Best Life Insurance Companies in Illinois

Life insurance can help to take the financial burden off those you leave behind when you die. If you are looking for life insurance, comparing quotes can help you find the cheapest and best life insurance companies in Illinois. Many variables affect life insurance quotes in Illinois, so MoneyGeek has analyzed the best insurance companies based on gender, age and other rating factors. Our analysis compared rates from different insurers in Illinois to help you find the most affordable life insurance companies for your needs.

tip icon

Best Cheap Life Insurance in Illinois

When purchasing life insurance in Illinois, there are different coverage levels to choose from. Cheaper policies will typically have lower coverage amounts compared to those that cost more. While you may want an affordable policy in terms of premiums, it is also vital to ensure that the coverage amount you purchase is enough to cover the funeral and ongoing expenses that your beneficiaries will incur once you pass away.

The cheapest life insurance company in Illinois for a policy with $250,000 in coverage is MassMutual, with a monthly cost of $11.10 for men and Transamerica costing $9.29 monthly for women. However, $250,000 in coverage may not be sufficient for most people.

Based on state-specific factors such as the cost of living in Illinois, average incomes and average personal debt, MoneyGeek recommends a life insurance coverage of $769,000 for people in Illinois. For the recommended coverage amount, the most affordable company in Illinois is Nationwide, costing $20.34 monthly for men and $15.35 per month for women.

Best Cheap Life Insurance Companies in Illinois: Males

Scroll for more

swipe icon
  • Company
    $250K Coverage
    Suggested Coverage: $769k
  • Nationwide
    $11.81
    $20.34
  • MassMutual
    $11.10
    $20.58
  • Mutual of Omaha
    $12.04
    $21.91
  • Transamerica
    $11.40
    $24.40
  • AAA
    $16.50
    $35.64
  • State Farm
    $20.67
    $42.93
  • Prudential
    $29.41
    $52.17
  • Progressive Life
    $24.36
    $56.81
Best Cheap Life Insurance Companies in Illinois: Females

Scroll for more

swipe icon
  • Company
    $250K Coverage
    Suggested Coverage: $769k
  • Nationwide
    $10.43
    $15.35
  • MassMutual
    $9.40
    $16.11
  • Mutual of Omaha
    $10.84
    $16.15
  • Transamerica
    $9.29
    $17.79
  • AAA
    $13.07
    $27.92
  • State Farm
    $16.64
    $30.74
  • Prudential
    $18.97
    $33.68
  • Progressive Life
    $13.71
    $40.20

Life insurance policy costs were determined by gathering 10-year term quotes from major life insurance companies in Illinois using average buyer profile statistics in Illinois, including average age of 30, average weight of 187 pounds for males and 148 pounds for females, and an average coverage need of $769,000.

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

The cost of life insurance in Illinois varies depending on whether the policyholder is male or female. Women are known to have a longer lifespan than men, so they pay lower rates for life insurance. On average, a woman in Illinois will pay $14.21 monthly for a policy with $250,000 in coverage, while a man will pay $19.43 monthly for similar coverage.

For the recommended coverage of $769,000, women in Illinois will pay an average of $29.66 monthly while men will pay $41.21 per month. However, the monthly premiums increase by $15.45 for women and $21.78 for men to get the recommended coverage of $769,000.

Most Popular Life Insurance Companies in Illinois

The seven most popular insurers in the state make up 41.66% of the market share in Illinois. Northwestern Mutual is the most popular company for life insurance in Illinois and commands 13.66% of the market share in the state.

Insurers with more extensive market shares tend to have better financial stability, which means they are more reliable. Therefore, when choosing the best life insurance company in Illinois for your needs, apart from the cost, it is also prudent to look at the insurer’s market share.

Most Popular Life Insurance Companies in Illinois

Scroll for more

swipe icon
  • Company
    Market Share
  • Northwestern Mutual
    13.66%
  • Lincoln Financial
    5.77%
  • State Farm
    5.26%
  • Prudential Financial Inc.
    5.06%
  • COUNTRY Financial
    4.13%
  • MassMutual
    3.94%
  • New York Life
    3.84%

Life insurance market share data for Illinois 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 Illinois?

In Illinois, younger people pay lower rates for life insurance. The younger you are, the higher your life expectancy and, consequently, the lower the risk is to the insurer. Therefore, one of the best strategies for saving on the cost of life insurance is buying a policy at a young age.

For young people in Illinois, the most affordable life insurance companies are:

  • Transamerica: $15.11 per month
  • Mutual of Omaha: $16.84 per month
Best Life Insurance Companies for Young People in Illinois

Scroll for more

swipe icon
  • Company
    Monthly Cost
  • Transamerica
    $15.11
  • Mutual of Omaha
    $16.84
  • MassMutual
    $17.05
  • AAA
    $18.74
  • Prudential
    $20.61
  • State Farm
    $20.66
  • Nationwide
    $21.00
  • Progressive Life
    $24.19

Rates were determined by analyzing quotes for a 25-year-old male non-smoker in Illinois who is 5 ft 10 inches and 159 pounds that purchases a 20-year term contract at the average coverage need of $310,000. 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 Illinois?

If you are a senior resident of Illinois, the cost of life insurance will be higher compared to rates for younger people. As you age, your life expectancy reduces, and the insurer takes on a higher risk. However, there are still affordable policies for seniors in Illinois.

The most affordable life insurance companies in Illinois for seniors are:

  • MassMutual: $38.37 per month
  • Mutual of Omaha: $43.47 per month

Since seniors typically do not have younger families to take care of, they do not need as much coverage as younger people. This is why the policy used for seniors has a $100,000 coverage, which is lower than the coverage amounts suggested for younger people.

Best Life Insurance Companies for Seniors in Illinois

Scroll for more

swipe icon
  • Company
    Monthly Cost
  • MassMutual
    $38.37
  • Mutual of Omaha
    $43.47
  • Nationwide
    $44.19
  • State Farm
    $51.50
  • AAA
    $57.99
  • Progressive Life
    $69.17
  • Prudential
    $79.39
  • Transamerica
    $89.80

Rates were determined by analyzing quotes for a 60-year-old male non-smoker in Illinois who is 5 ft 10 inches and 187 pounds that purchases a 10-year term contract at the average coverage need of $94,000.

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

Smoking can be a precursor to ill health; therefore, life insurance rates are usually higher for smokers. If you are a smoker in Illinois, you can still find affordable life insurance options, but you will pay more premiums than someone who does not smoke.

For smokers in Illinois, the least expensive insurance companies are:

  • Transamerica: $105.09 per month
  • MassMutual: $124.95 per month
Best Life Insurance Companies for Smokers in Illinois

Scroll for more

swipe icon
  • Company
    Monthly Cost
  • Transamerica
    $105.09
  • MassMutual
    $124.95
  • State Farm
    $128.51
  • Nationwide
    $129.94
  • Mutual of Omaha
    $138.30
  • Prudential
    $156.08
  • Progressive Life
    $199.75
  • AAA
    $228.36

Rates were determined by analyzing quotes for a 30-year-old male smoker in Illinois who is 5 ft 10 inches and 187 pounds that purchases a 20-year term contract at the average coverage need of $769,000. 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.

Illinois Life Insurance Laws You Should Know

To protect consumers and insurance companies, Illinois has laws that govern life insurance in the state. Life insurance in Illinois is regulated under Title 215 in the state of Illinois statutes. Before you purchase life insurance in Illinois, there are several important regulations you need to be aware of:

  • Grace period: If you miss a monthly payment on your life insurance policy. You have 30 days within which you can make the payment. During this 30-day grace period, the state of Illinois prohibits the insurer from canceling your policy.
  • Free Look period: Once you purchase a life insurance policy, under Illinois insurance laws, you have the option of canceling the policy within 10 days. If you cancel your policy within this free look period, the insurer will refund you in full with no extra fees charged.
  • Claim settlement period: In Illinois, if the insurer does not pay the claim on a life insurance policy within 30 days, they will be required to pay interest on the policy. Interest on the life insurance policy will start to accrue after 30 days of filing a claim.
  • Contestability period: In Illinois, the insurance company cannot contest a claim for death benefits if the policy has been in place for two years or more. The contestable period for life insurance policies in Illinois is two years from the policy’s issue date. In cases of fraud, misstatements or omissions, the insurer may adjust or rescind the policy.

Methodology

To determine Illinois’ recommended life insurance coverage amount, MoneyGeek used per capita income from the U.S. Bureau of Economics, average mortgage debt, average personal debt, and average age. You may need more or less coverage, depending on your circumstances.

About the Author


expert-profile

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.


sources