Best Life Insurance Companies in Alabama

Having life insurance guarantees that your beneficiaries will receive a death benefit after you pass away. Since there are many life insurance companies in Alabama, shopping around can ensure you find an affordable policy that meets your needs. MoneyGeek compared policies from several providers to show average rates for life insurance quotes in Alabama based on gender, age and smoking history. The best life insurance companies in Alabama for different categories are also listed to help you find the right policy.

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Best Cheap Life Insurance in Alabama

When it comes to finding life insurance, know that the lower your coverage is, the more affordable your policy will be. MoneyGeek found that MassMutual is the most affordable option for a $250,000 policy, with an average monthly premium of $9.99 for men and $9.41 for women.

Keep in mind that a lower coverage policy might not be best for everyone. People with young families need policies with more coverage to cover ongoing expenses, such as lost wages. Thinking hard about the best coverage for your circumstances can help financially protect your loved ones.

Based on the cost of living and average incomes in Alabama, MoneyGeek’s study determined that the average person would need a life insurance policy worth $592,000 to adequately cover ongoing expenses after their death.

The most affordable life insurance companies in Alabama for a policy worth $592,000 are MassMutual and Nationwide. For men, MassMutual’s policies cost an average of $15.62 per month. The best option for women in Alabama based on affordability is Nationwide, costing roughly $13.46 per month.

Best Cheap Life Insurance Companies in Alabama: Males

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  • Company
    $250K Coverage
    Suggested Coverage: $592k
  • MassMutual
    $9.99
    $15.62
  • Nationwide
    $10.63
    $15.83
  • Mutual of Omaha
    $11.03
    $16.29
  • AAA
    $19.21
    $38.02
  • State Farm
    $23.10
    $38.41
  • Progressive Life
    $22.32
    $41.73
  • Prudential
    $26.47
    $60.62
Best Cheap Life Insurance Companies in Alabama: Females

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  • Company
    $250K Coverage
    Suggested Coverage: $592k
  • Nationwide
    $10.43
    $13.46
  • Mutual of Omaha
    $11.03
    $13.54
  • MassMutual
    $9.40
    $13.76
  • State Farm
    $19.97
    $29.57
  • AAA
    $16.63
    $32.31
  • Progressive Life
    $18.79
    $34.22
  • Prudential
    $19.34
    $43.81

Life insurance policy costs were determined by gathering 10-year term quotes from major life insurance companies in Alabama using average buyer profile statistics in Alabama, including average age of 31, average weight of 205 pounds for males and 163 pounds for females, and an average coverage need of $592,000.

What Is the Average Cost of Life Insurance for Companies in Alabama?

Life insurance rates in Alabama can vary greatly, and gender is a factor affecting policy costs. Because women have longer life expectancies, life insurance quotes in Alabama for females are typically less expensive than for males.

On average, females pay a monthly premium of $16.80 for a policy with $250,000 coverage. Males, in comparison, pay roughly $19.74 per month.

Increasing coverage to the recommended amount for life insurance in Alabama, which is $592,000, results in higher monthly premiums. Rates for females increase by $13.53 per month, costing an average of $30.33 per month. Males pay $17.86 more, meaning their monthly premium costs $37.60 on average.

Most Popular Life Insurance Companies in Alabama

When selecting a life insurance provider, it’s important to find a financially stable company that will be able to pay out claims when you need them. One way to assess a company’s financial stability is using its market share.

Market share refers to the number of premiums a life insurance company has written divided by the total number of policies written in the state. Essentially, it assesses what portion of the state’s life insurance policies a company has written.

The top seven life insurance companies in Alabama cover approximately 40% of the market. The most popular insurer is Alfa Life Insurance Corp with a market share of 7.92%.

Most Popular Life Insurance Companies in Alabama

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  • Company
    Market Share
  • Alfa Life Insurance Corp.
    7.92%
  • Northwestern Mutual
    7.83%
  • Globe Life Inc.
    6.22%
  • State Farm
    5.6%
  • New York Life
    5.07%
  • Protective
    4.52%
  • Lincoln Financial
    3.48%

Life insurance market share data for Alabama is based on total premiums written in the state and was sourced from 2020 S&P Global Data reports.

Which Companies Have the Best Life Insurance Rates for Young People in Alabama?

Life insurance companies in Alabama evaluate several factors when setting premiums. Your age is a primary consideration when policy rates are calculated. The younger you are when you purchase a policy, the cheaper life insurance is per month.

One of the best ways to save money is to purchase life insurance at an early age. The life insurance companies in Alabama offering the most affordable policies for young people are, on average:

  • MassMutual: $15.53 per month
  • Nationwide: $18.59 per month
Best Life Insurance Companies for Young People in Alabama

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  • Company
    Monthly Cost
  • MassMutual
    $15.53
  • Nationwide
    $18.59
  • Mutual of Omaha
    $20.33
  • AAA
    $21.56
  • Progressive Life
    $24.71
  • State Farm
    $25.92
  • Prudential
    $42.73

Rates were determined by analyzing quotes for a 25-year-old male non-smoker in Alabama who is 5 ft 10 inches and 175 pounds that purchases a 20-year term contract at the average coverage need of $235,000. We chose a 20-year term to provide a longer coverage period for a younger buyer.

Which Companies Have the Best Life Insurance Rates for Seniors in Alabama?

Life insurance companies in Alabama typically charge seniors a higher rate per month for coverage. This is because the older you are, the riskier you are to insure. However, it is still possible to find life insurance companies in Alabama that offer reasonable rates. Because seniors are less likely to need to cover future income or support young families after they pass, we calculated rates based on a policy with $100,000 in coverage.

On average, based on MoneyGeek’s study, the best life insurance companies in Alabama for seniors are:

  • MassMutual: $38.37 per month
  • Mutual of Omaha: $43.47 per month
Best Life Insurance Companies for Seniors in Alabama

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  • Company
    Monthly Cost
  • MassMutual
    $38.37
  • Mutual of Omaha
    $43.47
  • Nationwide
    $44.19
  • State Farm
    $51.50
  • Progressive Life
    $69.17
  • AAA
    $72.34
  • Prudential
    $79.39

Rates were determined by analyzing quotes for a 60-year-old male non-smoker in Alabama who is 5 ft 10 inches and 205 pounds that purchases a 10-year term contract at the average coverage need of $70,000.

Which Companies Have the Best Life Insurance Rates for Smokers in Alabama?

In addition to gender and age, another factor life insurance companies in Alabama use when calculating rates is whether or not you smoke. Smokers typically have higher life insurance premiums because they have higher health risks. Comparing prices can ensure you get the best rates.

On average, you can purchase the most affordable policies from these life insurance companies in Alabama if you’re a smoker:

  • MassMutual: $101.81 per month
  • Mutual of Omaha: $109.74 per month
Best Life Insurance Companies for Smokers in Alabama

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  • Company
    Monthly Cost
  • MassMutual
    $101.81
  • Mutual of Omaha
    $109.74
  • Nationwide
    $109.99
  • State Farm
    $131.24
  • Prudential
    $159.26
  • Progressive Life
    $160.69
  • AAA
    $192.72

Rates were determined by analyzing quotes for a 31-year-old male smoker in Alabama who is 5 ft 10 inches and 205 pounds that purchases a 20-year term contract at the average coverage need of $592,000. If you are a smoker, we suggest buying a longer-term (20-year) policy to provide longer coverage as rates for smokers increase dramatically as you age.

Alabama Life Insurance Laws You Should Know

Comparing life insurance quotes from several providers in Alabama can help you find the best rate. Additionally, you should familiarize yourself with the laws under Title 27 of the Code of Alabama. These laws were specifically designed to help consumers.

  • The “Free Look” Period: This allows you to “test drive” a policy to see how you like it before fully committing. In Alabama, you can cancel the policy if you aren’t satisfied with it and receive a full refund as long as you do so within ten days of delivery.

  • Grace Period: According to the Alabama Insurance Code, you have at least 30 days after a premium due date to settle missed payments. This guarantees that during this period, your provider cannot cancel your policy.

  • Contestable Period: After you file a claim, insurance providers can review the deceased’s medical records to ensure there are no inconsistencies or inaccuracies in the application. Life insurance policies in Alabama become incontestable, except for nonpayment of premiums, after a maximum of two years.

  • Allowable Timelines for Claims Settlement: Once life insurance companies in Alabama receive satisfactory proof of death documents, they have to settle the payment within 30 days. If they don't follow this timeframe, they will have to pay interest on any unpaid amount.

Methodology

MoneyGeek took many factors into account when determining our recommended life insurance coverage amount of $592,000 for Alabama residents. Our data factored in per capita income from the U.S. Bureau of Economics, average mortgage debt, average personal debt and average age to determine the recommended coverage for Alabama residents. Keep in mind that each buyer is unique and may need more or less coverage depending on their specific circumstances.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.


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