Best Life Insurance Companies in Birmingham, AL for 2023

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.

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.

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.

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.

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.

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:

• MassMutual: $13 per month
• Nationwide: $16 per month

Below are additional life insurance providers that offer affordable rates for young people in Birmingham.

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.

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:

• MassMutual: $33 per month
• Mutual of Omaha: $38 per month

You can review additional life insurance providers that offer the best rates to Birmingham seniors in the table below.

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.

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:

• MassMutual: $88 per month
• Mutual of Omaha: $95 per month

Additional providers that offer cheap life insurance to smokers in Birmingham are included in the table below.

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.

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.