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The Best Cheap Life Insurance Companies

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    Life insurance is a good investment, but it might be difficult to fit into your budget. 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 in 2020

     Principal FinancialGuardian LifeMutual of OmahaState FarmNationwide
     Our reviewOur reviewOur reviewOur reviewOur review
    Best forBest Affordable Premiums Best Online ToolsBest for FamiliesBest Customer ServiceBest Range of Insurance Options
    AM Best financial strength ratingAA-A+A++A+
    S&P Global financial strength ratingA-AA+A+AAA+
    Moody’s financial strength rating(P)Ba1Aa2A1Aa1A1
    J.D. Power 2019 U.S. Life Insurance Study score4/54/54/55/54/5

    *Data as of 05/19/2020.

    Principal Financial

    Best Affordable Premiums
    Principal Financial
    Principal Financial

    Principal Financial offers the most affordable life insurance of the companies we looked at. For a 35-year-old female living in New York with average health, $500,000 in coverage for a 20-year term is available for a monthly premium of just $18, according to the company’s quote tool. 

    Learn more about this insurance provider in our full review of Principal Financial.

    ✓ Best For: Low premiums    ✗ Not For: Financial strength ratings

    • AM Best: A
    • J.D. Power:  4/5
    • Standard & Poor’s:  A- 
    • Moody’s: (P)Ba1
    • BBB Rating: A+

    Guardian Life

    Best Online Tools
    Guardian Life Insurance
    Guardian Life Insurance

    Guardian Life offers a great array of online tools including calculators and quote tools. In addition, clients can access forms and applications on the company’s website. Using the same profile of a 35-year-old woman, Guardian Life’s term life premiums are around $32 per month. 

    To learn more about this company, check out our Guardian Life review.

    ✓ Best For: Online tools    Not For: Lacks a wide range of life insurance coverage options

    • AM Best: A-
    • J.D. Power: 4/5
    • Standard & Poor’s: AA+
    • Moody’s: Aa2
    • BBB Rating: A+

    Mutual of Omaha

    Best for Families
    Mutual of Omaha
    Mutual of Omaha

    Mutual of Omaha offers a variety of options for families such as life insurance for children and grandchildren, policies for specific illnesses, accidental death insurance, long-term care, and more. In addition, the company offers competitive rates for the same profile of a 35-year woman (although living in Pennsylvania to access the online quote tool). Premiums for this profile are about $22 per month. 

    For an in-depth look at this insurance provider, take a look at our Mutual of Omaha review.

    ✓ Best For: Family insurance    Not For: Bundling all insurance services in one company

    • AM Best: A+ 
    • J.D. Power: 4/5
    • Standard & Poor’s:  A+
    • Moody’s: A1
    • BBB Rating: A+

    State Farm

    Best Customer Service
    State Farm
    State Farm

    Coming in second place in the J.D. Power life Insurance study for customer satisfaction, State Farm offers great customer service for its clients. In addition, the company has a below-average complaint index. The company’s premium for the profile of the 35-year-old woman is $40 per month, putting it on the higher end of the range of premium costs for the companies reviewed in this article.

    Find out more about State Farm in our full review of this life insurance provider.

    ✓ Best For: Excellence in customer service    ✗ Not For: Those who are looking for the number 1 cheapest insurance company

    • AM Best: A++
    • J.D. Power: 5/5
    • Standard & Poor’s: AA
    • Moody’s: Aa1
    • BBB Rating: A+


    Range of Insurance Options

    Nationwide offers a wide range of life insurance including whole, term, universal, and variable life insurance as well as other insurance options such as auto, homeowners, business insurance, and more. For those who want to get all of their insurance needs met by one provider, this is a good option. Nationwide, while competitive in the greater market, doesn’t offer the most affordable premiums when compared to the other companies reviewed here. According to its quote tool, for the profile of a 35-year-old woman, Nationwide offers rates of $49.84 per month. Premiums may be lower if you bundle services.

    Learn more about this company in our Nationwide review.

    ✓ Best For: Wide range of insurance offerings    ✗ Not For: Lowest premiums among the cheapest competitors

    • AM Best: A+
    • J.D. Power: 4/5
    • Standard & Poor’s:  A+ 
    • Moody’s:  A1 
    • BBB Rating: A+

    Guide to Cheap Life Insurance

    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. 


    About the Authors

    Rachel Peachey is an insurance writer for Reviews.com. Over the last few months, she’s covered topics such as insurance providers, insurance costs, and more.

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