A life insurance policy protects your loved ones in the event something happens to you. You’ll pay monthly premiums in exchange for peace of mind.
But, as with any insurance, the price you pay depends on the company you choose. You can often get the same quality of coverage for much cheaper if you just shop around.
I’m here to make that a little easier. This list includes some of the cheapest life insurance companies, and many of them will let you apply online.
Overview of the Cheapest Life Insurance Companies
|Provider||Best for||Sample rate (monthly)*||Plans offered||Coverage amounts||Unique features|
|Bestow||Term life policies||$10.25||Term||$50,000 to $1.5 million||Easy sign-up process, no medical exam required|
|Legal & General||Working with an agent||$10.6||Terem, universal||$100,000 to $8 million||Long history, the agent sets up the policy|
|Protective||Those who need help choosing a policy||$10.62||Universal, whole, term||$100,000 to $50 million||Low premiums, policy finder tool|
|Mutual of Omaha||Younger consumers||$13.03||Universal, whole, term||$100,000 to $1 million||Long history, the agent sets up the policy|
|Ladder||Long-term savings||$13.5||Term||$100,000 to $8 million||Policies are adjustable over time|
1. Types offered – Universal, whole, term.
2. Medical exam required? No.
3. Terms available – 10, 15, 20, 25, or 30 years.
4. Coverage amounts – $100,000 to $500,000.
Pacific Life has some of the most affordable policies available
You can choose from term and cash-value plans, and there are four types of cash-value options: indexed universal, variable universal, universal, and whole.
The application process is quick and convenient, with no medical exam required. You’ll even be walked through determining the type and amount of life insurance you’ll need. Once you’ve gone through the process, you’ll be given a quote that you can review and accept if you’re impressed.
The industry average for life insurance for a 20-something is $28.02. Pacific Life beats that, with monthly premiums averaging $24.85. That alone makes it worth getting a quote from Pacific Life.
Another benefit of Pacific Life is the range of insurance types available. Although their cash value policies have higher premiums than term, you’ll have access to the cash in the policy if you ever need it. That can make life insurance an investment tool as well as a way to protect your loved ones.
Learn more about Pacific Life
Types offered – Universal, whole, term.
Medical exam required? Sometimes.
Terms available –cash-value 10 to 40 years.
Coverage amounts – $100,000 to $50 million.
With term life insurance premiums as low as $7.82 per month for $100,000, Protective is a very affordable option. Terms range from 10 to 40 years, with coverage amounts available from $100,000 to $50,000,000.
In addition to term life insurance, Protective also offers whole and universal life insurance. With term life, you can convert your policy to a permanent one if you change your mind during your coverage period.
In addition to great rates, Protective offers an easy application process. In some cases, a medical exam will be required during your sign-up period, but that’s on a case-by-case basis. If you switch from term to permanent, though, you won’t need a medical exam.
Protective also offers a policy finder tool that helps you find the life insurance that fits your needs. Once you’ve determined the policy you want, you’ll use the Protective Calculator to determine exactly how much coverage you need. You’ll get a quote that will help you determine whether you want to proceed or not. If you decide to move forward, you’ll then learn whether a medical exam will be necessary.
Learn more about Protective Mutual of Omaha
Types offered – Universal, whole, term medical exam required? Sometimes
Terms available – 10, 15, 20, or 30 years
Coverage amounts – $100,000 to $1 million
Mutual of Omaha has been in the insurance business since 1909, making it a well-established name in the industry. The company belongs to its policyholders, which keeps costs low for both the company and its customers.
Some employers source their life insurance plans through Mutual of Omaha, but the company sells individual plans, as well. Although you can get a quote online, Mutual of Omaha takes a more traditional approach to setting up policies. You’ll work directly with an agent who will go through the options with you to create the best policy for your unique needs.
Getting a quote is extremely easy. You’ll input some basic information into an insurance calculator to get a feel for how much you can expect to pay. The best thing about Mutual of Omaha’s calculator is that you can play around with different terms and coverage amounts to see what your premiums will be. You may find that shortening your term or reducing your coverage gets your premiums to a more manageable level.
If you decide to proceed, you’ll answer some more in-depth questions during the application process that will determine whether a medical exam is required or not. Due to the need to work with an agent and potentially take a medical exam, the application process can take longer, but you’ll also be able to find exactly the coverage you need.
Types offered – Term.
Medical exam required? No.
Terms available – 10, 15, 20, 25, or 30 years.
Coverage amounts – $50,000 to $1,500,000.
Bestow is an affordable option for term life policies. With policies starting as low as $10 a month, you can ensure your loved ones are protected without having to blow your budget.
You’ll be able to get a quote in just seconds after entering some very basic information. If you like the quote, you can proceed to a slightly more involved application that gathers information on your health and lifestyle.
Bestow uses data to set your rates, so no medical exam is needed. For that reason, Bestow will likely give you better rates if you’re healthy and live an active, risk-free lifestyle. Since Bestow rewards healthy behaviors, it’s a better option for those consumers.
The wide range of terms and coverage amounts is another benefit to your bottom line. You can even tweak your coverage choices during the quote process to get a lower monthly premium.
Legal & General
Types offered – Term and universal.
Medical exam required? Sometimes.
Terms available – 10 to 40 years.
Coverage amounts – $100,000 to $8 million.
Legal & General is another insurer that requires policyholders to work with an agent, but you can start by getting a quote online. If you accept the quote you’re given, an agent with Legal & General will contact you.
Rates with Legal & General are competitive and depend on the policy terms and amount you choose. You can find plans with premiums as low as $7 a month, but the more you increase the coverage, the higher those premiums will go.
A medical exam isn’t always required with Legal & General. In some instances, the company puts the claim through using the health information you’ve provided. The application process is easy because the agent takes over after you input some preliminary information.
Another great thing about Legal & General is that if your loved ones ever have to file a claim, they can do so through an online form. In many cases, the funds are delivered to them within one business day of the claim being accepted.
Learn more about Legal & GeneralState Farm
Types offered – Universal, whole, term.
Medical exam required? Sometimes.
Terms available – 10, 20, 30.
Coverage amounts – Start at $100,000; $50,00 flat fee for Instant Answers.
State Farm is a large insurance provider offering policies to consumers across the globe. Premiums vary based on your term and the coverage amount. If you’re young and healthy, you can get $500,000 of insurance in a 10-year policy for as little as $15.02 a month.
One way you can save money with State Farm is by bundling your life insurance policy with other insurance. You can save as much as 17% by buying your life, homeowners, renters, condo, and/or auto insurance through them. Not only will this save you money, but you’ll have the convenience of all your policies being under one roof.
The general application process with State Farm can take some time as you get a quote, apply, and wait to hear back. But State Farm also has an Instant Answers option. Going this route, you can get a quote for life insurance in minutes using their online form. In some cases, no medical exam is necessary. This option will issue up to $50,000 of protection until you either reach the age of 50 or 10 years pass. These policies can sometimes be issued the next day.
Whether you go with the basic application or Instant Answers, you’ll still need to work with a local agent to set up and manage the process. But if you like the in-person touch, this could be a great option for you.
Learn more about State Farm or read our full state farm review
Types offered – Universal, whole, term.
Medical exam required? Yes.
Terms available – 10, 15, 20, 25, and 30.
Coverage amounts – $100,000 to $10 million.
As one of the nation’s largest insurers, MassMutual’s impressive reputation and customer base make it a great choice. All of Mass Mutual’s policies require a medical exam, and in most cases, you’ll go through an insurance agent for setup. But you can s
tart the quote process online by answering a series of questions.
If you want a quick-term life policy, though, MassMutual Direct is the way to go. Here, you simply answer some questions and get instant approval. It’s the quickest way to get a policy through them. Policies are limited to $100,000 to $3,000,000.
Although MassMutual isn’t the cheapest option on the market, the rates are competitive. There’s also a wide range of coverage types to choose from, which means you’ll likely be able to customize your life insurance policy to fit your needs. Some of their term life policies can be later converted to whole life with no fee.
One of the biggest benefits of going with MassMutual is its history in the business. Having a provider with such a solid foundation is a big bonus. It gives you the peace of mind of knowing that the company will be around for the decades your policy will be in place.
Learn more about MassMutual
How We Came Up with Our List of the Cheapest Life Insurance Companies
There’s plenty to consider when it comes to pricing life insurance policies. Not all insurers provide their average premiums upfront, but there are some insurers that have a reputation for competitive pricing.
We also looked at features like ease of signup and whether a medical exam is required. Being able to get a quote without going through a lengthy application is a huge bonus. That lets you easily compare quotes and choose the best price.
What is life Insurance?
Life insurance protects you in the event of an incident. In this case, the protection kicks in if you die. Your policy will replace your income, cover funeral costs, and otherwise ensure your survivors are financially taken care of if you’re no longer around.
Why Should You Have Life Insurance?
Life insurance isn’t mandatory. In fact, some people don’t need it at all. However, here are the top groups who should think about getting life insurance.
The first time consumers typically start thinking about life insurance is after they have a child. Your life insurance can kick in to replace the income to at least keep your child financially comfortable for a while.
If your spouse depends on your income, life insurance can help pay the bills if something happens to you. In this case, you’ll typically get a policy that will cover the income you would have brought in until your spouse can get back on his or her feet again.
You’d Leave Debt Behind
Your goal is likely to ensure your survivors aren’t saddled with your debts after you die. Some debts will be canceled if you die, but others could put a burden on your survivors. If you have secured debt, such as a car loan, the asset used to secure that loan could be taken if your spouse can’t pay the bill. Life insurance can be set up to keep those bills paid.
Who Shouldn’t Have Life Insurance?
If you think you don’t need life insurance, you may be right. Check this list of those who are least likely to need life insurance to see if it matches you.
Single, Dependent-Free People If your death wouldn’t leave someone else financially strapped, life insurance will be a waste of money. Single people with no children or other dependents likely don’t need life insurance. Even if you have children, once they’re grown and financially independent, you won’t need life insurance.
Retirees typically rely heavily on retirement savings and Social Security. After your death, that income will stop coming in and any savings that can go to your dependents will. Life insurance is not only unnecessary once you’re retired, but it can be very expensive, making it cost-prohibitive.
College students typically have no assets and may even be financially dependent on their parents. If you’re in college, you likely won’t need to even start thinking about life insurance until you have children or have a significant other you want to protect.
Most Important Features of Life Insurance
Life insurance can be complex, with multiple types of coverage. Before you start shopping, it’s important to know what you’re looking at. Here are some top features to consider.
Type of Life Insurance
You’ll likely see life insurance described as term, whole, and universal. This refers to the length of coverage, but there are also some other features that go with each.
Term life is designed to only cover you for a short period of your life. When the policy expires, you’ll get no cash value out of the account.
Whole life covers you for your entire life. The policy has an actual cash value that you can access if you need it. This benefit means whole life is typically much more expensive than term life.
Universal life is similar to whole life but with greater flexibility. You can usually adjust your coverage with a universal policy. Universal policies also have a cash value.
If you’re going with a term policy, you’ll need to choose the length of coverage. Often you’ll find these policies are available in 10- or 20-year options, but you can sometimes find policies that cover you for 15, 25, 30, and even 40 years. If you opt for a term life policy, see if you can convert it to whole or universal life at some point and if so, will there be a fee?
Ease of Signup
At one time, life insurance was sold by agents, who helped you set up your policy and managed it for you, but now, technology allows you to get coverage without ever speaking to an agent.
If you prefer the personal touch, look for that, but in many cases, signup will be quicker and easier with platforms that don’t require you to go through an agent.
If something happens to you, will your survivors be able to easily file a claim? Make sure the policy you’re sold is with a reputable insurer who will be around in 10 or 20 years. Many newer platforms have their policies underwritten by third-party insurers, so check to see exactly which company is handling payout on claims.
Medical Exam Requirements
Many insurers still require a blood test, as well as measurements like your weight, height, and blood pressure, to issue a policy. But try to find a policy with a company that uses the information you provide to approve your policy rather than an in-person physical exam.
What Does Life Insurance Cover?
A life insurance policy is designed to pay a death benefit to your survivors. Here are some incidents that will be covered, although you should carefully check your policy documents to make sure.
Death by Natural Causes
Illnesses, whether sudden or long-term, that lead to a person’s death are covered by life insurance. A person doesn’t have to be at a certain age to be covered.
If a person’s death is due to an incident like an auto accident or fall, life insurance policies will pay out a benefit to the beneficiaries.
Homicides and Some Suicides
It’s important to check the wording in your policy on this. Many life insurance policies have a suicide clause period. That often means suicides committed during the first year or two of the policy won’t be covered.
What Doesn’t Life Insurance Cover?
Life insurance scams are nothing new. For that reason, life insurance policies typically are written to keep them from having to pay out if fraud is present. Here are some instances where life insurance usually won’t pay.
Suspected Homicide Committed by the Beneficiary
If the beneficiary is suspected of deliberately causing the deceased person’s death, the insurer likely will decline to pay
Death During Criminal Activity
If you die during the course of committing some sort of crime, your life insurer likely will decline to pay the benefit.
Policyholders need to check their life insurance policy before engaging in high-risk activities like skydiving. There may be wording indicating that coverage isn’t provided if it leads to your death.