Updated: May 22, 2024
Advertising & Editorial Disclosure
One of the best ways to be prepared for life’s uncertainties is by getting a life insurance policy. It allows you to secure the financial well-being of your dependents should you pass away.
To help you find the best life insurance companies in Mobile, Alabama, MoneyGeek analyzed different profiles, considering age, gender and smoking history. Our guide outlines the average cost of life insurance in Mobile and what affects the cost to better prepare you when getting a policy.
BestLife InsuranceMobile, ALBest Life Insurance Companies in Mobile, AL, for 2023
Your gender and coverage amount have a significant impact on your life insurance policy premium. For $250,000 coverage in Mobile, MassMutual is the cheapest life insurance company, with an average monthly premium of $10 for men and $9 for women.
But, $250,000 of coverage might not be enough for most people. That is why MoneyGeek strongly suggests getting the recommended coverage amount for Alabama of $592,000, which considers state-specific factors, including the cost of living, average personal debt and average income.
The average lowest rate for the Alabama-recommended coverage amount in Mobile is $16 for men through MassMutual and $12 for women through Nationwide.
Cheapest For | $250K Coverage | $592K Coverage (Recommended) |
|---|---|---|
Male | MassMutual | MassMutual |
Female | MassMutual | Nationwide |
Gender impacts the cost of life insurance in Mobile. Women in the city pay around a 10% lower rate than the average for Alabama, while men’s life insurance costs roughly 1% more than the average statewide rate.
In Mobile, the average cost of a $250,000 coverage life insurance policy is $20 monthly for men and $15 monthly for women.
Although a $250,000 coverage amount may be a cheap option, MoneyGeek recommends that you purchase a policy with higher coverage to get enough financial protection. We suggest Alabama’s recommended coverage amount of $592,000, which was calculated based on per capita income from the U.S. Bureau of Economic Analysis, average personal and mortgage debt and average age.
It is more expensive, costing around $38 monthly for men and $27 monthly for women, but it is a safer option.
No matter what coverage amount you choose, a 10-year term policy has an average monthly premium of $25 for men and $18 for women.
| MassMutual | Rates for $250K Coverage$10 | Rates for $926K Coverage (Recommended) $16 |
| Nationwide | Rates for $250K Coverage$11 | Rates for $926K Coverage (Recommended) $16 |
| Mutual of Omaha | Rates for $250K Coverage$11 | Rates for $926K Coverage (Recommended) $16 |
| AAA | Rates for $250K Coverage$19 | Rates for $926K Coverage (Recommended) $38 |
| State Farm | Rates for $250K Coverage$23 | Rates for $926K Coverage (Recommended) $39 |
| Nationwide | Rates for $250K Coverage$9 | 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) $12 |
| State Farm | Rates for $250K Coverage$18 | Rates for $926K Coverage (Recommended) $27 |
| AAA | Rates for $250K Coverage$15 | Rates for $926K Coverage (Recommended) $29 |
Life insurance policy costs were determined by gathering 10-year term quotes from major life insurance companies in Mobile 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.
Generally speaking, life insurance is more expensive for men than women because women often live longer than men. The reasons why women tend to outlive men include men being more likely to avoid routine medical checkups and being more likely to have dangerous jobs.
Research consistently finds a striking gender gap in life insurance — although women live longer, men are more likely to have life insurance. To help bridge this gap, MoneyGeek strongly advises women to consider life insurance as an essential investment in their financial toolkit because whether they work for a company or in the home, they bring monetary value to their family that requires protection.
Alfa Life Insurance Corp. (nearly 8%), Northwestern Mutual (nearly 8%) and Globe Life Inc. (around 6%) are the top three companies in Alabama in terms of overall popularity by market share.
Nearly 41% of the life insurance market share comes from seven companies in the state. Refer to MoneyGeek’s table below for a quick summary of the most popular life insurance companies in Alabama and their market shares.
| Alfa Life Insurance Corp. | Market Share8% |
| Northwestern Mutual | Market Share8% |
| Globe Life Inc. | Market Share6% |
| State Farm | Market Share6% |
| New York Life | Market Share5% |
A company’s market share is a good indicator of how large and popular it is within its business sector. It is calculated as the company’s sales out of the total sales for the entire industry.
When creating this expert life insurance guide, MoneyGeek used market share data based on total premiums shown in the 2020 state reports from S&P Global.
The average cost of life insurance for young people in Mobile ranges from $16 to $43 per month.
MoneyGeek found that, on average, young adults in Mobile get the lowest life insurance rates from the following insurers:
Check the table below for a complete list of the life insurance companies and their respective rates for young people in Mobile.
| MassMutual | Monthly Cost$16 |
| Nationwide | Monthly Cost$19 |
| Mutual of Omaha | Monthly Cost$21 |
| AAA | Monthly Cost$22 |
| Progressive Life | Monthly Cost$25 |
Rates were determined by analyzing quotes for a 25-year-old male non-smoker in Mobile who is 5 feet 10 inches and weighs 175 pounds with a 20-year term contract at the average coverage need of $235,000. We chose a 20-year term to provide a longer coverage period for a younger buyer.
It is highly advisable to purchase life insurance earlier in life to enjoy maximum savings since policies are often cheaper for individuals who are 25 years of age and younger. The premium becomes more expensive as the policyholder ages and is more likely to develop an illness.
Seniors in Mobile should expect to pay an average of $39 to $80 per month for life insurance.
MoneyGeek found that the average lowest life insurance policy rates for seniors in Mobile are from:
Check the table below for MoneyGeek’s complete list of the life insurance companies for seniors in Mobile, with their respective rates.
| MassMutual | Monthly Cost$39 |
| Mutual of Omaha | Monthly Cost$44 |
| Nationwide | Monthly Cost$45 |
| State Farm | Monthly Cost$52 |
| Progressive Life | Monthly Cost$70 |
Rates were determined by analyzing quotes for a 60-year-old male non-smoker in Mobile who is 5 feet 10 inches tall and weighs 205 pounds with a 10-year term contract at the average coverage need of $70,000.
Most life insurance providers classify seniors as a higher risk to insure since they expect their policies to outlive them. To offset this increased risk, insurers tend to charge higher rates to seniors.
Seniors can save on insurance costs by choosing less coverage since their children are most likely financially independent adults. That means, for example, the policy only needs to cover expenses related to funeral and burial arrangements, as well as to pay estate taxes and any outstanding debts.
For this reason, MoneyGeek has set its sample coverage policy for seniors at a lower level than for other age groups.
On average, life insurance for smokers in Mobile costs from $103 to $195 per month.
The following life insurance companies in Mobile offer the cheapest average rates for smokers:
Go over MoneyGeek’s complete list below of the life insurance companies and their respective rates for smokers in Mobile.
| MassMutual | Monthly Cost$103 |
| Mutual of Omaha | Monthly Cost$111 |
| Nationwide | Monthly Cost$111 |
| State Farm | Monthly Cost$133 |
| Prudential | Monthly Cost$161 |
Rates were determined by analyzing quotes for a 31-year-old male smoker in Mobile who is 5 feet 10 inches tall and weighs 205 pounds with a 20-year term contract at the average coverage need of $592,000.
Smoking increases the risk of developing serious and long-term health issues that can shorten lifespan. Because of this, life insurance providers tend to classify smokers as riskier to insure and charge them higher rates.
If you’re a smoker who wants to save on life insurance, MoneyGeek found the cheapest life insurance companies and rates for smokers. Another practical option that is worth exploring is to buy a longer-term policy of at least 20 years to avoid the expected surges in insurance premiums as smokers age.
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.
