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The Best Cheap Life Insurance Companies

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    Reviews Report

    • Nationwide is Reviews.com’s best cheap life insurance company, earning a 5/5 score. 
    • Term life insurance is generally cheaper than whole and universal.
    • Young, healthy customers pay lower premiums than older people.

    Life insurance is a good investment to financially cover your loved ones in the event of your passing, but it’s not always easy to fit it into your budget. That’s why we’ve reviewed the best cheap life insurance companies so that you can find coverage that doesn’t break the bank. In addition to premium costs, we evaluated the financial strength of the companies, their customer service ratings, and the variety of insurance options offered.

    The 5 Best Cheap Life Insurance Companies of 2021

     Principal FinancialGuardian LifeMutual of OmahaState FarmNationwide
     Our reviewOur reviewOur reviewOur reviewOur review
    Best forLow premiums Online toolsFamiliesCustomer serviceVariety of insurance options
    AM Best financial strength ratingA+A++A+A++A+
    S&P Global financial strength ratingA-AA+A+AAA+
    Moody’s financial strength ratingBaa1Aa2A1Aa1A1
    J.D. Power 2020 U.S. Life Insurance Study score772/1,000743/1,000789/1,000838/1,000803/1,000

    Information accurate as of February 2021.

    Principal Financial

    Best for Low Premiums

    Why we chose it

    Principal Financial offers the most affordable premiums out of every provider on this list.
    • 3.8 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • A+ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 772* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    Principal Financial offers the most affordable premiums out of every provider on this list.

    Pros

    • Low premiums
    • Up to 30 years of coverage
    • Short online quote tool

    Cons

    • Must mail in forms
    • Lower financial strength ratings
    Read More

    Products Offered

    • Term life insurance
    • Permanent life insurance

    Standout Features

    • Can convert term to permanent
    • Offers four permanent life insurance policy types

    Further Reading:

    Guardian Life Insurance

    Best Online Tools

    Why we chose it

    Clients can access forms, quotes, and applications on Guardian Life’s website.
    • 3.6 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • A++ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 743* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    Clients can access forms, quotes, and applications on Guardian Life’s website.

    Pros

    • Plenty of online tools
    • Policyholders receive dividends

    Cons

    • Only term life insurance quotes available online
    • Limited coverage options
    Read More

    Products Offered

    • Whole life insurance
    • Term life insurance
    • Universal life insurance

    Standout Features

    • EstateGuard covers two people with one policy
    • Coverage for people with HIV

    Further Reading:

    Mutual of Omaha

    Best for Families

    Why we chose it

    Mutual of Omaha offers you and your family great protection at a value.
    • 4.2 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • A++ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 743* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    Mutual of Omaha offers you and your family great protection at a value.

    Pros

    • Wide variety of insurance coverage
    • No medical exam or health questions for whole life insurance

    Cons

    • No bundling available
    • Limited coverage options
    Read More

    Products Offered

    • Whole life insurance
    • Term life insurance
    • Universal life insurance

    Standout Features

    • Offers policies for children and grandchildren 
    • Accidental death rider

    Further Reading:

    State Farm

    Best Customer Service

    Why we chose it

    J.D. Power ranks State Farm as one of the top life insurance companies for customer satisfaction.
    • 4.6 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • A++ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 838* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    J.D. Power ranks State Farm as one of the top life insurance companies for customer satisfaction.

    Pros

    • Excellent customer satisfaction ratings
    • High financial stability ratings

    Cons

    • No online quote tools
    Read More

    Products Offered

    • Whole life insurance
    • Term life insurance
    • Universal life insurance

    Standout Features

    • Four policies under whole life insurance
    • Accidental death rider

    Further Reading:

    Nationwide

    Best Variety of Life Insurance

    Why we chose it

    Nationwide goes above and beyond with life insurance by offering variable life insurance in addition to term, whole, and universal.
    • 5 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • A+ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 803* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    Nationwide goes above and beyond with life insurance by offering variable life insurance in addition to term, whole, and universal.

    Pros

    • Four different types of life insurance
    • Plenty of riders available

    Cons

    • Higher premiums
    • No live agent chat option
    Read More

    Products Offered

    • Whole life insurance
    • Term life insurance
    • Universal life insurance
    • Variable life insurance

    Standout Features

    • Home, auto, life, and business bundling
    • Term-to-permanent conversion
    • Children’s term life insurance rider

    Further Reading:

    *J.D. Power’s 2020 Life Insurance Satisfaction Study. Based on a 1,000-point scale.

    What Affects Life Insurance?

    The cost of life insurance can vary substantially depending on many factors. First, there are several different types of life insurance. You can expect to pay more for a whole life or universal life policy than you would for a term life policy.

    Your insurance rates will also depend on your personal characteristics. Young, healthy individuals will pay significantly lower rates. Locking in your rate when you’re younger can help you to save money for many years. Your premiums will also increase based on the amount of insurance coverage you have.

    How Much is Life Insurance?

    As we mentioned, life insurance premiums vary depending on someone’s age, health, and type of coverage. A young adult in good health could pay just $15 for term life insurance. But a 45-year old buying the same policy could pay closer to $55. The good news is you can lock in rates, meaning you can buy a policy when you’re younger and pay the same rate the entire term (often up to 30 years).

    Whole and universal life insurance policies have higher rates because part of your premium goes toward the cash value component of the policy. While it’s not uncommon for a young person to pay $25 or less for term life insurance, the same person might pay hundreds of dollars for a whole life insurance policy.

    Cheap Life Insurance: What You Need to Know

    Understand underwriting

    Insurance underwriters evaluate information about your health, lifestyle, and insurance needs to decide whether or not the insurance company should approve your application for insurance. These professionals also create the terms of your policy and determine your premium.

    Take the medical exam

    The state of your health can affect your premium, as the healthier you are, the less likely you are to make a claim. So many insurance companies require labs or medical exams as well as information about your medical history before approving your application or determining your premium.

    Consider term life insurance

    Term life insurance is the most affordable kind of life insurance, giving you the most coverage for the lowest premium. It’s often affordable because it’s only valid during a certain period of time and your premium is fixed during that period.

    Shop around for your best offer

    Compare premiums from various companies to get a sense of what the premiums are. Don’t forget to check the details of the coverage before making your final decision. 

    Further Reading:

    Need help learning more about life insurance or choosing the right life insurance company for you? We’ve rounded up a few resources to help you get started:

    Life Insurance FAQs

    Methodology

    We evaluated life insurance companies based on riders, coverage, resources, financial strength and customer satisfaction to determine Reviews.com scores and create our best life insurance reviews. To compare life insurance companies with other providers across the board, we calculate each Reviews.com score based on the following:

    • Number of riders: The more riders a life insurance company has, the higher it scores in our Reviews.com methodology.
    • Financial Stability: Reviews.com utilized AM Best ratings to assign a score based on each life insurance company’s financial stability.
    • Customer Satisfaction: With J.D. Power’s 2020 Life Insurance Satisfaction Study, we assigned a score to each company based on the rating it received.
    • Coverage: Life insurance companies scored higher if customers can convert term to whole and if they offered multiple options under different types of life insurance policies. 
    • Resources: Reviews.com compared website functionality for life insurance companies based on ability to receive online quotes, submit online claims, and read information on different policies available.

    About the Authors

    Erin Gobler is an insurance writer for Reviews.com. Over the past three years, she has covered personal finance topics such as insurance, banking, mortgages, and more. Her work has been featured in sites such as The Simple Dollar, Bankrate, and Coverage.com. She holds a bachelor’s degree in Journalism from the University of Wisconsin-Oskosh. Erin’s favorite Reviews.com article is the State Farm Renters Insurance Review.

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