friendliness: 2.8/10
For Senior Friendliness, Nationwide ranked in sixth place with 2.8/10 points. This brand actually had some impressive results in this category, including offering the most policies that seniors can qualify for (11) and offering simplified underwriting to seniors in some cases. However, Nationwide’s relatively low issue age caps hurt its performance. The maximum issue ages from Nationwide are 70 for term, 80 for whole, and 85 for UL/other types. Many brands have caps that are 10+ years higher in each category.
Ratings and Reviews: 7.2/10
Nationwide ranked in third place for Ratings and Reviews with a score of 7.2/10 points. This brand’s performance can be characterized as good but not best across most submetrics. Its S&P and A.M. Best Ratings were each A+, rankings that are decent in the context of the entire life insurance market but low compared to the top brands we reviewed. Nationwide’s Fortune 500 ranking was an impressive 76 (third-best on our list), and it earned 3.5/5 Google stars. Its J.D. Power score was 813, compared to State Farm’s 822 out of a possible 1,000.
Nationwide ranked in last place for costs and Financial Options, scoring 0/10 points. Nationwide doesn’t offer dividends for insurance policyholders, and its range of death benefit sizes was fairly limited. Seniors can get policies as low as $10,000 for whole, $25,000 for term, and $100,000 for UL/Other. The cap for all policy types is about $250,000, although some seniors may be able to get approval for higher death benefit amounts.
Riders and Customizations: 4/10
Nationwide ranked in fourth place for Riders and Customizations, scoring 4/10 points. Although this brand has some limitations in this area, it’s still a smart choice for many seniors. This brand’s main weakness is that seniors will not be eligible to convert their term policy to another policy kind. They are also not eligible to purchase guaranteed insurability riders. However, Nationwide offers a long term care rider, and it also is one of the few companies to offer an accidental death benefit rider to seniors. As with most companies, a traditional accelerated death benefit is widely available on Nationwide policies.
Nationwide stands out in the first place for online services, tying with Principal and Protective with 10/10 points. With an online login and bill pay, an app login, and a handy agent locator, it’s easy to find multiple ways to make changes to your account online. Nationwide sample quotes are also easy to find both on Nationwide’s own website and on broker sites. For those who aren’t sure how much life insurance they need, the online needs calculator tool can be a great resource. Nationwide earned maximum points in every submetric in this category.
A Snapshot of Nationwide’s History:
- Started: 1926
- Headquarters: Columbus, OH
- Related Companies: Farm Bureau Mutual (former name)
The Nationwide Shopping Experience
Nationwide policies can be purchased directly through the company or through independent agents who also sell other brands of insurance. Shopping through online brokers is also an option. This company has life insurance products available in all states, but the availability of specific policies and riders can vary. Nationwide works with 10,000+ independent agents.
Pros and Cons of Nationwide Life Insurance
|
Pros
|
Cons
|
|
Offers 11 policies seniors may qualify for
|
Low issue age caps with max issue ages of 70 years for term, 80 years for whole, and 85 for universal life/other types
|
|
Earned the third highest Fortune 500 ranking of reviewed companies
|
No dividends available and a limited death benefit range for policyholders
|
|
Has a long term care rider and an accidental death benefit rider for seniors
|
Seniors cannot convert a term policy to another policy type
|
|
Online services include sample quotes, an insurance needs calculator, and an agent locator
|
No guaranteed insurability riders for seniors
|
|
Simplified underwriting for seniors in some circumstances
|
The death benefit cap for all policy types is about $250,000, with some exceptions
|
Protective
Protective earned a sixth place tie with a score of 3/5 possible points. This company was the best company in Financial Options thanks to its great range of death benefits. Protective struggled to be competitive in Senior Friendliness as well as in Ratings and Reviews, ranking in low placements for both.
How Protective Scored
Senior Friendliness: 1.4/10
Protective ranked in seventh place along with State Farm with a score of 1.4/10 possible points. In most submetrics, this brand simply had fewer options than average. All seniors applying for policies need to undergo a fairly robust underwriting process, which may include exams or tests in some cases and which can take extra time or result in denied applications. Simplified or guaranteed issue is simply not available for seniors. This company also accepts a smaller range of ages than average, with the cutoff for term policies being 75 and the cutoff for UL policies being 85.
Ratings and Reviews: 1.4/10
Protective ranked in eighth place in Ratings and Reviews, scoring 1.4/10 points. A low Google review score of 2.3/5 stars and no ranking in the Fortune 500 list hurt this company’s score, but it also had only an A+ (A++ is highest) from A.M. Best and a AA- (AA+ is highest) from S&P Global. This company’s J.D. Power score of 752 was decent, falling in the low mid-range between a high of 822 and a low of 747 among the companies we reviewed.
Financial Options: 6.7/10
Protective did above average in the Financial Options metric, scoring 6.7/10 points for third place. It has the second-highest death benefit available. With a maximum death benefit of $50 million and a minimum death benefit of $10,000, seniors have an extremely wide range of options. When shopping, seniors should keep in mind that Protective insurance policies do not have any dividend earning ability.
Riders and Customizations: 4/10
An accelerated death benefit and a convertible term option are fairly standard with this company, but rider terms can be vague. Some UL policies from Protective have a return of premium option that can be added at extra cost. For seniors who are looking for a long term care solution, asking about the ExactCare rider might be a good option. This rider is billed as an alternative to traditional long term care options, but it may be a good fit for some. Unfortunately, Protective does not offer an accidental death or guaranteed insurability rider. Several other kinds of riders are available to younger customers but not to those in the 65+ age bracket.
Protective tied for first place for its online services, scoring 10/10 points. This brand has many standard online features such as an online login with bill pay, a mobile app, and an online insurance needs calculator. Its quote tool is an easy way to learn how much a term policy might cost without talking to an agent or giving out contact information, but customers can also obtain quotes from third party brokers online.
A Snapshot of Protective’s History:
- Started: 1907
- Headquarters: Birmingham, AL
- Related Companies: Dai-ichi Life (Japanese parent company)
The Protective Shopping Experience
It’s fairly easy to shop for Protective policies since they are distributed widely through independent agents/brokers across the nation. The contact form on the Protective website can help you connect with an agent near you. Some policies from Protective may also be available through a direct online application. For Costco members, special Protective Policies can be purchased at an especially low cost.
Pros and Cons of Protective Life Insurance
|
Pros
|
Cons
|
|
Has the second-highest death benefit of $50,000,000
|
Accepts a small range of ages with a term policy cutoff of 75 years and a universal life policy cutoff of 85 years
|
|
Online services include a quote tool and an insurance needs calculator
|
No dividend earnings possible
|
|
Offers an accelerated death benefit and a convertible term option
|
Uses a complex underwriting process that may require exams or tests
|
|
Earned a decent low mid-range J.D. Power score of 752
|
Earned a low Google reviews score and is not on the Fortune 500 list
|
|
Death benefits range from $10,000 to $50 million
|
No accidental death or guaranteed insurability rider available
|
Northwestern Mutual
Northwestern Mutual ranked in last place with an overall score of 2.7/5 points. This brand was less transparent than other brands, and as a result, it ranked as one of the least competitive for Riders and Customizations and Online Services. It also had relatively few options available to seniors, offering only 4 policies to those 65+. Despite these problem areas, Northwestern Mutual ranked exceptionally well in Ratings and Reviews, tying for first place in that category thanks to its incredible financial stability and customer satisfaction.
How Northwestern Mutual Scored
Senior Friendliness: 0/10
This brand ranked in last place for Senior Friendliness, scoring 0/10 points. It caps issue ages at 70 for term policies and 85 for whole and UL/Other, making seniors’ options very limited. Term policies are only available for 10 years, whereas at other companies those who are age 65 can get 15 or 20 years and those a little older can often still get 15. Northwestern Mutual has only four policies available to the 65+ crowd, whereas all other companies that we reviewed offered seven or more policies to seniors. Finally, Northwestern Mutual does offer any relaxed underwriting options to seniors, making this company a good fit only for those who have the time and good health for a fully underwritten policy.
Ratings and Reviews: 10/10
Northwestern Mutual’s Ratings and Review score shines with 10/10 points. This brand had the highest ratings from both A.M. Best (A++) and S&P Global (AA+). It also had the third highest J.D. Power score of 807/1,000 points. On the Fortune 500 list, Northwestern Mutual has 90th place, and this brand has a good score of 4.6/5 Google review stars.
Financial Options: 1.7/10
Northwestern Mutual ranked in sixth place in this metric, scoring 1.7/10 points. Northwestern Mutual’s range of death benefits appears to be $100,000-$500,000, so the lack of small benefit options means it won’t be right for some seniors. On the plus side, some policies from Northwestern Mutual are eligible to earn dividends.
Riders and Customizations: 0/10
Northwestern Mutual earned 0/10 points in this metric, ranking in last place along with State Farm. Unlike State Farm, this brand does offer an accelerated death benefit to seniors, and it also allows for the conversion of term policies to other policy types within certain parameters. All other rider types are largely not available to seniors. Seniors who are really interested in Northwestern Mutual due to the company’s other strengths should reach out to an agent, however, in the event that agents may be able to offer some customizations that are not widely advertised online.
Northwestern Mutual ranked in fourth place for Online Services. This company does have an online login and online bill pay, an app for managing accounts, and an online insurance needs calculator. However, it does not offer sample term quotes on its own website or through online brokers. Moreover, its agent locator tool requires seniors to hand over their contact information and then wait for an agent to reach out to them, an option that not all seniors prefer.
A Snapshot of Northwestern Mutual’s History
- Started: 1857
- Headquarters: Milwaukee, WI
- Related Companies: Mason Street Advisors (variable life insurance products subsidiary)
The Northwestern Mutual Shopping Experience
In some respects, shopping Northwestern Mutual products is an exclusive experience. This company doesn’t provide its quotes online or sell its products through brokers. However, agents are widely available across the nation thanks to its 6,400 financial advisors and professionals. This brand really emphasizes finding the right person to help you based on your location and needs.
Pros and Cons of Northwestern Mutual Life Insurance
|
Pros
|
Cons
|
|
Highest A.M. Best and S&P Global ratings and third highest J.D. Power score
|
Only 4 policies intended for those 65+ years
|
|
Ranked 90th on the Fortune 500 list and averaged 4.6/5 stars for Google reviews
|
Death benefits range from $100,000 to $500,000 with no smaller options offered
|
|
Some policies may pay dividends
|
No sample term quotes and contact information is required for the agent locator tool
|
|
Offers an accelerated death benefit and the conversion of term to other policy types in some instances
|
Issue age cap of 70 for term policies and 85 for whole and universal life/other policies
|
|
Offers online bill pay, an insurance needs calculator, and an app for account management
|
No relaxed underwriting options and policies may require good health to qualify
|
Strategies to Make Life Insurance More Affordable
There are many different ways to make life insurance more affordable. With the right planning, you could save hundreds or even thousands of dollars over the life of your policy. Consider the following strategies to get the most value for your money when choosing a life insurance policy:
- Shop around for the best deals
Like many big purchases, shopping around for the best rates is always a good idea. Every life insurance provider has their own set of criteria for assessing their financial risk when offering a policy. One company may charge you extra due to factors such as weight, family medical history, and living habits, while others may not.
Tip: Get quotes from at least three companies, including an independent insurance broker. They won’t be obligated to try to sell you on a certain company’s policies. Instead, they can search for the best combination of coverage and cost savings from a variety of companies.
Tip: Get quotes from at least three companies, including an independent insurance broker. They won’t be obligated to try to sell you on a certain company’s policies. Instead, they can search for the best combination of coverage and cost savings from a variety of companies.
- Choose the plan that fits your situation
Every person’s situation will be different from others, so there isn’t a perfect life insurance plan for everyone. Consider your own life and the lives of your beneficiaries to determine which type of plan you should purchase.
People with certain jobs, health conditions, number of dependents, age of dependents, and other life circumstances can benefit from certain policies more than others. You may only need a low level of coverage right now due to good health and a low-risk job. Buying a low-level policy today may be good enough for now, and you can always purchase additional coverage down the road.
- Avoid adding riders that you don’t need
Life insurance riders are additional forms of coverage that are tailored to specific situations. Riders of all kinds can be added to a policy, such as riders that allow for early benefit payouts, convertibility riders that allow a policy to be converted into another type down the road, and more.
While riders can provide extra coverage and peace of mind, they can also add to the cost of life insurance. Be sure to look closely at these riders and decide for yourself if the benefits outweigh the additional cost.
- Take the ‘ladder’ buying approach
When purchasing life insurance, consumers can choose from a variety of plans, featuring different levels of coverage and policy lengths. Many people think of buying a decades-long policy with a high payout, but it may be beneficial to purchase two or more policies with shorter terms and lower coverage options.
|
Real-Life Application: Instead of purchasing a 30-year, $1 million policy, a consumer could buy a 15-year, $500,000 policy along with a 30-year, $500,000 policy. They would have the same coverage amount for 15 years and save on the cost of their life insurance in the long run.
|
While it may not seem like a strategy for saving money, buying life insurance as early as possible could save you money in the long run. Insurance companies are willing to let you lock in lower rates if you’re applying at a younger age with a lower risk of dying during the policy term.
When young, healthy people apply for life insurance, they can lock in a less expensive rate that will follow them for years. For example, someone buying a 30-year policy at age 50 will have coverage until 80 years old based on their health status when they first applied. Someone who applies for a similar 20-year policy at age 60 will pay significantly more for similar coverage.
- Consider how much coverage you need
Life insurance policies come at a variety of benefit levels. Some plans pay out as little as $50,000, while others can go up to $1 million or even more. There’s no need for you to pay for a policy that goes well above and beyond anything your family would need.
|
Rule of Thumb for Choosing a Benefit Amount: Consider your life insurance policy as a tool to replace 5 to 10 years of income. If you earn $75,000 per year, a policy of $750,000 may be perfect. You can also take any additional money you would have spent months on a larger policy and allocate it to savings or investments as another tool for covering your expenses.
|
The Financial Impact of Buying Life Insurance
Life insurance is something you buy primarily for other people’s benefit. Furthermore, within the life insurance market, sales pitches can include promises that seem and sometimes are too good to be true. It can be difficult to assess the value and costs of life insurance. The information below can help you better assess how a policy may impact you and your loved ones financially.
The Immediate Financial Impact of Premiums
Premiums for life insurance policies vary a great deal, and there are no one-size-fits-all prices. Age, health, and many other factors must be taken into account. That being said, for seniors, a term policy for $250,000 may start around $70, and premiums for lower death benefit amounts can be as low as $50 or less for young seniors. In some cases, Universal Life and variations thereof can be quite affordable or quite expensive, depending on exact policy features. Whole policies tend to be the most expensive, and premiums may easily be several hundred dollars per month unless the death benefit is low (for example, in final expense policies where the death benefit may be a maximum of $25,000-$50,000).
With premiums, it’s important to think ahead. If you’re just turning 65, your rates will only go up if you wait to sign up. However, you don’t want to rush yourself into a policy with a premium that’s higher than you can truly afford month after month, year after year. If you reach a point where you can no longer afford your premium, you may be able to sell the policy to a third party or to surrender it to the company in exchange for a small cash value amount, but neither option is ideal. If you have doubts about being able to keep up with life insurance premiums, it may be best to devise a different plan for saving and/or investing a modest sum of money on a more flexible basis. Your financial planner should be able to help you decide what’s best for your specific situation.
The Varying Long Term Financial Impact of Different Policy Types
Life insurance is designed to leave a loved one with a large sum of money once you are gone, and the foundational concept seems simple enough. However, the reality is there are three major types of life insurance, several subtypes, and numerous riders that can further modify each type. There’s so much variety on the market that different life insurance types can look almost nothing alike when it comes to their financial impact. Consider the major differences below.
Term
Term life insurance is cheap because it doesn’t always pay a death benefit out. It’s something you pay for during a set number of years (10 years is often all that’s available to those 66+). When the term is up your beneficiary gets nothing if you did not pass away. This may seem like a bad deal, but a term policy can provide peace of mind. When you have a temporary financial concern for your family, term is a great fit. If, for example, you have a mortgage that is nearly paid off, a term policy will help your family if you happen to pass away suddenly before you’re finished paying it off. Likewise, if you’re raising a grandchild who is nearly but not fully grown, you may wish to have a policy in place in case you pass away during the grandchild’s transitional young adult period that can be a vulnerable time financially.
Whole
A whole policy fits the financial goals of those who really want to leave something for a loved one regardless of when they pass away. If your concern for loved ones’ finances goes beyond just getting through the next ten years, then whole can be a suitable option, but it will cost you a great deal. Like term policies, whole policies tend to be fairly straightforward (compared to UL, see below). They can feel financially dependable, and be a good fit for someone who is financially cautious. Moreover, many whole policies accumulate cash value, albeit slowly, and that cash value can be borrowed in some cases.
A special subcategory of whole life called “final expense” or “burial insurance” policies can be a great choice for those who specifically want to provide an adequate amount of money to pay for their own funeral. Some of these policies are large enough to also leave money for small debts that you may leave behind. Of course, some seniors may benefit just as much by simply setting aside a lump sum of several thousand dollars for their funeral.
Universal/Other
Universal Life, Universal Indexed, and Universal Variable policies are all considered some of the riskiest life insurance policies on the market. These policies are all technically “permanent” like whole life, but they operate under a complex and often unclear set of rules that can leave customers financially vulnerable. The perks of these policies include the accumulation of cash value that can be borrowed against, participation in the stock market or other forms of investment, and the ability to adjust premiums in some cases. The downside includes the possibility of losing the policy through overborrowing or market losses and the possibility of having to pay sharply increased premiums in order to keep the policy. These policies are sometimes over-sold by sales agents who may not adequately understand the risks that they pose to seniors. However, thoughtfully using these policies can be wise in some cases.
Policies that Have Riders
Many life insurance policies can be modified with riders. Perhaps the most popular and readily available rider is the accelerated death benefit. This option is now frequently included at no cost in the basic policy. Designed for the terminally ill or sometimes for the chronically ill, this clause in a policy can help a senior out by advancing a large sum of the death benefit to them during their illness when medical bills are high. What’s borrowed from the death benefit is considered a loan and must be returned or else your beneficiary will get a reduced death benefit. Interest is usually charged on the accelerated death benefit, too, and other fees may be assessed, depending on the terms listed in the policy.
The above example of the accelerated death benefit illustrates the financial impact of most riders. Riders add the option of a specific benefit that you can take advantage of down the road when certain conditions are met. When the rider is activated, a fee of some kind may be charged, and some other costs, including a reduction of the death benefit, may come into play. Riders are almost always a trade-off, but they may be worth it in some cases if they provide financial flexibility. Furthermore, while the accelerated death benefit is usually included in the premium, most other riders will increase your premium.
Questions to ask when considering a rider’s financial impact:
- Will this increase my premium cost?
- Could I obtain this benefit for a lower cost elsewhere or obtain the same financial security through traditional investments or other means?
- How likely am I to need this benefit?
- Does the rider have extremely narrow definitions of illness or other factors that will lead to me being denied the use of the rider when I really ought to qualify?
- What fees will be charged to me or taken out of my death benefit if I do use this rider?
- Is there an annual fee that will be removed from my death benefit or accumulated cash value?
