Cheapest Life Insurance Companies of September 2024 (2024)

Best Cheap Life Insurance Companies of 2024

The MarketWatch Guides team researched premium costs for term life insurance policies across 60 providers to choose the cheapest life insurance companies. As we researched pricing, we also analyzed providers based on brand trust and overall coverage options to fit various budgets and financial goals. View the table below to see sample rates for men and women with our top-rated providers.

Note: We based cost data on life insurance quotes collected for healthy, tobacco-free 35-year-old men and women seeking a 20-year, $250,000 policy.

How We Ranked The Cheapest Life Insurers

As part of our methodology process, our team obtained cost data directly from insurance providers in December 2023. The rates reflect term life insurance policies based on tobacco-free applicants of various ages qualifying for the preferred health rate class, or considered in good health. Sample applicants included male and female age groups ranging from age 18 to 70. For this review, we narrowed down cost profiles to tobacco-free male and female applicants between ages 35 and 45 since surveys show the median age of life insurance policyholders is 43 years old.

Based on our team’s analysis of cheap life insurance rates across 34 providers nationwide, the average cost of term life insurance is $32. We calculated this average based on quotes collected for 35- and 45-year-old men and women without a history of tobacco use applying for a policy with $250,000 in coverage. Insurers offering rates below this average ranked higher in our review than those with more expensive pricing.

Our team used cost data for term life insurance rates due to the variability of permanent life insurance products. Additionally, term life policies tend to have much lower rates than most permanent life products such as whole life and universal life.

Cheap Life Insurance Companies in Detail

The life insurance industry features many providers that offer various policy types and coverage amounts to fit different budgets and financial goals. Here are our picks for cheap life insurance providers based on our analysis of term life policy rates.

Affordable Life Insurance Rates

Based on our research, the monthly cost of term life insurance is $22 for a 35-year-old and $42 for a 45-year-old seeking a 20-year term life policy with $250,000 in coverage. The cost of a life insurance policy can vary based on several factors, including an applicant’s age, amount of coverage and health. To determine the average prices, we secret-shopped to obtain quotes for various policy types, coverage amounts and policyholder ages.

These costs reflect term life insurance pricing based on tobacco-free male and female applicants who qualify for the preferred health rate class.

Cheapest Rates for Women

Women pay lower premiums for life insurance, on average, because they have an average life expectancy nearly six years longer than men. In our survey of 1,000 policyholders, 46% of females with term life said they paid less than $50 per month, but only 20% of male participants paid less than $50. Here are the average affordable monthly term life insurance rates for female applicants.

Cheapest Rates for Men

According to our 2024 survey of 1,000 life insurance policyholders nationwide, 20% of male respondents who own a term life policy reported paying less than $50 a month, while 43% pay more than $100 per month. Below, view affordable monthly term life insurance rates for male applicants based on quotes our team collected.

Cheapest Rates for Seniors

Although life insurance rates increase with age, the following companies provide the best rates for senior life insurance, based on our research. According to a recent survey conducted by the insurance trade association LIMRA, 81% of baby boomers, or people born between 1946 and 1964, said they would research online before purchasing life insurance. The chart below outlines sample cheap life insurance rates for seniors across our top companies.

Cheapest Rates for Smokers

Life insurance rates for smokers and those who use tobacco or vape products can be as much as three times higher than rates for non-smokers. According to our February 2024 survey, 53% of policyholders who smoke said they paid $50 to $100 per month for 10 to 20-year term life insurance policies. Use the table below to compare life insurance rates for women who smoke across our top providers.

According to our cost data, men who smoke will pay 25% to 35% more for the exact same life insurance policy than female smokers of the same age.

The Cheapest Types of Life Insurance

Term life insurance is the cheapest type of life insurance you can get, especially when compared to permanent life insurance, the other major form of coverage. According to our 2024 survey, 68% of term life policyholders said they pay less than $100 per month across coverage amounts. Here are the two major reasons a term life policy is cheaper:

• It’s temporary: Unlike permanent life insurance, term life has a defined end date — typical term life periods are between 10 and 30 years. A permanent life insurance policy is guaranteed to pay a death benefit if you continue to pay the premiums.
• It has no cash value: Permanent life insurance policies such as whole life and universal life feature a cash value component that offers living benefits to policyholders. Once a term life policy expires, your coverage ends without benefits unless you decide to renew.

Compare Types of Life Insurance From the Most Affordable Companies

Each provider offers a range of policies in their coverage portfolio. Here are the types of plans offered by the companies in our review.

How To Get a Cheap Life Insurance Policy

Major factors that determine the cost of life insurance premiums include your age, health status, lifestyle, and the type and amount of coverage you select. Here are some ways to possibly lower your rates:

• Consider term coverage: Term life insurance is considerably more affordable than whole life insurance. Studies conducted by Policygenius in 2023 showed a healthy 35-year-old policyholder paying approximately $30 per month for a 20-year term plan with $500,000 in coverage. That rate increased to $571 for a whole life policy with the same amount of life insurance.
  Read more: Best rated whole life insurance
• Apply when you’re younger: If you think you might need life insurance, it is advantageous to buy coverage early rather than wait. Based on our market research, term rates more than double between the ages of 25 and 45 for the same coverage amount.
• Tobacco use: Staying tobacco-free can keep your life insurance rates lower. Of the companies we reviewed, a healthy 35-year-old who does not use tobacco can expect to pay an average rate of $30 per month for $500,000 in coverage and a 20-year term. If that 35-year-old were in the same health class but also used tobacco, he would pay an average rate of more than $100 a month for the same coverage amount.
• Maintaining your health: Applicants with pre-existing conditions such as high blood pressure and high cholesterol or being overweight typically face higher life insurance rates. Lowering your blood pressure for a sustained period or losing weight — and keeping it off — could help you become eligible for a lower rate class.

Group Life Insurance

Many employers provide employees free or low-cost group life insurance as part of their benefits package, with the option to purchase additional coverage at the employee’s expense.

Group life insurance can provide a valuable company benefit, but such policies may not offer enough coverage to meet an employee’s insurance needs. Here are some pros and cons to consider:

How To Choose an Affordable Life Insurance Company

While cost is an important consideration as you research life insurance companies, it shouldn’t be the only factor you think about. Here are some other tips

• See what customers say: If you are looking for a company that values its customers, seeing how other consumers evaluate a provider can offer beneficial insights. J.D. Power’s annual customer satisfaction study and the NAIC complaint index are respected and trustworthy sources for measuring customer satisfaction with life insurers.
• Consider financial strength: You want to know if a company can pay a death benefit to your loved ones if the unexpected happens. Credit rating agency AM Best assigns financial strength letter grades to life insurers that assess their ability to pay claims.
• Research coverage options: Once you figure out your coverage needs, you can investigate which companies offer products that fit. Most companies also offer a selection of riders, which are provisions you can add to a standard policy for extra coverage.
• Compare quotes: Try to get preliminary quotes based on your age and the type and amount of coverage you want. Keep in mind that providers consider each applicant individually based on underwriting guidelines that consider factors such as overall health, lifestyle, tobacco use and family medical history.

Is Cheap Life Insurance Worth It

Yes, cheap life insurance is worth it as long as you select the type and amount of coverage that suits your needs. Each company we featured in this guide not only has affordable rates but also scores well overall compared to the 34 life insurers we reviewed nationwide when determining our list.

Every insurance provider has a proprietary underwriting process to determine coverage eligibility and premium costs. It’s possible to find the same coverage from 10 different insurers at 10 slightly different price points. To ensure that you find the best affordable coverage to suit your needs we recommend requesting multiple quotes and consulting a licensed professional.

ASK THE EXPERTS: Is Cheap Life Insurance Worth It?

“A cheap life insurance policy may be sufficient…

but it depends completely on your needs. Many term life insurance policies are affordable. If you already have coverage through a spouse or some other form of group coverage, you may only need a small policy that does not cost a lot.

But if you have a lot of financial obligations that would need to be covered — such as outstanding student loans, a mortgage or young children who will need college funds — life insurance is not something we would recommend you cut corners on. It would be better to ensure you have a plan with enough coverage for everything you need than to save a few cents now, especially when you can probably get a term life insurance plan that is cheap and still provides everything you need.”

Jiten Puri

CEO, PolicyAdvisor.com

“Yes, cheap life insurance is absolutely worth it.

Just like cheap car insurance would allow you to get from point A to point B, having something cheap is better than nothing. However, before you purchase cheap life insurance, you’ll want to understand what you’re buying and whether or not it’s the right product for you and your family. What is most important is that you have some coverage to protect your family when life ultimately happens.“

Seth Sherry

Practice Development Coordinator, M&O Marketing

“Absolutely, a cheap life insurance policy is worth it.

Imagine this: for a few dollars a month, you can ensure your loved ones are taken care of when you’re no longer around. No other asset class allows you to pay a small premium and guarantee a substantial, tax-free inheritance. Plus, with the right policy and carrier, you can receive living benefits you can use while you’re still alive. It’s better to have some coverage than none at all, and a budget-friendly policy can provide peace of mind and financial security.”

Javarah “Jay” Joseph

CRPC and Financial Advisor, Jay’s Money Secrets

“A cheap life insurance policy may be the best financial investment…

you [can] make for your loved ones. A life insurance policy is simply the purchase of a large sum of money at a discounted price with the promise the money will be paid to your beneficiaries in the event of your death.

With cheap term life insurance, you can literally purchase dollars for pennies or, maybe better put, thousands of dollars for mere dollars. If you have anyone who depends upon you for financial support or even if you just have a favorite charity, a cheap life insurance policy can bring peace of mind, personal satisfaction and financial security for your loved ones — making it worth the relatively few dollars you will spend on it each month.

Daniel J. Adams, MBA, CFP, CLU

Expert Contributor at Annuity.org

“In most instances, term life insurance stands out…

as the most cost-effective life insurance option for both individuals and families. Is it a worthwhile investment? Absolutely. Unless an individual has achieved financial independence, rendering a life insurance policy unnecessary, it remains crucial to protect their loved ones by transferring the risk of premature death to an insurance company.

How cost-effective is term insurance? Here’s a quick example:

Let’s assume a 36-year-old individual has a $1 million, 20-year, level-premium term policy with a $350 annual premium. If the individual dies in the last year of the policy, the most they would have paid is $7,000, with an effective cost of 0.70%.”

Ryan Nelson

Wealth Advisor and Founder,RLN Wealth

Methodology: Our System for Rating Life Insurance Companies

Our goal at the MarketWatch Guides team is to provide you with comprehensive, unbiased recommendations you can trust. To rank the cheapest life insurance companies, we requested quotes directly from each provider for a 20-year, $250,000 term life policy for men and women aged 35 to 45. After calculating an average cost of $32 among the 34 total providers we received quotes for, we reviewed companies with lower-than-average rates based on the following criteria to ensure trustworthiness and reliability:

• Cost: As mentioned above, cost was the main factor when selecting our list of the cheapest life insurance companies.
• Coverage: We evaluated factors such as the types and number of plans offered, maximum age limits and coverage amounts, availability of riders and no-exam options.
• Brand trust: We assessed companies based on customer satisfaction ratings from J.D. Power and the NAIC complaint index, and considered financial strength based on scores from the credit rating agency AM Best.
• Customer convenience: We rated companies based on the number of communication methods available to policyholders for customer support and filing claims. We also looked at the availability of ways to receive quotes and complete applications — for instance, via an in-person agent, by phone or online.
• Survey insights: We surveyed 1,000 life insurance policyholders in 2024 on such factors as the companies they chose, the type and cost of their plan, and the most important factors when choosing a life insurance policy. We then used that information to inform our ratings for cheap life insurance coverage across different consumer profiles.

We used the above factors to determine an overall company score on a 5-star rating scale. Only companies with at least a 4-star rating in our methodology earned a spot on our list of the cheapest life insurance companies.

To learn more, read our full life insurance methodology for reviewing and scoring providers.