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Cheapest life insurance companies of 2024
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What To Know First
Finding affordable life insurance is a key consideration for many families. You want to know that your loved ones will be protected if you are no longer in the picture — but finding the right coverage at a budget-friendly rate can be a challenge. There are multiple factors that impact your premium, including the type of policy you choose as well as your age and, in many cases, your health. Bankrate's insurance editorial team took a careful look at the companies writing life insurance policies in the U.S. to find the carriers offering robust protection at an affordable rate. Our guide has insights and tips to help you find a policy that works for your circumstances while being easy on your wallet.
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 life insurance
- Final expense life insurance
- What factors determine how much life insurance costs?
- Frequently asked questions
Best cheap life insurance companies
Finding cheap life insurance doesn't have to mean compromising on quality. Many companies offer budget-friendly policies with reliable coverage, making it easier to protect your loved ones without breaking the bank. To help you make an informed decision, Bankrate compared some of the best affordable life insurance providers below, including their J.D. Power customer satisfaction scores and AM Best financial strength ratings.
COMPANY | J.D. POWER SCORE | AM BEST RATING |
---|---|---|
Ladder Life | Not rated | Depends on partner insurer |
Corebridge Financial | 575/1,000 | A (Excellent) |
Mutual of Omaha | 659/1,000 | A+ (Superior) |
State Farm | 699/1,000 | A++ (Superior) |
Protective | 653/1,000 | 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
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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. The best way to know if a company can offer you cheap life insurance may be to get a quote.
Savvy online shoppers
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 $3 million or less 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 9AM - 12PM PST, M-F
- Renewals not available after policyholder turns 60 years old
Customizable policies
Why we picked Corebridge Financial
Corebridge Financial stands out for offering exceptionally flexible term life insurance policies, which is particularly appealing for those who need coverage that aligns precisely with their financial timelines. Unlike many insurers that offer only standard 10, 20 or 30-year terms, Corebridge allows customers to choose from unique term lengths, such as an 18-year policy, providing a tailored insurance solution that can perfectly match personal milestones like mortgage completion or children’s educational needs.
Corebridge Financial review
Corebridge Financial, formerly known as AIG Life and Retirement, rebranded in 2022 following its spinoff into a standalone entity. The company offers a broad spectrum of life insurance products, ranging from term to permanent plans, catering to diverse customer needs across various life stages.
For those seeking flexibility in their life insurance, Corebridge’s term policies are available in 18 different lengths, offering more customization than typically seen in the industry. This feature is ideal for aligning your life insurance term with specific financial obligations or goals. On the permanent insurance front, Corebridge offers options that include whole life and universal life, which provide lifelong coverage and the potential for cash value accumulation.
Pros
- Offers a wide array of customizable term lengths
- Broad selection of both term and permanent life insurance products
- Term life policies can convert to permanent coverage, offering flexibility as needs change
Cons
- Does not provide guaranteed issue policies, which might be a limitation for those with serious health issues
- Lacks a digital application process, potentially complicating the application experience for users accustomed to online transactions
- As a relatively new brand separate from AIG, lacks individual long-term ratings and reviews, which may concern some potential policyholders
Whole life insurance without a medical exam
Why we picked Mutual of Omaha
Mutual of Omaha stands out for its guaranteed issue whole life insurance, winning the 2025 Bankrate Award for this policy type. It's tailored specifically for individuals aged 45 to 85 (50 to 75 in New York). This policy is an ideal choice for those needing affordable coverage for final expenses without the hurdle of a medical exam. With a history of strong financial performance, as evidenced by its A+ (Superior) rating from AM Best and high customer satisfaction scores in J.D. Power's 2024 Life Insurance Study, Mutual of Omaha offers a reliable option for those who may have been turned down for traditionally underwritten life insurance.
Mutual of Omaha review
Since 1909, Mutual of Omaha has provided a range of life insurance products, including whole life and universal life policies. The guaranteed issue whole life policy is particularly noteworthy for offering coverage amounts ranging from $2,000 to $25,000, which can cover burial, funeral or other final expenses. These policies come with fixed premiums that will not increase over time, ensuring affordability continues even as policyholders age. The application process is straightforward and can be completed quickly, providing instant coverage without the need for medical exams or health questions.
Pros
- Guaranteed issue policy available, meaning no medical exam or health questions required
- Fixed premiums that do not increase over time, suitable for those on a fixed income
- Potential cash value accumulation on a tax-deferred basis
Cons
- Company only has a handful of in-office locations in 46 states
- Some quotes can be started online, but policies must be purchased after speaking to a representative
- Mobile app is geared towards mortgages rather than insurance
- Customer service department only available during regular business hours
Universal life insurance
Why we chose State Farm
State Farm's recognition in the life insurance sector is underlined by winning Bankrate’s 2024 Award for Best Universal Life Insurance Company. This accolade reflects the insurer's commitment to offering flexible and comprehensive universal life policies tailored to various financial needs. State Farm's universal life insurance stands out for its adaptability in premium and benefit adjustments, making it a prime choice for those seeking control over their long-term financial planning.
State Farm review
State Farm offers a broad spectrum of life insurance options, including term, whole, universal and variable life policies, ensuring a solution for every type of insurance seeker. Its universal life insurance is particularly notable for allowing policyholders to adjust premiums and death benefits to suit changing financial circumstances. This flexibility is complemented by a choice of two death benefit options and the availability of several policy riders, enhancing the policy’s adaptability to policyholder needs.
Pros
- Awarded the 2024 Bankrate Award for Best Universal Life Insurance
- Ranked first for overall customer satisfaction in J.D. Power’s 2023 U.S. Individual Life Insurance Study
- Offers a wide range of life insurance products with multiple options for universal life insurance
- High financial strength rating from AM Best, indicating robust long-term stability
Cons
- While offering digital and local agent support, the customization features of universal life policies might require more personal management
- Premiums may vary depending on individual circumstances and the specifics of the policy chosen
Term life insurance
Why we chose Protective
For those seeking cost-effective term life insurance, Protective Life stands out with its remarkably affordable options and unique offerings, such as the rare 40-year term policy. This extensive term length is a standout feature in the life insurance industry, providing long-term security at competitive rates, which is particularly attractive for younger individuals planning for the distant future.
Protective Life review
Established for over a century, Protective Life offers a comprehensive range of life insurance products tailored to meet various needs, from temporary coverage with term life to lifelong protection with whole and universal life policies. Here’s why Protective Life might be the right choice for affordable term life insurance:
Pros
- Offers term life policies ranging from 10 to an exceptional 40 years, allowing coverage customization to match long-term financial plans
- High coverage limits available, extending up to $50 million, providing substantial security for beneficiaries
- Allows conversion of term policies to permanent coverage without an additional medical exam, securing future insurability
Cons
- Requires an initial medical exam for most policies, which might not be ideal for those with pre-existing conditions seeking a no-exam policy
- While it provides online quotes for term life, completing the purchase requires interaction with an agent
- Limited customer service hours might not cater to all scheduling needs
The cheapest types of life insurance policies
For those looking to stretch their dollar further in the life insurance market, term life insurance often stands out as a cost-conscious choice. The core of term life insurance lies in its simplicity and time-bound nature, offering coverage typically from 10 to 30 years. This makes it particularly appealing for:
- Lower costs: Term life insurance premiums are generally more affordable compared to permanent policies, largely because the coverage is limited to a specific period. Your rates are fixed once you purchase a policy, offering financial predictability. However, it's important to consider that delaying the purchase of life insurance could lead to higher premiums as you age due to increased risk factors associated with older age groups.
- Time-specific coverage: Many opt for term life insurance to cover specific periods of financial vulnerability, such as the years spent raising a family or paying off a home loan. This targeted protection can make term life a sensible option for those with clear coverage timeframes in mind.
- Flexibility to upgrade: One advantage of term life insurance is the potential for term conversion, which allows you to switch to a permanent policy later on, often without requiring a medical exam. This option offers a safety net, enabling policyholders to adapt their coverage as life circumstances change.
While term life insurance can offer savings, especially for younger or healthier individuals, it's not a one-size-fits-all solution. Premiums can be spendier if you wait until you’re older to buy, and the policy's expiration might leave some seeking more permanent coverage solutions. Understanding these traits of term life insurance can help guide your decision toward the most fitting and financially smart option for your situation.
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 | ✓ |
Corebridge Financial | ✓ | ✓ | ✓ | X | ✓ |
Mutual of Omaha | ✓ | ✓ | ✓ | X | ✓ |
State Farm | ✓ | ✓ | ✓ | ✓ | ✓ |
Protective | ✓ | ✓ | ✓ | X | X |
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.
You can potentially lower your overall insurance costs by bundling your life insurance with other policies, such as home or auto insurance. While this won't reduce the life insurance premium itself, some companies offer a bundling discount that applies to your other insurance products, potentially reducing the overall amount you spend on insurance products.
Group life insurance
When considering life insurance options, many find valuable opportunities through their workplace benefits. Employers often provide group life insurance as part of their compensation package, usually offering a basic level of coverage at no additional cost to employees or any medical underwriting. This kind of insurance is particularly useful for those looking for a simple layer of financial protection without the need for a more comprehensive plan.
The benefit provided by such employer-sponsored insurance typically covers a basic amount, which might be sufficient for individuals with limited insurance needs or those seeking just a basic safety net. While there's often the possibility to enhance this coverage, doing so would likely incur extra premiums for any amount exceeding the basic coverage provided.
It's important to note that the coverage provided by group life insurance is generally in effect only as long as you are employed with the company. Some policies might offer portability, allowing you to keep the coverage after leaving the company, but this usually comes with increased premiums. Additionally, group life insurance plans may offer limited flexibility in terms of policy customization and additional benefits, which might not meet the specific needs or preferences of all individuals.
Final expense life insurance
Final expense life insurance is a type of permanent policy that is designed primarily to pay off final debts and cover funeral expenses. It generally does not involve a medical exam, although you may have to fill out a health questionnaire.
The premiums for final expense insurance tend to be low — but so is the death benefit. These often tap out at a maximum of as low as $25,000. The average cost of a funeral in the U.S. ranges from $6,280 to $8,300, suggesting that a typical final expense policy can help cover those costs along with any final credit card or other debts.
Generally, final expense insurance is purchased by older adults, aged about 50 to 80, so that their family is not saddled with last-minute debts after their passing. Since the death benefit is low, this type of policy is less useful for long-term financial security.
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.
It’s also important to get quotes from multiple carriers when shopping for life insurance. Not all insurers underwrite in the same way, which means premiums can vary significantly from one company to another. Comparing quotes can help you find the most affordable policy that meets your needs.