Cheapest Life Insurance Companies 2022
Quick Facts
Age, gender, smoking status, general health, height, weight, and lifestyle choices are some of the variables that determine life insurance rates
The price of insurance varies from individual to person, but Banner Life offers competitive rates on the longest term life insurance options
Life insurance is something you should think about no matter your age or state of health because it enables you to safeguard the future of your loved ones
Getting life insurance is a wise decision if you want to give your loved ones financial security in the event of your passing. The insurer will pay the agreed-upon death benefit if you have a solid policy in place, and you can lock in the lowest life insurance rates by shopping around for the right company.
Banner Life and AIG are the cheapest life insurance companies for term and permanent policies, but Guardian Life offers lower rates on no medical exam life insurance. If you’re looking for affordable life insurance near you, start by shopping for quotes online.
By comparing insurance quotes, it’s usually possible to find cheap life insurance. To pick the company that will meet your budget the best, go through our list of the least expensive life insurance providers.
The Cheapest Life Insurance Companies in Detail
Understanding the elements that influence your life insurance costs is essential to finding an affordable policy. Age, general health, and smoking history are a few of the most important factors. Depending on your situation, certain insurers can provide you with cheaper rates and policy add-ons.
For example, Transamerica is the cheapest life insurance company for smokers of all ages. See how it compares in our life insurance company review below.
Banner Life
Banner Life is the cheapest life insurance company in 2022 when it comes to monthly rates. Term, whole, and universal life insurance products are available from Banner Life, and Banner’s term life insurance policies span from 10 to 40 years, one of the broadest ranges in our evaluations.
Although only a few riders are offered, applicants can still pick from a variety, including the Children’s Life Insurance Rider and the Accelerated Death Benefit Rider.
With coverage amounts starting at $50,000, Banner Life’s universal insurance policy provides lifetime protection for people between the ages of 20 and 80. However, universal life policies only come with one optional rider —the Accelerated Death Benefit Rider.
AIG
AIG’s sample rates are close to Banner Life, making it the second most affordable life insurance company in 2022. Depending on your policy, coverage amounts can range from $5,000 to $10 million.
AIG provides term life insurance with 18 options for term lengths ranging from 10 to 35 years. You can change a term life insurance policy to a permanent one without having to undergo a medical checkup. The guaranteed issue of whole life and universal life policies offered by AIG also don’t call for a medical checkup.
You can request AIG life insurance quotes online, but you will eventually need to talk with an agent to complete the application process.
Guardian Life
The range of plans available from Guardian Life includes term, universal, whole, and variable universal life insurance. Term, universal, and variable life insurance plans begin with $100,000 of coverage, whereas whole life policies begin with $25,000 of coverage.
Guardian term life is available in 10- to 30-year periods. Permanent life insurance plans come with flexible or guaranteed level premiums as well as a variety of coverage options with riders. The company’s universal life insurance plans include riders that cover long-term care, charitable giving, the elimination of monthly deductions, and increased expedited benefits.
Unfortunately, Guardian Life insurance quotes are not available online. You will require an agent to assist you with all policy types.
State Farm
Term, universal, whole life, and last expenditure insurance are all available from State Farm. You may be able to get combined coverage, in which case the deceased insured’s beneficiary will receive the death benefit. A medical checkup is not necessary for all plans.
State Farm does offer same-day coverage with some life insurance policies, but you must speak with an agent to discuss options and buy life insurance. Additionally, be sure to confirm whether State Farm is available in your area, as some states have unique licensing requirements.
Transamerica
Transamerica provides whole, universal, and term life insurance. Trendsetter Super and Trendsetter LB are two of its term life insurance policies. While Trendsetter Super has coverage of up to $10 million or more, Trendsetter LB is no-medical-exam insurance with coverage of up to $2 million.
The following three permanent insurance options are provided by Transamerica — Index Universal Life Insurance, Final Expense Life Insurance, and Whole Life Insurance.
Transamerica offers a variety of riders for its life insurance plans. Unfortunately, compared to other companies on this list, its offering is more constrained. The business got an A rating for financial security from AM Best.
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What company has the most affordable life insurance?
In general, term life insurance policies are the least expensive, although whole life insurance and other permanent policies are more expensive. The cost of your life insurance policy will be impacted by a wide range of factors.
Getting and comparing life insurance quotes online might help you select a coverage plan that suits your needs and budget. You can choose the type and amount of coverage you require and compare rate estimates with multiple companies through our life insurance quotes guide below.
Cheapest Women’s Life Insurance
An example of monthly premiums for female life insurance policies is shown in the chart below. In general, your rates will be lower the younger and healthier you are.
Term life insurance is typically less expensive than whole life and universal life insurance, but women still pay lower rates than men.
Cheapest Men’s Life Insurance
Males typically pay more for life insurance than females due to differences in lifestyle and life expectancy. For example, men are more likely to have high-risk hobbies and careers than women, which leads to higher life insurance rates.
You can shop with many insurance providers and compare various products to find the best rates on your life insurance policy.
Cheapest Senior Life Insurance
If you don’t want to leave your loved ones with any unpaid debt or funeral costs, buying life insurance later in life may be a wise decision. Yes, life insurance costs more as you age, but there are still ways to find the cheapest life insurance for seniors.
If you’re looking for the most affordable insurance policy, have a look at these possibilities.
Older men may pay more for life insurance, depending on variables including their health and the size of the death benefit. Shopping around with several insurance providers will help you save as much money as possible.
Cheapest Life Insurance for Smokers
Smokers may pay more for life insurance compared to nonsmokers. Additionally, additional criteria, including your gender, age, health, and smoking frequency affect your premiums.
Smokers are seen as high-risk persons by insurance companies since they are more likely to develop severe illnesses and have shorter lifespans. Because of these negative health consequences, smokers pay higher premiums for life insurance.
Even though life insurance policies for men are typically more expensive, the same characteristics that apply to women will also have an impact on your costs. Keep in mind the distinction between preferred and standard smoking rates. You are more likely to receive a discount on your insurance the healthier you are
Cheapest Children’s Life Insurance
It is possible for parents, guardians, and grandparents to offer death benefit coverage and accumulate cash value by purchasing whole life insurance for children. Depending on the terms of the policy, policyholders can lock in affordable rates and help children secure coverage as adults and make future investments.
You can also supplement your current coverage with children’s insurance riders. The child’s age, place of residence, and level of coverage are only a few of the variables that affect premiums.
Term, permanent, universal, and variable insurance plans all allow for the addition of kid insurance riders.
Cheapest Life Insurance Without a Medical Exam
Most insurers require a medical exam before determining your final rates. If you’re in poor health or have a pre-existing medical condition, you will pay more for coverage.
Life insurance without a medical exam from these companies provides benefits at more affordable rates so you can get the coverage you need.
As you can see, there are two common types of no-exam life insurance — guaranteed issue and simplified issue. Both typically cover funeral costs and burial services, but simplified issue life insurance offers higher benefit amounts.
Guaranteed Acceptance Insurance
Guaranteed acceptance or guaranteed issue insurance provides the bare minimum in life insurance coverage. Policyholders are quickly approved without health questions or a physical examination, but coverage is usually limited to $25,000 or less.
Coverage is mainly used to pay for funeral and burial costs. It’s typically only available to people between the ages of 50 and 85, though some companies do provide policies to younger people.
Beneficiaries are also subject to a waiting period, where they will not receive the full death benefit. Instead, they may only receive a refund of premiums paid plus interest.
Simplified Issue Insurance
You don’t need to take a physical exam, but simplified issue insurance still considers your family medical history and driving records to determine your risk and rates. Depending on your health history, the cost can sometimes be lower than guaranteed acceptance rates.
Another perk to simplified issue life insurance is that coverage limits are higher, often up to $150,000, and there are no age limits on this type of policy. However, a waiting period still applies to benefit payouts.
How much does life insurance cost?
Because of the personal variables that affect your risk, the cost of life insurance varies. For example, the insurer will charge more if it thinks it’s more likely to pay out on your life insurance policy.
The following are some of the most common elements that affect your life insurance quotes:
Amount of coverage. Your premiums will increase as your death benefit increases.
Policy type. Because term life insurance does not accrue cash value, it is typically less expensive than permanent life insurance.
Policy length. If you buy term life insurance, lengthier terms will cost more.
Gender. Because males typically live shorter lives than women, life insurance premiums for men are typically higher.
Health or medical history. Smokers frequently pay greater premiums than non-smokers and are more likely to have current or future medical concerns. Your present health, weight, and cholesterol levels may also be taken into account as well as other health factors.
Age. The likelihood that you will pay greater premiums increases as you get older.
Lifestyle. You may pay more if you engage in potentially hazardous hobbies or work in a high-risk profession.
Each company weighs these factors a little differently, so it pays to shop around. Comparing multiple companies is the fastest way to find the cheapest life insurance companies near you.
How to Save Money on Life Insurance
There are various ways to reduce the cost of your life insurance:
Think about term life insurance. Because your payments don’t go toward creating financial value, this form of policy is typically less expensive than permanent life insurance.
Reduce the death benefit. Lower death benefit amounts lead to lower annual rates, but you want to still have enough money to support your beneficiaries.
Combine policies: Having multi-line coverage qualifies you for discounts from several insurance companies. For instance, your rates may decrease if you have both your life and auto insurance from the same company.
Choose the payment schedule that will cost the least. If you pay in advance, whether it’s annually, quarterly, or semi-annually, some insurers will give you a discount. Monthly premiums can be your best option if you’re worried that you won’t be able to make a larger upfront payment.
Skip the add-ons. Some policies include riders for life insurance or other add-ons to personal coverage for an extra fee. Consider carefully the riders you might choose and whether you actually require the extra insurance.
Compare life insurance quotes online. Obtaining free estimates for life insurance is simple and straightforward. Never accept the first estimate you are given. Request estimates from different insurance providers to ensure you’re getting the best rates.
Comparing quotes is sensible because there are large differences between companies’ life insurance rates. You can also work with an independent insurance broker who represents a number of firms to advise you as to which one will likely offer you the most affordable life insurance.
Free Life Insurance and Group Life Insurance
Some businesses and member-based organizations offer group life insurance at reduced rates to their employees or members. There are a few considerations to bear in mind if group life insurance is your major source of protection:
Pros of Group Life Insurance:
Employer-sponsored insurance
Paperwork might be simpler than getting personal insurance coverage
Usually has a guarantee of admittance regardless of age or physical condition
Cons of Group Life Insurance:
Low coverage amounts
Few customization possibilities
The fact that group life insurance policies provide guaranteed coverage and are paid for by the company is their principal advantage. However, you might have to pay out of pocket if you want to personalize your coverage. Furthermore, the group provider can cap the percentage of your wage that is covered by your insurance.
The average amount of life insurance coverage offered via employment is either a $20,000 lump sum or one year’s income. To make sure you have enough to support your loved ones after you pass away, you might need to get supplemental life insurance if you want more coverage.
The fact that group insurance plans frequently depend on your employment is yet another drawback. You won’t be able to take it with you if you lose your current job or change careers. You can change a group coverage to an individual one with some insurance companies, but you’ll have to start making monthly payments on your own.
Given that group life insurance policies are frequently supplied at no cost to you, it can be a good idea to utilize this perk if it’s available. To guarantee you have coverage in the event you lose your work or wish to boost your overall death benefit, consider shopping for supplemental insurance from the companies on our list.
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How much life insurance do I need?
Your particular situation will determine how much life insurance you need.
Avoid overpaying for life insurance coverage by considering the following:
Income, assets, and liabilities of you and your family, both present and potential
Your total number of dependents
The economic loss your family will experience without your contributions
End-of-life expenses that must be paid out of pocket, such as funeral charges, estate taxes, and unpaid debt
In addition to salary, you should also consider less obvious sources of income, such as your employee benefits like health insurance subsidies and employer 401(k) matches. Your loved ones will need to make up for these losses after you pass away if they want to continue living at the same standard as before.
Before buying a policy, it’s crucial to determine how much coverage you’ll need. Once you have this sum, you may start looking at policies that fit your needs, taking into account your budget for premiums.
Does life insurance make sense for you?
Although the majority of people require life insurance, not all do. You are permitted to forego life insurance entirely if you meet certain requirements.
However, a lot of people should purchase life insurance, especially those who support their families financially or would leave their dependents with expensive debts if they died.
Reasons to buy life insurance include:
You owe money to other people.
You have a family.
You want to leave your loved ones an inheritance.
You should budget for eventual costs, such as funerals and other related expenses.
You need to budget for anticipated secondary and postsecondary education costs.
You want to safeguard your commercial interests in case you outlive them.
You need access to the monetary value that could be useful if you encounter significant unforeseen expenses.
You might not need life insurance if:
You have sufficient savings to pay for ultimate costs.
You are not reliant on anyone.
You don’t owe a lot of money.
You are not a landowner.
You don’t own a company that will be sold off after your passing.
If you’re not sure if you need life insurance, consider buying term life insurance. A term life insurance policy provides you with a level premium for a predetermined time, such as 20 years.
Consider the scenario where you wish to get enough life insurance to replace your income if you pass away. It is best to get a term life insurance policy that covers the remainder of your working years in that situation.
You will typically have the option to renew the insurance at a higher price each year after the level term has ended. These renewal rates can easily become prohibitively expensive, so it’s best to purchase the appropriate policy length at the beginning to avoid excessive renewal rates later.
Although term life insurance doesn’t accrue cash value, it is frequently the most affordable option. If you’re looking for cheap term life insurance, you’ll want to consider the companies outlined above.
The Bottom Line on Cheap Life Insurance Companies
Life insurance is intended to provide financial security for your loved ones following your passing. However, it can be difficult to locate insurance that would fit into your budget over the long term, particularly when looking for permanent coverage.
The good news is that term life insurance may provide for the needs of many families while being significantly more economical. Banner Life offers affordable term life insurance rates on policies that can last up to 40 years. AIG is the next most-competitive option for term and permanent life insurance.
Start comparing companies online to find the cheapest life insurance provider near you. Enter your ZIP code now to find affordable local companies with policies that fit your needs and your budget.
Frequently Asked Questions
How do I get cheap life insurance?
The most affordable option for life insurance is often to get a term policy. With term life insurance, you can select the level of premiums and term length that you desire, such as $500,000 with a 20-year term.
One of the easiest ways to get affordable life insurance is to buy term life insurance while you’re still young and healthy, although a lot of life insurance providers offer senior life insurance up to age 80.
To find the most affordable provider for your circumstance, compare quotes for policies with the same term length and coverage amount.
Who is cheapest for life insurance?
According to our research, Banner Life and AIG are the cheapest life insurance companies for 2022. However, life insurance rates vary based on your personal health history and lifestyle. You’ll find the cheapest life insurance policy by comparing multiple companies online.
How much life insurance do I need?
When determining how much life insurance you require, sum up all of the debts you want to be paid off upon your passing (like your mortgage) and deduct any assets that can be utilized by your family (such as savings).
What’s the cheapest type of life insurance?
Term life insurance is the most affordable kind of life insurance. You receive a guaranteed death benefit for as long as your policy is in effect.
Permanent life insurance, such as universal life insurance, is more expensive but can last your entire lifetime or until you stop paying for it. It differs from term life insurance in that permanent life insurance frequently accrues monetary value.
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.
Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states.
After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in…
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Written by
Rachael Brennan
Licensed Insurance Agent
Benjamin Carr was a licensed insurance agent in Georgia and has two years’ experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. He is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.
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Reviewed by
Benji Carr
Former Licensed Life Insurance Agent
