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Fact Checked
If you’re ready to shop around life insurance, you may be wondering how to get cheap life insurance. Term life insurance is usually the most affordable life insurance policy option, but which company has the cheapest rates?
We analyzed the term life insurance rates of 24 top companies to determine the cheapest life insurance companies.
| Company | Forbes Advisor Rating | Policy Name | A.M. Best financial strength rating | |||||
|---|---|---|---|---|---|---|---|---|
| Corebridge Financial |  |
5.0 |  |
Select-a-Term | Compare Quotes | Compare quotes from participating carriers via Policygenius.com | A (Excellent) | |
| Midland National |  |
5.0 |  |
Premier Term | Compare Quotes | Compare quotes from participating carriers via Policygenius.com | A+ (Superior) | |
| Pacific Life |  |
5.0 | |
PL Promise Term | Compare Quotes | Compare quotes from participating carriers via Policygenius.com | A+ (Superior) | |
| Penn Mutual |  |
5.0 |  |
Non-Convertible Term | Compare Quotes | Compare quotes from participating carriers via Policygenius.com | Non-Convertible Term | |
| Principal |  |
5.0 | |
Term Life Answers | Compare Quotes | Compare quotes from participating carriers via Policygenius.com | A+ (Superior) | |
| Symetra |  |
5.0 | |
Symetra SwiftTerm | Compare Quotes | Compare quotes from participating carriers via Policygenius.com | A (Excellent) |
Term life insurance is typically the cheapest type of life insurance, which is why we focused on term life in our analysis. It gives you a fixed premium for a specific period of time, such as 20 years.
At the end of this level term period, you will usually have the option to renew the policy at a higher premium each year after. However, these renewal rates can quickly become too expensive. It’s best to buy the right policy length to start with so you won’t end up with high renewal rates or shopping for another policy.
Below are rate examples for companies that were our top picks for the cheapest life insurance.
| Company | Term life policy name | Annual cost for a 20-year $250,000, policy | Annual cost for a 20-year $500,000, policy | Annual cost for a 20-year $1 million policy | Annual cost for a 20-year $2 million policy |
|---|---|---|---|---|---|
|
PL Promise Term
|
$130
|
$189
|
$280
|
$499
|
|
|
Symetra SwiftTerm
|
$130
|
$190
|
$280
|
$470
|
|
|
Select-a-Term
|
$130
|
$190
|
$289
|
$515
|
|
|
Term life
|
$133
|
$190
|
$282
|
$489
|
|
|
Midland National
|
Premier Term
|
$140
|
$205
|
$325
|
$585
|
|
Convertible Term
|
$141
|
$209
|
$335
|
$600
|
Rates shown are for life insurance buyers in excellent health.
| Company | Term life policy name | Annual cost for a 20-year $250,000, policy | Annual cost for a 20-year $500,000, policy | Annual cost for a 20-year $1 million policy | Annual cost for a 20-year $2 million policy |
|---|---|---|---|---|---|
|
PL Promise Term
|
$147
|
$224
|
$350
|
$640
|
|
|
Symetra SwiftTerm
|
$147
|
$225
|
$350
|
$630
|
|
|
Select-a-Term
|
$147
|
$225
|
$360
|
$655
|
|
|
Term life
|
$150
|
$225
|
$360
|
$645
|
|
|
Midland National
|
Premier Term
|
$155
|
$240
|
$405
|
$745
|
|
Convertible Term
|
$160
|
$248
|
$401
|
$732
|
Rates shown are for life insurance buyers in excellent health.
Our analysis found that the average cost for a 10-year term life policy for a 70-year-old female buyer is $2,650 a year for a $500,000 policy and $4,856 a year for a $1 million policy.
For male buyers at age 70, a 10-year term life policy averages $3,974 a year for a $500,000 policy and $7,581 a year for a $1 million policy.
As you get older, the cheapest life insurance life companies can change. Below are the companies with the cheapest life insurance for seniors, among the companies we analyzed.
| Company | Term life insurance policy name | Annual cost for a female age 70 for a 10-year, $500,000 policy | Annual cost for a female age 70 for a 10-year, $1 million policy |
|---|---|---|---|
|
Classic Choice
|
$2,319
|
$4,307
|
|
|
PL Promise Term
|
$2,319
|
$4,307
|
|
|
Term
|
$2,319
|
$4,308
|
|
|
Non-Convertible Term
|
$2,388
|
$4,322
|
|
|
Ohio National
|
FlexTerm Series XI
|
$2,395
|
$4,345
|
|
Term Series 160
|
$2,395
|
$4,325
|
|
|
Select-a-Term
|
$2,412
|
$4,575
|
Rates shown are for life insurance buyers in excellent health.
| Company | Term life insurance policy name | Annual cost for a male age 70 for a 10-year, $500,000 policy | Annual cost for a male age 70 for a 10-year, $1 million policy |
|---|---|---|---|
|
Trendsetter Super
|
$3,390
|
$6,390
|
|
|
Classic Choice
|
$3,684
|
$7,038
|
|
|
PL Promise Term
|
$3,684
|
$6,929
|
|
|
Term
|
$3,684
|
$8,870
|
|
|
Non-Convertible Term
|
$3,734
|
$7,041
|
|
|
Protection Term
|
$3,735
|
$7,044
|
|
|
Term Series 160
|
$3,735
|
$7,285
|
Rates shown are for life insurance buyers in excellent health.
Related: Best Life Insurance for Seniors
Life insurance for children is typically a whole life insurance policy that lasts for the lifetime of the child, as long as the premiums are paid. Premiums for these policies tend to be guaranteed, which means they won’t increase, and a portion of premiums goes toward building cash value. You can access the cash value while the child is alive, and use it for any purpose.
The cost of whole life insurance for children increases as the child ages. Here are sample rates for a male child.
| Age | Annual cost of $100,000 whole life |
|---|---|
|
0
|
$528
|
| 15 |
$852
|
| 30 |
$1,524
|
You can’t buy a term life insurance policy for a child, but you could buy one for yourself and add a child life insurance rider. The rider will be for a certain coverage amount, such as $10,000, and will remain in place until the child reaches a certain age. At that point, you can usually convert the policy to a permanent life insurance policy for an additional cost.
A child rider for a term life insurance policy generally adds $5 to $7 per $1,000 of coverage to your annual policy premium.
Life insurance for smokers is significantly more expensive than quotes for people who don’t smoke. Tobacco use is a proven health risk that can lead to disease and early death. Insurance companies primarily use factors that measure life expectancy to establish rates, so the shorter life expectancy often associated with smoking means a big jump in rates compared to nonsmokers.
Here are the cheapest smoker rates for a 30-year-old male for a 20-year $500,000 term policy.
| Company | Term life insurance policy name | Annual cost for a male smoker age 30 for a 20-year, $500,000 policy |
|---|---|---|
|
Level Term
|
$738
|
|
|
Level Term
|
$751
|
|
|
Banner Life Insurance Co.
|
OpTerm
|
$766
|
|
Select-a-Term
|
$771
|
|
|
Non-Convertible Term
|
$771
|
Rates shown are for life insurance buyers who are smokers in excellent health.
Here are the cheapest smoker rates for a 30-year-old female for a 20-year $500,000 term policy.
| Company | Term life insurance policy name | Annual cost for a female smoker age 30 for a 20-year, $500,000 policy |
|---|---|---|
|
Level Term
|
$613
|
|
|
Banner Life Insurance Co.
|
OpTerm
|
$620
|
|
Select-a-Term
|
$624
|
|
|
Non-Convertible Term
|
$624
|
Rates shown are for life insurance buyers who are smokers in excellent health.
Life insurance costs an average of $13 a month ($159 a year) for a 20-year, $250,000 term life insurance policy for a male age 30, according to Forbes Advisor’s analysis. The same policy for a woman age 30 costs $12 a month ($142 a year).
Your life insurance cost is determined by a number of factors, including the type of life insurance and your age, gender and health, among other factors.
Here are the main factors that affect life insurance rates:
When calculating how much life insurance you need, add up the financial obligations you want covered after your death and subtract existing assets that can be used by your family. Examples of financial obligations may include income replacement, a mortgage, future college tuition bills and credit card debts. Assets may include savings and existing life insurance you have.
Our life insurance calculator can help you figure out how much coverage you need.
You can find cheap life insurance quotes by taking the right steps when shopping and applying for a policy.
You have two main options when buying life insurance: term life insurance and permanent life insurance. A term life policy provides fixed rates for a certain period, such as 10, 20 or 30 years. Two companies—Banner Life and Protective Life—offer 40-year term life policies. A permanent policy, on the other hand, can provide lifelong coverage.
If price is what matters to you most, a term life policy is the cheapest life insurance option.
A term life policy can provide cheap coverage for a period when you need it most, such as the length of your mortgage or until your kids graduate from college.
Your age and health are two key factors that insurers consider when determining the rate you’ll pay for life insurance. The younger and healthier you are, the less you’ll pay for coverage.
If you want cheap life insurance, buy it sooner rather than later. You will lock in the cheap life insurance rate for the term length of your policy. Once you have life insurance, your rates can’t go up based on changes to your health or other factors.
Too often people think they have time to make more room in their budget or get in better health before buying a policy. The life insurance quotes you get will only go up each year you wait to apply.
Plus, you risk developing health issues as you age, which will further increase your life insurance quotes.
One of the factors that influence how much you pay for life insurance is the amount of coverage you buy. You don’t want to skimp on coverage to save money. You need enough life insurance to protect those who depend on you for financial support.
Once you know how much life insurance you need, you can potentially keep down the cost of coverage by using a strategy called laddering.
To build a life insurance ladder, you buy a few smaller policies that expire at different times, rather than one large policy to cover you for a few decades.
It can allow you to have more coverage initially—perhaps when your children are young or you owe more on a mortgage—then taper off with time as your life insurance needs decrease.
For example, rather than buying a 30-year term policy with a $600,000 benefit, you could buy 10-year, 20-year and 30-year term policies with $200,000 worth of coverage each. During the first 10 years, you’d have combined coverage worth $600,000. The amount of coverage you have will decline as your term policies expire, but the amount you pay will also drop over time.
When you buy a life insurance policy, you typically have the option to get additional features called riders. You can add life insurance riders that allow you to waive premium payments if you become disabled, add coverage for your minor children, and the list goes on.
Although the extra coverage might be appealing, you can get cheaper life insurance by avoiding riders you don’t necessarily need.
A guaranteed issue life insurance policy looks convenient because there is no medical exam and you can’t be turned down. For these reasons, it’s also a very expensive way to buy life insurance. Because the life insurance company has no information about you, it has to charge a high rate.
If you’re relatively healthy, you can generally get a much better rate by going through a traditional application process that involves health questions and possibly a life insurance medical exam.
There are now many no-exam life insurance options that are competitively priced, thanks to technology that quickly assesses your personal information from third-party data sources. Companies such as Brighthouse, Pacific Life and Transamerica offer no-exam life insurance policies with good rates.
It’s easy to get life insurance quotes, and quotes are free. Compare rates from at least a few companies, and know that the life insurance quotes you’ll get online are an initial estimate. Many people discover that their final quote is higher after the application process because the life insurer has been able to fully assess information about you..
Even better, work with an independent insurance broker who works with several companies and will know which ones are likely to give you the cheapest life insurance quotes based on your health and age.
Having some life insurance is better than having none, so if you can’t afford a policy with your desired death benefit amount, consider lowering the amount of coverage you buy.
For instance, people who use nicotine products usually pay more for life insurance than those who don’t. Let’s say you’re a smoker, and you can’t afford the cost for a life insurance policy that pays out $500,000. Even if that’s how much life insurance you need, consider buying a policy with a $250,000 death benefit. You might find you’re comfortable paying the cost of a policy with a lower life insurance death benefit, which at least provides some financial security to your beneficiaries if you pass away.
Life insurance companies set rates based on a wide variety of factors, including the details of your health. By improving your health—for example, by quitting smoking, losing weight or maintaining good blood pressure and cholesterol levels—you decrease the likelihood of certain issues that can lead to an earlier death. Better health translates into lower life insurance quotes.
Group life insurance is another way to get cheap or even free life insurance. It is usually offered through a workplace, and you are provided basic coverage without a medical exam.
Group life insurance is normally less expensive than individual life insurance because the employer often covers all or most of the cost. But if you leave the job you will typically lose your group life insurance coverage—unless the policy is portable.
Pros
Cons
We evaluated 24 companies offering term life insurance based on:
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A term life insurance policy is usually the cheapest life insurance option. With term life insurance, you choose the amount of coverage and the length of time you want fixed premiums that won’t go up, such as $500,000 in coverage with a 20-year term.
Purchasing term life insurance when you’re still young and healthy is one of the best ways to get cheap life insurance. If you’ve waited to buy, you can still shop around to get cheap life insurance rates, as there are competitive rates for various ages. And many life insurance companies sell senior life insurance up to age 80.
Based on our analysis of term life insurance costs, the cheapest life insurance companies are:
The cheapest type of life insurance is term life insurance. With term life insurance, you’re paying only for life insurance coverage.
Permanent life insurance, such as universal life insurance, costs more but can remain in-force for the rest of your life (unless you stop paying for it). Permanent life insurance can also build cash value, which adds to its cost.
Term life insurance is cheaper than whole life insurance. But there may be times when a whole life insurance policy is a better choice than term life. For example, whole life insurance may be worth considering if you want lifelong coverage or you want to fund a trust. Whole life is also a better option than term life if you want life insurance that builds cash value.
You can switch life insurance companies to save money, but switching will involve buying a new policy from a different company. Your new rates will be based on your current age and health, and you may need to take a new life insurance medical exam as part of the application process.
For example, you might find that life insurance for smokers is much cheaper at another company. But before you cancel your current life insurance, make sure your new policy is in place, so that there are no surprises about the final cost of the new policy.
There are not discounts on life insurance, like there are with auto and home insurance. You may get a small price break if you pay your annual life insurance bill in full instead of monthly.
The best way to get a good rate is to compare life insurance quotes and work with an experienced financial advisor or life insurance agent who will know which companies are most likely to give you a low quote based on your age, health and other factors.
