Best Life Insurance Companies in North Carolina

Buying life insurance can give your loved ones financial security after you pass away. Since there are several life insurance companies in North Carolina, you can find an affordable policy that covers your needs by shopping around. MoneyGeek has compared policies from different companies to show the average rates for life insurance quotes in North Carolina based on age, gender and health history. We also listed the best life insurance companies in North Carolina so that you can understand what you need.

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Best Cheap Life Insurance in North Carolina

With life insurance, a lower coverage amount means you will have lower monthly premium costs. For example, for a $250,000 policy in North Carolina, MoneyGeek found that the two cheapest companies are MassMutual and Transamerica. For men, the average monthly cost of a MassMutual policy is $9.99, while for women, a Transamerica policy costs an average of $8.60 per month.

However, choosing a lower coverage amount might not be the best choice for everyone. For example, people with young families would need to cover ongoing expenses after death, such as lost wages and funeral costs. Therefore, consider whether your coverage amount will be sufficient for your family’s needs.

Based on average income and the cost of living in North Carolina, MoneyGeek determined that, for the average person, a life insurance policy with $649,000 worth of coverage should be adequate to cover ongoing expenses after death.

For a policy with the recommended coverage of $649,000, the life insurance companies in North Carolina that are the most affordable are MassMutual and Transamerica. For men, MassMutual policies come at an average monthly cost of $16.55. The best option for women is Transamerica, with an average monthly cost of $14.30.

Best Cheap Life Insurance Companies in North Carolina: Males

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  • Company
    $250K Coverage
    Suggested Coverage: $649k
  • MassMutual
    $9.99
    $16.55
  • Nationwide
    $10.63
    $16.66
  • Mutual of Omaha
    $11.03
    $17.40
  • Transamerica
    $13.93
    $26.43
  • State Farm
    $18.80
    $33.46
  • AAA
    $19.21
    $40.79
  • Progressive Life
    $22.32
    $44.59
  • Prudential
    $26.47
    $51.54
Best Cheap Life Insurance Companies in North Carolina: Females

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  • Company
    $250K Coverage
    Suggested Coverage: $649k
  • Transamerica
    $8.60
    $14.30
  • Nationwide
    $11.59
    $15.66
  • Mutual of Omaha
    $12.26
    $15.98
  • MassMutual
    $10.45
    $16.13
  • AAA
    $11.88
    $20.72
  • State Farm
    $18.72
    $30.36
  • Progressive Life
    $15.44
    $40.50
  • Prudential
    $21.49
    $49.27

Life insurance policy costs were determined by gathering 10-year term quotes from major life insurance companies in North Carolina using average buyer profile statistics in North Carolina, including average age of 31, average weight of 197 pounds for males and 156 pounds for females, and an average coverage need of $649,000.

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

Life insurance rates in North Carolina can differ significantly, and one factor that heavily affects policy costs is gender. Women have longer life expectancies, so life insurance quotes in North Carolina are usually less expensive for female customers.

For a $250,000 policy on average, women pay roughly $15.34 per month while men spend about $18.81 per month on life insurance.

When the coverage is increased to the recommended amount of $649,000, the premiums increase as well. Women usually pay $14.39 more for this coverage amount as their monthly premiums cost $29.73 on average. For men, the average monthly premium is $36.70, a $17.89 increase.

Most Popular Life Insurance Companies in North Carolina

When choosing an insurance provider, looking for a financially stable company is vital to ensure a legitimate claim is paid on time and without hassle. One great way to check financial stability is to look at market share.

Market share is calculated by dividing the total number of policies written by a particular company by the total number of all policies written in the state. Thus, it expresses the portion or percentage of the life insurance policies the company has written in the state.

The top seven life insurance providers in North Carolina account for almost 35% of the market. The insurer with the largest market share is Northwestern Mutual, with about 8.23%.

Most Popular Life Insurance Companies in North Carolina

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  • Company
    Market Share
  • Northwestern Mutual
    8.23%
  • Lincoln Financial
    6.84%
  • Southern Farm Bureau Life Insurance
    4.42%
  • Prudential Financial Inc.
    4.19%
  • MassMutual
    4.10%
  • New York Life
    3.55%
  • Transamerica
    3.53%

Life insurance market share data for North Carolina 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 North Carolina?

Among the several factors taken into account by life insurance companies in North Carolina while calculating policy costs, age is one of the most important. The younger you are, the less you will have to pay for life insurance. This means that you can save money by purchasing a policy at an early age.

On average, the life insurance companies in North Carolina offering the cheapest policies for young people are:

  • Transamerica: $12.69 per month
  • Mutual of Omaha: $14.62 per month
Best Life Insurance Companies for Young People in North Carolina

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  • Company
    Monthly Cost
  • Transamerica
    $12.69
  • Mutual of Omaha
    $14.62
  • MassMutual
    $15.01
  • AAA
    $16.50
  • Nationwide
    $18.59
  • State Farm
    $20.89
  • Progressive Life
    $21.53
  • Prudential
    $31.07

Rates were determined by analyzing quotes for a 25-year-old male non-smoker in North Carolina who is 5 ft 10 inches and 167 pounds that purchases a 20-year term contract at the average coverage need of $250,000. 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 North Carolina?

Life insurance companies in North Carolina typically charge higher rates for seniors as their advanced age poses more risk to insure. However, it is possible to find a policy with reasonable rates. Since seniors do not require future income coverage or support for younger families, MoneyGeek calculated rates based on a $100,000 policy.

On average, the best life insurance companies in North Carolina for seniors are:

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

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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
  • Transamerica
    $72.69
  • Prudential
    $79.39

Rates were determined by analyzing quotes for a 60-year-old male non-smoker in North Carolina who is 5 ft 10 inches and 197 pounds that purchases a 10-year term contract at the average coverage need of $75,000.

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

Apart from age and gender, smoking habits are another factor considered by life insurance companies in North Carolina because it is an indicator of health. Smokers have higher health risks and therefore warrant higher life insurance premiums. Compare prices to get the best rates.

If you are a smoker, you can find the cheapest policies from these life insurance companies in North Carolina:

  • MassMutual: $110.99 per month
  • State Farm: $112.27 per month
Best Life Insurance Companies for Smokers in North Carolina

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  • Company
    Monthly Cost
  • MassMutual
    $110.99
  • State Farm
    $112.27
  • Nationwide
    $118.61
  • Mutual of Omaha
    $119.79
  • Transamerica
    $124.25
  • Progressive Life
    $173.39
  • Prudential
    $175.31
  • AAA
    $208.34

Rates were determined by analyzing quotes for a 31-year-old male smoker in North Carolina who is 5 ft 10 inches and 197 pounds that purchases a 20-year term contract at the average coverage need of $649,000. 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.

North Carolina Life Insurance Laws You Should Know

It can be helpful to understand some of the laws about insurance in North Carolina, outlined in Chapter 58 of the State Statutes, when looking for a life insurance policy. These laws are meant to help consumers in matters relating to insurance.

  • The Free Look Period: This period gives you a chance to better understand the terms of your policy and decide if it is right for you. During this period, you can return your policy and receive a full refund. The free look period in North Carolina is 10 days for a new policy and 20 days to replace your policy.
  • Grace Period: According to state regulations in North Carolina, customers get a grace period of 30 days during which they can complete missed payments and prevent lapsed policies. The provider has to honor the policy during this period and may not cancel the policy.
  • Allowable Time for Claim Settlement: After the insurance provider receives satisfactory proof of death, it has 30 days to pay the claim according to the policy terms. After this time, the payment amount starts to accrue interest.
  • Contestable Period: Life insurance policies in North Carolina become incontestable after two years, except for nonpayment of premiums. If a death occurs within two years of taking out the policy, insurance companies can assess the validity of a claim to find inconsistencies and inaccuracies.
  • Guaranteed Death Benefit: If an insurance company goes out of business or bankrupt, policyholders and beneficiaries are protected by the North Carolina Life and Health Insurance Guarantee Association.

Methodology

MoneyGeek considered several factors while determining the recommended life insurance coverage amount of $649,000 for North Carolina. This data factored in per capita income from the U.S. Bureau of Economics, average age, average mortgage debt and average personal debt to determine the recommended coverage amount. Remember that each customer is unique and might need more or less coverage depending on their 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
  • North Carolina Department of Insurance. "FAQ." Accessed August 6, 2021.
  • North Carolina Department of Insurance. "A Consumer’s Guide to Life Insurance." Accessed August 6, 2021.
  • North Carolina Life and Health Insurance Guarantee Association. "FAQ." Accessed August 6, 2021.