Life Insurance
Cheapest Term Life Companies in October 2023
By , Content and SEO Manager
Fact Checked
By , Finance Writer & Licensed Insurance Agent
Updated: Oct 30, 2023
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. 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.
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.
Cheapest Overall: Allstate
pros
Affordable policies
A+ AM Best rating for financial stability
Diverse life insurance products, including term and no exam policies
cons
Higher-than-average customer complaints
Does not issue its own life insurance policies
COMPANY HIGHLIGHTS
Allstate has been in the insurance business for 92 years, offering various life insurance products. 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+ rating from AM Best, Allstate has a higher-than-average rate of customer complaints. The company doesn't issue 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.
Cheapest Term Life Insurance for Smokers and Poor Health
Allstate also stands out as the most budget-friendly term life insurance option for smokers and those in poor health. Smokers can secure a 10-year term policy with $250,000 in coverage for an average of $26.57 per month, while individuals in poor health can obtain similar coverage for $13.32 per month on average.
The tables below comprehensively compare average term life insurance costs for smokers and people with poor health. By examining these rates, you can make a more informed decision, understanding how your lifestyle or health condition could affect your premiums across multiple insurance companies.
Average Costs of Term Life Insurance for Smokers
Average Costs of Term Life Insurance for Poor Health
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.
Cheapest for High Coverage: Transamerica
pros
High coverage amounts up to $10 million
Offers a wide range of products
Allows policy conversion from term to permanent
cons
Higher-than-average customer complaints
No 24/7 online chat support
Mobile app limited to retirement
COMPANY HIGHLIGHTS
Transamerica, with 95 years in the insurance sector, 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 rating from AM Best for financial stability. The option to convert term policies to permanent ones adds another layer of flexibility. However, their mobile app is designed solely for retirement planning.
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 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.
Cheapest for Young Adults: GEICO
pros
Affordable rates for young adults
A++ AM Best financial rating
Low rate of customer complaints
cons
Doesn't issue its own policies
Limited payment options
COMPANY HIGHLIGHTS
GEICO, with 87 years in the industry, 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 offer its own policies, it provides various term life options through its partners. 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. 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.
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.
What Is Term Life Insurance?
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 life insurance, rates still vary depending on your age, smoking status, health, occupation and other factors.
Should You 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 passing. 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.
- 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.
- 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. Since 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 monthly premiums 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
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.
FAQ: Cheapest Term Life Insurance
MoneyGeek answered frequently asked questions about term life insurance to help you find the best deal possible.
Expert Advice on Cheap Term Life Quotes
- What advice would you give someone looking to get cheaper quotes on term life insurance?
- Are there any common mistakes people make when selecting a term life insurance company?
- Are there specialized options available to individuals with poor health ratings?
- How does the cost of term life insurance vary by age?
Nadia C. Vanderhall
Founder of The Brands + Bands Strategy Group
Life Insurance
About Melissa Wylie
sources
- U.S. Bureau of Labor Statistics. "Occupational Employment and Wage Statistics." Accessed October 30, 2023.