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Life insurance is essential for everyone. It’s one of the most effective strategies to safeguard your family. If you’ve decided to buy life insurance, you’ve already taken the first step toward protecting your family’s financial future.

Finding the cheapest price along with the most comprehensive coverage will ensure you find the best value in life insurance to protect yourself and your family.

Quick Look: The Best Cheap Life Insurance

The Best Cheap Life Insurance

While cheap life insurance is an important part of the equation, you should consider several factors when choosing the best life insurance provider. The Insurance Information Institute (III) suggests picking a company with a broad range of policy options, financial stability and dependable claims service, all at an affordable price.

Here is a brief overview of a few life insurance providers you may want to consider when you begin your search for affordable life insurance.

1. American International Group (AIG)

American International Group Inc. (NASDAQ: AIG), offers various life insurance products, including term, whole life, accidental death, guaranteed issue and universal life insurance. If you want additional coverage, you can choose one or more of the available riders: child, accidental death, terminal illness or premium rider waiver. A.M. Best has given AIG an A (excellent) financial strength rating. You can request an AIG life insurance quote online or by telephone.

Age Requirements
All ages
N/A
1 Minute Review

AIG Life Insurance is known as one of the biggest insurers in the entire world. Its services are offered to millions of customers throughout more than 80 countries. The agency also provides a wide range of insurance and investment products for businesses. According to Fitch and S&P, an A+ rating best suits AIG Life while an A2 rating from Moody’s alon and an A rating from AM Best perfectly supports just how much of a positive reputation the company radiates overall. AIG Life proves that there is more than term life insurance and the ability to cover everything is possible.

 

Best For
  • Life insurance as an investment tool
  • Parents, individuals and businesses
  • Anyone in need of several insurance options
Pros
  • Unique variants of traditional life insurance policies
  • Variety of term lengths for term life policies
  • Business services offered to help protect your bottom line
  • Multipolicy discounts available
Cons
  • Low score for customer satisfaction
  • Unavailable in some states (New York and Maine); some states only available online (Pennsylvania)

2. State Farm Insurance

State Farm has an A++ (superior) rating from A.M. Best and offers several affordable life insurance policies. Many policies require no medical exam. In addition, you can expand your life insurance coverage options with the following State Farm life insurance rider options: waiver of premium, children’s term rider and a select term rider. You can start the quote process online or you can call a State Farm life insurance agent.

compare quotes securely through State Farm’s website
Age Requirements
18 – 75
N/A
1 Minute Review

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.

Best For
  • Customers who have existing policies with State Farm
  • Auto insurance is discounted up to 17% if bundled with life insurance through State Farm
Pros
  • 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
Cons
  • Premiums may be higher than some competitors, depending on individual rating considerations
  • Less flexibility in term lengths then some competitors

3. Transamerica

Transamerica has been offering life insurance products since 1904 and is one of the 10 largest life insurers in the U.S. The company offers whole, universal and financial expense insurance. To add coverage to your policy, you can choose from these available riders: accelerated death benefit, return of premium, disability premium waiver, accidental death, monthly disability and a rider to cover your children or grandchildren. A.M. Best gives Transamerica its A (excellent) financial strength rating. You can start the quote process by telephone or by locating an agent near you.

Age Requirements
18 – 80
N/A
1 Minute Review

With more than 12 million active customers, Transamerica Corp. is one of the biggest names in the life insurance industry. Transamerica offers a wide array of life insurance products — everything from term to a variety of permanent life insurance products, including whole, universal and variable life.

Transamerica life insurance policies are available to anyone ages 18 to 80, with coverage starting at just $25,000 and going as high as $10 million. In addition to term and permanent life insurance policies, Transamerica offers final expense insurance and any number of riders to help customers customize their policies.

Best For
  • Coverage with chronic conditions
  • High benefit policies
  • Smokers
Pros
  • Term life policy quotes and purchase available online
  • Wide array of products
  • Comprehensive online resources
  • No medical exam required for many term policies
Cons
  • Below-average scores from the National Association of Insurance Commissioners (NAIC) and J.D. Powers
  • Policies purchased through agents only
  • Disproportionate number of customer complaints

4. Guardian Life Insurance

Guardian Life Insurance has a superior A.M. Best financial strength rating of A ++ (superior). There are many life insurance plans to choose from, including term, whole, universal and variable universal life insurance. To add coverage to your policy, you can choose from the following riders: waiver of premium, conversion, rider, acceleration terminal illness, long-term care and a charitable benefit rider.

Compare Quotes securely through Guardian Life’s website

Typical Cheap Life Insurance Policies

Several types of life insurance are available. The best and most affordable type of life insurance to protect you and your family depends on your unique life circumstances.

Term life: Term life insurance is the least expensive type of life insurance available. In general, term life insurance protects you for a specific length of time, ranging from 10 years to 30 years. Term life insurance includes various premium options and may be converted to a whole life policy once the policy term has ended.

Group life through your employer: Group life insurance is insurance your company provides as part of your employee benefits package. Most employer-provided group life insurance is either free or low cost for you as an employee, making it an economical alternative if it’s offered at your place of business. It is most likely one of the most affordable life insurance solutions available.

Cash-value whole life policy: While a whole life insurance policy will be more expensive initially; the cash-value option makes it worth considering. You can access your cash value to pay for important life events. Your choices will vary depending on the type of policy and the insurer. A life insurance policy’s cash value can be used to fund your retirement, pay for your children’s college education or any other financial life goal you may have.

What is The Ladder Strategy?

Although everyone’s insurance needs are different, it is typically a good idea to have a plan in place that includes multiple life insurance policies, commonly referred to as a life insurance ladder. 

The type of life insurance you need will vary depending on why you need life insurance. For example, one policy may be better for retirement planning, and another is better at paying final expenses. As a result, buying multiple policies may be required to get the most out of a life insurance policy. But you aren’t overpaying for unnecessary life insurance.

With a life insurance ladder, you have a succession of policies that expire at different times. Buying a large life insurance policy to cover all your needs is sometimes beneficial. It’s adaptable, so you can tweak it as needed.

Using a life insurance ladder, which includes many policies for various financial needs, saves money on unnecessary coverage and lowers the overall cost of life insurance.

Compare More Cheap Life Insurance Options

Pick a company that gives you the best coverage at the best price in terms of life insurance. If that sounds like a lot of work, don’t worry. Benzinga has come up with a list of the best life insurance companies for you to consider.

Get started securely through Bestow Life Insurance’s website
Disclosure: *excludes New York
Age Requirements
18-59
N/A
1 Minute Review

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.

Best For
  • 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
Pros
  • Plans start at just $8/month
  • Decent coverage options if you need insurance quickly and without hassle
Cons
  • 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
Age Requirements
18 – 100
N/A
1 Minute Review

Northwestern Mutual offers a variety of life insurance policies that are suitable for a wide range of people. Policies are available in all 50 states, although some policies and riders may not be available in every state. The company has strong financial strength ratings and an above-average rating when it comes to consumer complaints. 

To get a quote from Northwestern Mutual, you have to talk to one of its agents. However, you can browse information on its website and use the coverage calculator tool to estimate how much life insurance coverage is recommended for your family.

Best For
  • Affordable term life insurance that can be converted to a permanent life insurance policy later
  • Adding riders to a life insurance policy
Pros
  • Strong financial strength ratings and a low number of consumer complaints
  • Several types of life insurance policies available
  • Offers other financial planning, insurance and investment products and services
Cons
  • Lack of clarity about the product offerings on Northwestern Mutual’s website
  • Can’t get a quote or apply directly for a policy online
get started securely through Fabric Life Insurance’s website
Age Requirements
21 – 60
N/A
1 Minute Review

Fabric offers term life insurance, free digital will creation and other tools to help you better your family’s financial life. They’re the one stop shop for young families looking for financial security.

Fabric offers 10, 15, 20, 25 and 30 year term options and coverage ranging from $100,000 to $5 million.

Fabric offers highly reviewed online customer service through its app and website and has the highest TrustPilot rating in its class.

Best For
  • No exam required for most
  • Those who want to avoid the hassle of insurance salesmen
  • New or expecting parents looking for a broader suite of financial tools
Pros
  • Affordable premiums
  • Free digital will creation
  • Free app with helpful tools for parents
  • Apply and see your rate in less than 10 minutes
Cons
  • No term life coverage in New York or Montana
  • Can’t increase coverage after purchasing
Age Requirements
18 – 80
N/A
1 Minute Review

With more than 12 million active customers, Transamerica Corp. is one of the biggest names in the life insurance industry. Transamerica offers a wide array of life insurance products — everything from term to a variety of permanent life insurance products, including whole, universal and variable life.

Transamerica life insurance policies are available to anyone ages 18 to 80, with coverage starting at just $25,000 and going as high as $10 million. In addition to term and permanent life insurance policies, Transamerica offers final expense insurance and any number of riders to help customers customize their policies.

Best For
  • Coverage with chronic conditions
  • High benefit policies
  • Smokers
Pros
  • Term life policy quotes and purchase available online
  • Wide array of products
  • Comprehensive online resources
  • No medical exam required for many term policies
Cons
  • Below-average scores from the National Association of Insurance Commissioners (NAIC) and J.D. Powers
  • Policies purchased through agents only
  • Disproportionate number of customer complaints
get started securely through Ladder’s website
Disclosure: Ladder Insurance Services, LLC (Cal. license # 0K22568; Ark. license # 3000140372) offers term life insurance policies: (i) in New York, on behalf of Allianz Life Insurance Company of New York, New York, NY (policy form # MN-26); and (ii) in all other states and the District of Columbia on behalf of Allianz Life Insurance Company of North America, Minneapolis, MN (policy form # ICC20P-AZ100 and # P-AZ100). Only Allianz Life Insurance Company of New York is authorized to issue life insurance in the state of New York. Insurance policy prices, coverages, features, terms, benefits, exclusions, limitations and available discounts vary among these insurers and are subject to qualifications. Each insurer is solely responsible for any claims and has financial responsibility for its own products.
Age Requirements
20 – 60
N/A
1 Minute Review

Ladder offers policies with no hidden fees, on-the-spot underwriting and a streamlined website. Coverage ranges from $100,000 to $8 million and you can adjust your coverage over time as needs change.

You can choose a 10, 15, 20, 25, or 30-year term. Ladder also offers up to $3 million in coverage without a medical exam — just answer a few health questions and complete the application to get an instant decision.

Ladder doesn’t impose policy, cancellation or processing fees and you can cancel at any time. Take three steps to get Ladder insurance:

  1. You can apply for life insurance coverage with Ladder right now via the online application.
  2. Find out whether you’re instantly approved.
  3. Accept your offer — including affordable prices and no hidden fees.

Its price lock guarantee ensures your premium won’t increase as your health changes and you age. Policies in New York are issued by Allianz Life Insurance Company of New York and in the other states and DC by Allianz Life Insurance Company of North America. You can receive a refund within the 1st 30 days if you’re unhappy with your coverage and you can cancel at any time.

 

Best For
  • Term life insurance
  • Online application
  • Policyholders between 20 to 60 years of age
Pros
  • Up to $8 million in coverage
  • Price lock guarantee
  • No policy fees
  • 30-day money-back guarantee
  • Adjustable coverage
Cons
  • No policy riders
  • Term life insurance only

Finding the Best Cheap Life Insurance 

In your journey to finding affordable life insurance, you’ll first need to find the right life insurance provider. Some companies offer better value, more adjustable coverage or competitive rates for specific age groups than others. Compare coverage and look at each company’s policy options, pricing, financial stability and claims service to select the best fit for you.

Benzinga offers sound insurance and money advice, so come back often for help in making the most informed financial decisions.

Frequently Asked Questions

Q

What are the advantages of term life insurance?

1
What are the advantages of term life insurance?
asked
A
1

A term life policy allows you to purchase coverage at a guaranteed premium for a limited amount of time. This structure makes term life an affordable choice to protect your family if you have a financial commitment that won’t last forever.

answered
Q

What are the advantages of whole life insurance?

1
What are the advantages of whole life insurance?
asked
A
1

Whole life insurance, along with universal life insurance and some other variants, is designed to provide coverage for your entire life along with a savings and investment component.

answered
Q

Is life insurance taxable?

1
Is life insurance taxable?
asked
A
1

In most cases, the death benefit paid to life insurance beneficiaries is tax-free. However, if the policy premiums were taken as a deductible business expense, there may be a tax liability.

answered
Q

What is the most affordable type of life insurance?

1
What is the most affordable type of life insurance?
asked
A
1

Term life insurance is the most budget-friendly type of insurance available. Term life insurance is a good choice if you need life insurance coverage but can’t afford a whole life policy. At the end of the policy term, many term life insurance policies can be converted to a whole life policy.

answered
Q

How do I get the best price on life insurance?

1
How do I get the best price on life insurance?
asked
A
1

The younger and healthier you are, the cheaper your life insurance will be, so start shopping for life insurance while you are young and healthy. Compare options from several carriers.

answered

Methodology

Benzinga crafted a specific methodology to rank life insurance. To see a comprehensive breakdown of our methodology, please visit our Life Insurance Methodology page.