Reviews Report
- State Farm ranks highest in overall customer satisfaction in the J.D. Power U.S. Individual Life Insurance Study, 2025 (1,000-point scale).
- Rider availability is product- and state-specific. Both Guardian Life and Nationwide offer broad menus, but the “best” set depends on your policy type and goals (e.g., living benefits, paid-up additions, chronic illness/LTC).
- Premiums reflect your mortality risk plus market factors. Age, health, sex, and nicotine status drive your risk class, while interest rates, expenses, and reinsurance/profit loads also influence pricing. See current term benchmarks in the Policygenius Life Insurance Price Index and industry context from AM Best’s Life/Annuity outlook and Swiss Re sigma 2024/25.
We identified affordable, reputable life insurance providers by combining third-party satisfaction benchmarks, financial strength ratings, and policy breadth. We referenced the J.D. Power U.S. Individual Life Insurance Study, 2025 for carrier-level satisfaction, sector context from the American Customer Satisfaction Index (ACSI), and financial-strength opinions from A.M. Best, S&P, and Moody’s. Based on this evidence, our top value picks include Guardian Life, Mutual of Omaha, State Farm, and Nationwide. Your final rate will vary by age, health, nicotine use, coverage design, and riders.
The 4 Best Cheap Life Insurance Companies
- Guardian Life: Best for Whole Life Customization and Online Tools
- Mutual of Omaha: Best for Families Seeking Budget-Friendly Term and Simple Online Quotes
- State Farm: Best for Customer Satisfaction and Agent Support
- Nationwide: Best for Variety of Policy Types and Living-Benefit Riders
Compare The Best Cheap Life Insurance Companies of 2021
| AM Best 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. | S&P Standard & Poor’s (S&P) rates creditworthiness for businesses, countries and cities that issue bonds. | Moody’s Moody’s is an American financial services company that offers in-depth opinions on credit risks. Its ratings are based on a borrower’s ability to make interest payments. | J.D. Power Customer Satisfaction* J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
|---|---|---|---|---|---|
| Pin Guardian Life | A++ | A++ | Aa2 | See 2025 study | |
| Pin Mutual of Omaha | A+ | A+ | A1 | See 2025 study | |
| Pin State Farm | A++ | AA | Aa1 | Ranks highest (2025) | |
| Pin Nationwide | A+ | A+ | A1 | See 2025 study |
*J.D. Power U.S. Individual Life Insurance Study, 2025 (on a 1,000-point scale). See the latest rankings and scores on J.D. Power’s study page.
Best Cheap Life Insurance Company Reviews
Guardian Life
Why we chose it
Why we chose it
Pros
- Deep whole life rider menu (e.g., PUA, GIO, Waiver)
- Helpful digital tools for needs analysis
Cons
- Rider and product availability vary by state and policy type
Products Offered
- Term life insurance
- Whole life insurance
- Universal life insurance
Available Riders
- Paid-Up Additions (PUA) rider
- Guaranteed Insurability Option
- Waiver of Premium (disability)
- Term blend/additional insured options
- Accidental Death Benefit; Children’s Term
- Accelerated Death Benefit (terminal); chronic care where approved
Availability varies by product and state. Learn more at Guardian’s rider page.
Mutual of Omaha
Why we chose it
Why we chose it
Pros
- Excellent third‑party financial ratings
- Online quotes for common coverage needs
- Core rider set for families (Waiver, Child, Accidental)
Cons
- Online purchase options may have lower coverage limits
Products Offered
- Term life insurance
- Whole life insurance
- Universal life insurance
Available Riders
- Accelerated Death Benefit (terminal; often included)
- Waiver of Premium (disability)
- Children’s Term rider
- Accidental Death Benefit
- Chronic illness option on select products (state approval varies)
State Farm
Why we chose it
Why we chose it
Pros
- Highest overall customer satisfaction (J.D. Power 2025)
- Agent support plus digital conveniences (e‑applications/claims start)
- Online quotes for term life
Cons
- Not every rider is available in all states or products
- Fewer specialized riders than some UL/IUL-focused competitors
Products Offered
- Term life insurance
- Whole life insurance
- Universal life insurance
Available Riders
- Level Term or Term rider (stack coverage)
- Children’s Term rider
- Guaranteed Insurability Option
- Waiver of Premium or Waiver of Monthly Deduction
- Accelerated Death Benefit (terminal; often included)
More State Farm Insurance Reviews
Nationwide
Why we chose it
Why we chose it
Pros
- Broad permanent life lineup with living-benefit options
- Digital servicing for payments and policy updates
- Rider depth on UL/IUL including chronic illness/LTC options
Cons
- Medical exams may be required for higher amounts or certain products
- Online quoting primarily for term; advisor support for complex designs
Products Offered
- Term life insurance
- Whole life insurance
- Universal life insurance (including IUL)
- Variable life insurance
Available Riders
- Accelerated Death Benefit (terminal; often included)
- Chronic illness/long-term care rider (select UL/IUL; state approval varies)
- Children’s Term rider
- Waiver of Premium/Monthly Deductions
- Overloan Protection; No‑Lapse Guarantee (product specific)
See details at Nationwide’s rider page.
More Nationwide Insurance Reviews
What Affects the Cost of Life Insurance?
Life insurance pricing reflects two layers: your individual mortality risk and market economics. At the personal level, age, health, sex, and nicotine status determine your underwriting class. At the market level, insurers price using the present value of expected claims minus investment income, plus expenses and a profit/reinsurance margin—so interest rates, expense loads, and reinsurance also influence premiums. See context from AM Best’s 2025 Life/Annuity outlook and Swiss Re sigma 2024/25.
What carriers usually consider: age, build (BMI), blood pressure and lipids, A1C/glucose, medical history and prescriptions, family history, nicotine use (including vaping in many guidelines), driving record, and hazardous avocations/occupations. Product design also matters: term length, face amount, and riders. Current market benchmarks show meaningful deltas by age and smoking status—for example, typical 20‑year, $250,000 term quotes for healthy non‑smokers average about $17/month (male 35) vs. about $42/month (male 45), while mid‑age smoker rates commonly run 2.5–3.0× non‑smoker prices. See current averages in the Policygenius Life Insurance Price Index. U.S. adult cigarette smoking has continued to decline, which is a favorable long‑run mortality trend (CDC/NCHS).
How to Get the Best Cheap Life Insurance
Timing, risk class, and product fit drive affordability. Apply while you’re younger and healthy, avoid nicotine (many carriers require at least 12 months nicotine‑free for non‑smoker rates), and keep blood pressure/lipids/A1C within guideline targets. Choose the shortest term that still covers your obligations, and right‑size the face amount—larger bands (e.g., $500k+) can reduce per‑$1,000 costs. Compare multiple carriers since underwriting appetites differ and can change quotes materially for the same coverage.
Consider riders only if they address a specific need: Waiver of Premium to protect premiums during disability; Children’s Term for modest child coverage; chronic illness/LTC riders on permanent life if living‑benefit access is important. For term buyers who may want permanent coverage later, prioritize strong conversion provisions. Many insurers now use accelerated underwriting to waive exams for qualified applicants, shortening cycle times while targeting fully underwritten pricing—see industry adoption in RGA’s Global Underwriting Survey.
Affordable Life Insurance Frequently Asked Questions
Methodology
Reviews’ study of the best cheap life insurance company highlights insurers that balance strong customer experience, robust financial strength, and accessible coverage options. Financial strength ratings from A.M. Best, S&P, and Moody’s indicate an insurer’s ongoing ability to meet obligations. We referenced agency definitions and verified ratings via each agency’s search portals: AM Best Credit Rating Center, S&P Global Ratings public Ratings List, and Moody’s Ratings search (last checked 2025; confirm the legal underwriting entity and latest action date before purchase).
Customer experience and satisfaction were evaluated using the 2021 J.D. Power Individual Life Insurance Study; our analysis is aligned to the most recent edition available at the time of writing, the J.D. Power U.S. Individual Life Insurance Study, 2025 (scores on a 1,000‑point scale). We also considered sector context from the American Customer Satisfaction Index (ACSI) and optional complaint indices from the NAIC Consumer Information Source. While these insurers stand out on the basis of these metrics, pricing is highly individualized. Compare multiple quotes to find the best value for your profile.
