Cheapest Life Insurance Companies in November 2023
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By, Finance Writer & Licensed Insurance Agent
Allstate stands as the overall cheapest life insurance company, providing term life insurance for $12 per month. Transamerica and GEICO also rank among the least expensive providers.
Age, health and coverage amount affect life insurance costs. Our list of affordable life insurance companies aims to guide you to the best policy for your needs.
Cheapest Overall Life Insurance Company
Allstate is the cheapest overall life insurance provider, offering a 10-year term policy for $12 a month. Below, the table showcases the costs of all the companies we've considered. Filter by gender, coverage amount or term length to see how the most affordable option may change based on these factors.
Cheapest Overall: Allstate
Offers affordable term life insurance
A+ AM Best rating for financial stability
Provides a range of term, whole and universal life policies
Receives higher-than-average customer complaints
Lacks over-the-phone agent support
Offers limited support for policyholders with certain conditions
As the overall cheapest life insurance company, Allstate offers a range of reasonably priced life insurance products. With 92 years in operation, the company holds a secure position in the insurance industry, supported by an A+ AM Best rating, indicating sound financial health.
Allstate's offerings are varied, including term policies with coverage amounts between $25,000 to $1 million and term lengths of one to 30 years. The company also provides whole and universal life products, addressing a range of customer needs.
However, an above-average complaint rate suggests potential customer service issues. The buying process, while straightforward with online, phone and mail payment options, lacks phone support from agents, which could be a drawback for some customers.
While Allstate offers support features for policyholders with families, some aren't extended to those with certain conditions, such as diabetes. Despite these limitations, Allstate remains competitive, considering its low-cost policies and financial stability.
Cheapest Life Insurance Company for Seniors
For seniors seeking life cheap insurance, GEICO stands out with a $175.74 monthly cost for a 10-year term policy. The table below shows life insurance premiums for seniors in their 60s. As you filter by gender, coverage amount or term length, note how the most cost-effective provider can shift based on these variables.
Cheapest for Seniors: GEICO
Affordable life insurance for seniors
Low average rate of customer complaints
Support features for families and military veterans
No available AM Best rating for financial stability
Absence of phone support from agents
Limited support for policyholders with certain health conditions
GEICO is an affordable choice for seniors with a monthly cost of $175.74 for a 10-year term policy. Although no AM Best rating is available to assess GEICO's financial stability, its 87-year track record in the insurance industry lends credibility.
Customer satisfaction appears to be a strength for GEICO, as evidenced by a lower-than-average rate of complaints. The payment process is straightforward, allowing customers to make payments online, over the phone or via mail. An online quote tool is also available, and resources are provided for beneficiaries, enhancing the customer experience.
GEICO's support features cater specifically to policyholders with families and those with a military background. GEICO's life insurance products include term policies, whole and universal life and accidental death products. Despite these positives, the lack of agent phone support and limitations in support for certain health conditions might be factors to consider when choosing GEICO.
Cheapest Life Insurance Company for Smokers
For smokers, Allstate provides the most affordable life insurance at a monthly cost of $26.57 for a 10-year term policy. Explore the following table, which shows premiums for smokers, and note that adjustments to gender, coverage amount or term length may highlight different budget-friendly choices.
Cheapest for Smokers: Allstate
Affordable monthly rates for smokers
High financial stability with an A+ AM Best rating
Family support features available
Above-average customer complaint rate
No over-the-phone agent availability
Limited support for policyholders with specific health conditions
Allstate is MoneyGeek's top pick for the cheapest life insurance for smokers, offering competitively priced policies at a monthly rate of $26.57. This stands out in an industry where smokers often face higher premiums.
In terms of financial stability, Allstate's 92-year track record and A+ AM Best rating suggest a reliable safety net for policyholders. Its product portfolio includes term policies with variable coverage amounts and whole and universal life products. Notably, policies are available without a mandatory medical exam.
While Allstate's affordability for smokers is commendable, the company's customer service record shows room for improvement, marked by a higher-than-average rate of complaints. Additionally, while there are support features for families, individuals with certain health conditions may find resources limited.
Allstate's streamlined buying process — with online, phone and mail payment options — facilitates easy navigation. However, the lack of phone agent availability might pose challenges for some customers.
Cheapest Life Insurance Company for Young Adults
GEICO takes the lead as MoneyGeek's cheapest life insurance provider for young adults, offering a 10-year term life policy at $9.55 monthly. Be sure to look at our comprehensive table below; the top budget-friendly option could vary based on gender, coverage amount or term length.
Cheapest for Young Adults: GEICO
Low monthly cost for young adults
Broad range of support features
Payments can be made via multiple methods
No phone-based agent assistance
No AM Best rating available
Certain conditions lack support features
GEICO, an established player in the insurance industry, is the most cost-effective choice for life insurance for young adults between the ages of 25 and 30. GEICO's 10-year term policy is priced at $9.55 monthly. With 87 years of operational experience, GEICO provides various life insurance products, including term, whole and universal life products. However, it does not offer some products, such as guaranteed acceptance, simplified issue and burial insurance.
While the company's customer complaint rate is lower than average, its lack of an AM Best rating could be a cause for concern about financial stability. However, it provides a range of payment options to make the purchasing process as simple as possible.
GEICO's support features cater to families and veterans, including a military support center staffed by veterans. Unfortunately, support features are not available to policyholders with certain medical conditions, like diabetes or HIV. Despite these limitations, GEICO's commitment to low-cost life insurance policies and its range of services make it a compelling option for young adults seeking coverage.
Cheapest Life Insurance Company for High Coverage Amounts
Transamerica is MoneyGeek's choice for the most affordable high coverage life insurance, offering a 10-year term policy for $26.30 monthly with coverage up to $1 million. The table below provides more rates; costs may vary based on features such as gender, coverage amount and term length.
Cheapest for High Coverage Amounts: Transamerica
Affordable high coverage up to $10 million
Support features tailored for families and tobacco users
Extensive history with 95 years in business
Above-average customer complaint rate
Limited support for those with certain health conditions
No mobile app for life insurance policyholders
Transamerica, MoneyGeek's choice for cheap high coverage life insurance, provides a broad spectrum of insurance products. With term policies offering coverage from $25,000 to $10 million, Transamerica reaches many types of customers, including tobacco users, with tailored support features. Term lengths extend up to 30 years, ensuring flexibility and convenience. In addition, whole and universal life products are available for those seeking more comprehensive solutions.
The company does have a higher-than-average complaint rate among its customers. Another setback is its lack of mobile app services for life insurance policyholders, possibly limiting the ease of access to policy management.
Transamerica's history of 95 years in the business signals reliability, supported by a commendable A rating from AM Best. Despite certain shortcomings, the company offers a solid solution for those seeking high coverage at a lower cost.
Cheapest Life Insurance Companies by State
The cheapest life insurance company often varies by state. Location can influence insurance premiums, along with personal details like age, gender and medical history.
The table below offers a comprehensive view of the cheapest life insurance companies per state. You can filter results by gender, age and coverage amount, helping you identify the most cost-effective options tailored to your circumstances and area.
Cheapest Type of Life Insurance
Term life is the least expensive form of life insurance. This policy type provides coverage for a specific term, usually spanning 10, 20 or 30 years. Unlike whole life or universal life insurance policies, term life insurance does not accumulate cash value over time. It simply pays out the death benefit if the insured person passes away during the term.
The cost-effectiveness of term life insurance stems from its simplicity. It only provides a death benefit, so its premiums are lower than whole or universal life insurance. Whole and universal life, both permanent policies, combine a death benefit with an investment component, leading to higher premiums.
The potential downside is that if the term ends and the policyholder is still alive, there is no return on the premiums paid. But if cost is a crucial factor and the aim is to secure financial protection for loved ones during a specific period, term life insurance is an economical and straightforward choice.
How To Get Cheaper Life Insurance
A bit of research and planning can lead to substantial savings on your life insurance premiums. Here are some steps to help you secure affordable life insurance:
Opt for Term Life Insurance
Term life insurance tends to be less expensive than whole or universal life policies because it provides a death benefit only for a specified term and doesn't build cash value.
Your age plays a significant role in determining your premium rates. Generally, the younger you are, the lower the rates. This is due to the decreased risk associated with insuring younger individuals.
Lead a Healthy Lifestyle
Health is another key determinant of life insurance premiums. Smoking, excessive drinking, a high BMI and pre-existing medical conditions can drive up the cost of your premiums. Leading a healthy lifestyle can contribute to lowering your premium rates.
Ladder Your Policies
A technique known as laddering involves buying multiple term life policies with different lengths instead of one large policy. For instance, if you need more coverage now but anticipate needing less in the future, you can 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 aligns with your anticipated needs. This strategy could lower the overall cost of coverage.
Prices can vary from one insurer to another. Consider using an online comparison tool or working with an independent agent to compare rates from various insurers.
Regularly Review Your Policy
As your life circumstances change — say you quit smoking or pay off a mortgage — you may qualify for lower premiums. Regularly reviewing your policy can help ensure it remains cost-effective and suitable for your needs.
How Much Life Insurance Should You Buy?
Deciding to purchase life insurance is crucial in protecting your loved ones' financial future in the event of your untimely passing. However, determining how much life insurance you should buy can be a challenging task. It depends on various factors, including your age, income, debt and family obligations. The right amount of coverage can provide peace of mind and security, while inadequate coverage could leave your loved ones with financial stress and instability.
Suppose you are an independent adult without any financial dependents. For example, let's say you are 30 years old and earn a yearly salary of $50,000. You have a total debt of $30,000, consisting of $20,000 in student loans and $10,000 in car loans. You have savings of $10,000. We recommend purchasing a life insurance policy with a 10-year term and coverage of around $500,000. However, if you get married or have children, it is essential to review and update your policy as your financial and family circumstances change.
Young College Student
Let's say you are a 20-year-old college student with no dependents, working part-time to cover your living expenses while attending school. You have a student loan debt of $15,000 and no significant savings or investments. In this scenario, it's essential to consider the potential financial burden on your family in the event of your unexpected passing. While you may not need a large life insurance policy, having some coverage is still important to help your family pay for your final expenses. We recommend purchasing a small term life insurance policy with $10,000 to $25,000 in coverage, which can be relatively affordable for a young person. This amount can help cover your funeral expenses and any remaining debts, so your family does not have to bear that financial burden. As you progress in your career and start a family, you can review and adjust your coverage accordingly.
Married Without Children
Let's say you are a married couple, both 40 years old, with a combined annual income of $150,000. You have a mortgage of $250,000 and no other significant debts. You have a total of $100,000 in savings and investments. In this situation, financial experts recommend purchasing a life insurance policy with a term of 15 years and coverage of at least $500,000. This amount would help your spouse cover your income, pay off any remaining debts and maintain their lifestyle if one of you were to pass away. As your finances and family's situation changes, reviewing and adjusting your policy is essential. For example, if you plan to have children in the future, you may need to increase your coverage to ensure their financial security.
Married With Children
Let's say you are a married couple, both 35 years old, with a combined annual income of $120,000. You have a mortgage of $300,000 and a car loan of $20,000. You also have $50,000 in student loan debt. You have two children, aged five and three. Your older child has a 529 college savings plan with $10,000, and you have $30,000 in combined savings. In this situation, financial experts recommend purchasing a life insurance policy with a term of 20 years and coverage of at least $1 million. This amount would help your spouse and children cover your income, pay off debts and continue to support your children's education and future expenses if one of you were to pass away.
Let's say you are a 70-year-old retiree with failing health. You have no significant debt and have already paid off your mortgage, but you still want to leave a financial legacy for your children and grandchildren. You have a small pension and social security benefits that help cover your daily living expenses. In this scenario, it's essential to consider the high cost of end-of-life care and the potential financial burden on your family. While you may not be able to purchase a traditional term or permanent life insurance policy due to your health condition, you may still be able to get a final expense or burial insurance policy. These types of policies are designed to cover funeral expenses and other end-of-life costs, typically ranging from $5,000 to $25,000 in coverage.
It's important to note that the premiums for these policies may be higher than traditional life insurance plans, as they are intended for individuals with more health risks. However, they may still be a viable option to help provide peace of mind for you and your family in the event of your passing.
Frequently Asked Questions About Cheap Life Insurance
Explore the questions below for more insights on securing cheap life insurance coverage and identifying the companies offering the most affordable policies.
Expert Advice: Finding Affordable Life Insurance
- What factors affect the cost of life insurance? What does it mean to have cheap life insurance?
- What is the best strategy to find cheaper rates on a life insurance policy?
- What types of life insurance policies are the cheapest? Why?
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