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Are you looking for the top carriers and the best life insurance companies’ ratings? We’ve put together the cheap insurance companies for 2023. Life insurance is a great way to protect your family financially in the event of your death.
The best life insurance companies can help you secure enough coverage to replace your income, settle debts, or cover expenses your family will face like paying for your children’s education or caring for ageing parents.
Table of contents
10 Best Cheap Insurance Companies of 2023.
#1. Prudential
Founded in 1875, Prudential is a financial services company that offers a range of products, including life insurance, health insurance, annuities, and investment options. Prudential is the fifth largest life insurance company in the country by direct premiums written.
The company provides customers with term and universal life insurance policies. Whether you need coverage so your loved ones have protection if you pass away or you want a plan that can continue your business after you’re gone, Prudential has options for you.
Prudential has 12 different life insurance plans to choose from, including term life policies and universal life policies. Many of its plans require medical exams and all require a medical history, but qualified candidates can get online quotes for term life policies and even complete the purchase online.
All other customers, including those shopping for universal life coverage, will have to contact a financial professional to get a quote and apply for a policy.
Pros
- Multiple universal life policies available
- Robust online resources and tools
- You can consult with a financial professional to choose an insurance plan
Cons
- Medical history required required to get a quote
- Online quotes not available for some policies
- Final expense policies are not available
#2. State Farm
State Farm is the nation’s largest private passenger auto insurer and one of the cheap insurance companies that you can find in the US. It offers a wide variety of other insurance and financial products, sold only by State Farm agents. There is a wide variety of insurance products at cheaper-than-average rates you can get in this organization.
The company also offers several auto insurance discounts such as its outstanding student and excellent driver discount and quality customer service.
Overall, this is a good choice for your insurance needs, especially if you are shopping for multiple insurance policies. If you’re looking for a well-known brand name with a generous selection of products and consumer-friendly pricing, State Farm might be right for you.
Those looking for a personalized experience with a local insurance agent are likely to find just that with having a network of over 19,000 agents. This is in stark contrast to some other large insurers particularly Geico and Progressive. These two have fewer dedicated agents.
State Farm is also a good choice for those who prefer to manage their insurance policies online. It has received positive reviews for its mobile app, which allows customers to pay their bills, file claims and request roadside help.
Pros
- Many discounts offered, including two programs; one for safe driving and the other for young drivers.
- Generous rental car and travel expenses coverage.
- Customer satisfaction rating for purchasing auto insurance is better than average, according to J.D. Power.
Cons
- Doesn’t offer gap insurance.
Read This: What Is Comprehensive Insurance? Overview and Full Coverage
#3. TransAmerica
Transamerica offers individual term, indexed universal and whole life insurance. Although its headquarters are no longer in San Francisco, Transamerica still uses the image of the city’s iconic Transamerica Pyramid for its logo.
According to various Transamerica life insurance reviews, the company has high to superior financial ratings. Transamerica’s life insurance policies have up to 10 million dollars of coverage for term life insurance and 2 million dollars of coverage for whole life. The company offers term life insurance to anyone aged between 18 and 80 years.
Transamerica offers additional financial products and services, including annuities, mutual funds, exchange-traded funds, known as ETFs, retirement planning and workplace benefits.
The company offers much life insurance rider options customers can use to customize insurance policies according to their personal preferences and needs. As a customer, all you need to do is figure out the coverage amount you need and simply request a quote from the company’s official website.
Transamerica insurance has excellent life insurance policies. Unlike other companies that only offer the basics, Transamerica sells five different life insurance policies. You can also customize your policy with a variety of riders.
Pros
- Wide range of life insurance offerings and lots of term lengths available.
- Offers relatively high death benefit options.
Cons
- Received more complaints than expected for a company its size.
- Customer satisfaction scores below average for life insurance in J.D. Power comparison.
#4. Northwestern Mutual
Northwestern Mutual, headquartered in Milwaukee, was founded in 1857 and has operated for years in the financial services industry.
The company offers a traditional approach to life insurance, with plenty of coverage options and a low-tech but personalized method of determining coverage needs. Northwestern offers various types of financial planning services, including estate and retirement planning, life insurance, and other forms of insurance.
Northwestern Mutual is an excellent option for life insurance. It scores a 4.6 out of 5 and is the No. 1 overall Best Life Insurance Company in our rating. Northwestern Mutual scores highly thanks to its many options and coverage types, giving consumers the flexibility to research and select the best plan for them.
Northwestern Mutual offers a term life policy with custom terms that can be converted to a permanent policy. There are also riders available for most policy types to customize coverage.
Online convenience features include automatic premium payments, an insurance calculator, estimates for some policy types, and customer service.
As one of the highest-rated insurance companies around, Northwestern Mutual offers several financial products to customers all over the country. It can only purchase through policies through approved representatives, Northwestern Mutual provides a healthy menu of life insurance plans to choose from, each offering the ability to grow cash value.
Pros
- Northwestern Mutual offers a variety of coverage types.
- Northwestern Mutual can combine term and permanent policies.
- Some customers are eligible to receive dividends.
Cons
- The website doesn’t answer a lot of questions upfront.
- Company financial advisors need to begin the process.
#5. New York Life
New York Life bills itself as one of the nation’s oldest mutual life insurance companies. As a mutual insurer, New York Life is owned by its policyholders. Customers who buy certain products, such as whole, life insurance, may vote in board elections and receive annual dividends.
This company is a well-known life insurance company that offers a range of products including term, whole, variable, and universal life insurance coverage. Interestingly, it stands as one of the cheap insurance companies for 2023.
Unlike other companies that only have independent insurance agents, New York Life connects customers with trained financial professionals to provide personalized advice to help you select the best insurance policy for your needs. It’s a more individualized approach that clients with more complex insurance needs will appreciate.
New York Life offers four different term life insurance policies, each with somewhat different requirements, restrictions and cost structures. They offer the option of a term conversion, meaning you can convert your coverage to a permanent life insurance policy.
If you’re interested in permanent life insurance that is affordable, New York Life has great options, but we recommend carefully reviewing their agents before working with one, as customers have a range of experiences depending on the representative.
New York Life offers three different whole life insurance policies: standard, custom and value. Each of these policies offers protection for your lifetime, builds cash value at a guaranteed rate, qualifies you to receive dividends and has level premiums.
The primary differences between these policies have to do with their payment schedules and the rate at which your cash value accumulates.
Pros
- Ranks above average in J.D. Power’s 2021 customer satisfaction study for life insurance.
- Drew fewer complaints to state regulators than typically expected for a company of its size.
Cons
- Quotes aren’t available online.
Related Article: How Do Insurance Companies Make Money?
#6. Mutual of Omaha
With a robust lineup of plans and policy features, Mutual of Omaha provides reliable coverage to applicants across the country, even those with major health concerns or a history of tobacco use.
Though the buying process can be slow, especially when compared with online insurers, this may be a good choice for those whose age or personal factors prevent them from buying cheap insurance coverage elsewhere.
Mutual of Omaha is known for guaranteed issue permanent life and term life policy options and gives consumers confidence with the fact that they have been doing it since 1926.
The financial strength rankings, customer satisfaction ratings, policy options, pricing for this company when compared with their competition to give you the facts you need to decide if this is the right insurance choice for you.
Mutual of Omaha offers three whole life insurance options, depending on what you need and how you prefer to buy. Two of these are considered Living Promise policies, the first of which is the Graded Benefit Plan.
This plan is offered to applicants between the ages of 45 and 80, and is available to those who prefer to purchase with the help of an agent.
Benefits can range from $2,000 to $20,000 (if you’re in Washington, these limits are $5,000 to $40,000) and are never reduced because of your age or health conditions. Health and tobacco use aren’t factored into your premiums, either.
Pros
- Get quotes and purchase coverage online, over the phone, or through an agent
- Tobacco use won’t always affect whole life rates
- Long list of riders and plan benefits
- Many policy options available for seniors
Cons
- Buying a policy online may reduce your coverage options
- It does not offer dividends
- The buying process can be slow
- Online account management is limited
#7. USAA
In general, active duty and retired military members and select family members are eligible for USAA membership and insurance coverage. USAA is known as one of the highest-rated insurance companies primarily because its exclusivity allows it to focus on a select group of customers.
Once USAA membership is obtained, customers can then purchase insurance and take advantage of the many benefits and discounts available to members. USAA membership is free and offers several perks on its own.
To meet eligibility requirements for USAA membership and insurance coverage, you must be an active, retired, or separated veteran (with an Honorable discharge from the U.S. military).
Specifically, military service personnel who have served in the Army, Marines, Navy, Air Force, National Guard, Coast Guard and Army Reserve are eligible.
Also eligible for membership are pre-commissioned officers such as officer candidates and contracted cadets or midshipmen attending a U.S. Service Academy, prep school or ROTC program.
USAA membership eligibility is open to the following family members:
- Spouses
- Widows, widowers and un-remarried ex-spouses of USAA members
- Children of USAA members
- Step-children of USAA members
Pros
- Eligible customers looking for top-notch customer service
- First-time drivers and new vehicle owners
- Homeowners with more expensive houses
Cons
- People not affiliated with the U.S. military
- Drivers with leased vehicles
- Savers who prioritize discounts
#8. Protective
Protective Life has been offering life insurance products since 1907 and currently has over 979 billion dollars of life insurance policies in force.
The company offers term, whole, and universal life insurance policies, as well as annuities to grow and protect your retirement income. Protective Life makes eye-catching claims about its affordability.
According to the company, its term life insurance is usually up to 48% less than the competition’s policies, making it a more affordable option for cost-conscious customers.
Protective Life offers whole, term, and universal life policies. Protective offers whole life insurance policies with level premium payments and a cash value that grows at a fixed interest rate.
With a wide range of coverage amounts, you can get as much or as little coverage as you need for your family’s needs or legacy goals. You can get an online quote for term life insurance, but you’ll need to contact an agent for all other policy types.
Protective offers 10- to 40-year term life insurance policies with coverage of $100,000 to $50 million, with the option to convert to a permanent policy without a medical exam.
Depending on your state, the policy could include a terminal illness rider, which pays out early death benefits if you become terminally sick. Online quotes are available for policies up to $10 million.
The Custom Choice policy, marketed as an alternative to term life insurance, is priced lower than other permanent policies. You pay a level premium for coverage for a certain period, from 10 to 30 years. At the end of this period, the price stays the same, but you receive less coverage.
The universal policy is designed for people who think their life insurance needs will decrease when they get older but still want some coverage until they die. The policy isn’t designed to build substantial cash value.
However, as much as you can find this insurance company on the list of cheap insurance companies, Protective is not a good choice if you smoke.
he insurer does own two subsidiaries; West Coast Life Insurance and Liberty Life. These two both offer similar products to Protective.
Pros
- Up to $50 million in coverage available
- Term policies with 40-year terms available
- Multiple universal life policies to choose from
Cons
- Online quotes not available for whole or universal life policies
- Guaranteed issue and final expense policies not available
- Costly surrender charges may apply
Also, See This: Grange Insurance Reviews 2023: Everything You Should Know
#9. American International Group, Inc. (AIG)
American International Group, Inc., better known as AIG, offers a wide range of life insurance products including term, whole, universal, and accidental death benefit policies.
Whether you want a simple, inexpensive policy to cover your final expenses or a more robust plan to leave your family or favorite charity a lasting legacy, AIG has multiple options to meet your needs. It’s the 10th-largest life insurance company in the United States in terms of direct premiums written.
If you’ve struggled to find life insurance in the past because of pre-existing health issues, AIG may be a good option for you. It has both an accidental death benefit and guaranteed whole life policies which don’t require medical exams.
AIG has 10 different life insurance plans, ranging from accidental death benefit plans with guaranteed acceptance to permanent policies with millions in coverage.
You cannot get a quote for any of the policies online; you must contact AIG to get a quote and discuss your insurance needs with an agent. Considering that several of AIG’s plans are complex and involve investment options, the personalized attention of an agent can be helpful.
Pros
- High coverage amounts available
- Medical exams not required for all policies
- Multiple insurance rider options
Cons
- Much worse-than-average complaint ratios
- Online quotes not available
- Poor rankings in terms of customer service and pricing
#10. Lincoln Financial Group
Lincoln Financial Group offers life insurance, annuities, workplace benefits and retirement plan services. It was founded in Fort Wayne, Indiana, in 1905.
The company was named after Abraham Lincoln, and Lincoln’s son Robert Todd Lincoln gave the company permission to use the name and Abraham Lincoln’s likeness, which remains part of the company logo.
Today, Lincoln Financial Group offers insurance and financial planning solutions to individuals and employers.
Lincoln Financial has a wide range of policies to choose from, including several term life policies and universal life policy options. Lincoln’s policies cover individuals of all ages (starting at age 18) and qualified applicants will skip a medical examination.
Lincoln Financial offers several features, such as a variety of coverage options for customers with a history of cancer. With the wide range of universal life insurance policies available, customers may find a policy that is compatible with their goals for growth based on different investment options.
Term life policies have the potential to be issued quickly if no medical exam is required. Lincoln Financial also offers a digital claims process that helps expedite a claim, and it can pay the death benefit via electronic fund transfer.
You can pay premiums online or automatically via electronic funds transfer. Lincoln Financial also offers electronic document delivery, an online insurance calculator, and online estimates.
Pros
- Lincoln Financial’s Tele-App process allows qualified applicants (depending on their health histories) to apply by phone for certain life insurance products without lab tests.
- It is one of the largest life insurers in the country, with a history of more than a century.
- The company offers annuities, as well as retirement, investment and financial services.
- The website provides lots of financial tools and resources, and allows you to begin your life insurance claim online.
- It has a very low customer complaint ratio, according to the National Association of Insurance Commissioners.
Cons
- Lincoln Financial does not offer whole life policies.
- There is no online quote tool available, so there is no way of telling what your policy might cost without speaking with an agent.
- You can’t do simple things like changing your address or change a beneficiary directly online. You must fax, email or mail in a form or call an advisor.
- The company does not offer juvenile polices, only children’s term riders.
- You can’t pay your bill online, though you can enroll in EFT payments.
References
- https://www.spglobal.com/ratings/
- https://www.moneygeek.com/
- https://www.valuepenguin.com/
- https://www.thebalance.com/
- https://www.investopedia.com/
- https://www.usnews.com/
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