Cheapest Term Life Insurance Companies in March 2024

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Updated: May 22, 2024

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Term life insurance is relatively more affordable than other life insurance policies due to its temporary nature. Depending on certain factors, premium rates may vary per person.

Allstate is the cheapest overall term life insurance company, with an average rate of $12 per month, according to MoneyGeek's analysis. It's also the most affordable option for smokers and people with poor health. Transamerica is the most budget-friendly choice if you're looking for a high coverage amount. GEICO is the cheapest for young adults, while GEICO and Transamerica offer the lowest average monthly cost for seniors.

TABLE OF CONTENTS

Key Takeaways

Term life insurance is an affordable form of life insurance that provides coverage for a set period of time.

Being in poor health or smoking can drive up insurance premiums.

Term life insurance can help people with financial dependents financially protect their loved ones.

Why Trust MoneyGeek? We analyzed 1,488 of life insurance quotes to determine the cheapest life insurance companies for a variety of needs.

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Coverage costs and company information for life insurance providers were updated in 2024.

1,488Quotes Analyzed
 
14Companies Compared
 
50ZIP Codes

Cheapest Overall Term Life Insurance Company

Allstate ranks as MoneyGeek's most affordable term life insurance provider, costing $12 per month for a $250,000 coverage amount on a 10-year term policy.

Use the table below for a quick life insurance quote comparison of 10-year term policies with $250,000 in coverage from top life insurance providers.

Data filtered by:Results filtered by:
Gender:
Gender:M
AllstateAverage Monthly Cost$12.00
TransamericaAverage Monthly Cost$12.11
GEICOAverage Monthly Cost$12.68
ProtectiveAverage Monthly Cost$13.16
NationwideAverage Monthly Cost$16.41

Cheapest Overall: Allstate

Allstate

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Affordable policies

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A+ (Superior) AM Best rating for financial strength

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Diverse life insurance products, including term and no medical exam policies

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Higher-than-average customer complaints

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Life insurance policies underwritten by third-party providers

COMPANY HIGHLIGHTS

Allstate, the fourth-largest U.S. property/casualty insurer based on market share, offers a wide array of products, including auto, home and life insurance. With term life policies ranging from $100,000 to $50 million and term lengths from 10 to 40 years, the company provides flexibility for different life stages.

Despite its A+ financial strength rating from AM Best, Allstate has a higher-than-average rate of customer complaints. The company doesn't underwrite its own life insurance policies, which may be a drawback for some. On the upside, Allstate offers multiple payment options and 24/7 online chat support and has a strong track record of paying death benefit claims.

Cheapest Term Life Insurance for Smokers and Poor Health

Allstate also offers the cheapest life insurance for smokers and those in poor health. Smokers can secure inexpensive term life insurance, with an average cost of $26.57 per month for a 10-year term policy with $250,000 in coverage. Individuals in poor health can obtain similar coverage for $13.32 per month on average.

The table below offers a detailed comparison of average term life insurance costs specifically for smokers. This information allows you to see how smoking affects rates from different insurers. Understanding this will enable smokers to find cheap term life insurance rates and the cheapest life insurance for smokers, aligning with their specific needs.

Data filtered by:Results filtered by:
Gender:
Gender:M
Coverage Amount:
Coverage Amount:$250K
AllstateAverage Monthly Cost$26.57
TransamericaAverage Monthly Cost$26.81
GEICOAverage Monthly Cost$28.07
ProtectiveAverage Monthly Cost$29.14
NationwideAverage Monthly Cost$36.33

Below are the average monthly costs from top insurance providers for individuals with poor health. This comparison can help individuals with health challenges find affordable life insurance plans. It provides clarity on how health status can affect premiums, helping those with health concerns find the most reasonable life insurance options tailored to their situation.

Data filtered by:Results filtered by:
Gender:
Gender:M
Coverage Amount:
Coverage Amount:$250K
AllstateAverage Monthly Cost$13.32
TransamericaAverage Monthly Cost$13.45
GEICOAverage Monthly Cost$14.08
ProtectiveAverage Monthly Cost$14.61
NationwideAverage Monthly Cost$18.22

Cheapest Term Life Insurance Company for High Coverage

Transamerica is MoneyGeek's top pick for high coverage amounts. The monthly cost for a 10-year term policy with $1 million in coverage averages $26.30.

Data filtered by:Results filtered by:
Gender:
Gender:M
Term Length:
Term Length:10
TransamericaAverage Monthly Cost$26.30
GEICOAverage Monthly Cost$26.35
AllstateAverage Monthly Cost$29.00
ProtectiveAverage Monthly Cost$31.16
NationwideAverage Monthly Cost$32.81

Cheapest for High Coverage: Transamerica

Transamerica

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High coverage amounts up to $10 million

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Offers a wide range of products

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Allows policy conversion from term to permanent without additional underwriting

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Higher-than-average customer complaints

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No 24/7 online chat support

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Mobile app limited to retirement planning, not policy management

COMPANY HIGHLIGHTS

Transamerica, with 95 years in the insurance sector and ranking among the 10 top largest writers of individual life insurance policies in the U.S., offers a broad spectrum of life insurance products, including term, whole and universal life. One notable feature is the availability of up to $2 million in term life coverage without a medical exam for those who meet certain criteria. The company provides extensive coverage options, from as low as $25,000 to as high as $10 million, with term lengths that can be tailored from 10 to 30 years.

While customer satisfaction could be improved, Transamerica holds an A (Excellent) rating from AM Best for financial strength. The option to convert term policies to permanent ones without additional underwriting or a medical exam adds another layer of flexibility. However, its mobile app is designed solely for retirement planning.

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MONEYGEEK EXPERT TIP

Transamerica, with 95 years in the insurance sector and ranking among the 10 top largest writers of individual life insurance policies in the U.S., offers a broad spectrum of life insurance products, including term, whole and universal life. One notable feature is the availability of up to $2 million in term life coverage without a medical exam for those who meet certain criteria. The company provides extensive coverage options, from as low as $25,000 to as high as $10 million, with term lengths that can be tailored from 10 to 30 years.

While customer satisfaction could be improved, Transamerica holds an A (Excellent) rating from AM Best for financial strength. The option to convert term policies to permanent ones without additional underwriting or a medical exam adds another layer of flexibility. However, its mobile app is designed solely for retirement planning.

Cheapest Term Life Insurance Company for Young Adults

GEICO emerges as MoneyGeek's most cost-effective term life insurance choice for young adults aged 25 to 30. For an average rate of $9.55 per month, the company offers a 10-year term policy with a $250,000 coverage amount.

Data filtered by:Results filtered by:
Gender:
Gender:M
Coverage Amount:
Coverage Amount:$250K
GEICOAverage Monthly Cost$9.55
ProtectiveAverage Monthly Cost$9.85
TransamericaAverage Monthly Cost$9.99
AllstateAverage Monthly Cost$10.00
NationwideAverage Monthly Cost$11.81

Cheapest for Young Adults: GEICO

GEICO

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Affordable rates for young adults

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A++ (Superior) AM Best financial strength rating

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Low rate of customer complaints

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Uses third-party providers to underwrite coverage

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Limited payment options

COMPANY HIGHLIGHTS

GEICO, a full-lines insurer and the second-largest U.S. property/casualty insurer based on market share, collaborates with several partners like Ladder to offer term life insurance. Young adults can get term coverage ranging from $100,000 to $8 million, with term lengths between 10 and 30 years.

While GEICO doesn't underwrite its own policies, it provides various term life options through its life insurer partners and offers opportunities to bundle life insurance with GEICO auto or home policies. The company excels in customer satisfaction, boasting a low average rate of complaints. Financial stability is another strong suit, evidenced by an A++ AM Best rating, the highest level possible. Despite these strengths, GEICO needs more product diversity and payment options.

Cheapest Term Life Insurance Company for Seniors

On average, GEICO and Transamerica offer the most competitive options at $175.74 monthly for seniors seeking affordable term life insurance. These rates are based on a 10-year term policy with a $250,000 coverage amount.

Term life insurance often costs more for seniors. This is mainly because older people are more likely to have health problems, making them riskier to insure. The table below shows term life insurance quotes for seniors from multiple companies.

Data filtered by:Results filtered by:
Gender:
Gender:M
Coverage Amount:
Coverage Amount:$250K
GEICOCost$175.74
TransamericaCost$175.74
AllstateCost$176.00
ProtectiveCost$204.33
Mutual of OmahaCost$213.71

Cheapest Term Life Insurance Companies by State

Life insurance rates can differ significantly based on your location. Various factors contribute to these geographical differences, including state-specific insurance laws and the risk profiles associated with certain areas.

Check your state below to view your area's cheapest term life insurance company.

Data filtered by:Results filtered by:
Coverage Amount:
Coverage Amount:$250K
Gender:
Gender:M
Term Length:
Term Length:10
AlabamaCompanyGEICOAverage Monthly Cost$9.90
AlaskaCompanyGEICOAverage Monthly Cost$13.98
ArizonaCompanyGEICOAverage Monthly Cost$18.39
ArkansasCompanyGEICOAverage Monthly Cost$16.05
CaliforniaCompanyGEICOAverage Monthly Cost$15.95

Term Life Insurance: An Overview

Term life insurance is a moderately priced type of life insurance that provides funds to your beneficiary or beneficiaries if you pass away during your policy’s term. Unlike whole life insurance, term life insurance doesn’t hold a cash value once the policy is canceled, and it doesn’t include an investment component. However, term life insurance is cheaper and less complicated to buy.

Although term life insurance is the most affordable life insurance, rates still vary depending on your age, smoking status, health, occupation and other factors.

Reasons to Get Term Life Insurance

Deciding on term life insurance depends on your personal and financial circumstances. If you have individuals who rely on your income — like a spouse, children or aging parents — a term life policy can offer essential financial protection in the event of your untimely death. If you have no dependents, the urgency for this type of coverage may not be as high. Evaluating your specific needs and responsibilities can help determine whether term life insurance is worth it.

Yes, if:
  • You’re young and newly married.
  • You have unpaid debts, such as a home mortgage or business loans.
  • You’re the sole financial provider for your family.
  • You’re a stay-at-home parent.
No, if:
  • You need permanent coverage.
  • You’re looking for an investment component in your life insurance policy.
  • You don’t have any debt or dependents.
  • You’re looking for a financial tool that will pay for expenses during your retirement.

How to Get Cheaper Term Life Insurance Quotes

Although term life insurance is the least expensive form of life insurance, you can make your rates even cheaper by not taking unnecessary coverage and not extending your policy for an excessive term length. Because different companies offer different rates, it makes sense to shop around until you find a quote that fits your needs and budget.

1
Opt for a Shorter Term Length

You can lower your life insurance cost per month by shortening your term life insurance's coverage period. Count the years when you’ll need it, such as the duration of your mortgage or until your children finish college.

2
Don’t Get Unnecessary Coverage

Because increased coverage comes with more expensive premiums, carefully consider the coverage amount you need.

3
Take Some Time to Decide on a Policy

Don’t commit to the first quote you receive. Shopping around and comparing offers from various providers is an excellent way to find the best deals on life insurance.

4
Get Professional Assistance

You can hire a financial advisor or a life insurance agent to help you decide on your policy term, coverage amount and insurance provider.

FAQ: Cheapest Term Life Insurance

MoneyGeek answered frequently asked questions about term life insurance to help you find the best deal possible.

What is the cheapest term life insurance company?
What is the cheapest type of life insurance?
How do I get the best price on term life insurance?
Should I get term life insurance?
What factors affect the cost of term life insurance?
Are the premiums for term life insurance policies fixed?
How do I choose the right coverage amount?
Can you get term life insurance after having COVID-19?

Expert Advice on Cheap Term Life Quotes

  1. What advice would you give someone looking to get cheaper quotes on term life insurance?
  2. Are there any common mistakes people make when selecting a term life insurance company?
  3. Are there specialized options available to individuals with poor health ratings?
  4. How does the cost of term life insurance vary by age?
Nadia C. Vanderhall
Nadia C. VanderhallFinancial Planner and Educator at The Brands + Bands Strategy Group

About Melissa Wylie

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Melissa Wylie is the Content and SEO Manager at MoneyGeek, with nearly a decade of editorial experience and six years of work in financial content focused on small businesses. She previously held SEO positions at Bankrate and LendingTree, with bylines on ValuePenguin and MagnifyMoney.

Wylie has a journalism degree from the University of North Texas. Her strong foundation in journalism helps her craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.

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