Best Life Insurance Companies in Tempe, AZ, for 2024
Updated: October 18, 2024
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If you have people who depend on you financially, one of the best investments you can make is a life insurance policy. It can help support them after your passing and lessen any financial burdens.
MoneyGeek collected and analyzed quotes from life insurance companies in Tempe, Arizona, to uncover the best life insurance in the city for various profiles. Our guide includes our top picks based on age, gender and smoking history.
BestLife InsuranceTempe, AZBest Life Insurance Companies in Tempe, AZ, for 2023
Your gender and coverage amount determine the cost of your life insurance. For $250,000 coverage in Tempe, MassMutual gives the lowest average monthly rate — $12 for men and $10 for women.
However, a $250,000 coverage amount might not be enough for most people. MoneyGeek urges you to consider purchasing a policy with Arizona’s recommended coverage amount of $708,000, calculated using average age, cost of living, average income, average personal debt and other state-specific factors.
For the state-recommended coverage, Nationwide offers the cheapest coverage at an average monthly premium of $20 for men and $15 for women.
Cheapest For | $250K Coverage | $708K Coverage (Recommended) |
|---|---|---|
Male | MassMutual | Nationwide |
Female | MassMutual | Nationwide |
Males and females in Tempe pay slightly higher life insurance premiums compared to the Arizona average cost. Using the state average as a point of reference, men in Tempe pay around 4% more, while women pay roughly 3% more.
In Tempe, on average, men pay $21 per month, while women pay around $16 per month for a policy with $250,000 coverage.
You may choose to get the Arizona-recommended coverage amount of $708,000. That coverage amount was calculated based on multiple factors, such as per capita income from the U.S. Bureau of Economic Analysis, average personal and mortgage debt and average age. That means it provides adequate financial protection for most Arizonans.
A life insurance policy with the Arizona-recommended coverage amount costs an average of $41 monthly for men and $30 monthly for women.
With a 10-year term policy, regardless of the coverage limit, the average monthly premium is $26 for men and $19 for women.
| Nationwide | $12 | $20 |
| MassMutual | $12 | $20 |
| Mutual of Omaha | $13 | $21 |
| Transamerica | $16 | $33 |
| AAA | $17 | $35 |
| State Farm | $21 | $42 |
| Prudential | $31 | $50 |
| Progressive Life | $25 | $54 |
| Nationwide | $11 | $15 |
| Mutual of Omaha | $11 | $16 |
| MassMutual | $10 | $16 |
| Transamerica | $13 | $25 |
| AAA | $13 | $27 |
| State Farm | $17 | $30 |
| Prudential | $20 | $32 |
| Progressive Life | $19 | $38 |
Life insurance policy costs were determined by gathering 10-year term quotes from major life insurance companies in Tempe using average buyer profile statistics, including the average age of 30, the average weight of 197 pounds for males and 156 pounds for females, and an average coverage need of $708,000.
Insurers consider your gender when calculating your life insurance policy premium. Generally, women tend to pay lower rates because women often outlive men. There are several factors that may explain why women live longer, such as men’s inclination to engage in risky behaviors, having more dangerous jobs and being less socially connected.
Women may live longer, but men buy life insurance more than women do. That highlights an ownership gap that needs addressing. MoneyGeek encourages women to consider life insurance as an essential investment that can provide income replacement following their death as a wage earner in the household.
Prudential Financial Inc. (around 7%), Northwestern Mutual (around 6%) and Lincoln Financial (roughly 5%) are the most popular life insurance companies in Arizona by market share.
The top seven life insurance providers in Arizona, based on market share, account for roughly 35% of total life insurance revenue across the state.
View MoneyGeek’s summary table below to see the most popular life insurance companies in Arizona based on market share.
| Prudential | 7% |
| Northwestern Mutual | 6% |
| Lincoln Financial | 5% |
| Pacific Life | 5% |
| New York Life | 5% |
| State Farm | 4% |
| John Hancock | 3% |
A company’s market share is the percentage of sales that it gets out of the total sales within its industry. It is its “slice of the pie,” so to speak.
The market share data that MoneyGeek used in its life insurance company analysis is based on total premiums written in the 2020 state data reports from S&P Global.
Life insurance for young adults in Tempe is priced, on average, between $16 and $46 per month.
Based on MoneyGeek’s average rates research, the two cheapest life insurance companies for young people in Tempe are:
Refer to our table below to see the complete list of the life insurance companies for young adults in Tempe.
| MassMutual | $16 |
| AAA | $17 |
| Nationwide | $19 |
| Transamerica | $21 |
| Mutual of Omaha | $21 |
| State Farm | $22 |
| Progressive Life | $22 |
| Prudential | $46 |
Rates were determined by analyzing quotes for a 25-year-old male non-smoker in Tempe who is 5 feet 10 inches and weighs 168 pounds with a 20-year term contract at the average coverage need of $240,000. We chose a 20-year term to provide a longer coverage period for a younger buyer.
Individuals who are 25 years of age and younger are generally healthier and have not yet developed age- and lifestyle-related illnesses. Insurers, therefore, consider them less risky to insure and charge them a lower premium.
But, rates get more expensive as the policyholder gets older. For this reason, MoneyGeek highly recommends that you purchase life insurance at a young age to enjoy a lower premium for a longer period of time and save money.
On average, seniors in Tempe pay anywhere from $40 to $83 a month for life insurance.
MoneyGeek found that seniors in Tempe find the average lowest rates from the following providers:
Check the table below for MoneyGeek’s comprehensive list of the life insurance companies in Tempe for seniors and their respective rates.
| MassMutual | $40 |
| Mutual of Omaha | $45 |
| Nationwide | $46 |
| State Farm | $48 |
| AAA | $60 |
| Progressive Life | $72 |
| Transamerica | $74 |
| Prudential | $83 |
Rates were determined by analyzing quotes for a 60-year-old male non-smoker in Tempe who is 5 feet 10 inches tall and weighs 197 pounds with a 10-year term contract at the average coverage need of $73,000.
Age is one of the factors that insurance providers consider when calculating a premium. Typically, they charge seniors higher rates because their policy is likely to outlive them and are therefore riskier to insure.
One of the best ways for seniors to save on their policy is by getting less coverage. Most seniors do not need a high coverage amount since their beneficiaries are likely to be financially independent adults. Their policies generally only need to cover expenses related to funeral and burial arrangements or outstanding debts. For this reason, MoneyGeek’s sample coverage amount for seniors is less than for other profiles.
Typically, smokers pay a higher rate for life insurance. In Tempe, policies for smokers are priced roughly between $101 and $222 per month.
MoneyGeek found the top life insurance companies offering the most affordable rates for smokers in Tempe. They are:
Check MoneyGeek’s table below for a complete list of the life insurance providers for smokers in Tempe, alongside their respective rates.
| Transamerica | $101 |
| MassMutual | $120 |
| State Farm | $124 |
| Nationwide | $127 |
| Mutual of Omaha | $133 |
| Prudential | $150 |
| Progressive Life | $188 |
| AAA | $222 |
Rates were determined by analyzing quotes for a 30-year-old male smoker in Tempe who is 5 feet 10 inches tall and weighs 197 pounds with a 20-year term contract at the average coverage need of $708,000.
Insurance companies classify smokers in the higher-risk category since they are more prone to having health issues and shorter life spans. To make up for this increased risk, life insurance companies charge them a higher premium.
To get the best rate, we recommend that you explore various options for cheap life insurance for smokers. MoneyGeek also highly recommends buying a longer-term policy (20 years or more). The extended coverage period protects against the exponential increase in the premium that insurers typically charge smokers as they 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.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He 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.
