Updated: May 22, 2024
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The prospect of leaving your loved ones without financial support can be a stressful one. That’s why it’s vital to have life insurance in place to guarantee your family will have enough money to maintain their standard of living if you unexpectedly pass away.
MoneyGeek's evaluation of life insurance companies in Birmingham, Alabama, can help you find the policy that meets your needs and minimizes your family’s out-of-pocket expenses.
BestLife InsuranceBirmingham, ALBest Life Insurance Companies in Birmingham, AL, for 2023
For a policy with a coverage limit of $250K, MassMutual is the cheapest life insurance provider in Birmingham, offering policies to both men and women at a rate of $9 per month.
If this isn’t adequate coverage for you beneficiaries, consider increasing your life insurance coverage to the state’s recommended coverage amount. Alabama’s recommended coverage amount of $592K is based on state-specific factors like the cost of living, income, average personal debt and average age.
The cheapest policies for men that include the state’s recommended coverage amount can be purchased from MassMutual for $14 per month, while Nationwide offers the cheapest policies for women at $12 per month.
Cheapest For | $250K Coverage | $592K Coverage (Recommended) |
|---|---|---|
Male | MassMutual | MassMutual |
Female | MassMutual | Nationwide |
In comparison to the average cost of life insurance in Alabama, MoneyGeek found that men pay 13% less and women pay 8% less for life insurance in Birmingham.
Because men and women have different risk factors, insurance companies charge them different rates. Men in the city pay an average of $17 per month for a plan with a $250K coverage limit, while women pay $15 per month for the same plan.
Coverage amount also impacts the cost of your life insurance. Alabama’s recommended coverage amount of $592K is based on the state’s per capita income, average mortgage debt, average personal debt and average age. For this level of coverage, men in Alabama pay approximately $33 per month and women pay $28 per month.
Additionally, the cost of your life insurance policy is affected by the length of your policy. For a 10-year term policy, regardless of coverage level, men pay around $22 per month and women pay $19 per month.
| MassMutual | Rates for $250K Coverage$9 | Rates for $926K Coverage (Recommended) $14 |
| Nationwide | Rates for $250K Coverage$9 | Rates for $926K Coverage (Recommended) $14 |
| Mutual of Omaha | Rates for $250K Coverage$10 | Rates for $926K Coverage (Recommended) $14 |
| AAA | Rates for $250K Coverage$17 | Rates for $926K Coverage (Recommended) $33 |
| State Farm | Rates for $250K Coverage$20 | Rates for $926K Coverage (Recommended) $33 |
| Nationwide | Rates for $250K Coverage$10 | Rates for $926K Coverage (Recommended) $12 |
| Mutual of Omaha | Rates for $250K Coverage$10 | Rates for $926K Coverage (Recommended) $12 |
| MassMutual | Rates for $250K Coverage$9 | Rates for $926K Coverage (Recommended) $13 |
| State Farm | Rates for $250K Coverage$18 | Rates for $926K Coverage (Recommended) $27 |
| AAA | Rates for $250K Coverage$15 | Rates for $926K Coverage (Recommended) $30 |
Life insurance policy costs were determined by gathering 10-year term quotes from major life insurance companies in Birmingham using average buyer profile statistics, including the average age of 31, the average weight of 205 pounds for males and 163 pounds for females, and an average coverage need of $592,000.
One of the main reasons that life insurance costs differ between men and women is lifespan discrepancy. Typically, women live longer than men and thus insurance companies charge them less for life insurance. Men die earlier than women because they’re more likely to develop heart disease, have fewer social connections and skip doctor appointments.
Research shows, however, that men are more likely than women to buy life insurance. Women should consider purchasing life insurance as an affordable way to protect their families’ financial futures.
Alfa Life Insurance Corp., Northwestern Mutual and State Farm are the top three life insurance companies in Alabama, with respective market shares of 8%, 8% and 6%.
The table below lists the most popular life insurance companies in Alabama and their market shares, which together make up 41% of the total market.
| Alfa Life Insurance Corp. | Market Share8% |
| Northwestern Mutual | Market Share8% |
| Globe Life Inc. | Market Share6% |
| State Farm | Market Share6% |
| New York Life | Market Share5% |
Market share is a measure of how much of the market is controlled by a company in comparison to its competitors. A high market share in life insurance means that a company has sold more policies than others in the industry.
MoneyGeek used companies’ total written premiums that were found in the 2020 S&P Global data reports to evaluate the market share in Alabama.
Purchasing life insurance when you're young can help you save money. In Birmingham, young adults can expect to pay between $13 and $37 per month, on average, for life insurance. To get the cheapest rates, young people in the city should consider them following providers:
Below are additional life insurance providers that offer affordable rates for young people in Birmingham.
| MassMutual | Monthly Cost$13 |
| Nationwide | Monthly Cost$16 |
| Mutual of Omaha | Monthly Cost$18 |
| AAA | Monthly Cost$19 |
| Progressive Life | Monthly Cost$21 |
Rates were determined by analyzing quotes for a 25-year-old male non-smoker in Birmingham who is 5 feet 10 inches and 175 pounds that purchases a 20-year term contract at the average coverage need of $235K. We chose a 20-year term to provide a longer coverage period for a younger buyer.
To save on the cost of life insurance, young adults can purchase a policy at a more affordable rate than older individuals. Those aged 25 and below are eligible for the cheapest life insurance policies. It’s best to purchase a policy while you’re young because rates will increase over time.
The cost of life insurance for senior citizens in Birmingham typically ranges from $33 to $69 per month. MoneyGeek is here to help you pick a cost-effective choice for senior-friendly life insurance in Birmingham. The two insurance companies that charge older citizens the least are:
You can review additional life insurance providers that offer the best rates to Birmingham seniors in the table below.
| MassMutual | Monthly Cost$33 |
| Mutual of Omaha | Monthly Cost$38 |
| Nationwide | Monthly Cost$38 |
| State Farm | Monthly Cost$45 |
| Progressive Life | Monthly Cost$60 |
Rates were determined by analyzing quotes for a 60-year-old male non-smoker in Birmingham who is 5 feet 10 inches and 205 pounds that purchases a 10-year term contract at the average coverage need of $70K.
Because it's more likely that their policies will outlive them, seniors pay more for life insurance than the average adult. Despite this, seniors can save money by opting for a policy with a low coverage amount. A low-coverage policy is typically fine because seniors’ beneficiaries are financially independent. As such, they only need enough coverage for funeral arrangements and expenses. MoneyGeek’s sample coverage amount of $70K is typically sufficient for these purposes.
Life insurance quotes in Birmingham, Alabama, for people who smoke range between $88 and $167 per month. MoneyGeek determined that the cheapest life insurance providers for smokers in this city are:
Additional providers that offer cheap life insurance to smokers in Birmingham are included in the table below.
| MassMutual | Monthly Cost$88 |
| Mutual of Omaha | Monthly Cost$95 |
| Nationwide | Monthly Cost$95 |
| State Farm | Monthly Cost$114 |
| Prudential | Monthly Cost$138 |
Rates were determined by analyzing quotes for a 31-year-old male smoker in Birmingham who is 5 feet 10 inches and 205 pounds that purchases a 20-year term contract at the average coverage need of $592K. If you are a smoker, we suggest buying a longer-term (20-year) policy to provide longer coverage as rates for smokers increase dramatically as you age.
Smoking can have detrimental long-term health impacts such as lung and throat diseases. Consequently, smokers pay higher life insurance premiums because providers consider them riskier to insure than the average adult. Even so, smokers can still find affordable policies. MoneyGeek advises purchasing a longer-term coverage (at least 20 years) because smokers pay significantly higher premiums as they get older.
Ensure you are getting the best rate for your insurance. Compare quotes from the top insurance companies.
MoneyGeek determined the recommended life insurance coverage by factoring in per capita income from the U.S. Bureau of Economic Analysis, average mortgage debt, average personal debt and average age. Keep in mind that each buyer is unique and may need more or less coverage depending on their specific circumstances.
About Mark Fitzpatrick
Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
