Life insurance policies offer you coverage in exchange for monthly premiums. As long as you pay the premiums, your beneficiary will receive a death benefit as long as the policy is still in effect when you die.
Each policy is different and will benefit different people. Some policies are more expensive than others, while others offer what you need at an affordable price. Start with Benzinga’s guide to find the most affordable life insurance today.
The Most Affordable Life Insurance Companies
While some types of policies are more affordable than others, the price is also heavily influenced by the life insurance company itself. Some life insurance companies offer cheaper options than others. The following are a few different insurers that offer a variety of options with more affordable pricing.
Bestow does not require a medical exam for any applicant in order for them to buy term life insurance. This means that your health status will not affect your ability to get a policy or the price of your policy. You can apply online for term life and get a decision in as little as 10 minutes.
The term life policies offered are for 10, 15, 20, 25 and 30 year terms, and you can apply between the ages of 18 and 60. There aren’t any riders offered in order to customize your policy and you won’t be able to get a 20 year policy if you’re over the age of 45, but Bestow’s policies can be a strong choice for anyone who has an illness that would make life insurance more expensive with other companies.
Get started securely through Bestow Life Insurance’s website
Disclosure: *excludes New York
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Bestow offers 2 kinds of life insurance policies: 20-year level term policy or a 10-year level term policy.
Through its policies, you may qualify for up to $1 million in term life insurance. That may seem like a sizeable sum, but if you have a spouse and children, you have to consider the cost of things beyond your mortgage, such as daycare and eventually college, as well as the loss of wages over time.
Bestow uses its proprietary technology to underwrite your insurance policy, so the application process is much faster than with traditional life insurance companies. They’re also backed by Munich Re and North American Company for Life and Health Insurance, 2 A+ rated insurance companies.
- People who are looking for short-term life insurance
- Individuals who don’t want to go through the hassle of having a medical exam or blood work done to get coverage
- Plans start at just $8/month
- Decent coverage options if you need insurance quickly and without hassle
- Offers 2 types of plans; does not offer whole or universal life insurance policies
- The 10- and 20-year plans not available to users under 21 or older than 55
There are several reasons why Principal is considered one of the most affordable life insurance companies. Principal offers term, universal and survivorship universal life policies and allows you to convert your term policy to a permanent policy without having to show proof of insurability. This can be a major benefit if you develop a chronic illness while your policy is in effect. Overall, Principal’s affordable premiums, solid reputation and excellent customer service make Principal a strong choice for anyone looking for the most affordable insurance.
Types of plans
Term, Universal, Survivorship
compare quotes securely through Principal Financial’s website
Legal & General America
Legal & General America has made the list of most affordable life insurance companies due to their competitive term life pricing and policy customization options. It offers 10- to 40-year terms for their policies in addition to accelerated death benefits. It also allows you to convert your term policy to a permanent policy until you reach 70 years old. The company offers term life, universal life and final expense insurance policy options. While you can get a quote from them online, you do need to speak with a representative directly in order to apply.
Types of plans
compare quotes securely through Legal & General America Life Insurance’s website
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Legal & General America (formerly GELICO) provides life insurance to American families in all 50 U.S. states. The subsidiary companies of Legal & General America that provide its life insurance products are Banner Life Insurance Company and William Penn Life Insurance. William Penn is the Legal & General policy provider for New York state). The three companies combined have more than 1.5 million policyholders in the U.S.
Legal & General Life Insurance Company has superior financial strength ratings. You can start the quote process online to obtain a Legal & General term or permanent life insurance quote. An explanation of the types of policies and additional coverage options is provided if you are unsure of the kind of coverage you need.
- Converting to a universal life insurance policy at the end of the policy period.
- Affordable term life insurance.
- Older adults up to age 95
- Strong financial strength ratings with a low complaint ratio
- Claims processed in as little as one business day
- Ability to convert your term life policy to a universal life insurance policy at the end of the policy term
- Term life insurance policies for up to 40 years
- Medical exams required for most policies
- Quotes for universal life insurance policies not available online
Protective offers affordable term life premiums particularly for those who are young and healthy. The company offers term, whole and universal life policies. You can get a quote online and you can apply right online for a term life policy of up to 40 years, but you need to speak with an agent in order to apply for a whole or universal policy. Protective is a good, cheap option for anyone in good health, but it is more expensive for applicants who smoke and have poor health.
Mutual of Omaha
Mutual of Omaha is considered to be an affordable insurance company for older people. Applicants are able to get whole life or universal life coverage until the age of 85 and can renew their term life policy through to 100 years of age. The insurer offers whole, term, universal life, children’s whole life and accidental death insurance. There are also a number of policy riders available, including living benefits.
Types of plans
Term, Whole, Universal
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Purchasing life insurance requires you to be familiar with essential benefits. Different types of life insurance such as permanent insurance can give you peace of mind because you know your beneficiaries will receive death benefits, regardless of when you die.
For quality life insurance, look at Mutual of Omaha, which offers whole and universal life insurance policies that guarantee coverage for your entire life. A medical exam isn’t required, premiums don’t increase, you can access the cash-value portion of the policy in an emergency, and you can set a death benefit. Below is Benzinga’s list of pros and cons associated with Mutual Omaha life insurance.
- Anyone entering their prime earning years
- Customers willing to take on additional risks with their policy
- Policies offer financial protection that last throughout your lifetime
- Policies provide cash value that can be accessed while you are still alive
- Universal life insurance policies enable you to adjust premium payments and frequency
- You can decrease or increase the amount of your death benefit
- Policy options are limited when buying online compared to purchasing through an agent.
State Farm has one of the best customer service teams, resulting in high rates of reported customer satisfaction. The insurance company offers whole life, term life and universal life policies. State Farm is considered one of the most affordable life insurance options due to the discounts available when you bundle your life insurance with other types of insurance. If you own a home, car or business, you might already have a policy with State Farm that you can use to help you save.
This company also offers a return of premium term policy, which allows you to get your premium payments back after the term of the policy ends. In addition, it may allow you to convert your term life policy to a permanent policy regardless of your health before the age of 75.
Types of plans
Term, Whole, Universal
compare quotes securely through State Farm’s website
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State Farm offers a selection of life insurance products designed to meet the needs of most customers. All the basic policy types are covered by this national insurer, with coverage options that are easy for consumers to understand. Some less common types of life insurance are not well represented and, as always, customers are encouraged to get quotes from multiple insurers.
- Customers who have existing policies with State Farm
- Auto insurance is discounted up to 17% if bundled with life insurance through State Farm
- State Farm website provides easy life insurance quotes and helpful information to guide the process
- A nationwide network of over 18,000 agents provides access when questions arise
- Sizable discount on auto policies for customers who also purchase life insurance
- Premiums may be higher than some competitors, depending on individual rating considerations
- Less flexibility in term lengths then some competitors
What is the Cheapest Type of Life Insurance?
There are several types of life insurance. Finding affordable life insurance begins with understanding which types of policies are usually the cheapest.
Term life: Term life insurance is a type of life insurance that lasts for only a certain period of time. This life insurance is the cheapest type because it does not have any cash value and it doesn’t last your whole life, so you’re only paying premiums for the term of the policy. If the term of your policy ends before you die, there is no death benefit paid. Unless you purchase another policy or renew the term policy, you won’t have life insurance coverage anymore after the term ends.
Universal life: Universal life insurance is a type of permanent life insurance, but it’s typically cheaper than other kinds due to its flexible payment plans and lower premium prices that don’t change over time. Universal life policies have a cash value that accumulates, so after a little while, if the cash value is high enough, it can be used to pay for the policy’s premiums so you don’t have to pay them directly. However, the cash value usually doesn’t amount to too much, which is why universal life is one of the cheapest types of life insurance.
How to Save Money on Life Insurance
Though life insurance can get expensive, there are steps that you can take to limit the amount that you’ll pay for coverage, including the following.
Less coverage: One of the easiest ways to save money on life insurance is to get less coverage. The less coverage you buy, the lower your premium payments will be. However, your death benefit will be lower than if you were to get more coverage.
Shorter term: When choosing a term for your term life policy, choosing a shorter term will end up saving you money on premiums. The longer a policy runs, the more the premium will cost because you’re more likely to receive your death benefit.
Buy when you’re young: As you get older, you become more of a risk according to life insurance companies, which results in higher premiums for your policy. The younger you buy a policy, the less you’ll have to pay. Therefore, buying a life insurance policy when you’re young will save you more money than buying when you’re older.
Shop around: Just like when you shop for any big ticket item, you’ll want to shop around in order to get the best price possible for your policy. Each insurance provider will offer different prices for their policies, and if you shop around, you’ll be able to find the one that is the best deal for you.
Get as healthy as you can: In order to get life insurance, most insurance companies will require you to undergo a medical exam. While there are certain types of life insurance that don’t require this, most will. The medical exam will take a look at your health overall. In addition, insurers look at your medical and health history. The healthier you are, the cheaper your policy will be. If you get as healthy as you can before buying a policy, then you’ll be able to go into it knowing that you’re getting the best possible price. Taking steps to lower your blood pressure and cholesterol and maintain a healthy weight can help you live longer and pay less for your insurance.
Finding Life Insurance Coverage
Remember — every life insurance company uses its own formula to calculate premiums. This means that it’s possible to find the exact same insurance from 10 different life insurance providers at 10 unique price points. Getting multiple quotes from competing insurance providers can help ensure that you don’t end up overpaying for coverage.
Frequently Asked Questions
What is the average life insurance cost per month?
The cost of life insurance per month depends on a few different factors, but the average cost for a 20-year term life policy with a $500,000 value would be about $30.66 per month. The cost of a policy varies depending on the insured’s personal details and health, the type of policy and the insurance provider.
How much does a 100k life insurance policy cost?
A 100k life insurance policy will cost around $9.25 per month for someone in their 30s who is not a smoker and is in good health. Your age, health status, gender, the insurance provider and the type of policy will affect the policy cost.