As you may already know, life insurance protects your family when you pass away. Unlike car insurance, life insurance isn’t required by law — which can make it seem like it’s unnecessary? But did you know that coverage can be relatively inexpensive — and can financially provide for your loved ones when you die? Now that cheap life insurance companies can offer quotes online or over the phone, it’s never been easier to find a low-cost plan that fits your needs.
If you’ve been considering life insurance read through these company reviews and compare plans, prices, and options.
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Quick Look: Best Life Insurance Companies
Best Life Insurance Companies
Protecting your family doesn’t have to be expensive. It’s never been easier to get a cheap life insurance policy for just a few dollars a month. Start your search with our favorite low-cost life insurance policy providers.
1. Life Insurance by Bestow
With plans starting at just $3 a month Bestow is perfect for anyone on a budget. This affordable term life insurance allows you to skip the doctor appointment and say “no thanks” to the stacks of paperwork. You can get a quote quickly and when it’s convenient for you because everything is 100% online. Answer a few simple questions and get a decision instantly.
There is no need to enter your name, email or phone number to get a quote. Bestow relies on data rather than feedback from a medical exam. Take life into your own hands by applying with Bestow, the ideal combination of age-old quality fused with modern technology to deliver one of the best companies on the market.
2, 10, and 20-year policies are available, just another reason why this customizable life insurance makes our top list.
If the premium price is your main concern when you’re shopping for life insurance, TIAA should be one of your first stops. The company has policies available for as little as $10 a month and its online quote tool will serve you a result in as little as a few minutes.
Consistently one of the highest-rated insurance providers in the United States, TIAA is also available in most states and areas of the country. You can choose to get started online using its unique “Wizard” tool, or you can contact a representative to guide you through the process and help you choose an option.
TIAA offers a few different term options, ranging from 10-year policies to 30 years of protection. At any time during your policy, you can choose to switch over to a permanent policy. Whether you choose a term plan or a permanent plan, TIAA’s policies are renewable.
A quick and easy choice for anyone who wants to get protected today, TIAA’s low-cost policies are comprehensive and affordable for anyone.
3. State Farm
Having trouble finding coverage in your area? Chances are that State Farm has a policy option that’s right for you. Operating across the United States, only 3 states are excluded from State Farm’s term life insurance options — New York, Massachusetts and Wisconsin.
Residents of all other states can get a comprehensive term life policy and some of the best customer service in the insurance realm.
State Farm also has a very generous conversion policy if you decide that you want to switch to a permanent plan. Policyholders under the age of 75 can switch at any time without taking another medical examination.
State Farm’s policies are a bit pricier than competitors like TIAA and Banner Life — 10-year plans start at about $15 per month and 30-year coverage options will usually cost you at least $19 in monthly premiums. Shoppers who want to take advantage of the company’s nationwide status or easy conversion options can with just a few extra dollars every month.
Transamerica offers a wide range of term life insurance options, with protections beginning at $25,000 and going all the way up to $10 million. If you have a very high net worth, you may also be able to get even more upon individual consideration.
Though most life insurance companies require policy applicants to get a health examination before they’re accepted for a policy, Transamerica may allow you to skip the exam if you’re under a certain age and you don’t smoke.
Transamerica is one of the best policy providers for flexible coverage choices. You can add riders for end-of-life care, additional financial coverage for accidental death and even critical illness coverage that begins to pay out while you’re still alive under certain circumstances.
Though Transamerica’s policies are pretty expensive if you’re a smoker (tobacco users pay about $100 more per year for their policy), you’ll get an excellent reputation and personalized choices with Transamerica.
5. Pacific Life
Pacific Life is a unique insurance company that offers a wide variety of interesting policy structures. In addition to its standard term and permanent insurance policies, Pacific Life also offers an indexed life insurance option, which provides stock market-connected death benefit growth over time.
This can save you money with your policy — as well as leave a nest egg behind for your children or grandchildren.
Pacific Life is also one of the most affordable life insurance providers for smokers. While smokers looking for a policy with Transamerica may pay as much as $50 a month for their coverage, plans for tobacco users are available from Pacific Life for as little as $17 a month. If you aren’t quite ready or able to quit, Pacific Life might have the key to affordable insurance.
6. Legal & General America
Banner Life is one of the top insurance providers in the country. Its history dates back over 136 years, 1.3 million current customers and A-level financial ratings from multiple advisory groups. You know that your future is secure when you choose a policy though Banner Life.
Though the original Banner and William Penn corporations still underwrite Banner’s policies, a new owner (Legal & General America) has focused on lowering life insurance expenses.
Term policies from Banner Life are affordable and available for as little as $12 online. Getting a quote is simple and can be done online or over the phone. Their premium payment structure is unique and convenient. You can choose whether you’d like to pay your premium in one lump yearly sum, on a monthly basis or anything in between.
Its website and policy choices are simple and easy enough for anyone to understand. A reliable and affordable choice, Banner policies are still a fantastic choice when it comes to life insurance.
7. Mutual of Omaha
While some life insurance providers treat final expense insurance as an afterthought and offer few if any options, Mutual of Omaha has built its name. This is in part, by offering options and flexibility in final expense insurance policies.
Depending on your age and other considerations, you can choose coverage ranging from $2,000 up to $40,000 and choose from three types of final expense insurance offered by the company.
Eligibility for final expense begins at age 45, much younger than with many competitors, and coverage can be purchased for seniors up to age 85. Mutual of Omaha has over 100 years of experience, they’ve become a trusted provider of not only life insurance products but also medicare supplements, an important stop-gap when managing expenses for seniors.
8. New York Life
Term life insurance can be tricky for seniors. The available term lengths tend to decrease as you get older. While New York Life can have some similar limitations, the company is known for flexibility in its life insurance products.
Flexible terms and the ability to convert your policy to permanent life insurance — without another exam — are likely among the reasons that AARP has chosen to partner with New York Life. Your options don’t end with term life or whole life. New York Life also offers a number of universal life insurance options as well as annuities to provide permanent income.
Other Life Insurance Must Reads
Frequently Asked Questions
1) Q: I have life insurance through work. Do I need more coverage?
Most group life insurance policies offered through employers offer a death benefit equal to 1-3 years of salary. For many households, this amount won’t be enough to retire debt or provide for the surviving family. A commonly used rule of thumb suggests that you should have at least 8-12 times your income in life insurance coverage.
2) Q: How much life insurance do I need?
Many in the industry recommend that you carry 8-12 times your annual income in life insurance coverage. A more granular approach can be beneficial, however, and accounting for debt and ongoing financial commitments in more detail when choosing a coverage amount can better provide for your family than an arbitrary multiple of earnings. Get a customized quote for the best policy.
3) Q: How can I lower my life insurance premiums?
Life insurance premiums are based on age, insured amount, and a number of health and behavioral risk factors. Rates have fallen in recent years as longevity has increased and insurers have become better at pricing risk factors. If you have an old policy, it may be possible to replace your coverage for a lower premium with a new policy. If you don’t have coverage yet, don’t wait too long to buy a policy. Rates increase with age. Many insurers also offer a sizeable discount on auto insurance if you have a life insurance policy with the company as well, creating a way to save money on your overall insurance costs. Get the best deals here.