The best cheap life insurance is a segment of the best life insurance that offers decent coverage without breaking the bank. It might not have the most comprehensive benefits or bells and whistles, but the companies within this guide still offer a variety of coverage options, many of which can still play a major role in your financial plan.
Why You Should Trust Business Insider
We look beyond the obvious factors like online quote calculators and affordable pricing to see what life insurance companies offer. We consider the following:
- Customer satisfaction (as rated by JD Power)
- Financial stability (as rated by AM Best)
- Life insurance policy types offered
- Average monthly premiums/affordability
- Waiting periods required for complete life insurance benefits
- Exclusions that would prevent you from getting life insurance with the company being reviewed
- What you can expect from life insurance agents who quote a company's policies
- How available are a company's life insurance products? (is it licensed to sell life insurance in all 50 states and Washington, DC?)
- How ethical company practices are measured by recent controversies, charitable activities or donations, etc.
Read more about Business Insider's life insurance ratings methodology.
Best Cheap Life Insurance Summary
- Best for guaranteed coverage: Mutual of Omaha Life Insurance
- Best for customer satisfaction: State Farm Life Insurance
- Best for preexisting conditions: Guardian Life Insurance
- Best for term life: Corebridge Direct Life Insurance
- Best for whole life: New York Life Insurance
- Best for customized coverage: Ladder Life Insurance
- Best for military and veterans: USAA Life Insurance
- Best for foreign nationals: Transamerica Life Insurance
Best Affordable Life Insurance for Guaranteed Coverage
Mutual of Omaha Life Insurance is our pick for guaranteed coverage, which is available for applicants between the ages of 45 and 85. Policies range from $2,000 to $25,000 with no health questions or medical exams. However, these policies also have graded death benefits, only kicking in after a two-year waiting period.
While policies with guaranteed coverage is generally more expensive than traditional policies, Mutual of Omaha is generally an affordable life insurance company with high customer satisfaction ratings and a strong financial stability rating. It's also one of our picks for the best no medical exam life insurance.
Best Affordable Life Insurance for Customer Satisfaction
State Farm Life Insurance took the top spot in the most recent JD Power survey for customer satisfaction. Its agents are well versed in its auto, home, life, and other insurance products, quoting with all applicable discounts, claims management, and more. State Farm sells several types of whole life policies ranging from a single premium option (for immediate protection) to a whole life policy with fixed payments. Adults between 50 and 80 may also qualify for a final expense policy with a $10,000 death benefit.
State Farm Life Insurance operates in all states except Massachusetts, New York, and Wisconsin. State Farm Life and Accident Assurance Company offers similar life insurance policies in New York and Wisconsin. Wherever you are within the U.S., quoting is easy, especially if you're already a customer.
Best Affordable Life Insurance for Preexisting Conditions
Guardian Life Insurance is our pick for people with preexisting conditions, offering unique HIV life insurance. Buyers with a history of IV drug use also have more flexibility as the company can offer coverage after seven years instead of the previous 10 years.
Guardian offers easy online quotes in minutes with no insurance agent required. In addition, the company offers term policies as short as 10 years and as long as 30 years. It also provides whole, universal, and other life insurance products.
Best Affordable Life Insurance for Term Life Policies
Corebridge Direct Life Insurance is our pick for the best term life insurance, with no medical exams required and some of the cheapest premiums within the industry.
Corebridge Direct's Select-a-Term offers 18 term period options between 10 and 35 years with death benefits ranging from $100,000 to $2 million. Qualified buyers can also convert their term policies to a permanent policy without additional underwriting before the end of the term or until age 70, whichever comes first.
Best Affordable Life Insurance for Whole Life Policies
New York Life Insurance specializes in multi-million dollar investment policies great for retirement planning with term, whole, and universal life insurance options. However, it does not provide online quotes. In addition, New York Life insurance agents complete extensive training to answer all questions about its policies and help buyers identify the right policy. New York Life agents can add riders to customize plans to meet your needs. Even with some of its smaller policies, policyholders may earn dividends.
Best Affordable Life Insurance for Customized Coverage
Our choice for affordable customized life insurance, Ladder Life Insurance is a term-only life insurance company that offers a unique "laddering" function, which allows policyholders to customize their death benefits and premiums to adjust for periods of financial hardship.
Ladder offers policies that last from 10 to 30 years in increments of five, though term options are limited for older customers. Applicants can get up to $3 million in coverage without taking a medical exam ($8 million if they complete a medical exam).
Best Affordable Life Insurance for Military Members
While many life insurance companies restrict policies available to active-duty military members, USAA Life Insurance offers whole life policies with expedited coverage for deployed soldiers, making it the best affordable choice for military members.
USAA offers whole life insurance with severe injury benefits and coverage for wartime. One key selling point for veterans is USAA guarantees SGLI replacement when separating from the military.
Best Affordable Life Insurance for Foreign Nationals
Offering plans to visa holders and U.S. citizens alike, Transamerica Life Insurance (AEGON) is our pick for foreign nationals. Transamerica offers life insurance limits of up to $10 million with many universal life insurance policies and other permanent options. When evaluating your risk class, some restrictions may apply depending on the country of origin.
Transamerica has decades of history in the life insurance market. It also reports faster underwriting and processing times than its competitors.
Get Affordable Life Insurance Quotes
Types of Cheap Life Insurance
Term Life Insurance
Term life insurance is one of the cheapest types of life insurance because it doesn't guarantee a payout. Instead, you're buying temporary coverage over a set period of time, usually over 10, 20, or 30 years. If you die during your term, your beneficiaries get a payout. However, if you die after your policy ends, your loved ones don't get anything.
Term life also lacks the added benefits that come with some types of permanent life insurance, such as cash value, which is money that a permanent life insurance policy accrues that can be used by the policyholder during their lifetime.
Simplified Issue Life Insurance
Simplified issue life insurance is a type of no medical exam life insurance, which simplifies the underwriting process. Applicants still have to answer a health questionnaire and insurance companies still have access to an applicant's medical records and prescription history, but don't have to see a doctor. The application process is far quicker than a traditional life insurance application process. However, serious or terminal medical issues can still prevent you from qualifying.
Simplified issue policies are generally more expensive than traditional term life insurance. However, with limited death benefits, they're still cheaper than many other types of life insurance.
Guaranteed Issue Life Insurance
Guaranteed issue life insurance offers coverage with low applicant requirements and a simple underwriting process. It has relatively high premiums compared to the aforementioned simplified issue or term life, but is still cheap compared to other types of life insurance.
Guaranteed issue offers lower death benefits than simplified life, usually best used as burial insurance. As such, it's limited to applicants who are 50 and older.
Affordable Life Insurance Average Rate
Let's breakdown the average rates for affordable life insurance types. The average monthly rates are for people living in New York.
Non-Smoker Male Average Rates
| Age | Traditional Term Life | Simplified Issue Term Life | Whole Life |
| 25 | $18.14 | $42.50 | $55.50 |
| 35 | $19.79 | $46.50 | $76.50 |
| 45 | $45.05 | $86.50 | $113.50 |
| 55 | $112.19 | $170.50 | $170.00 |
| 65 | $380.18 | $404.50 | $288.50 |
Non-Smoker Female Average Rates
| Age | Traditional Term Life | Simplified Issue Term Life | Whole Life |
| 25 | $15.00 | $25.50 | $48.00 |
| 35 | $16.99 | $38.50 | $64.00 |
| 45 | $35.69 | $58.50 | $96.50 |
| 55 | $82.02 | $117.50 | $143.00 |
| 65 | $272.35 | $255.50 | $225.00 |
Smoker Male Average Rates
| Age | Traditional Term Life | Simplified Issue Term Life | Whole Life |
| 25 | $64.15 | $42.50 | $64.00 |
| 35 | $82.65 | $46.50 | $85.50 |
| 45 | $202.71 | $86.50 | $141.50 |
| 55 | $466.63 | $170.50 | $231.50 |
| 65 | $1,118.59 | $404.50 | $393.00 |
Smoker Female Average Rates
| Age | Traditional Term Life | Simplified Issue Term Life | Whole Life |
| 25 | $51.03 | $25.50 | $60.50 |
| 35 | $70.10 | $38.50 | $82.00 |
| 45 | $148.73 | $58.50 | $122.50 |
| 55 | $329.35 | $117.50 | $186.00 |
| 65 | $833.76 | $255.50 | $275.50 |
How to Find the Cheapest Life Insurance
We recommend starting with online research if you want a low cost life insurance plan. You can get quotes online if you want a plan to cover funerals and other limited costs. But first, decide what you want your life insurance plan to do, how much you can afford to spend each month, etc.
Consider Your Needs
While policy terms and cost are important to consider, flipping through various life insurance policies won't do you much good unless you know what you're looking for. You'll need to consider what your goals are for your policy and the kind of death benefits you want to pass onto your loved ones.
Consider Your Health and Age
You'll want to consider your health and age in your life insurance search, as these factors determine what you're eligible for and what you should expect to pay. These factors will also affect your needs, as younger people may want to use their policy for investing and older people may want to simply ease the final expense burden on their loved ones after they pass.
Shop Around for the Right Policy Type
As your goals and needs solidify, you'll begin to understand the type of life insurance you should be shopping for.
For example, if you want your policy to play a role in your financial life, you'll want to look for policies with investment options, such as whole life insurance or universal life insurance. If you're more concerned about unexpected deaths or want a cheap policy, a term life insurance policy will be preferable. Affordable life insurance for seniors can be more difficult to find. Your best bets for this type of insurance is guaranteed issue life insurance.
Compare Quotes
The best way to find life insurance is to collect quotes from as many life insurance companies as you can to understand what you'll pay with each policy. You can use life insurance aggregators like Policygenius to compare multiple quotes side-by-side. You should be prepared to answer an extensive list of questions related to your current health status, your medical history, and your family's medical history. You may also have to answer questions related to your financial health and driving history.
Once you input all this information, you'll be able to find low-cost life insurance companies and quotes for various types of life insurance, such as no medical exam quotes.
Talk to an Expert
We recommend talking to at least one licensed insurance agent. Ask questions about the things you don't understand. Let an agent help you calculate the ideal benefit for your needs. Ask which riders customers add to the policies you're looking at. Additionally, Some of the best life insurance products can only be quoted or sold through a licensed insurance agent.
FAQs
Can I switch life insurance providers to lower my rate?
You can't switch life insurance providers, but you can cancel your policy and sign up for another with lower rates. However, the downsides can often outweigh the benefits.
How much is life insurance a month?
The average cost of life insurance is $40-$55 a month. Keep in mind that your monthly premium will vary depending on the type of policy you purchase and how much coverage you select.
Which life insurance policy is the cheapest?
The cheapest life insurance is Corebridge Direct, with some of the lowest term life insurance premiums in the industry.
How can I get affordable life insurance?
You can get cheap life insurance by comparing quotes, opting for less coverage, and improving your health before applying.
Is life insurance affordable?
Life insurance can be affordable. It is also more affordable the earlier you purchase.
