Best Life Insurance Companies in Minnesota

With a life insurance policy, you can help your family members be financially secure. With several life insurance companies in Minnesota offering competitive rates, you may find it difficult to choose the right insurance policy for your needs. MoneyGeek analyzed life insurance premiums in the state based on gender, age and smoking history. Our rating on the best life insurance companies in Minnesota will help you choose the right insurance policy. MoneyGeek also evaluated the life insurance quotes in Minnesota to help you find the most affordable plan.

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Best Cheap Life Insurance in Minnesota

You will pay smaller monthly premiums if you buy a life insurance policy with less coverage. According to a study by MoneyGeek, MassMutual offers the most affordable quotes for men and women for policies that cover $250,000 in Minnesota. The company’s average quotes of $11.10 a month for men and $9.41 a month for women are the lowest in the state.

Minimum coverage policies may be less expensive, but they may not cover all of the expenses incurred after death. Furthermore, if the policyholder has young dependent family members, they may need enough coverage to pay for their living expenses or any existing debts and bills. Before you buy a life insurance policy, you should evaluate your financial circumstances and decide which coverage is best for you.

MoneyGeek suggests an average life insurance premium of $763,000 for residents of Minnesota to cover essential and unavoidable expenses after death based on the state's cost of living, average income, average personal debt, age and other key factors.

For MoneyGeek’s recommended coverage of $763,000, Nationwide offers the cheapest average quotes of $20.34 a month for men and $15.35 a month for women.

Best Cheap Life Insurance Companies in Minnesota: Males

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  • Company
    $250K Coverage
    Suggested Coverage: $763k
  • Nationwide
    $11.81
    $20.34
  • MassMutual
    $11.10
    $20.47
  • Mutual of Omaha
    $12.04
    $21.78
  • Transamerica
    $11.40
    $24.23
  • AAA
    $16.50
    $35.64
  • State Farm
    $18.72
    $37.98
  • Prudential
    $29.41
    $41.38
  • Progressive Life
    $16.10
    $56.81
Best Cheap Life Insurance Companies in Minnesota: Females

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  • Company
    $250K Coverage
    Suggested Coverage: $763k
  • Nationwide
    $10.43
    $15.35
  • MassMutual
    $9.40
    $16.03
  • Mutual of Omaha
    $10.84
    $16.06
  • Transamerica
    $10.00
    $19.59
  • State Farm
    $19.77
    $35.97
  • AAA
    $16.63
    $39.20
  • Progressive Life
    $18.41
    $40.20
  • Prudential
    $18.97
    $54.91

Life insurance policy costs were determined by gathering 10-year term quotes from major life insurance companies in Minnesota using average buyer profile statistics in Minnesota, including average age of 30, average weight of 191 pounds for males and 152 pounds for females, and an average coverage need of $763,000.

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

Life insurance quotes in Minnesota are affected by various factors, including gender. Women frequently pay lower insurance premiums than men because they have longer lifespans.

In Minnesota, female policyholders pay around $15.88 a month for coverage of $250,000. In contrast, for a comparable life insurance policy, men pay an average of $18.06 per month, which is a difference of $2.18.

However, if you choose MoneyGeek's recommended $763,000 national coverage, your monthly premiums are likely to increase. Women may see an increase of around $19.21 from what they pay for a $250,000 coverage, costing them an average of $35.09 per month. The average monthly fee for men is $38.75, which is around $20.69 more than the average quote for a $250,000 policy.

Most Popular Life Insurance Companies in Minnesota

Always look for an insurance provider that is financially stable so you know they'll pay your insurance promptly and fairly. It is critical to evaluate the market share of the companies you are considering before choosing an insurance provider. A company's market share in a state gives you a good idea of its financial strength.

The market share of a life insurance company in Minnesota is calculated by dividing the total amount of premiums written by the company by the total number of policies sold in the state.

The top seven life insurance companies in Minnesota account for 48.58% of the market. With a market share of 12%, Lincoln Financial is the state's most financially sound insurer.

Most Popular Life Insurance Companies in Minnesota

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  • Company
    Market Share
  • Lincoln Financial
    12.00%
  • Northwestern Mutual
    8.43%
  • John Hancock
    8.06%
  • AXA Equitable
    5.97%
  • Pacific Life
    5.57%
  • AIG
    5.46%
  • New York Life
    3.09%

Life insurance market share data for Minnesota 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 Minnesota?

Buying life insurance when you are young can help you save money. Younger individuals, according to most insurance companies, are at a lower risk of death than older buyers. Because age affects the cost of life insurance, young policyholders may benefit from lower life insurance quotes in Minnesota.

On average, for young people in Minnesota, the following companies are the most affordable:

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

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  • 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 Minnesota who is 5 ft 10 inches and 163 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 Minnesota?

Life insurance companies in Minnesota provide cheaper rates to young individuals, while elderly people often receive a higher monthly premium on similar life insurance plans in the state. This is because insurers believe that the seniors are riskier to insure. You will see an increase in life insurance costs as you grow older.

Seniors usually have grown kids that don’t require financial support. As such, they need less insurance coverage and use their life insurance policy to cover burial expenses and any debts or liabilities. You may still get a low-cost insurance policy if you're a senior and live in Minnesota.

Since seniors are usually looking for less coverage, MoneyGeek looked at policies that cover $92,000. On average, the following companies offer the lowest rates for seniors in the state:

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

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  • Company
    Monthly Cost
  • MassMutual
    $38.37
  • Mutual of Omaha
    $43.47
  • Nationwide
    $44.19
  • State Farm
    $46.20
  • AAA
    $57.99
  • Progressive Life
    $69.17
  • Prudential
    $79.39
  • Transamerica
    $88.00

Rates were determined by analyzing quotes for a 60-year-old male non-smoker in Minnesota who is 5 ft 10 inches and 191 pounds that purchases a 10-year term contract at the average coverage need of $92,000.

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

Smokers typically pay more for insurance in Minnesota. Most insurers quote them rates that are twice as high as the state average. Furthermore, because of the health risks smoking poses, life insurance premiums for seniors who smoke may soar. However, you can shop around and compare insurance costs from various companies to get a low-cost plan.

On average, the following two companies in Minnesota give smokers the cheapest life insurance quotes:

  • Transamerica: $104.29 per month
  • Mass Mutual: $124.02 per month
Best Life Insurance Companies for Smokers in Minnesota

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  • Company
    Monthly Cost
  • Transamerica
    $104.29
  • MassMutual
    $124.02
  • State Farm
    $127.56
  • Nationwide
    $129.94
  • Mutual of Omaha
    $137.27
  • Prudential
    $154.07
  • Progressive Life
    $199.75
  • AAA
    $228.36

Rates were determined by analyzing quotes for a 30-year-old male smoker in Minnesota who is 5 ft 10 inches and 191 pounds that purchases a 20-year term contract at the average coverage need of $763,000. 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.

Minnesota Life Insurance Laws You Should Know

Comparing quotes will make it easy for you to find the cheapest and best life insurance companies in Minnesota. Additionally, you need to get acquainted with the laws mentioned in Minnesota Statutes Insurance Chapter 59A through 79A.

The following are a few of the important terminologies to look for in the Minnesota life insurance glossary:

  • Free look period: The period between purchasing and committing to an insurance policy is usually referred to as the free look period. For Minnesotans, there is no free look period for a life insurance policy.

  • Grace period: Minnesota’s policyholders, like those in the majority of other U.S. states, get a grace period of 30 days to pay their premiums before an insurer can cancel their policy.

  • Time period for claim settlement: Minnesota's residents are at advantage as the insurance law mandates insurance companies pay interest on claims from the date of death. The rate of interest rises if the insurance company fails to make the payment within 60 days of receiving the proof of death.

  • Incontestability and contestable period: A life insurance policy in Minnesota becomes incontestable when it has been in force for at least two years from the date of issue.

Methodology

MoneyGeek analyzed a variety of factors before proposing $763,000 in life insurance coverage for Minnesotans. We examined figures 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 advised and your quote may vary.

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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