Shopping for affordable life insurance companies gets overwhelming fast when prices vary dramatically between companies and policy types. The most affordable life insurance policies depend on your preferred policy type, coverage level, and personal profile. We've analyzed rates from over 30 companies to help you find the best value for your situation.
Cheapest Life Insurance Companies In 2025
Updated: October 14, 2025
Advertising & Editorial Disclosure
Key Takeaways
Lincoln Financial is the cheapest term life insurance company, with rates as low as $4.70 for 18-year-olds at $100,000 coverage on a 10-year term.
Protective Insurance is the cheapest option for whole life insurance, with rates as low as $11.80 per month for 20-year-olds at $100,000 coverage.
North American offers the most affordable universal life insurance plans, with premiums as low as $6.78 for 20-year-old women and $6.93 for 20-year-old men seeking $100,000 in coverage.
Ethos is the most affordable provider for indexed universal life insurance, with rates as low as $19.80 for 20-year-old women and $23.83 for 20-year-old men at $100,000 in coverage.
Mutual of Omaha provides the cheapest guaranteed acceptance life insurance, with rates as low as $8.08 per month for $2,000 in coverage.
What is the Cheapest Life Insurance?
Cheapest For | Company | Avg. Monthly Rate | Ages Supported (Term) | Policy Options | MoneyGeek Score |
|---|---|---|---|---|---|
Term | Lincoln Financial | $38 (Term) | 18-80 | Term, IUL, No-Exam | 4.5 |
Whole | Protective Insurance | $44 (Term), $637 (Whole), $280 (Universal), $325 (IUL) | 20-80 | Term, Whole, Universal, IUL | 4.9 |
Universal | North American | $43 (Term), $656 (Whole), $275 (Universal), $319 (IUL) | 18-60 | Term, Whole, Universal, IUL | 4.6 |
IUL | Ethos | $72 (Term), $310 (IUL), $109 (Guaranteed) | 18-69 | Term, Whole, IUL, No-Exam | 4.7 |
Guaranteed Acceptance | Mutual of Omaha | $60 (Term), $81 (Guaranteed) | 18-80 | Term, Whole, Universal, IUL, No-Exam | 4.6 |
Explore our detailed sections below to find the cheapest providers and rates for the most common types of life insurance.
Cheapest Term Life Insurance: Lincoln Financial
Lincoln Financial
MoneyGeek Rating
4.5/ 5
4.9/5Affordability
3.6/5Customer Experience
4.5/5Coverage Options
Avg. Monthly Rate
$38 (Term)Policy Types
Term
Cheapest Whole Life Insurance: Protective Insurance
Protective
MoneyGeek Rating
4.9/ 5
5/5Affordability
4.8/5Customer Experience
4.4/5Coverage Options
Avg. Monthly Rate
$44 (Term), $637 (Whole), $280 (Universal), $325 (IUL)Policy Types
Term, Whole, Universal, IUL
Cheapest Universal Life Insurance: North American
North American
MoneyGeek Rating
4.6/ 5
4.8/5Affordability
4.7/5Customer Experience
3.8/5Coverage Options
Avg. Monthly Rates
$43 (Term), $656 (Whole), $275 (Universal), $319 (IUL)Policy Types
Term, Whole, Universal, IUL
Cheapest Indexed Universal Life Insurance: Ethos
Ethos
MoneyGeek Rating
4.7/ 5
4.5/5Affordability
5/5Customer Experience
5/5Coverage Options
Avg. Monthly Rates
$72 (Term), $310 (IUL), $109 (Guaranteed)Policy Types
Term, IUL, Guaranteed
Cheapest Guaranteed Life Insurance: Mutual of Omaha
Mutual of Omaha
MoneyGeek Rating
4.6/ 5
4.8/5Affordability
4.5/5Customer Experience
4.3/5Coverage Options
Avg. Monthly Rates
$60 (Term), $81 (Guaranteed)Policy Types
Term, Guaranteed
How Much Does Life Insurance Cost?
Life insurance premiums vary widely based on several factors, including age, health status, coverage amount, policy type and more. Here’s a quick look at average costs for the most popular types of life insurance and a more detailed overview on the factors that will affect your rates:
Policy Type | Avg Monthly Cost | Avg Annual Cost |
|---|---|---|
Term | $53 | $606 |
No-exam | $69 | $832 |
Whole | $667 | $8,009 |
Universal | $294 | $3,528 |
* Rates shown are estimates for life insurance policies based on our review of quotes for 40-year-old non-smoking males with average height and health. For term, estimates are based on 20-year terms. Your rates will vary depending on your unique profile and specific needs.
LIFE INSURANCE COST FACTORS
- Age. Life insurance premiums increase with age, because the risk of death rises as you get older.
- Health status. Your current health, medical history, and family health history impact your rates. Conditions like diabetes and heart disease have higher premiums and may even disqualify coverage.
- Coverage amount. Higher death benefits result in higher premiums, so a $1 million policy costs more than a $250,000 policy.
- Policy type and term length. Term life insurance costs less than permanent coverage, and shorter terms cost less than longer terms.
- Lifestyle and occupation. Risky hobbies, tobacco use, dangerous occupations, and poor driving records increase your premiums.
- Gender. Women pay less for life insurance than men, because they have longer life expectancies, though some states prohibit using gender in pricing.
How to Get the Most Affordable Insurance Rates
Life insurance premiums don't have to break your budget. With smart research and planning, you can secure substantial savings. As we’ve shared in this guide, there are a number of cheap life insurance policies available. Here's how to save even more:
- Opt for term life insurance. Term life insurance costs less than whole or universal life policies because it provides a death benefit only for a specified term and doesn't build cash value.
Buy early. Your age determines your premium rates. Younger applicants get cheaper rates because they present less risk to insurers. - Lead a healthy lifestyle. Health directly affects life insurance premiums. Smoking, excessive drinking, high BMI and pre-existing medical conditions increase your costs. Healthy habits lead to cheaper rates.
- Ladder your policies. Laddering involves buying multiple term life policies with different lengths instead of one large policy. For instance, if you need more coverage now but less in the future, buy one 10-year policy and another 20-year plan instead of a single 30-year policy. When the shorter-term policy ends, you're left with less coverage, which matches your anticipated needs and lowers overall costs.
- Choose cost-effective payment schedules. Pay annually instead of monthly to typically save 3% to 8% on premiums, which adds up to hundreds of dollars in savings over your entire policy term.
- Shop around. Prices vary between insurers. Compare rates from multiple insurers using an online comparison tool to find cheaper life insurance quotes.
- Regularly review your policy. Life changes like quitting smoking or paying off a mortgage qualify you for lower premiums. Review your policy regularly to ensure it remains cost-effective and meets your needs.
Cheap Life Insurance Quotes
Life insurance quotes will vary depending on the provider you choose, on top of personal factors and your chosen coverage. Using our calculator, get quotes from top providers that fit your needs to protect your loved ones.
Life Insurance Calculator
We’ll give you a suggested amount of cover to buy in just 3 easy steps. — it's free, no personal information required, no spam.
High
Average
Low
Rates updated:
Oct 16, 2025
Cheapest Types of Life Insurance
For budget-conscious consumers seeking substantial coverage, term life insurance offers the cheapest rates. But other policy types work better depending on your situation.
Understanding the key differences between policy types helps you find the cheapest life insurance policy for your needs. Here's a comparison of the main types of life insurance policies:
Term Life
| Lowest monthly premiums for healthy individuals. Coverage for specific period (10, 20, 30 years). No cash value component. Expires at end of term. | $25K-$10M
| Usually required
| Highest coverage at lowest cost
|
No-Exam Term Life | Convenient application without medical exams. Competitive rates for young, healthy applicants. Often more expensive than traditional term for those 40+. Quick approval (sometimes within 24 hours). | $25K-$3M
| Not required | Quick coverage, young buyers |
Guaranteed Acceptance
| No health questions or medical exams. Higher premiums for amount of coverage. Usually includes 2-3 year waiting period for full benefits. Permanent coverage with fixed premiums. | $5K-$50K
| Not required
| Seniors with health issues
|
Permanent
| Lifetime coverage that never expires. Builds cash value over time. Much higher premiums than term insurance. Options include whole, universal and variable policies. | $10K-$10M+
| Usually required
| Lifetime coverage with cash value
|
Simplified underwriting (health questions but no exam). Moderate coverage specifically for burial/funeral costs. Permanent coverage that never expires. Fixed premiums that don't increase with age. | $5K-$35K
| Not required
| End-of-life costs only
|
How Much Life Insurance Should You Buy?
Figuring out how much life insurance to buy sometimes feels like guesswork, but coverage needs actually follow a predictable pattern. People need more life insurance during working years with dependents and less coverage as they age. Review your needs every few years, especially after major life events like marriage, childbirth, home purchases or retirement. For quick help, use our life insurance calculator to determine how much life insurance you need for your situation.
Examine recommended coverage by life stage:
Life Stage | Recommended Coverage | Key Considerations |
|---|---|---|
Single Adult | 5-10× annual income | Cover debts, final expenses, and legacy goals |
Young Family | 10-15× annual income | Replace income, cover childcare, education |
Established Family | 7-10× annual income | Cover remaining mortgage, education, income |
Empty Nesters | 5× annual income | Cover final years of work, remaining debts |
Retirees | $15,000-$50,000 | Primarily for final expenses and remaining debts |
PICKING THE CHEAPEST LIFE INSURANCE POLICY: DIME APPROACH
Besides the typical income multiplier method, consider using the DIME method to determine your life insurance coverage needs. This adds your Debt + Income needs + Mortgage + Education to get the correct amount of coverage.
- For example, $20,000 debt + $500,000 income replacement + $200,000 mortgage + $80,000 education = $800,000.
Most Affordable Life Insurance Policies: Bottom Line
MoneyGeek's nationwide analysis shows Lincoln Financial, Protective Insurance, North American, Ethos, and Mutual of Omaha offer the most affordable life insurance rates across different customer profiles and policy types. Compare quotes from multiple providers, because rates vary based on your age, health, coverage amount and personal factors.
Cheapest Life Insurance: FAQs
MoneyGeek's experts answered common questions about cheap life insurance providers.
What is the cheapest type of life insurance?
Term life insurance is the cheapest type of life insurance due to its simplicity and temporary coverage period. Term policies lack cash value components, making premiums considerably less expensive than whole life insurance while providing substantial death benefits.
What happens if you can't afford your life insurance policy?
If you can't afford your premiums, your policy will lapse and your coverage will end. Contact your provider before this happens to discuss options like reducing death benefits or switching to cheaper policies. Policy reinstatement requires catching up on premium payments, paying reinstatement fees and passing health exams depending on insurer guidelines.
How much does the average life insurance policy cost?
Average life insurance costs vary by policy type, coverage level and applicant profile. According to MoneyGeek's analysis, healthy nonsmoking adults pay $7 to $804 monthly for term policies. Smokers pay more due to health risks, while young adults pay less than seniors due to life expectancy differences. Permanent policies like whole, universal and indexed universal increase premiums.
Do life insurance rates go up every year?
Term life insurance premiums remain fixed throughout the entire term. Renewal after term expiration results in higher rates based on your current age and health. Whole life insurance rates stay fixed for life, while some universal life premiums fluctuate based on market conditions.
How much will I save by buying life insurance when I'm young?
Buying life insurance early creates substantial savings. A 30-year-old male pays $9 to $17 monthly for $250,000 in 10-year term coverage, while waiting until age 40 increases rates to $14 to $26 monthly. Purchasing at 30 instead of 40 saves about $840 over 10 years, with potential savings reaching $2,000 depending on rates.
How much will I save by paying annually instead of monthly?
Annual payments save 3% to 8% compared to monthly premiums. A $300 annual premium paid monthly totals approximately $324 over the year. Over 20-year terms, annual payments save nearly $500. Many insurers offer additional discounts for automatic bank account payments.
Loading...
Our Review Methodology
Finding affordable life insurance can feel overwhelming when you're comparing dozens of companies with different rate structures and coverage options. That's why we developed a targeted research approach specifically for cost-conscious shoppers who want reliable coverage without overpaying.
Our Standard Customer Profile
We used a consistent baseline profile to ensure fair comparisons across insurers:
- 40-year-old man
- Non-smoker
- 5 feet 9 inches tall, 160 pounds
- Average health rating
To determine the cheapest overall companies, we calculated average rates for 30- to 49-year-olds.
This profile represents a common demographic seeking life insurance and allows for meaningful rate comparisons. We chose these specifications because they reflect standard underwriting scenarios that most applicants encounter.
Coverage Analysis Strategy
Our research focused on companies that offer nationwide coverage and provide online quotes: two factors that matter most when you're shopping for affordable rates. We collected quotes across multiple term lengths and coverage amounts to identify consistent patterns in pricing.
Rate Comparison Process
Beyond our standard profile, we modified key variables to understand how rates change based on:
- Age
- Gender differences
- Height and weight variations
- Tobacco use status
- Health ratings
This approach revealed pricing trends that helped us calculate projections and identify which companies consistently offer the most affordable rates for different customer types.
Why This Methodology Works
By using standardized profiles and focusing on companies with broad availability, we eliminated variables that could skew results. Our cheapest overall recommendation reflects rates for our standard profile, with specific callouts when different demographics might find better deals elsewhere.
Related Pages
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.