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Cheapest life insurance companies of 2023
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What To Know First
Purchasing life insurance may offer peace of mind that your loved ones will be taken care of after you pass away. Life insurance costs vary based on policy type, personal rating factors and coverage selections, but a life insurance policy may be more affordable than you think. The first step to finding cheap life insurance may be understanding how insurance companies calculate your premium. When you request a life insurance quote, the company may use many different metrics to determine your rate, including your:
- Overall health
- Occupation
- Hobbies
- Death benefit amount
- Requested policy type
- Optional riders
Generally speaking, the riskier your lifestyle, the more expensive your life insurance premium may be. However, life insurance quotes don't vary much from company to company, so finding affordable coverage may come down to choosing the right policy type and coverage limits. Bankrate’s insurance editorial team provides insight into the cheapest life insurance companies and gives some helpful tips to potentially help you lower your rate.
On This Page
- Best cheap life insurance companies
- Our picks for the most affordable life insurance companies
- The cheapest types of life insurance policies
- How to get cheaper life insurance
- Group and free life insurance
- What factors determine how much life insurance costs?
- Frequently asked questions about cheap life insurance
Best cheap life insurance companies
| COMPANY | J.D. POWER SCORE | AM BEST RATING |
|---|---|---|
| Ladder Life | Not rated | Depends on partner insurer |
| Pacific Life | 793/1,000 | A+ (Superior) |
| Mutual of Omaha | 801/1,000 | A+ (Superior) |
| Northwestern Mutual | 794/1,000 | A++ (Superior) |
| State Farm | 839/1,000 | A++ (Superior) |
How Bankrate picked the cheapest insurers
Choosing the best and cheapest life insurance policy is not a decision to take lightly. An insurance company’s history, as well as its reputation for customer service, financial stability and coverage options, are just a few of the things that may impact your experience. Bankrate’s insurance editorial team has analyzed some of the largest companies to help you find the best life insurance rates.
We took into account several metrics, including financial strength, customer satisfaction and coverage options, to give you a holistic view of the cheapest life insurance companies on the market today. We also examined the number of riders available, digital tools, coverage availability and whether medical exams were required as part of the underwriting process in order to make our picks.
Compare life insurance providers quickly and easily
See which provider is right for you.
Whole life insurance combines life insurance with an investment component.
- Coverage for life
- Tax-deferred savings benefit if premiums are paid
- 3 variations of permanent insurance: whole life, universal life and variable life include investment component
Term life insurance is precisely what the name implies: an insurance policy that is good for a specific term of time.
- Fixed premium over term
- No savings benefits
- Outliving policy or policy cancellation results in no money back
This advertising widget is powered by HomeInsurance.com, a licensed insurance producer (NPN: 8781838) and a corporate affiliate of Bankrate. HomeInsurance.com LLC services are only available in states where it is licensed and insurance coverage through HomeInsurance.com may not be available in all states. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Our picks for the most affordable life insurance companies
Based on our assessment of over 50 life insurance providers, the following companies might help you find low-cost life insurance. Remember that life insurance rates depend heavily on your health metrics, including your age and any medical conditions you may have. Rates typically do not vary as much between providers as auto and home insurance, but the best way to know if a company can offer you cheap life insurance may be to get a quote.
Ladder Life offers a completely online experience for individuals looking to easily access term life insurance. The carrier offers term policies with coverage up to $8 million, but policies up to $3 million in coverage may not require a medical exam. Although they underwrite some of their own policies, Ladder Life also partners with Allianz Life Insurance Company and Fidelity Security Life Insurance Company, which both boast high AM Best financial strength ratings.
Ladder Life insurance applicants must be between 20 and 60 years old. A key feature is the "laddering" tool, which allows policyholders to adjust coverage as needed, though increases require approval.
While most auto and home insurers offer online quoting, this feature is less common in life insurance. Ladder Life stands out among life carriers for its focus on digital tools and online policy management. However, options are limited compared to other providers. Only term life policies are available with no advertised riders to customize coverage.
PROS
-
Medical exam isn’t usually needed for life insurance policies with less than $3 million in coverage
Robust digital platform
Can apply for and purchase a policy online without speaking with an agent if approved
Available in all 50 states
CONS
-
Does not offer riders
-
Only policy available is term life
-
Customer support hours are limited to 7AM–4PM PST
-
Renewals not available after policyholder turns 60 years old
Why we picked Pacific LifePacific Life may be one of the best cheap life insurance companies when it comes to policy endorsements, as the carrier advertises a long list of potential riders. Pacific Life could also be an excellent choice for those who prioritize customer service, as the carrier scored above the industry average in the J.D. Power 2022 U.S. Life Insurance Study.
Pacific Life reviewPacific Life offers a wide selection of policy endorsements and receives fewer-than-average complaints according to the National Association of Insurance Commissioners. In addition to common riders like accelerated death benefits and coverage for children, Pacific Life provides a no-lapse guarantee rider to potentially prevent policies from lapsing after a certain premium amount is paid.
However, Pacific Life may require medical exams and does not offer guaranteed issue insurance. Those with major health issues or other high-risk factors may find better options elsewhere. Also, Pacific Life does not provide online quotes or a mobile app, which could deter digitally-inclined customers.
PROS
-
Optional riders may allow for a highly-customizable policy
Superior financial strength rating from AM Best
Near-nationwide availability
Many types of universal policies offered
CONS
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No online quotes
-
No guaranteed issue policies available
-
No mobile app
-
Medical exams may be required for most policies
Why we picked Mutual of OmahaMutual of Omaha’s A+ (Superior) financial strength rating from AM Best and third-place ranking in J.D. Power’s 2022 Life Insurance Study helped the carrier land on our list of the best cheap life carriers. Mutual of Omaha also offers no-exam whole life insurance, which may appeal to shoppers who are concerned about approval following a medical exam.
Mutual of Omaha reviewMutual of Omaha has provided quality insurance products since 1909. The carrier offers whole life and universal life policies, and its term life coverage limits start at $100,000. Mutual of Omaha sells term life coverage to customers between 18 and 80 years old, and offers terms ranging from 10 to 30 years.
You may be able to couple a Mutual of Omaha life insurance policy with accidental death coverage, which allows your beneficiary to receive an additional payout if your death is the result of a covered accident. You can get a quote online, but you will have to speak with a representative to complete your application and purchase a policy. Before purchasing coverage, keep in mind that Mutual of Omaha only has agents in 46 U.S. states, so if having a local agent is something you value, you may want to check if there is one local to you before going through with the quote process.
PROS
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Whole life insurance may be available without a medical exam
Strong financial strength ratings from AM Best and Standard & Poor (S&P), indicating a historical ability to pay out claims
Children’s whole life insurance policies available
CONS
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Company only has a handful of in-office locations in 46 states
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Some quotes can be started online, but policies must be purchased after speaking to a representative
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Mobile app is geared towards mortgages rather than insurance
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Customer service department only available during regular business hours
Why we chose Northwestern MutualThanks in part to its financial strength, high third-party customer service scores, financial planning services and advisor availability, Northwestern Mutual earned the 2023 Bankrate Award for Best Universal Life Insurance Company. Northwestern Mutual also advertises a less than $1-per-day term life insurance, so the company may be a great option for cheap life insurance.
Northwestern Mutual reviewAlong with universal life, the company offers term life and whole life policies, as well as annuities and long-term care insurance. The insurer only offers medical exam life insurance, so if you’re looking for guaranteed acceptance insurance, this provider may not be right for you. However, Northwestern Mutual offers conversion riders, which give you the option to convert a term life insurance policy to whole life coverage without another exam ahead of the policy’s expiration. While you can’t get a quote online through Northwestern Mutual, you can calculate how much coverage you might need with its life insurance calculator.
PROS
-
Advertises term life insurance for as little as $1 per day, though rates will vary based on your unique profile
Term life insurance may be able to be converted to whole life insurance before the policy’s expiration
Policyholders are able to make payments and track spending habits with the Northwestern Mutual mobile app
Available in all 50 states
CONS
-
Does not offer guaranteed acceptance life insurance
-
Cannot quote or purchase life insurance online
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Can make phone payments 24/7, but customer service only open during normal business hours
-
Website lacks information regarding policy riders
Why we chose State FarmState Farm won the 2023 Bankrate Award for Best Term Life Insurer for the second year in a row thanks to its exceptional J.D. Power customer satisfaction score, availability in most states and A++ (Superior) AM Best financial strength rating. State Farm’s term life policies go the extra mile by providing coverage that is renewable up to age 95, while most competitors restrict coverage after you turn 80.
State Farm reviewState Farm sells standard life insurance policies, including term life, universal life and whole life insurance.
The company’s unique Instant Answer term policies provide $50,000 in term life coverage up to age 50, or a maximum of 10 years. If you qualify for an Instant Answer policy, you may not have to take a medical exam. State Farm also offers a multi-policy discount on auto insurance if you purchase life insurance, which could help you save some money.
In terms of customer reviews, State Farm receives fewer complaints than expected for its individual life insurance as reported by the NAIC. However, keep in mind that final expense policies with State Farm have a maximum death benefit of only $10,000.
PROS
-
State Farm’s Instant Answer policy may be a solution for those who need immediate coverage without a medical exam
Came in first in J.D. Power’s 2022 U.S. Individual Life Insurance Study for customer service
May be eligible for bundling discount on your auto policy if you also have a State Farm life insurance policy
24/7 customer helpline along with more than 19,000 local agents across the country
CONS
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Low maximum death benefit for final expense policies
-
Cannot buy policy online; must speak with an agent
-
Whole life quotes not available online
-
Not currently writing new policies in Massachusetts or Rhode Island
The cheapest types of life insurance policies
In general, term life insurance is often the cheapest choice for many shoppers.
However, the cheapest life insurance for you will depend on your personal characteristics and coverage needs.
Term life insurance is a type of life insurance policy that remains in effect for a set amount of time, typically between 10 and 30 years, as long as premiums are paid. If you’re looking for an inexpensive life insurance policy, consider these key benefits of term life insurance:
- Low premiums: Term life insurance policy premiums are usually cheaper than permanent life insurance, since coverage only lasts for a set period of time. However, term policies may be expensive if you are a senior, since age is a strong predictor of mortality.
- Expires after a preselected period of time: Term life insurance policies remain in effect for a period of time that the policyholder chooses, usually between 10 and 30 years. Term life insurance may be right for policyholders who only want coverage for a certain period of time, such as when their children are young or while they’re actively paying a mortgage.
- Option to convert to permanent insurance: If your term life insurance policy expires before you pass away, you’ll stop paying premiums and will not receive a death benefit. However, many of the best life insurance companies offer conversion riders that allow you to convert your term policy to a permanent policy before the term expires.
Term policies do tend to get significantly more expensive to buy as you age, so they may not be the cheapest option for seniors. If you aren’t sure what life insurance policy type is best for you, it could be helpful to work with a licensed agent.
Compare types of life insurance available at top cheap insurance companies
Company Term life Whole life Universal life Survivorship No medical exam option* Ladder Life ✓ X X X ✓ Pacific Life ✓ X ✓ ✓ X Mutual of Omaha ✓ ✓ ✓ X ✓ Northwestern Mutual ✓ ✓ ✓ ✓ X State Farm ✓ ✓ ✓ ✓ ✓ *Medical exam requirements may vary depending on the type of life insurance policy purchased.
How to get cheaper life insurance
The cost of a life insurance policy varies from person to person, as rates are highly dependent on your age and health. In general, younger, healthier policyholders pay lower premiums than older, at-risk applicants. If you’re hoping to get the best life insurance rates, these steps may help you shave a few dollars off your monthly premium.
- Consider purchasing a policy when you’re young. Life insurance generally becomes more expensive as we get older, so it may be beneficial to purchase a policy when you’re young for lower rates.
- Avoid dangerous activities. Risky hobbies like skydiving and rock climbing may increase your life insurance premium significantly. Swapping out a risky activity for safer habits, such as hiking or cross country skiing, could indicate a safer lifestyle to an insurer.
- Manage the parts of your health that are in your control. This could include healthy habits like eating well-balanced meals, exercising daily and getting enough sleep.
- Cut out smoking and/or other nicotine products. Smoking can trigger long-term health problems, which is why insurers typically have much higher life insurance rates for smokers. Striving to quit can be difficult but could provide long-term health benefits, along with lower rates.
- Evaluate employment benefits. Life insurance provided through employers sometimes offers lower rates because they benefit from group pricing. Keep in mind, these policies will typically end if you leave your employer or retire.
- Consider a ladder strategy: A life insurance ladder is a strategy where you buy several term life insurance policies with different coverage levels and expiration dates. For example, a young family may have a need for higher coverage while they still have a mortgage and children in the household. Once the mortgage is paid off, their need lowers, and once the children are out of the household, their need lowers again. Buying different policies that expire as your needs change might help you save on life insurance in the long run. You may want to work with a licensed life insurance agent before committing to this strategy, as it does require you to have a very firm grasp of your financial needs and how they could change over the years.
- Reevaluate your coverage level. Once you’ve paid off your mortgage and your kids have moved away from home, you may not need as much life insurance coverage. Reevaluating your coverage and choosing a policy with lower premiums and a lower death benefit may be right for you. You may want to consult with a licensed agent or financial professional before adjusting your coverage.
Group and free life insurance
Buying a life insurance policy on your own is not the only way to get coverage. Many employers offer group life insurance as an employee benefit, and coverage may be free up to a certain level. Group life insurance may be a good option if you don’t have specific needs and don’t need a high coverage amount.A free group life insurance policy offered by your employer is likely to have a low death benefit level. You may be able to buy additional coverage, but you will probably have to pay for any amount of coverage you choose over the free level. Additionally, you may not have control over what kind of coverage is offered. This means if you’re looking for a specific policy type or endorsement, your company’s group policy may not fit your needs.What factors affect my life insurance premiums?
Life insurance rates, like all insurance rates, are based on risk. With life insurance, the risk is mainly centered around your likelihood of passing away during the policy period, and how much money the insurance company will pay to your beneficiary. These are some of the rating factors that life insurance companies may use to rate your policy:
- Age: Age is one of the strongest predictors of mortality; older individuals are more likely to pass away than younger ones, which means life insurance quotes will typically get more expensive as you age. Getting a policy when you’re young may help you get lower rates.
- Gender: Your gender might statistically impact the likelihood of getting certain diseases, the riskiness of your lifestyle or your overall life expectancy, all of which may affect life insurance rates.
- Health: Your health also plays a role in determining how much you’ll pay for life insurance. Those who experience health problems are likely to face higher premiums.
- Family history: Your family medical history could predispose you to certain ailments, which means you could pay more for life insurance.
- Coverage type: Term policies tend to be cheaper, especially for younger individuals, because there is a chance you’ll outlive your policy and the company will not have to pay your death benefit. Comparatively, permanent policies are designed to stay in place for your entire life, which means at some point the company will have to pay your beneficiary after your death, provided the terms of the policy are met. This leads to higher average premiums.
- Death benefit amount: More coverage generally means higher rates, since the life insurance company will be responsible for paying a higher amount to your beneficiaries upon your passing.
- Lifestyle: Lifestyle encompasses a broad range of factors, including your job, hobbies and health habits. Those with risky jobs or hobbies may pay more for life insurance, and unhealthy habits like smoking also tend to increase rates.
Frequently asked questions about cheap life insurance
