Cheapest Term Life Quotes & Companies in 2022

Term life insurance is the most affordable form of life insurance because of its limited coverage period. MoneyGeek’s research reveals the cheapest term life insurance offers come from Transamerica at approximately $149.64 per year and MassMutual at $177.18 per year.

Compare Life Insurance Rates

Insurance Rates

Ensure you're getting the best rate for your life insurance. Compare quotes from the top insurance companies.

widget-location-pin
Last Updated: 5/30/2022
Advertising & Editorial Disclosure
By     |  
Reviewed By     |  

Term life insurance is relatively more affordable than other life insurance policies due to its temporary nature. However, keep in mind that prices can vary; you can buy term life insurance for as little as $149.64 per year or as much as $4,054.99.

Factors such as health profile, smoking status and weight affect the cost of life insurance. Certain lifestyle choices can make you riskier — and therefore more expensive — to insure. People who smoke, for example, are more vulnerable to life-threatening illnesses and have an increased chance of dying early. As a result, life insurance policies for smokers are much more expensive compared to that of non-smokers.

The cost of insurance policies varies depending on the provider and the package. If you’re on a fixed income, finding an affordable policy that won’t break the bank is possible. MoneyGeek explores various term life insurance quotes and offers to help you find the best deals.

Table of Contents
Key Takeaways

coins2

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

graph

Being in poor health, smoking or having a high BMI can drive up insurance premiums.

family

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

Companies With the Cheapest Term Life Insurance Quotes

Term life insurance is an inexpensive 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 form of life insurance, rates still vary depending on your age, smoking status, occupation and other factors.

The data below are rates for a life insurance policy with $500,000 in coverage for a 30-year-old. Rates for seniors are for a 60-year-old. Annual premiums are created using average rates for both men and women of these ages.

Cheapest Term Life Providers for Different Buyer Categories

Scroll for more

swipe icon
  • Category
    Insurer
    Average Annual Rate: 10-Year Term
    Average Annual Rate: 15-Year Term
    Average Annual Rate: 20-Year Term
    Average Annual Rate: 30-Year Term
  • Overall
    Transamerica
    $149.64
    $167.70
    $219.30
    $348.30
  • Runner-Up
    Mass Mutual
    $177.18
    $203.70
    $261.12
    $412.50
  • People Who Smoke
    Transamerica
    $534.06
    $646.21
    $1,413.84
    $2,389.39
  • Poor-Health Individuals
    Mutual of Omaha
    $178.08
    $215.48
    $412.86
    $697.73
  • High-BMI Individuals
    Nationwide
    $182.02
    $220.24
    $407.56
    $688.78
  • Seniors
    Transamerica
    $1,369.98
    $1,738.92
    $2,399.40
    $4,054.99
mglogo
MoneyGeek Top Pick
Transamerica
  • MoneyGeek Score: 80/100
  • J.D. Power Rating: 736.4
  • AM Best Rating: A
mglogo
MoneyGeek Top Pick
MassMutual
  • MoneyGeek Score: 84.5/100
  • J.D. Power Rating: 758.1
  • AM Best Rating: A++

Companies With the Cheapest Term Life Insurance Quotes by Age

MoneyGeek found that Transamerica is the cheapest term life insurance provider for 40-year-olds, at approximately $637.28 per year for a 30-year term. They also provide the most inexpensive life insurance options for 60-year-olds at $2,766.20 per year on average for a 20-year term).

Meanwhile, State Farm is the most affordable term life insurance company for 80-year-olds, with rates at approximately $12,469 per year for a 10-year term.

Life insurance becomes more expensive to purchase as you age because providers see you as riskier to insure. From one decade of life to the next, MoneyGeek found that rates can increase as much as 228%.

Most people buy term life insurance in their 30s when it’s relatively affordable, and their circumstances may prompt the need for insurance for a set period. For most term life policies, rates are locked in once you purchase a policy; therefore, the younger you are when you buy coverage, the lower your rates for the duration of your policy.

Annual Quotes for the Cheapest Term Life Providers by Age

Scroll for more

swipe icon
  • Age
    Cheapest Insurer
    10-Year Term
    15-Year Term
    20-Year Term
    30-Year Term
  • 30
    Transamerica
    $149.64
    $167.70
    $219.30
    $348.30
  • 40
    Transamerica
    $198.66
    $242.52
    $325.08
    $559.86
  • 50
    State Farm
    $631.68
    Not offered
    $950.28
    Not offered
  • 60
    Transamerica
    $1,369.98
    $1,738.92
    $2,399.40
    Not offered
  • 70
    State Farm
    $4,384.68
    Not offered
    Not offered
    Not offered
  • 80
    State Farm
    $10,961.70
    Not offered
    Not offered
    Not offered

The quotes above are based on a policy with $500k coverage.

mglogo
MoneyGeek Top Pick
Transamerica
  • MoneyGeek Score: 80/100
  • J.D. Power Rating: 736.4
  • AM Best Rating: A
mglogo
MoneyGeek Top Pick
State Farm
  • MoneyGeek Score: 97.4/100
  • J.D. Power Rating: 820.5
  • AM Best Rating: A++
Companies With the Cheapest Term Life Insurance Quotes by State

Life insurance rates vary between states due to differences in insurance laws and risk profiles. MoneyGeek’s analysis reveals MassMutual offers the cheapest term life insurance in 33 states across the U.S., making it the company that most frequently provides the most affordable term life insurance policies.

Nationwide is a distant second, presenting the most inexpensive term life insurance offers in nine states. Mutual of Omaha offers the cheapest policies in only two states.

Annual Quotes for the Cheapest Term Life Providers by State

Scroll for more

swipe icon
  • State
    Average Coverage Needed
    Cheapest Insurer
    Annual Rate
  • Alabama
    $592,000
    Mass Mutual
    $179.52
  • Alaska
    $860,000
    Mass Mutual
    $225.15
  • Arizona
    $708,000
    Mass Mutual
    $204.68
  • Arkansas
    $576,000
    Mass Mutual
    $176.47
  • Delaware
    $1,130,000
    Mass Mutual
    $209.63
  • Georgia
    $919,000
    Mass Mutual
    $199.52
  • Hawaii
    $975,000
    Mass Mutual
    $240.42
  • Indiana
    $740,000
    Mass Mutual
    $179.16
  • Iowa
    $736,000
    Mass Mutual
    $185.11
  • Kansas
    $680,000
    Mass Mutual
    $187.29
  • Kentucky
    $1,009,000
    Mass Mutual
    $176.18
  • Louisiana
    $667,000
    Mass Mutual
    $183.60
  • Maine
    $769,000
    Mass Mutual
    $213.68
  • Maryland
    $597,000
    Mass Mutual
    $222.28
  • Michigan
    $644,000
    Mass Mutual
    $194.44
  • Minnesota
    $661,000
    Mass Mutual
    $212.09
  • Mississippi
    $566,000
    Mass Mutual
    $169.26
  • Missouri
    $632,000
    Mass Mutual
    $183.74
  • Montana
    $645,000
    Mass Mutual
    $213.09
  • Nevada
    $926,000
    Mass Mutual
    $215.46
  • New Mexico
    $1,030,000
    Mass Mutual
    $201.18
  • North Carolina
    $628,000
    Mass Mutual
    $196.55
  • North Dakota
    $763,000
    Mass Mutual
    $195.64
  • Ohio
    $519,000
    Mass Mutual
    $182.32
  • Oklahoma
    $625,000
    Mass Mutual
    $179.79
  • Oregon
    $710,000
    Mass Mutual
    $219.57
  • South Carolina
    $710,000
    Mass Mutual
    $184.84
  • South Dakota
    $788,000
    Mass Mutual
    $191.71
  • Tennessee
    $808,000
    Mass Mutual
    $187.18
  • Texas
    $965,000
    Mass Mutual
    $194.63
  • Utah
    $612,000
    Mass Mutual
    $209.41
  • Wisconsin
    $966,000
    Mass Mutual
    $188.99
  • Wyoming
    $649,000
    Mass Mutual
    $216.14
  • Illinois
    $727,000
    Nationwide
    $212.60
  • Massachusetts
    $614,000
    Nationwide
    $242.62
  • Nebraska
    $602,000
    Nationwide
    $206.93
  • New Hampshire
    $809,000
    Nationwide
    $208.82
  • New Jersey
    $718,000
    Nationwide
    $239.82
  • Pennsylvania
    $772,000
    Nationwide
    $205.78
  • Rhode Island
    $628,000
    Nationwide
    $213.49
  • Virginia
    $696,000
    Nationwide
    $224.19
  • Washington
    $652,000
    Nationwide
    $238.70
  • California
    $719,000
    Transamerica
    $216.87
  • Colorado
    $764,000
    Transamerica
    $220.43
  • Connecticut
    $697,000
    Transamerica
    $233.78
  • Florida
    $866,000
    Transamerica
    $198.38
  • Idaho
    $965,000
    Transamerica
    $181.74
  • Vermont
    $530,000
    Transamerica
    $217.52
  • New York
    $660,000
    Mutual of Omaha
    $251.13
  • West Virginia
    $793,000
    Mutual of Omaha
    $191.35

The quotes above are based on a policy with a 20-year term length and the average amount of coverage needed per state based on per capita income for a 30-year-old individual.

mglogo
MoneyGeek Top Pick
MassMutual
  • MoneyGeek Score: 84.5/100
  • J.D. Power Rating: 758.1
  • AM Best Rating: A++

Cheapest Term Life Providers by Coverage Amount

Your family and financial situation determine how much life insurance coverage you need. A good rule of thumb is to multiply your annual salary by 10–12: this number accurately indicates how much coverage you’ll need. However, keep in mind that increased coverage results in a higher premium.

Based on MoneyGeek’s analysis, Transamerica offers the most affordable rates across all coverage levels. They have the cheapest policies for 30- to 60-year-olds who need policies with $250,000, $500,000 or $1 million in coverage. Meanwhile, Progressive offers the lowest rates for 70-year-olds.

Annual Quotes for the Cheapest Term Life Providers by Coverage Amount

Scroll for more

swipe icon
  • Age
    Cheapest Insurer
    $250k Coverage
    $500k Coverage
    $1M Coverage
  • 30
    Transamerica
    $145.80
    $219.30
    $345.72
  • 40
    Transamerica
    $198.72
    $325.08
    $557.28
  • 50
    Transamerica
    $436.02
    $779.16
    $1,403.52
  • 60
    Transamerica
    $1,265.52
    $2,399.40
    $4,633.68
  • 70
    Progressive
    $4,955.46
    $14,094.54
    $27,642.12

The quotes above are based on a policy with a 20-year term length.

mglogo
MoneyGeek Top Pick
Transamerica
  • MoneyGeek Score: 80/100
  • J.D. Power Rating: 736.4
  • AM Best Rating: A
tip icon
MONEYGEEK EXPERT TIP

If you’re buying term life insurance, MoneyGeek recommends purchasing $500,000 in coverage. This amount is about 10 times the average annual wage in the U.S., making it ideal for most people. However, your ideal coverage level will depend on your unique family and financial situation.

Cheapest Term Life Providers for Individuals Who Smoke

Cigarette smoking is the leading cause of preventable death in the United States. Because of this, insurance companies view people who smoke as riskier to insure. Life insurance is based on a person’s life expectancy, which is significantly lower for people who smoke.

Based on MoneyGeek’s research, Transamerica offers the cheapest term life insurance for people who smoke, with an average rate of $265 per month. MassMutual has the second most affordable rates, averaging $296 each month. Mutual of Omaha is the third most inexpensive term life insurance provider for smokers, with rates averaging $298 per month.

Annual Quotes for the Cheapest Term Life Providers for Smokers

Scroll for more

swipe icon
  • Insurer
    Annual Rate
  • 1.
    Transamerica
    $750.78
  • 2.
    Mass Mutual
    $903.18
  • 3.
    State Farm
    $931.68
  • 4.
    Mutual of Omaha
    $1,047.54
  • 5.
    AAA
    $1,056.00
  • 6.
    Progressive
    $1,096.26
  • 7.
    Prudential
    $1,222.56
  • 8.
    Nationwide
    $1,412.28

The quotes above are based on a policy with $500,000 coverage and a 20-year term length for a 30-year-old individual who smokes.

mglogo
MoneyGeek Top Pick
Transamerica
  • MoneyGeek Score: 80/100
  • J.D. Power Rating: 736.4
  • AM Best Rating: A

Cheapest Term Life Providers for Individuals With Poor Health Ratings

Insurance companies will also consider your health profile when determining life insurance rates. They may look at your medical records, inquire about your lifestyle habits and ask you to undergo a physical examination. If insurers classify you as a poor-health individual, they may offer you higher rates or decline to insure you altogether.

Mutual of Omaha offers the cheapest term life insurance policies for individuals in poor health at an average rate of about $83.35 per month. Transamerica and State Farm provide the second- and third-most-affordable term life insurance options for poor-health individuals.

Cheapest Term Life Providers for Individuals With Low Health Ratings

Scroll for more

swipe icon
  • Insurer
    Annual Rate
  • 1.
    Mutual of Omaha
    $265.80
  • 2.
    Transamerica
    $371.52
  • 3.
    State Farm
    $498.48
  • 4.
    Progressive
    $561.18
  • 5.
    Mass Mutual
    $485.52
  • 6.
    Nationwide
    $511.86
  • 7.
    AAA
    $546.48
  • 8.
    Prudential
    $655.78

The quotes above are based on a policy with $500,000 coverage and 20- year term length for a 30-year-old individual with a low health rating.

mglogo
MoneyGeek Top Pick
Mutual of Omaha
  • MoneyGeek Score: 90.8/100
  • J.D. Power Rating: 783.4
  • AM Best Rating: A+

Cheapest Term Life Insurance Quotes for High BMI

Obesity is associated with some of the leading causes of chronic illness and premature death, including heart disease, diabetes, stroke and certain types of cancer. For this reason, insurance companies view individuals who are overweight as riskier to insure, and they take into account a person’s height and weight when determining term life insurance rates.

Insurers may also use body mass index (BMI) to determine if someone is obese. However, bodybuilders with a high muscle mass percentage can be categorized as obese due to the limitations of BMI as a metric.

Although life insurance is generally more expensive if you have a high BMI, you can still find affordable rates by comparing life insurance quotes. MoneyGeek found that MassMutual offers the cheapest term life insurance policies for obese individuals at $81.62 per month on average. Nationwide and Mutual of Omaha also have affordable rates if you have a high BMI.

Cheapest Term Life Providers for High-BMI Individuals

Scroll for more

swipe icon
  • Insurer
    Annual Rate
  • 1.
    Nationwide
    $263.55
  • 2.
    Mass Mutual
    $270.26
  • 3.
    Mutual of Omaha
    $275.10
  • 4.
    Transamerica
    $429.92
  • 5.
    State Farm
    $515.93
  • 6.
    AAA
    $565.61
  • 7.
    Progressive
    $580.82
  • 8.
    Prudential
    $633.48

The quotes above are based on a policy with $500k coverage and a 20-year term for a 30-year-old individual with a BMI classified as obese.

mglogo
MoneyGeek Top Pick
Nationwide
  • MoneyGeek Score: 88.6/100
  • J.D. Power Rating: 785.5
  • AM Best Rating: A+

Should You Get Term Life Insurance?

In this article, we've analyzed the most affordable term life insurance providers for various risk profiles. However, not everybody needs life insurance — for example, if you don’t have any dependents, term life insurance could be an unnecessary expense for you.

However, if people depend on you financially, term life insurance will help ensure your dependents' financial security and stability in the event of your death. In this section, we’ll help you figure out if term life insurance is practical for your unique needs.


checkSign
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.
denySign
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.

Not everybody needs term life insurance; some people might benefit more from a different type of coverage.

If you’re looking for permanent coverage and an investment component in your insurance, you may want to consider whole life insurance instead. If you don’t have financial obligations and want more investment options with your life insurance, universal life insurance might be ideal.

How to Get Cheaper Term Life Insurance Quotes

We’ve presented quotes from companies offering the cheapest term life insurance rates for various profiles in this guide. However, it may be possible to lower your term life insurance costs even more by following a few simple steps.

1

Opt for a shorter term length.

You can lower your monthly premiums by shortening your term life insurance 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.

Since 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 rate for you.

4

Get professional assistance.

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

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. Since different companies offer different rates, it makes sense to shop around until you find a quote that fits your needs and budget.

Frequently Asked Questions

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

Methodology

To obtain cost data for term life insurance policies, MoneyGeek collected quotes from 13 companies across all 50 states for men and women ages 30–80. The same term life insurance cost data was used to determine which companies offered the cheapest whole life insurance policies.

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