Here are our top picks for getting high-level life insurance coverage at an affordable rate.
with our comparison partner, Policygenius
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7 Best Cheap Life Insurance Companies for 2024
The life insurance industry features many providers that offer various policy types and coverage amounts to fit different budgets and financial goals. Here are our picks for cheap life insurance providers based on our analysis of term policy rates.
| Provider | Monthly Cost for Women | Monthly Cost for Men | A.M. Best Score | |
| Transamerica | $19.65 | $23.06 | A | |
| MassMutual | $18.03 | $20.73 | A++ | |
| Fidelity Life | $28.28 | $33.11 | A- | |
| Nationwide | $21.12 | $23.21 | A | |
| Pacific Life | $17.13 | $20.05 | A+ | |
| Mutual of Omaha | $21.25 | $24.78 | A+ | |
| Penn Mutual | $17.96 | $21.03 | A+ |
We based cost data on quotes collected for 35-year-old men and women without a history of tobacco use seeking $250,000 in coverage.
Cheapest Life Insurance Companies Reviewed
Transamerica Best for affordable coverage
4.4
Pros and Cons
Pros Offers average term life rates of around $22 across multiple applicant profiles, based on our calculations Includes coverage limit and $10 million and up on selected term policies Features a range of policy types, including term, whole and universal life products Cons Doesn’t offer weekend customer support hours Has a high National Association of Insurance Commissioners (NAIC) complaint index of 3.20, compared to other companies on our list
Why We Picked Transamerica
Transamerica provides some of the lowest-cost term life insurance plans of the providers we reviewed, offering average rates of $22 per month across various applicant profiles seeking a 20-year policy with $250,000 in coverage. The company also has a higher maximum issuing limit of 80 years old for term life plans compared to some competitors, making it our pick for senior applicants. Another strength is the company’s diverse plan portfolio, with policy options including term life, whole life, universal life, indexed universal life and indexed variable universal life.
Transamerica holds an A rating from the credit rating agency AM Best, showing policyholders financial stability to pay out claims. However, Transamerica scored lower in customer satisfaction than some competitors we reviewed. It placed No. 20 out of the 22 providers profiled in J.D. Power and Associate’s annual customer satisfaction survey with a score of 757 out of 1,000. Additionally, Transamerica has a higher-than-average 3.20 NAIC complaint index —a score higher than 1.0 indicates more complaints than expected based on the company’s size.
Coverage and Cost
Transamerica offers the following types of life insurance policies:
- Term life insurance
- Whole life insurance
- Universal life insurance
- Indexed universal life insurance
- Indexed variable universal life insurance
Cost
To estimate costs for a Transamerica plan, we requested rates for a 20-year term policy based on a tobacco-free applicant considered in good health and qualifying for the preferred rate health class.
- 35-year-old man: $16
- 35-year-old woman: $14
- 45-year-old man: $31
- 45-year-old woman: $25
For more information on other policy rates, such as whole life insurance, our team recommends contacting the company directly.
MassMutual
Best for permanent life insurance
4.8
Coverage: 4.4/5
Riders: 5/5
Availability and Ease of Use: 4.7/5
Brand Trust: 5/5
Our Rating
Our Review
Pros and Cons
Pros Offers average rate of $26 a month for term life coverage across multiple applicant profiles Ranks high in J.D. Power’s annual customer satisfaction survey Holds the highest possible financial strength score from the credit rating agency AM Best Cons Most policies require a medical exam, a potential drawback for applicants who value convenience Doesn’t offer online quotes for all term life policies
Why We Picked MassMutual
MassMutual pairs its robust offering of six term life plans with affordable rates compared to some companies we reviewed. MassMutual also offers a wide range of permanent life insurance options, including a guaranteed issue plan for applicants ages 50 to 75, and universal life and variable universal policies. The company’s reputation for financial stability over its 170-year history is affirmed by scoring an A++, the highest financial strength rating possible, from AM Best.
The company scores well in customer satisfaction based on J.D. Power’s 2023 customer satisfaction survey, in which MassMutual ranked third by scoring 809 out of 1,000 points. However, MassMutual doesn’t offer weekend customer support or online quotes for many policies.
Coverage and Cost
MassMutual offers the following types of life insurance policies:
- Term life insurance
- Whole life insurance
- Universal life insurance
- Variable universal life insurance
- No-exam final expense life insurance
Cost
To give you an idea of what MassMutual policyholders might pay for term coverage, we based the rates below on a 20-year policy for a tobacco-free applicant considered in good health.
- 35-year-old man: $19
- 35-year-old woman: $17
- 45-year-old man: $37
- 45-year-old woman: $29
For more information on other policy rates, such as whole life insurance, our team recommends contacting the company directly.
Fidelity Life
Our pick for accidental death coverage
4.2
Coverage: 4.09/5
Riders: 4.375/5
Availability and Ease of Use: 4.7/5
Brand Trust: 2.9/5
Our Rating
Our Review
Pros and Cons
Pros Offers term plans for $30 per month across multiple applicant profiles Offers a variety of no-exam policy options Holds an “excellent” A- score from the credit rating agency AM Best Cons Customers cannot convert term policies into permanent plans Has a higher-than-average number of complaints, according to NAIC
Why We Chose Fidelity Life
Fidelity Life offers lower-than-average term life insurance rates compared to some other companies we reviewed nationwide for cost. To gain more insight, we conducted a nationwide Pollfish survey of 1,000 life insurance policyholders in February 2024. Cost was the most important factor for Fidelity Life customers, comprising more than 40% of responses from people who purchased a plan from the company.
We also picked Fidelity Life for its accidental death coverage, which offers between $50,000 and $300,000 in benefits to policyholders between 20 and 65 years old. Fidelity Life holds an A- rating for financial strength with AM Best, an “excellent” score according to the credit rating agency. Strong financial stability scores indicate the ability of an insurer to pay outstanding claims to policy beneficiaries. However, unlike some other options on our list, Fidelity Life does not offer any term life plans that policyholders can convert into permanent coverage.
Available Coverage Options
Fidelity Life offers the following types of policies:
- Term life insurance
- Whole life insurance
- Guaranteed issue life insurance
Cost
We based the following sample non-smoker rates on a 20-year, $250,000 term life policy for Fidelity Life applicants considered in good health and qualifying for a preferred health rating.
- 35-year-old man: $23
- 35-year-old woman: $21
- 45-year-old man: $40
- 45-year-old woman: $34
For more information on other policy rates, such as whole life insurance, our team recommends contacting the company directly.
Nationwide
Best for whole life insurance
4.9
Coverage: 4.7/5
Riders: 5/5
Availability and Ease of Use: 4.7/5
Brand Trust: 4.6/5
Our Rating
Our Review
BBB RatingA+
Pros and Cons
Pros Sets term life insurance rates of around $27 based on an average we calculated across various applicant profiles Has strong customer satisfaction rankings from independent sources such as J.D. Power Offers 12 riders to allow policyholders to customize their plans Cons Website doesn’t offer a live chat feature Limits new term life policies to people under 70 years old
Why We Picked Nationwide
Nationwide scored well in our methodology for offering lower-than-average term policy pricing based on our national review, various whole life products and a strong customer experience. The company achieved a second-place ranking on J.D. Power’s 2023 customer satisfaction survey and a low 0.02 complaint index from the NAIC. Nationwide allows consumers to apply online for some term plans, while its two whole life plans, Whole Life 100 and 20-Pay Whole Life, require customers to work with an agent.
Current Nationwide customers can receive discounts if they bundle life insurance policies with other company products such as auto or homeowners insurance. Nationwide policyholders also have more options for riders than some other providers we reviewed, with 12 riders available to customize coverage.
Coverage and Cost
Nationwide offers the following types of life insurance policies:
- Term life insurance
- Whole life insurance
- Universal life insurance
- Variable universal life insurance
- No-exam final expense life insurance
Cost
To give you sample rates for Nationwide plans, we based the monthly costs below on a 20-year term policy for a tobacco-free applicant considered in good health.
- 35-year-old man: $21
- 35-year-old woman: $18
- 45-year-old man: $35
- 45-year-old woman: $32
For more information on other policy rates, such as whole life insurance, our team recommends contacting the company directly.
Pacific Life
Best for universal life insurance
4.3
Coverage: 4.4/5
Riders: 5/5
Availability and Ease of Use: 4.7/5
Brand Trust: 5/5
Our Rating
Our Review
Pros and Cons
Pros Offers the cheapest term life rates of companies we reviewed with an average of $21 across various applicant profiles Received significantly fewer complaints than expected, based on NAIC data Ranks well for customer satisfaction in J.D. Power’s annual survey Cons Offers a variety of universal coverage but no whole life policies Customers cannot receive quotes or apply online
Why We Picked Pacific Life
Pacific Life is an insurer with more than 150 years of experience that offers some of the lowest term life insurance rates, on average, than some competitors we reviewed. The company scored well in our methodology for its numerous policy options and 13 available riders that give flexibility and customization to its customers.
Pacific Life holds an A+ rating with AM Best, indicating a strong ability to pay out claims to beneficiaries. The company’s comprehensive coverage portfolio and financial strength are matched by strong customer satisfaction. Pacific Life scored 0.08 on the NAIC complaint index, indicating a rate of complaints 10 times lower than expected for a company of its size. However, you must work with an agent to get quotes or buy life insurance products.
Coverage and Cost
Pacific Life offers the following coverage options:
- Term life insurance
- Whole life insurance
- Universal life insurance
- Variable universal life insurance
Cost
To estimate costs for coverage with Pacific Life, we requested rates on a 20-year term policy for a tobacco-free applicant considered in good health.
- 35-year-old man: $16
- 35-year-old woman: $14
- 45-year-old man: $30
- 45-year-old woman: $24
For more information on other policy rates, such as whole life insurance, our team recommends contacting the company directly.
Mutual of Omaha
Best for no-exam coverage
4.8
Coverage: 4.4/5
Riders: 5/5
Availability and Ease of Use: 4.7/5
Brand Trust: 5/5
Our Rating
Our Review
Pros and Cons
Pros Offers term life rates of around $27 based on averages we calculated across various applicant profiles Holds an A+ financial strength score from AM Best Offers a variety of no-exam policy options Cons Customers must speak with an agent to get quotes for term policies Does not offer quotes for term life policies online
Why We Picked Mutual of Omaha
Mutual of Omaha has lower-than-average term life insurance rates based on our research into nearly 30 providers nationwide. Based on our February 2024 Pollfish survey of 1,000 life insurance customers nationwide, more than half of all Mutual of Omaha policyholders said cost was the most important factor when they purchased coverage. We picked Mutual of Omaha for its no-exam options for term and whole life policies, plus its strong financial strength and customer service ratings from independent companies.
Mutual of Omaha also holds strong financial strength and customer satisfaction ratings from industry sources The company scored an A+ financial strength rating with AM Best, indicating a “superior” ability to pay claims, and an 805 out of 1,000 in customer satisfaction from J.D. Power, placing fourth out of 22 life insurers profiled.
Coverage and Cost
Mutual of Omaha offers the following coverage options:
- Term life insurance
- Whole life insurance
- Universal life insurance
Cost
To get an idea of how much Mutual of Omaha policyholders might pay, we based the rates below on a 20-year term policy for a tobacco-free applicant in good health who qualifies for the preferred rate class.
- 35-year-old man: $20
- 35-year-old woman: $18
- 45-year-old man: $40
- 45-year-old woman: $31
For more information on other policy rates, such as whole life insurance, our team recommends contacting the company directly.
Penn Mutual
Our pick for custom coverage
4.4
Coverage: 4.4/5
Riders: 5/5
Availability and Ease of Use: 4.7/5
Brand Trust: 5/5
Our Rating
Pros and Cons
Pros Offers term life insurance policies of around $22 based on averages across various applicant profiles Features a total of 15 riders across policy types One of the lowest NAIC complaint indexes of the companies we reviewed Cons Offers limited coverage information to consumers on its website, based on our review Doesn’t offer online quotes or policy purchases
Why We Picked Penn Mutual
Established more than 175 years ago, Penn Mutual offers competitively priced term life plans among its products, which include a broad range of whole life and universal life policies. An area in which Penn Mutual scored well in our review is its variety of coverage types and having a total of 15 riders, allowing policyholders to customize their coverage. An A+ rating from credit rating agency AM Best also affirms the company’s financial stability.
Penn Mutual has a NAIC complaint index of 0.02, 50 times lower than expected for a provider of its size. However, Penn Mutual’s website offers limited coverage information to consumers, and you cannot get quotes or purchase policies online, based on our experience.
Coverage and Cost
Penn Mutual offers the following coverage options:
- Term life insurance
- Whole life insurance
- Universal life insurance
- Variable universal life insurance
- Indexed universal life insurance
Cost
To estimate costs for a 20-year term policy with Penn Mutual, we based the rates below on a tobacco-free applicant considered in good health.
- 35-year-old man: $16
- 35-year-old woman: $14
- 45-year-old man: $31
- 45-year-old woman: $25
For more information on other policy rates, such as whole life insurance, our team recommends contacting the company directly.
Life Insurance Riders to Add on to Cheap Plans
Accelerated Death Benefit
This rider gives you access to a portion of your death benefit while you’re still alive. Many policies offer accelerated death benefits automatically as a provision of the policy, whereas for other plans, you can add the rider for a small additional premium. In most cases, you must get diagnosed with a critical or chronic illness to receive this benefit. You can then use the accelerated benefit to pay for medical expenses, long-term care or replace lost income.
Term Conversion Rider
This rider allows you to convert a term life insurance policy into a permanent policy — usually whole life coverage — without having to take another medical exam. Term conversion riders may benefit policyholders who decide they want to lock in lower rates for permanent coverage during their term. Alternatively, you could wait until you get older to purchase a permanent policy, but rates will likely increase. You usually have a specific window in which you can use the term conversion, sometimes within the first five or 10 years of the policy, or at least 18 months before the policy expires.
Return of Premium Rider
An optional add-on to a term life insurance policy that can pay you back most or all of your premiums if you outlive the term. A return of premium rider (ROP) may suit policyholders who are risk-averse, can afford the extra monthly cost of the rider or want extra value with a term life policy.
Compare Affordable Life Insurance Providers by Cost
How To Make Life Insurance Affordable
Major factors that contribute to the cost of life insurance premiums include your age, health status, lifestyle, and the type and amount of coverage you select. Here are some ways to possibly lower your rates:
- Consider term coverage: Term life insurance is considerably more affordable than whole life insurance. Studies conducted by Policygenius in 2023 showed a healthy 35-year-old policyholder paying approximately $30 per month for a 20-year term plan with $500,000 in coverage. That rate increased to $571 for a whole life policy with the same amount of coverage.
- Apply when you’re younger: If you think you might need life insurance, it is better to buy coverage early rather than wait. Based on our market research, term rates more than double between the ages of 25 and 45 for the same coverage amount.
- Tobacco use: Staying tobacco-free can keep your life insurance rates lower. Of the companies we reviewed, a healthy 35-year-old who does not use tobacco can expect to pay an average rate of $30 per month for $500,000 in coverage and a 20-year term. If that 35-year-old were in the same health class but also used tobacco, he would pay an average rate of more than $100 a month for the same coverage amount.
- Maintaining your health: Applicants with pre-existing conditions like high blood pressure and high cholesterol or being overweight typically face higher life insurance rates. Lowering your blood pressure for a sustained period or losing weight — and keeping it off — could help you become eligible for a lower rate class.
Why Life Insurance Premiums Matter
Your insurance premiums fulfill your responsibility to the insurance company, which in turn will maintain your coverage. Failing to pay your premium can result in your provider canceling your coverage, leaving your beneficiaries without a death benefit if you pass away.
One of the most important factors to consider is that rates can continue to increase as you get older or develop medical conditions. The premium you pay for equivalent coverage as a relatively healthy 25-year-old will go up significantly when you’re 55, especially if you develop one or more health conditions.
The Final Verdict on Cheap Life Insurance Providers
Transamerica, Pacific Life and Penn Mutual offer some of the cheapest term life insurance rates of the providers on our list, ranging from $21 to $22 based on averages we calculated across multiple applicant profiles. However, each company we featured in this guide provides cheap term life insurance compared to the nearly 30 life insurers we reviewed nationwide when determining our list.
Every insurance provider has a proprietary underwriting process to determine coverages and premium costs. It’s possible to find the same coverage and term from 10 different insurers at 10 price points. To ensure that you get the most affordable coverage possible, we recommend requesting a quote from all our top providers.
Frequently Asked Questions About Life Insurance
Term life insurance is much more affordable than permanent life insurance. Whole life insurance policies guarantee a payout for the policyholders’ beneficiaries, which increases the financial risk the insurance company takes on. This can make whole life coverage prohibitively expensive.
There are a few ways to get cheap life insurance, because premiums are related to your life expectancy. Maintaining good health, being a non-smoker, opting for a term policy and comparing your coverage options before buying can help you find affordable coverage.
According to Progressive, life insurance costs between $13 and $75 per month for most policyholders. Your price will depend on your health stats and specific aspects of your policy.
Our recommended provider for affordable life insurance coverage is Bestow Life. Depending on your age and selected death benefit, Bestow customers can find coverage from $11 per month in most areas.
Methodology: Our System for Ranking the Cheapest Life Insurance Companies
Our goal at the MarketWatch Guides team is to provide you with comprehensive, unbiased recommendations you can trust. To rank the cheapest life insurance companies, we requested quotes directly from each provider and determined reviews based on that factor alone. To learn more, read our full life insurance methodology for reviewing and scoring providers.
AM Best Disclaimer
If you have feedback or questions about this article, please email the MarketWatch Guides team ateditors@marketwatchguides.com.
Graham RaySenior Author
Graham Ray is a writer with two decades of experience in journalism, digital marketing and advertising. He has written everything from corporate brand guides and websites to public relations campaigns. Graham’s knowledge of the insurance sector is bolstered by his experience as a licensed life and health insurance agent in more than 30 states.
Tori AddisonEditor
Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.
