Best Life Insurance Companies in Colorado

Life insurance ensures that your family will be financially supported when you die. Most life insurance companies in Colorado provide differing prices, so choosing the insurance that meets your needs may be difficult. MoneyGeek examined prices from several life insurance companies in Colorado depending on gender, age and smoking history to help you find the most affordable option. MoneyGeek has also picked the best life insurance companies in Colorado to assist you in finding the best insurance coverage.

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Best Cheap Life Insurance in Colorado

If you select a life insurance policy with lower coverage amounts, you will pay less in monthly premiums. According to MoneyGeek research, Transamerica provides the most affordable quotes for both men and women in Colorado for plans up to $250,000 in coverage. Men get an average quote of $9.68 per month, while women pay $8.60 per month, on average.

While a lower coverage insurance policy may be less expensive, it may not cover all expenses incurred after death. Also, if your family members are young, you may require enough coverage to pay their living expenses or to pay up any outstanding bills or liabilities. Before purchasing a life insurance policy, you should assess your financial circumstances and determine the appropriate level of coverage for your needs.

To cover required expenses after death, MoneyGeek proposes an average life insurance coverage of $919,000 in Colorado, regardless of gender. This advice is based on the cost of living in the state, average income, personal debt, age and other key factors.

For MoneyGeek-recommended coverage of $919,000, Transamerica offers the cheapest average quote of $22.34 a month for men. For women, Nationwide offers the cheapest average quote of $19.16 a month.

Best Cheap Life Insurance Companies in Colorado: Males

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  • Company
    $250K Coverage
    Suggested Coverage: $919k
  • Transamerica
    $9.68
    $22.34
  • Nationwide
    $11.81
    $23.10
  • MassMutual
    $11.10
    $23.32
  • Mutual of Omaha
    $12.04
    $25.13
  • AAA
    $13.42
    $29.04
  • State Farm
    $17.39
    $39.63
  • Prudential
    $14.46
    $49.01
  • Progressive Life
    $16.10
    $65.40
Best Cheap Life Insurance Companies in Colorado: Females

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  • Company
    $250K Coverage
    Suggested Coverage: $919k
  • Nationwide
    $11.59
    $19.16
  • Transamerica
    $8.60
    $19.18
  • MassMutual
    $10.45
    $20.12
  • Mutual of Omaha
    $11.83
    $20.39
  • AAA
    $11.88
    $26.66
  • Prudential
    $21.08
    $35.99
  • State Farm
    $18.27
    $38.90
  • Progressive Life
    $15.01
    $50.11

Life insurance policy costs were determined by gathering 10-year term quotes from major life insurance companies in Colorado using average buyer profile statistics in Colorado, including average age of 30, average weight of 173 pounds for males and 137 pounds for females, and an average coverage need of $919,000.

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

Several factors, including gender, influence the cost of an insurance policy in Colorado. Because women have a longer life expectancy than men, they often pay lower premiums.

For a $250,000 policy, however, female policyholders pay about $15.05 per month and men pay roughly $15.01 per month. This difference is highly negligible and may make it appear like women pay more than men in Colorado.

However, the difference becomes significant when it comes to choosing policies with higher coverages. For instance, a policy with MoneyGeek's recommended coverage of $919,000 costs around $34.80 for women and $41.36 for men per month. This indicates a difference of around $6.56 on average.

Also note that choosing this coverage results in an increase of around $19.75 for women and $26.35 for men per month on average.

Most Popular Life Insurance Companies in Colorado

To ensure your insurance claim will be paid fairly and promptly, look for a financially stable insurance provider. If you want to know how financially sound a company is, its market share is a good place to look at.

The market share of a life insurance business in Colorado is calculated by dividing the total amount of premiums written by the company by the total number of policies sold in the state. It simply indicates how many life insurance policies the company has issued in the state or what percentage of total policies the company has in the state.

The seven best life insurance companies in Colorado control 38.16% of the market. Northwestern Mutual is the state's most financially sound insurer, accounting for 13.25% of the state’s market share.

Most Popular Life Insurance Companies in Colorado

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  • Company
    Market Share
  • Northwestern Mutual
    13.25%
  • Lincoln Financial
    5.10%
  • New York Life
    4.68%
  • State Farm
    4.5%
  • MassMutual
    3.61%
  • Securian
    3.58%
  • Prudential Financial Inc.
    3.44%

Life insurance market share data for Colorado is based off of 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 Colorado?

Buying life insurance when you are young can help you save a lot of money. Most insurance firms feel that younger buyers are at a lower risk of dying than older individuals. Because age affects the cost of life insurance, Colorado's young policyholders may benefit from lower premiums.

While comparing life insurance quotes in Colorado for young people, MoneyGeek found that the following companies offer the lowest rates on average:

  • Transamerica: $15.51 per month
  • Mutual of Omaha: $17.21 per month
Best Life Insurance Companies for Young People in Colorado

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  • Company
    Monthly Cost
  • Transamerica
    $15.51
  • Mutual of Omaha
    $17.21
  • MassMutual
    $17.39
  • AAA
    $18.74
  • Nationwide
    $21.00
  • State Farm
    $21.13
  • Prudential
    $21.23
  • Progressive Life
    $25.51

Rates were determined by analyzing quotes for a 25-year-old male non-smoker in Colorado who is 5 ft 10 inches and 147 pounds that purchases a 20-year term contract at the average coverage need of $320,000. 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 Colorado?

In Colorado, life insurance companies provide lower rates to younger people, but senior residents usually pay higher monthly premiums for comparable life insurance plans. The reason for this is that insurers view the elderly as high-risk buyers. You should be aware that your life insurance rates will rise as you get older.

Seniors usually have grown children and do not need to support them any longer. As a result, they seek less insurance coverage and count on their life insurance policy to pay burial costs and other unpaid commitments while they are gone. If you're a senior living in Colorado, you might be able to find a low-cost insurance policy if you search around.

For seniors, MoneyGeek analyzed policies that provide $95,000 in coverage because elderly people often seek less coverage. On average, the following companies provide the best rates for seniors in the state:

  • MassMutual: $38.37 per month
  • State Farm: $41.59 per month
Best Life Insurance Companies for Seniors in Colorado

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  • Company
    Monthly Cost
  • MassMutual
    $38.37
  • State Farm
    $41.59
  • Mutual of Omaha
    $43.47
  • Nationwide
    $44.19
  • AAA
    $45.50
  • Progressive Life
    $69.17
  • Prudential
    $79.39
  • Transamerica
    $90.70

Rates were determined by analyzing quotes for a 60-year-old male non-smoker in Colorado who is 5 ft 10 inches and 173 pounds that purchases a 10-year term contract at the average coverage need of $95,000.

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

In Colorado, smokers typically pay more for insurance. Most insurers quote them rates that are twice as expensive as the state average. Furthermore, life insurance premiums for seniors who smoke may skyrocket because of the enormous health risks they pose. However, you can look around and compare insurance costs from other companies to find a low-cost quote.

On average, for Colorado’s smokers, the following two companies provide the cheapest life insurance quotes:

  • Transamerica: $123.50 per month
  • Nationwide: $146.74 per month
Best Life Insurance Companies for Smokers in Colorado

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  • Company
    Monthly Cost
  • Transamerica
    $123.50
  • Nationwide
    $146.74
  • MassMutual
    $148.05
  • State Farm
    $148.44
  • Mutual of Omaha
    $162.65
  • AAA
    $171.60
  • Prudential
    $186.19
  • Progressive Life
    $230.38

Rates were determined by analyzing quotes for a 30-year-old male smoker in Colorado who is 5 ft 10 inches and 173 pounds that purchases a 20-year term contract at the average coverage need of $919,000. 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.

Colorado Life Insurance Laws You Should Know

It is necessary to compare quotes from as many providers as possible while looking for the best life insurance companies in Colorado. But, before you make a decision, you should become acquainted with the legislation specified in Colorado Statutes Title 10.

We've created a list of key phrases from the Colorado life insurance glossary:

  • Free look period: The period between purchasing and committing to insurance coverage is known as the free look period. Although there is no free look period for a life insurance policy in Colorado, many insurers provide their policyholders with a grace period of between seven to thirty days.

  • Grace period: For Colorado's residents, the law mandates a 31-day grace period on their insurance policies. This means that their insurance company cannot cancel the coverage during this period owing to failed or missed payments.

  • Time period for claim settlement: Colorado’s life insurance policyholders have the advantage because the insurance legislation requires the insurance company to pay interest on claims starting from the day of death.

  • Incontestability and contestable period: When a life insurance policy in Colorado has been in force for at least two years from the date of issue, it becomes incontestable.

Methodology

MoneyGeek evaluated a number of factors before recommending $919,000 in life insurance coverage for Coloradoans. We examined data from the U.S. Bureau of Economics as well as the state's average mortgage debt, personal debt and age to evaluate the proposed coverage. However, depending on your financial situation, you may require more or less coverage than we recommended and your quote may differ from the quotes we researched.

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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