Best Life Insurance Company That Accepts People on Social Security in 2021
Many people mistakenly think that there are life insurance companies that don’t accept people on Social Security. In fact, people on Social Security can buy life insurance and there are many life insurance companies that accept people on Social Security. There are factors to consider, like if Social Security can replace your life insurance, if getting life insurance payouts will affect your benefits and more. An inheritance can affect SSI benefits, but buying life insurance does not.
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Written by
Jeffrey Johnson
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Reviewed by
Benji Carr
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UPDATED: Nov 23, 2021
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- In most cases, buying life insurance will not affect your Social Security
- Life insurance can fill the gaps in coverage from Social Security and provide a payout to your loved ones
- Whole life insurance, universal life insurance, and final expense life insurance are all excellent choices for Social Security recipients
The Social Security Administration can’t prevent you from purchasing life insurance if you want to. However, finding life insurance companies that accept people on Social Security can be difficult on your own.
Keep reading to find out if Social Security provides you with life insurance, or to compare Social Security vs. life insurance.
This guide will help you find answers and provide information on basic life insurance 101 features. For example, the types of life insurance and how they meet your needs.
You don’t have to wait to get life insurance rates from companies that accept people on Social Security. Enter your ZIP code in our free tool to find affordable life insurance companies that accept people on Social Security.
Table of Contents
What is the best life insurance company if I’m on Social Security?
Many companies will accept you for coverage since it’s possible to purchase life insurance even if you’re on Social Security. Here are the top life insurance companies:
- AIG
- Prudential
- Transamerica
- Mutual Life
- Nationwide
- AARP
The answer also depends on the type of Social Security you receive. For example, if you’re getting retirement benefits or disability, your situation will be different.
For those of retirement age, there will be a limit to how much coverage you can get. However, older people do have special considerations, so consider these types of insurance:
| Type | Specifics |
|---|---|
| Term | Pays a benefit for a specific amount of time. |
| Guaranteed Universal | A hybrid between term life insurance. Usually, it does not accumulate cash value. |
| Whole | Pays a benefit for the rest of your life and accumulates cash value. |
| Universal | Benefits last your whole life and policy accumulates cash value. Cash value is tied to investments. |
| Final Expense | Designed to pay for end-of-life expenses including medical and funeral bills. |
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For those with a disability, the cause of the disability will factor into how much they pay for life insurance.
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Should I buy life insurance if I’m on Social Security?
Life insurance provides many benefits. For example, it can help provide income while you’re alive and cover final costs for you to take pressure off your loved ones.
For those of retirement age especially, combining Social Security with long-term care insurance can provide extra security if you need to enter a nursing home or something similar in the future.
Still not sure if life insurance is right for you? Here is a summary of the features of different life insurance types:
| Life Insurance Features | Term Life Insurance | Whole Life Insurance | Universal Life Insurance | Variable Universal Life Insurance |
|---|---|---|---|---|
| Builds Cash Value Over Time | ✗ | ✓ | ✓ | ✓ |
| Cheap Life Insurance Options | ✓ | ✗ | ✗ | ✗ |
| Flexible Death Benefit Amount | ✗ | ✗ | ✓ | ✓ |
| Flexible Life Insurance Rate Payments | ✗ | ✗ | ✓ | ✓ |
| Guaranteed Cash Value | ✗ | ✓ | ✓ | ✗ |
| Has death benefits | ✓ | ✓ | ✓ | ✓ |
| Has living benefits | ✗ | ✓ | ✓ | ✓ |
| Linking Cash Value to Other Investments | ✗ | ✗ | ✗ | ✓ |
| You can choose policy length | ✓ | ✗ | ✗ | ✗ |
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Since Social Security doesn’t cover everything, you can use life insurance to cover the gaps in expenses that aren’t currently covered.
Will getting life insurance affect my Social Security survivor benefits?
Does Social Security offer life insurance? While Social Security does not exactly offer life insurance, it does provide survivor benefits to eligible family members.
One of the top questions people have is if life insurance affects Social Security survivor benefits. Social Security pays out a survivor’s benefit, which is not the same as life insurance.
The difference is that these benefits only apply to certain family members. So your surviving spouse, your kids, and even your parents, if they were dependent on you, are all eligible to receive this benefit. Buying life insurance does not affect this.
Are there any things to be aware of when buying life insurance on Social Security?
Some issues may come up with life insurance and Social Security, such as the problem of SSI and a life insurance inheritance.
If you are getting SSI and inherit money, you have to declare it to the Social Security Administration. Your benefits will most likely be reduced if this occurs.
Buying a life insurance policy can affect your benefits, but it depends on the type of policy you buy.
A term life policy doesn’t affect Social Security since there is no cash value. However, a permanent life insurance policy will pay out cash to you. That money will be considered income by the Social Security Administration.
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Life Insurance Companies That Accept People On Social Security: The Bottom Line
Now that you know the ins and outs of life insurance companies that accept people on Social Security, you should compare life insurance quotes from companies that accept people on Social Security.
Ready to buy life insurance from companies that accept people on Social Security right now? Then all you have to do is enter your ZIP code into our free tool to compare rates and find a life insurance company that accepts people on Social Security.