Cheapest life insurance companies of 2024

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.

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.

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.

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.

Frequently asked questions