Best Life Insurance Companies in Chicago, IL

MoneyGeek determined that the best overall life insurance company in Chicago is Nationwide. For young adults and smokers, though, the best is Transamerica. Meanwhile, MassMutual is ideal for seniors. The cheapest average rate in the city is $11 per month for a $250K coverage policy and $21 per month for the recommended Illinois coverage amount.

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Advertising & Editorial DisclosureLast Updated: 12/22/2022
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While an uncomfortable topic, life insurance is an investment that acts as a financial safeguard for your loved ones in the event of your passing. Since there are many options to choose from, MoneyGeek created this guide to help you compare life insurance companies in Chicago, Illinois, and find the best policy for you based on your age, gender and smoking history.

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2023

Best Life Insurance Companies in Chicago, IL, for 2023

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Best Cheap Life Insurance in Chicago

Gender and coverage amount significantly impact the cost of life insurance. For a policy with $250K coverage, MassMutual is the cheapest life insurance company in Chicago for men, at roughly $11 per month. Meanwhile, Transamerica is the cheapest for women, at around $10 per month.

Although a policy with $250,000 coverage is more affordable, it might not be enough for most people. A good benchmark is the Illinois recommended coverage amount of $769,000, which is based on the cost of living, average income, average personal debt, average age and other state-specific factors.

For the Illinois recommended coverage amount of $769,000, the cheapest life insurance company for men and women in Chicago is Nationwide, charging around $21 per month and $16 per month, respectively.

Cheapest Life Insurance Companies for Males and Females in Chicago
  • Cheapest For
    $250K Coverage
    $769K Coverage (Recommended)
  • Male

    MassMutual

    Nationwide

  • Female

    Transamerica

    Nationwide

Life Insurance Costs in Chicago for Men and Women

MoneyGeek found that life insurance for men in Chicago is around 3% more expensive than the Illinois average. Meanwhile, for women in Chicago, life insurance is roughly 4% more expensive.

MoneyGeek found that the average cost of life insurance with $250K coverage in Chicago is $20 per month for men and $15 per month for women. However, these rates significantly change when you increase the coverage level to Illinois’ recommended amount.

For a policy with Illinois’ recommended coverage amount of $769,000, the monthly premium has an average cost of $42 for men in Chicago and $31 for women.

Regardless of the coverage limit, a 10-year term policy in Chicago costs around $26 monthly for men and $20 monthly for women.

Average Monthly Life Insurance Rates in Chicago: Men

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  • Company
    Rates for $250K Coverage
    Rates for $926K Coverage (Recommended)
  • Nationwide
    $12
    $21
  • MassMutual
    $11
    $21
  • Mutual of Omaha
    $12
    $22
  • Transamerica
    $12
    $25
  • AAA
    $17
    $37
  • State Farm
    $21
    $44
  • Prudential
    $30
    $53
  • Progressive Life
    $25
    $58
Average Monthly Life Insurance Rates in Chicago: Women

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  • Company
    Rates for $250K Coverage
    Rates for $926K Coverage (Recommended)
  • Nationwide
    $11
    $16
  • MassMutual
    $10
    $17
  • Mutual of Omaha
    $11
    $17
  • Transamerica
    $10
    $19
  • AAA
    $14
    $29
  • State Farm
    $17
    $32
  • Prudential
    $20
    $35
  • Progressive Life
    $14
    $42

Life insurance policy costs were determined by gathering 10-year term quotes from major life insurance companies in Chicago using average buyer profile statistics, including the average age of 30, the average weight of 187 pounds for males and 148 pounds for females, and an average coverage need of $769,000.

woman icon
LIFE INSURANCE OFTEN COSTS LESS FOR WOMEN

Gender can significantly affect the cost of life insurance. For example, women pay less for a policy because they often live longer than men. Since men have shorter life expectancies due to reasons such as taking up riskier occupations and developing heart disease, they tend to have more expensive life insurance.

Although women have cheaper rates, studies show that men buy life insurance more often than women. Whether they’re breadwinners or not, it’s a good idea for women to invest in life insurance to have financial protection against unfortunate eventualities.

Most Popular Life Insurance Companies in Illinois

Based on MoneyGeek’s analysis, the three most popular life insurance companies in Illinois by market share are Northwestern Mutual with around 14%, Lincoln Financial with roughly 6% and State Farm with around 5%.

If you add the market shares of the seven most popular companies in Illinois, the total is almost 42% of the state’s life insurance industry. Below, the table lists the most popular companies in Illinois and their market shares.

Most Popular Life Insurance Companies in Illinois

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  • Company
    Market Share
  • Northwestern Mutual
    14%
  • Lincoln Financial
    6%
  • Prudential
    5%
  • State Farm
    5%
  • New York Life
    4%
  • MassMutual
    4%
  • COUNTRY Financial
    4%
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MONEYGEEK DICTIONARY

A life insurance company’s market share reflects the percentage of policies it sells compared to others in its industry. Those with a high market share are usually more profitable and reliable for life insurance. The market share data for Illinois in this analysis was derived from 2020 S&P Global data reports.

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Cheapest Life Insurance for Young People in Chicago

On average, the cost of life insurance in Chicago for young people ranges from $15 to $25 per month. MoneyGeek determined that the cheapest companies for young people in this city are:

  • Transamerica: $15 per month on average
  • Mutual of Omaha: $17 per month on average

Below, MoneyGeek lists the most affordable life insurance companies in Chicago for young people.

Best Life Insurance Companies for Young People in Chicago, IL

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  • Company
    Monthly Cost
  • Transamerica
    $15
  • Mutual of Omaha
    $17
  • MassMutual
    $17
  • AAA
    $19
  • Prudential
    $21
  • State Farm
    $21
  • Nationwide
    $22
  • Progressive Life
    $25

Rates were determined by analyzing quotes for a 25-year-old male non-smoker in Chicago who is 5 feet 10 inches and weighs 159 pounds with a 20-year term contract at the average needed coverage amount of $310,000. We chose a 20-year term to provide a longer coverage period for a younger buyer.

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LIFE INSURANCE IS CHEAPER FOR YOUNG PEOPLE

Young adults aged 25 and below usually have cheaper life insurance. However, rates increase over time with age. That’s why it’s best to buy a life insurance policy while you’re young to save on the premium.

Cheapest Life Insurance for Seniors in Chicago

The average cost of life insurance in Chicago for seniors can be as low as $39 per month or as high as $92 per month. MoneyGeek determined that, on average, the two cheapest companies for seniors in Chicago are:

  • MassMutual: $39 per month
  • Mutual of Omaha: $45 per month

See the table below to find more affordable life insurance companies for seniors in Chicago.

Best Life Insurance Companies for Seniors in Chicago, IL

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  • Company
    Monthly Cost
  • MassMutual
    $39
  • Mutual of Omaha
    $45
  • Nationwide
    $45
  • State Farm
    $53
  • AAA
    $59
  • Progressive Life
    $71
  • Prudential
    $81
  • Transamerica
    $92

Rates were determined by analyzing quotes for a 60-year-old male non-smoker in Chicago who is 5 feet 10 inches tall and weighs 187 pounds with a 10-year term contract at the average coverage need of $94,000.

seniors icon
LIFE INSURANCE COSTS MORE FOR SENIORS

Life insurance tends to be more expensive for seniors because the expectation is their policies will outlive them. However, most seniors don’t mind having less coverage since their children are more likely to be financially independent. Their life insurance typically only pays for funeral expenses and outstanding debts. That’s why MoneyGeek used a lower coverage amount for them.

Cheapest Life Insurance for Smokers in Chicago

For those who smoke in Chicago, the cost of life insurance averages between $108 and $234 per month. On average, the two least expensive life insurance providers for smokers in Chicago are:

  • Transamerica: $108 per month
  • MassMutual: $128 per month

In the table below, you’ll find the complete list of the cheapest companies for smokers in Chicago.

Best Life Insurance Companies for Smokers in Chicago, IL

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  • Company
    Monthly Cost
  • Transamerica
    $108
  • MassMutual
    $128
  • State Farm
    $132
  • Nationwide
    $133
  • Mutual of Omaha
    $142
  • Prudential
    $160
  • Progressive Life
    $205
  • AAA
    $234

Rates were determined by analyzing quotes for a 30-year-old male smoker in Chicago who is 5 feet 10 inches tall and weighs 187 pounds with a 20-year term contract at the average needed coverage amount of $769,000.

girlThinking icon
LIFE INSURANCE IS VERY EXPENSIVE FOR SMOKERS

Smokers are riskier to insure since they are more likely to develop smoking-related diseases that impact their life expectancies. But shopping around for the cheapest life insurance for smokers is possible. If you’re a smoker, MoneyGeek suggests buying a 20-year policy to get longer coverage as rates for smokers increase dramatically with age.

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Methodology

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 the Author


Mark Fitzpatrick headshot

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.


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