Cheapest life insurance companies of 2023

Best cheap life insurance companies

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.

The top 5 most affordable life insurance companies

Based on our assessment, 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

Ladder Life has a completely online experience for individuals who want quick and affordable term life insurance, with coverage up to $8 million dollars. Eligible applicants must be between 20 and 60 years old, and although guaranteed life insurance isn’t offered for all coverage levels, a medical exam is not always necessary for those wanting $3 million or less in coverage. Ladder Life underwrites some of its policies, but also matches applicants with its life insurance partners like Allianz Life Insurance Company and Fidelity Security Life Insurance Company. If you’re looking to buy life insurance on your own, Ladder Life could be a great fit. Keep in mind that the options are limited. Term life is the only type of policy available and there are no additional features or riders that can be added to further personalize your policy.

Life insurance policies from Ladder Life are underwritten by its life insurance partners, which include Allianz Life Insurance Company and Fidelity Security Life Insurance Company. If you’re looking to buy life insurance on your own, Ladder Life might be a great fit. Keep in mind that the policy options are limited. Term life is the only type of policy available, and there are no additional features or riders that can be added to further personalize your policy.

Pacific Life

Pacific Life could be one of the best cheap life insurance companies when it comes to policy endorsements. Among some of the more common life insurance riders like accelerated death benefits and a children’s rider, Pacific Life also offers a no-lapse guarantee rider (which may protect your policy from lapsing once a certain amount of premium has been paid). However, Pacific Life insurance policies may require medical exams, and the company doesn’t offer guaranteed issue insurance. As such, those with significant health challenges or other high-risk rating factors may have better choices.

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. Additionally, Pacific Life has lower-than-average customer complaints lodged with the National Association of Insurance Commissioners (NAIC).

Mutual of Omaha

Ranked third in the J.D. Power Life Insurance Study, Mutual 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 locations in 46 U.S. states, so if having a local agent is something you value, you’ll want to check if there is one local to you before going through with the quote process.

Northwestern Mutual

Thanks 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. Along with universal life, the company offers term life and whole life policies, as well as annuities and long-term care insurance. Northwestern Mutual advertises a less than $1-per-day term life insurance, so the company may be a great option for cheap life 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.

State Farm

If you need the cheapest term life insurance, you may want to contact State Farm. State Farm won the 2023 Bankrate Award for best term life insurer, thanks to its exceptional J.D. Power customer satisfaction score, availability in most states and A++ (Superior) AM Best financial strength rating. This is the second year in a row that State Farm has earned this distinction. The company sells standard life insurance policies, including term life, universal life and whole life insurance. 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’s unique Instant Answer term policy provides $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.

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.
• 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.
• Avoid dangerous activities. Risky hobbies like skydiving and rock climbing could 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.
• 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.
• Evaluate employment benefits. Life insurance provided through employer benefit programs 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.

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