Updated: May 22, 2024
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In the event of your passing, life insurance companies provide financial support to your beneficiaries. Because there are many life insurance companies in San Jose, California, checking and comparing prices will help you find the right policy that fits your needs and lifestyle.
MoneyGeek’s analysis of the best life insurance companies in San Jose can help you find the right policy based on your gender, age or even smoking history.
BestLife InsuranceSan Jose, CABest Life Insurance Companies in San Jose, CA, for 2023
The amount of life insurance premiums depends on the policy amount and your gender. Transamerica is the cheapest for men for a policy with $250K in coverage in San Jose, with an average rate of $13 per month. The most affordable life insurance for women is also Transamerica, with an average rate of $9 per month.
Even if a policy of $250K in coverage is more affordable, it may not cover all of your listed beneficiaries.
A good benchmark for a life insurance policy would be the state's recommended amount based on the state's cost of living, average income, average personal debt, average age and other state-specific factors. For the state of California, this amount is $1,130,000.
With California's recommended coverage amount of around $1.13 million, Transamerica provides the cheapest life insurance for both men, at $28 per month and women, at $19 per month.
Cheapest For | $250K Coverage | $1,000,000 Coverage (Recommended) |
|---|---|---|
Male | Transamerica | Transamerica |
Female | Transamerica | Transamerica |
The average cost of life insurance changes depending on your gender. For example, women in San Jose pay 13% more than the average for the state of California. Meanwhile, men in San Jose pay 31% more than average for the state.
Gender is one of the primary factors affecting life insurance costs. In San Jose, women pay $17 per month for $250K in coverage, while men pay $22. These rates change significantly if you get the state's recommended coverage amount.
California's state-recommended coverage amount of $1,130,000 is based on per capita income from the U.S. Bureau of Economics, average mortgage debt, average personal debt and age. Following this recommendation, the average cost of a policy is $51 for women per month and $57 for men per month.
The average price for a 10-year term policy for women is $29 per month and $33 per month for men, regardless of the coverage limit.
| Transamerica | Rates for $250K Coverage$13 | Rates for $926K Coverage (Recommended) $28 |
| Nationwide | Rates for $250K Coverage$15 | Rates for $926K Coverage (Recommended) $30 |
| MassMutual | Rates for $250K Coverage$15 | Rates for $926K Coverage (Recommended) $34 |
| Mutual of Omaha | Rates for $250K Coverage$16 | Rates for $926K Coverage (Recommended) $35 |
| AAA | Rates for $250K Coverage$18 | Rates for $926K Coverage (Recommended) $39 |
| Transamerica | Rates for $250K Coverage$9 | Rates for $926K Coverage (Recommended) $19 |
| Nationwide | Rates for $250K Coverage$12 | Rates for $926K Coverage (Recommended) $20 |
| Mutual of Omaha | Rates for $250K Coverage$12 | Rates for $926K Coverage (Recommended) $22 |
| MassMutual | Rates for $250K Coverage$11 | Rates for $926K Coverage (Recommended) $23 |
| Progressive Life | Rates for $250K Coverage$13 | Rates for $926K Coverage (Recommended) $54 |
Life insurance policy costs were determined by gathering 10-year term quotes from major life insurance companies in San Jose using average buyer profile statistics, including the average age of 30, the average weight of 179 pounds for males and 142 pounds for females, and an average coverage need of $1,130,000.
Gender plays an essential role in determining the cost of life insurance. Women tend to pay less than men because women have a higher life expectancy.
Additionally, men statistically engage in riskier behaviors such as working dangerous jobs and are more likely to develop diseases. Therefore, insurance companies tend to charge men more.
Other studies show men buy life insurance more than women. Whether or not they're their family's breadwinners or stay-at-home caretakers, women are vital contributors to their household's economy. Therefore making them ideal candidates for life insurance in San Jose, California.
The three most popular life insurance companies in California based on their market shares are:
California's seven most popular companies make up 37% of the market share. The most popular life insurance companies in San Jose and their market shares are listed in the table below.
| New York Life | Market Share8% |
| Transamerica | Market Share7% |
| Northwestern Mutual | Market Share5% |
| Lincoln Financial | Market Share5% |
| MassMutual | Market Share4% |
Knowing a company's market share tells you their percentage of sales relative to the others in the industry. The higher their market share, the more they dominate the market. The higher the market share, the more policies the company has sold relative to other providers.
The market share data in MoneyGeek's analysis is sourced from each company's total premiums written in the 2020 state reports from S&P Global.
In San Jose, average life insurance premiums for young adults range from $22 to $35 per month. MoneyGeek discovered that the two most affordable insurers for young people in San Jose are:
Discover other life insurance quotes in San Jose for young people through the table below.
| Transamerica | Monthly Cost$22 |
| Mutual of Omaha | Monthly Cost$25 |
| MassMutual | Monthly Cost$25 |
| AAA | Monthly Cost$28 |
| State Farm | Monthly Cost$30 |
Rates were determined by analyzing quotes for a 25-year-old male non-smoker in San Jose who is 5 feet 10 inches and 152 pounds that purchases a 20-year term contract at the average coverage need of $360,000. We chose a 20-year term to provide a more extended coverage period for a younger buyer.
Life insurance is more affordable for those 25 years old and younger. Policy costs increase over time as you age and become more prone to illnesses. Therefore, it’s best to think of purchasing life insurance at a young age. It’s one of the best strategies to save money on a policy. The healthier and younger you are, the more affordable it costs every month.
For the seniors living in San Jose, life insurance costs usually range from $51 to $114 per month. The top two cheapest life insurance companies in San Jose for seniors are:
Refer to the table below for the cheapest insurers in San Jose for seniors.
| Transamerica | Monthly Cost$51 |
| MassMutual | Monthly Cost$53 |
| State Farm | Monthly Cost$58 |
| Nationwide | Monthly Cost$58 |
| AAA | Monthly Cost$60 |
Rates were determined by analyzing quotes for a 60-year-old male non-smoker in San Jose who is 5 feet 10 inches and 179 pounds that purchases a 10-year term contract at the average coverage need of $107,000.
Seniors pay more for their insurance policies because it's more likely that their policy will outlive them. However, seniors don't need as much coverage since their beneficiaries are more likely to be financially capable adults. Their life insurance amounts only need to cover expenses such as funeral arrangements, estate tax, etc. Therefore, MoneyGeek's sample policy coverage for seniors is lower than for other groups.
The average cost of life insurance quotes in San Jose for smokers ranges between $191 and $285 per month. MoneyGeek found the cheapest life insurance providers in San Jose. These are
Check the table below to see more of the most affordable life insurance companies in the city for smokers.
| Transamerica | Monthly Cost$191 |
| Nationwide | Monthly Cost$208 |
| State Farm | Monthly Cost$226 |
| Mutual of Omaha | Monthly Cost$231 |
| MassMutual | Monthly Cost$232 |
Rates were determined by analyzing quotes for a 30-year-old male smoker in California who is 5 feet 10 inches and 179 pounds that purchases a 20-year term contract at the average coverage need of $1,130,000.
Smoking brings long-term adverse health effects, so insurance companies see smokers as high risk and therefore charge them higher premiums. Nevertheless, it’s still possible to find cheap life insurance for people who smoke.
MoneyGeek highly recommends buying a longer-term policy with at least 20 years because being a smoker compounds the increase in your rates as you 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.
