Best Life Insurance Companies in New Mexico

With a life insurance policy, your beneficiaries are financially taken care of after your death. Since several life insurance companies in New Mexico provide life insurance, you can shop around to find an affordable policy that meets your requirements. MoneyGeek compared policies from several insurance companies to show average rates for life insurance quotes in New Mexico based on factors like age, gender and health. We also listed the best life insurance providers in New Mexico based on different categories.

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Best Cheap Life Insurance in New Mexico

When looking for life insurance, it is important to remember that the lower your coverage amount is, the cheaper your premiums will be. For example, MoneyGeek found that for a $250,000 policy, the most affordable options in New Mexico are MassMutual and Transamerica. MassMutual costs an average of $11.10 per month for men, while Transamerica costs $10.45 for women.

However, the cheapest policy might not be the right option for everyone. For example, people with young families would need more coverage to cover ongoing costs like lost wages after death. So, to financially protect your loved ones after your passing, consider both your short and long-term needs.

According to the average income and cost of living in New Mexico, MoneyGeek determined that the recommended coverage amount of a life insurance policy for an average person is $612,000 to sufficiently cover expenses after death.

The cheapest life insurance company in New Mexico for a $612,000 policy is Nationwide. For men, the average monthly cost of a Nationwide policy is $17.59, while the average monthly cost of a Nationwide policy for women is $14.96.

Best Cheap Life Insurance Companies in New Mexico: Males

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  • Company
    $250K Coverage
    Suggested Coverage: $612k
  • Nationwide
    $11.81
    $17.59
  • MassMutual
    $11.10
    $17.71
  • Mutual of Omaha
    $12.04
    $18.53
  • Transamerica
    $11.40
    $19.95
  • AAA
    $16.50
    $29.57
  • State Farm
    $20.67
    $35.40
  • Progressive Life
    $24.36
    $45.85
  • Prudential
    $29.41
    $51.55
Best Cheap Life Insurance Companies in New Mexico: Females

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  • Company
    $250K Coverage
    Suggested Coverage: $612k
  • Nationwide
    $11.59
    $14.96
  • Mutual of Omaha
    $12.04
    $15.38
  • MassMutual
    $10.45
    $15.58
  • Transamerica
    $10.32
    $16.26
  • AAA
    $11.88
    $19.54
  • State Farm
    $16.74
    $28.43
  • Progressive Life
    $15.23
    $36.45
  • Prudential
    $21.08
    $43.68

Life insurance policy costs were determined by gathering 10-year term quotes from major life insurance companies in New Mexico using average buyer profile statistics in New Mexico, including average age of 30, average weight of 187 pounds for males and 148 pounds for females, and an average coverage need of $612,000.

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

Life insurance rates in New Mexico vary significantly, with gender being a prime factor affecting the cost of a policy. Women typically have longer life expectancies, so life insurance quotes for women in New Mexico are usually cheaper than men.

For a policy of $250,000 in New Mexico, women pay an average of $15.11 per month while men pay approximately $19.43 per month.

With the coverage increased to the recommended amount for New Mexico, which is $612,000, the monthly premiums increase. For women, the average costs become $27.84 per month, an increase of $12.73. Men have to pay $15.56 more per month, bringing their average monthly fees to $34.99.

Most Popular Life Insurance Companies in New Mexico

When you choose a life insurance company, it is vital to choose one that is financially stable. This guarantees that a legitimate claim will be paid on time and without hassle. In addition, market share is a good indicator of a company’s financial stability.

Market share indicates the portion of a state’s total life insurance policies written by a particular company. It is calculated by dividing the total number of policies written by the company by the total number of all policies written in the state.

The top seven life insurance companies in New Mexico account for 36% of the market, with the most popular company being New York Life, which makes up 8.01% of the market share.

Most Popular Life Insurance Companies in New Mexico

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  • Company
    Market Share
  • New York Life
    8.01%
  • Northwestern Mutual
    6.68%
  • State Farm
    6.05%
  • Prudential Financial Inc.
    4.30%
  • MassMutual
    4.29%
  • Lincoln Financial
    3.87%
  • American National
    3.48%

Life insurance market share data for New Mexico 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 New Mexico?

Age is a critical factor that life insurance companies in New Mexico consider while calculating premiums for individual customers. The younger the customer is, the cheaper the monthly premiums are because young people have a higher life expectancy.

This makes getting life insurance at an early age a good way to save on premium costs. The life insurance companies in New Mexico offering the cheapest policies on average for young customers are:

  • MassMutual: $15.33 per month
  • AAA: $16.50 per month
Best Life Insurance Companies for Young People in New Mexico

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  • Company
    Monthly Cost
  • MassMutual
    $15.33
  • AAA
    $16.50
  • Nationwide
    $18.59
  • Transamerica
    $19.79
  • Mutual of Omaha
    $20.01
  • State Farm
    $20.49
  • Progressive Life
    $24.71
  • Prudential
    $42.73

Rates were determined by analyzing quotes for a 25-year-old male non-smoker in New Mexico who is 5 ft 10 inches and 159 pounds that purchases a 20-year term contract at the average coverage need of $230,000. 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 New Mexico?

Since the risk to insurance companies increases as a customer gets older, life insurance companies in New Mexico typically charge seniors more for life insurance. However, shopping around can still give you access to a policy at reasonable rates. For example, since seniors are less likely to need coverage for future income or to support young families, MoneyGeek calculated rates based on a policy with $100,000 in coverage.

MoneyGeek found that on average, the best life insurance companies in New Mexico for seniors are:

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

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  • Company
    Monthly Cost
  • MassMutual
    $38.37
  • Mutual of Omaha
    $43.47
  • Nationwide
    $44.19
  • State Farm
    $51.50
  • AAA
    $57.99
  • Transamerica
    $67.29
  • Progressive Life
    $69.17
  • Prudential
    $79.39

Rates were determined by analyzing quotes for a 60-year-old male non-smoker in New Mexico who is 5 ft 10 inches and 187 pounds that purchases a 10-year term contract at the average coverage need of $69,000.

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

Due to a higher potential for disease and health issues caused by smoking, people in New Mexico with a smoking habit pay more for life insurance. While life insurance companies in New Mexico consider smoking habits while calculating rates, you can compare prices to get the best rates.

On average, the most affordable life insurance companies in New Mexico for smokers are:

  • Transamerica: $84.16 per month
  • MassMutual: $100.77 per month
Best Life Insurance Companies for Smokers in New Mexico

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  • Company
    Monthly Cost
  • Transamerica
    $84.16
  • MassMutual
    $100.77
  • State Farm
    $103.52
  • Nationwide
    $105.26
  • Mutual of Omaha
    $111.17
  • Prudential
    $123.96
  • Progressive Life
    $156.51
  • AAA
    $183.74

Rates were determined by analyzing quotes for a 30-year-old male smoker in New Mexico who is 5 ft 10 inches and 187 pounds that purchases a 20-year term contract at the average coverage need of $612,000. 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.

New Mexico Life Insurance Laws You Should Know

While it is important to compare life insurance quotes from many providers in New Mexico to get the best rates, it is also crucial to understand the relevant laws concerning life insurance in the state, written in chapters 59 and 59A in the state Statutes. The state has several laws in place to help consumers and companies in matters concerning insurance.

  • The Free Look Period: This is when you can test a policy, understand the terms in more detail and decide whether you want to keep it. You can return a policy during this period for a full refund without any charges or fees. New Mexico does not have a state-mandated free look period, but most providers offer this to customers anyway.
  • Grace Period: Most insurance carriers in New Mexico provide a grace period of up to 31 days in their terms. During this period, the company must pay a claim in case of death, and the policy can be brought back to good standing by clearing premium payment arrears, if any.
  • Allowable Time for Settling Claims: Once life insurance companies in New Mexico receive all relevant documents for satisfactory proof of death, they are required to settle the payment within a maximum of 60 days or risk penalties and fines.
  • Contestable Period: After a claim is filed, insurance companies can review records and documents for inconsistencies. Except for non-payment of premiums, a life insurance policy in New Mexico becomes incontestable after a maximum period of two years.
  • Guaranteed Death Benefit: Consumers are protected if their insurance companies go bankrupt or financially insolvent through the New Mexico Life Insurance Guarantee Association.

Methodology

MoneyGeek considered various factors to determine the recommended life insurance policy coverage amount of $612,000 for residents of New Mexico. Using per capita income data from the U.S. Bureau of Economics, average age, average personal debt and average mortgage debt to determine the amount of recommended coverage for the state. Remember that every person’s situation is unique and coverage requirements would vary based on individual 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
  • New Mexico Legislature. "SB0367." Accessed August 6, 2021.
  • New Mexico Life Insurance Guarantee Association. "FAQ." Accessed August 6, 2021.