- Whole life insurance
- Term life insurance
- Universal life insurance
- Variable life insurance
- Home, auto, life, and business bundling
- Term-to-permanent conversion
- Children’s term life insurance rider
*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
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.
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
Life insurance might not be as expensive as you think. According to the Insurance Barometer Study by LIMRA, up to 44% of Millennials overestimated the cost of term insurance by five times the actual cost. However, life insurance costs vary greatly depending on the type of policy you need, your age, the state of your health, where you live, and other factors.
Some of the best cheap life insurance providers such as Principal Financial and Mutual of Omaha offer life insurance without a medical exam. However, not all potential clients qualify for this option and there may be limits on coverage as well. If you’re in good health, it’s often in your interest to go ahead and get the medical exam, as your premium might be lower.
The best cheap life insurance companies offer great services for seniors. Of the companies reviewed in this article, Principal Financial offers the lowest premiums. However, it’s worth checking out some of the other best life insurance companies for seniors that cater specifically to their needs.
Known for being cheap, term life insurance only covers the policyholder for a fixed period of time and only includes a death benefit.
Whole life insurance is a type of permanent insurance that guarantees a life benefit payout. However, it’s generally more expensive than term life insurance.
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.