15 Best Cheap Life Insurance Companies In 2023

Life insurance policies are insurance policies that provide financial protection for your beneficiaries when you’re no more.

There are some factors you should consider before settling with a life insurance agency, such factors include what type of life insurance policies they offer, availability of customer support, customer satisfaction, and the overall reputation of the insurance company.

You might not have enough money to purchase life insurance coverage from expensive companies, however, you shouldn’t be discouraged by that since it is possible to find affordable and cheap life insurance companies, the only thing is that some might not come with rider options.

You’ll come across a lot of cheap life insurance companies, and therefore, you need to research before finally choosing the best option for you.

Now we’ve made this search easier for you by curating a list of the best cheap life insurance companies you can select from, but before that, let’s discuss some things about life insurance.

Why Is Life Insurance Important?
What Are the Main Types Of Life Insurance Policies?
- Term Life Insurance
- Permanent Life Insurance
What Are the Best Cheap Life Insurance Companies?
FAQs
Conclusion
References

What Is Life Insurance?

According to Wikipedia, life insurance is a contract between an insurance policyholder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insurer.

Life insurance is a contract between you and an insurance company where you pay a premium amount of money that would be given to your beneficiaries upon your death. Other factors that could trigger the payment include terminal illness.

Check Out: How Much Life Insurance Do You Need?

Why Is Life Insurance Important?

There are various reasons life insurance is important, the primary objective of life insurance is to provide financial security to the beneficiaries upon the death of an insured person.

The money could go a long way in settling debts, paying tuition fees, and covering every other essential cost incurred by the beneficiaries or insurer.

Check Also: How To Become An Insurance Agent? A Step-by-Step Guide

What Are the Main Types Of Life Insurance Policies?

Deciding on the types of insurance to choose from might be a bit confusing and the cost and availability of life insurance depend on some factors like age, health, and the type of insurance.

Below are the main types of life insurance policies:

Term Life Insurance

Term life insurance is the basic and cheapest type of life insurance. Here policies can be bought for a specified period and if you die within the specified period, your beneficiaries will the face value of your policy from the insurance company.

Permanent Life Insurance

Permanent life insurance is where you pay a premium amount for as long as you’re alive. And at your death, your beneficiaries will receive the accumulated amount of money.

There are three types of permanent life insurance and they include:

Whole Life Insurance

This type of permanent life insurance has a premium amount that doesn’t change throughout the life policy.

The premium amount can accumulate cash value which can be invested in the insurance company’s general investment portfolio.

Universal Life Insurance

Universal life insurance is the same as whole life insurance but with a slight difference because it comes with more flexibility.

Immediately you have an accumulated sum of money in your cash-value account, you can vary the amount and frequency of payment.

Check Also: 10 Best Cheap Life Insurance for Seniors in 2023

Variable Life Insurance

This permanent life insurance is also the same as the others, but here you can decide how you want your cash value to be invested.

You can select between investing your money into stocks, money market funds, or bonds.

What Are the Best Cheap Life Insurance Companies?

Before selecting a life insurance company, it is advisable to make a list of what you expect from them in terms of pricing, services, etc.

While it might seem like expensive life insurance companies are more likely to perform better there are still cheap life insurance companies that have everything you need.

Below are the best cheap life insurance companies in 2023;

Principal
Protective
State Farm
Bestow
Legal and General America
Mutual of Omaha
AARP
Guardian Life
Transamerica
AIG
Liberty mutual
Mass Mutual
Northwest Mutual
Pacific life
Fabric

1. Principal Financial

Principal Financial was founded in 1879 in Iowa, the USA as an insurance company. It offers insurance and retirement products for individuals and companies.

Priincipal insurance has cheap life insurance premiums, great customer service, and a great reputation.

It has scored a 0.33 on the National Association Of Insurance Commissioners (NAIC) 2020 compliant index, which is very low compared to the industry average of 1.0, and has also received an A+ rating from AM Best.

Principal offers life insurance policies such as universal life insurance, term, and survivorship life insurance policies with terms caring from 0-30 years but the downside is that they don’t offer a whole life insurance policy.

You can exchange your term life insurance for a permanent life insurance policy without providing evidence of another medical check-up. It also offers other financial products such as annuity and Roth IRA. You can also customize your coverage to other rider options.

Principal is available in 50 states and it has branches globally. You can get a quote online for the terms policy but you’ll have to contact an agent for pricing and application.

2. Protective

Protective life insurance was founded in 1907 in Alabama, USA. It offers various financial products and services. Protect has cheap term life insurance policies and it offers low premiums to healthy young policyholders.

Asides from terms, it also sells universal and whole life insurance policies. Protective has an A+ rating from AM Best as well as a 0.87 score for the NAIC 2020 compliant index.

Protective life insurance offers a 40-year term policy for some policyholders while they promote 43% savings for young healthy clients. You can easily swap your terms life policy to a permanent life insurance policy without insurability.

You can get an online quote and application for terms policies while you need to contact an agent for universal or whole life policies. The company also has a virtual assistant that is available to answer your questions 24/7.

3. State Farm

State farm insurance is a big collection of insurance companies across the USA founded in 1922 in Bloomington, Illinois.

The company offers various financial products and services like health, homes insurance policies including a life insurance policy.

The company got a high rank for great customer satisfaction in J.D. Power’s 2021 life insurance research. It also got 0.19 in the 2020 NAIC compliant index as well as an A+ rating from AM Best.

The company offers terms, whole, and universal life policies. You can decide to join your policy with other insurance services to save money. You can also convert your term policy to a permanent life insurance policy before you reach 75.

Purchasing a life insurance policy through the phone or by yourself depending on where you reside. The company also has policies that offer quotes online.

4. Bestow

Bestow insurance company was founded in 2016 in Texas, USA. It is one of the best cheap life insurance companies that offers insurance coverage without a medical exam.

The North America Company for Life and Health Insurance issues Bestow’s life insurance policy. It offers only a term life insurance policy. It also got an A+ rating from AM Best.

The company accepts applications from people with the age bracket of 18 and 60 years. It also uses an algorithm to check if you’re eligible for an application. The company offers 10, 15, 20, 25, and 30-year term policies.

If you’re 45 years or above you won’t be eligible for the 20-year term policy. The company’s only downside is that you can not tailor your policy to other rider options.

You can receive an online quote for this policy but you’ll need to contact an agent for application.

5. Legal and General America

Legal and General is an insurance company established in 1983, located in London. It offers cheap life insurance policies. It is ranked second in providing term policy to its customers.

The company also includes Banner life and William Penn, both of which scored 0.09 and 0.00 in the NAIC 2020 compliant index. It scored high for its various ways of customizing customers’ policies. It has an A+ rating from AM Best.

The insurance company offers not only term but also universal and final expense policies. Legal and General offers a 10_40 year term policy with the addition of accelerated death benefits which is up to applicants up to the age of 75.

Your term policy can also be converted to a permanent life insurance policy up to the age of 70 and having a family cancer history will not deter you from a policy.

You can get a quick quote online for a term policy but will have to contact an agent for application through email or phone.

6. Mutual of Omaha

Mutual of Omaha is an insurance and financial service company located in Omaha, Nebraska.

It was founded in 1909. It was ranked highest for offering various policies for senior citizens. The company scored 1.21 in NAIC 2020 compliant index and also received an A+ rating from AM Best.

The company offers various insurance services like the term, whole life, universal, children’s whole life, and accidental death insurance.

Mutual of Omaha’s offers universal life insurance policies up to age 85 and you can also renew term policies up to age 100. You can also tailor your policy to the various riders provided by the insurance company.

You can get online quotes and apply online for some policies, while you’ll have to contact an agent via phone or email. If you also live close to an agent, then you can meet in person.

7. AARP

AARP Life Insurance Program is underwritten by the New York Life Insurance Company.

Basically, AARP is a nonprofit organization that offers a few selections of policies offered by the New York Life Insurance Company.

It is an affordable and cheap life insurance policy for senior citizens. It has an affiliate AARP service Inc. that Makes money from sales of insurance and other financial services.

They offers term, whole, and permanent life insurance policies without asking for a medical exam.

AARP is meant for AARP members ages 50_74 and their spouses’ ages 45_74, which can stay till the policyholder’s 80th birthday, but if you meet the age requirement you can join by signing up for the $16 annual membership.

Rates for a permanent life policy depend on the insurer’s age. A term policy can be converted to a permanent life insurance policy before 80 years. Term policy increases every five years.

The company ranked 9 out of 21 insurance companies in the J.D. Power’s life insurance 2021 study and has an A+ rating from AM Best. Acceptance for most products is based on your health.

8. Guardian Life

The Guardian Life Insurance Company is one of the biggest mutual life insurance companies in the USA located in Manhattan.

It was founded in 1860 and is owned by its policyholders. It has great customer satisfaction and has received the rating for J.D. Power’s study, it also has an A++ rating from AM Best.

The company offers term and permanent life insurance policies. It also has unique policy options for healthy HIV-positive applicants and survivorship insurance.

Guardian Life offers whole insurance, universal insurance, and survivorship insurance known as Guardian EstateGuard, mostly intended for married couples.

The survivorship policy pays the beneficiaries after the death of the second person, while it increases after the first person dies. The company also offers policies of 10, 15, 20, and 30 years. You can get an online quote but you’ll need to contact an agent for an application.

9. Transamerica

Transamerica Corporation is a holding company for various life insurance companies and investment firms.

They offer various financial services like life insurance, mutual funds, annuities, supplemental health insurance, retirement services, and investments. It was founded in 1928 in California, USA.

They initially started as a bank in1904. It offers financial services to both companies and individuals. It also offers term, whole, and indexed universal life insurance policies.

Transamerica offers most policies coverage from $25,000. You can also tailor your policy to various rider options available.

It is ranked 5th amongst the cheapest life insurance companies and has an A rating from AM Best. Some policies build up cash value, and you can also purchase insurance coverage without a medical exam, however, you must make purchases through an agent.

10. AIG

AIG which stands for America International Group, Inc. , is an American multinational insurance and financial company with branches in over 80 countries. It was founded in 1919 in Shanghai, China.

They offer travel insurance, health insurance, and personal accident insurance to their customers in the USA. It is ranked second amongst affordable and cheap life insurance companies in the USA.

It has an A rating from AM confirming its financial strength.

AIG offers term policy, whole life policy, and universal policy to its customers. AIG offers whole life policies for senior citizens between the age of 50-80 years without a medical exam as well as for qualified universal life policy applicants.

Term life policyholders can select rider options that will extend coverage for their kids and also provide increased financial protection when faced with disabilities or terminal illness.

11. Liberty Mutual

Liberty Mutual is an American diversified global insurance company located in Massachusetts, USA. It was founded in 1912.

Also, it offers various financial services like vehicle insurance, property insurance, life insurance, accident insurance, business insurance, and lots more. It is ranked the 6th largest property and casualty insurance company globally.

Liberty Mutual offers various types of life insurance policies like level premium convertible term policy and whole life without any medical exam.

You can get quotes online which will then be given to the company’s agents to complete the application process. You also get to select from a wide variety of rider options to customize your life insurance policy to your family’s needs. Liberty Mutual has an A rating from AM Best.

12. MassMutual

MassMutual is the Massachusetts Life Insurance Company founded in 1851, it offers financial products like annuities, retirement services, disability income insurance, long-term care insurance, and life insurance.

The company aims to help you secure your future and protect the ones you love. It offers various types of term and permanent life insurance policies to its customers. Being a mutual insurance company, its shares are owned by its policyholders.

Mass Mutual requires a medical exam for most of its life insurance policies. Its permanent life insurance includes whole, universal, and variable universal life insurance policy. It offers a combination of term and whole life insurance policies.

It offers a term policy of 10, 20, or 30 years to applicants who are ages 18_75 with coverage starting at $100,000. The age limit makes it a great option for older citizens and it is also affordable.

The universal life insurance is available to applicants who are ages 18-85 and it lasts for life, starting with a coverage of $50,000, while the variable universal life insurance offers permanent life insurance and flexible premiums, it also lets you be hands-on with the cash value portion of your policy as well as working agent to select an investment that you prefer.

Income-eligible parents or guardians also get free life insurance through its Lifebridge Program. You can get a no medical exam life policy through its affiliate Haven life.

13. Northwestern Mutual

Northwestern Mutual is a financial organization based in Milwaukee, USA. It was founded in 1857.

They offers financial products like permanent life insurance, disability income, life insurance, annuities, long-term care insurance, and investments. It ranked 4th in J.D.

Power’s life insurance policy. Northwestern Mutual offers cheap life insurance policies such as whole life, term, and universal life insurance policy. Northwestern Mutual is owned by its policyholders as the name implies.

You’re required to take a medical exam before purchasing coverage, you can also convert your early term policy to a whole life insurance policy without taking another medical exam, with a locked-in premium for the rest of your life.

You can’t get an online quote but you can decide how much insurance policy you want to purchase and decide if you’re purchasing a term or permanent life insurance policy.

It is estimated that a healthy 35-year-old male can purchase a $500,000 term life policy for as cheap as $306 annually.

14. Pacific Life

Pacific Life Insurance Company was founded in 1868 in California, USA. The insurance company offers financial products and services like mutual funds, annuities, life insurance policies, retirement services, and various investment options to individuals and companies.

Its life insurance policies include term and permanent life insurance policies like whole, universal, variable universal life insurance policy as well as long term care life insurance policy.

Pacific Life has great customer satisfaction, a good compliant index from NAIC, and ranked above average in J.D. Power’s study.

Pacific Life offers two classes of a term policy, the Promise term offers you the choice of converting some or all of your death benefits to a universal life policy anytime before you clock 70.

Promise term includes policies of 10, 15, 20, 25, and 30- year terms, you also have the option of tailoring your coverage to various rider options available like an accelerated death benefit. The Elite term lets you convert your policy to a cash value insurance policy up to 10 years after its beginning date. You can purchase it in 10, 20, and 30-year terms.

Pacific Life also offers various types of indexed universal life insurance policy including survivorship insurance which covers two people, mostly couples. Its whole life insurance policy is only available through workplace plans. Some policies are not available in New York. You can get more information from the company’s website.

15. Fabric

Fabric life insurance agency is an insurance agency licensed to sell life and accident insurance policies established in 2017.

The agency offers policies issued by Vantis life, a Penn Mutual company founded in 1847, making it the second oldest mutual life insurance company in the USA. Fabric life is rated under Vantis life, which received an A+ rating from AM Best. Vantis also scored 0.0 in NAIC 2020 Compliant Index. Fabric life offers term life insurance policies, wills, high-yielding insurance policies, and 529 plans.

Fabric’s term policy offers a certain amount of coverage for a specific time, with coverage ranging from $100,000_$5million. The policy lasts between 10-30 years for people between 21-60 years old, the length of the terms you purchased depends on your location. Some states limit your term policy to just 20 years.

Fabric doesn’t offer any permanent life insurance policy yet but at the expiration of your term policy, you can convert it to a whole life insurance policy.

It doesn’t need a medical exam for most applications but where necessary, the agency will cover the cost of the medical exam and also send a trained professional to your workplace or house. Fabric’s term policy comes with an accelerated death benefit rider.

Fabric also offers an accidental death insurance policy for customers under age 50 and it lasts till age 60 when it automatically terminates. It is renewed monthly as long as maintain your premiums.

Fabric Life is best for young adults. And it is not available in every state. The agency’s website has a good customer support system with blogs and articles to provide you with enough knowledge of the policies and services they offer. You can also apply online.

FAQs

What is life insurance?

Life insurance is a contract between you and an insurance company where you pay a premium amount of money that would be given to your beneficiaries upon your death.

What is the age limit for life insurance policies?

The age limit for life insurance policies depends on the insurance company you’re using, you can get a term policy before you’re 65 years and choose a coverage up to 99 years

How do I get a life insurance policy?

Getting a life insurance policy depends on you, however, you should that it could come in handy especially if you have children or you want to support a spouse or a disabled relative.

Steps to take while choosing a life insurance policy

Carry out a market research
Find the best option for you
Buy a life insurance policy while you’re still young and healthy
Be in charge of your health
Find out if the insurance companies offer discounts
Check if your employee benefits include a life insurance policy.

Conclusion

Life insurance policies are great plans for your beneficiaries because they provide financial security for them when you’re no more.

There are lots of cheap life insurance companies you can select from in this article.

Secure your beneficiaries’ future by planning for them by selecting a cheap life insurance policy to purchase.

References

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