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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 out of 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 find the cheapest life insurance policies with the best coverage. That’s why we’ve reviewed affordable life insurance companies so people can find cheap life insurance 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

    Compare The Best Cheap Life Insurance Companies of 2021

    Reviews.com Score Score is based on company’s customer experience, financial stability, and coverage options. 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 Global financial strength rating Standard & Poor’s (S&P) rates creditworthiness for businesses, countries and cities that issue bonds. Moody’s financial strength rating 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 Principal Financial3.8A+A-Baa1772
    Pin Guardian Life3.6A++AA+Aa2743
    Pin Mutual of Omaha4.2A+A+A1789
    Pin State Farm4.6A++AAAa1838
    Pin Nationwide5A+A+A1803

    Information accurate as of July 2021

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

    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

    Available Riders

    • Accelerated benefits rider
    • Children term insurance rider
    • Conversion extension rider
    • Waiver of premium rider

    More Principal Financial Insurance Reviews

    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
    • Strong financial stability ratings

    Cons

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

    Products Offered

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

    Available Riders

    • Term conversion rider
    • Waiver of premium rider
    • Waiver Plus rider
    • Guaranteed Renewability rider or clause
    • Accelerated terminal illness rider
    • Accidental death rider
    • Charitable benefit rider

    More Guardian Life Insurance Reviews

    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

    Available Riders

    • Accelerated death benefit rider
    • Child life insurance rider

    More Mutual of Omaha Insurance Reviews

    Best for Customer Satisfaction

    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
    • Plenty of riders available

    Cons

    • No online quote tools
    Read More

    Products Offered

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

    Available Riders

    • Waiver of Premium Benefit Rider
    • Level Term Life Insurance Benefit Rider 
    • Last to Die Survivorship Life Insurance Benefit Rider
    • Waiver of Monthly Deduction Benefit Rider
    • Guaranteed Insurability Option Benefit Rider
    • Preliminary Term Life Insurance Benefit Rider
    • Level Term to Age 95 Life Insurance Benefit Rider
    • Payor Insurance Benefit Rider

    More State Farm Insurance Reviews

    Best for Life Insurance Policy Variety

    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

    Available Riders

    • Long-term Care Rider II
    • Children’s Term Life Insurance Rider
    • Premium Waiver Rider
    • Waiver of Monthly Deductions Rider
    • Accidental Death Benefit Rider
    • Extended No-Lapse Guarantee Rider

    More State Farm Insurance Reviews

    *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.

    Common Cheap Life Insurance Riders

    Life insurance riders are add-on protections that allow people to better customize cheap life insurance plans to their needs. Riders can come at an additional cost but are generally pretty easy to add to a policy. 

    1. Accidental death rider: This rider will pay out an additional death benefit if you die from an accident while the rider is active.  
    2. Child term rider: With the child term rider, clients can provide life insurance coverage for a dependent child. If the child dies before the policy is up, a death benefit is paid to the policyholder or beneficiary.  
    3. Chronic illness insurance rider: The chronic illness insurance rider provides an accelerated benefit when someone is no longer able to complete two of the six Activities for Daily Living (ADL).
    4. Family income benefit rider: If the policyholder dies, this rider can provide added support to your family that is left behind through steady monthly income for however long the rider allows.
    5. Guaranteed insurability rider: Some life insurance policies may require a medical exam before you purchase coverage, but a guaranteed insurability rider means that someone will be able to purchase cheap life insurance without a medical exam.
    6. Long-term care rider: Should you require nursing care, a long-term care rider can provide monthly payments to help with your care or stay in a nursing home. 
    7. Waiver of premium rider: If you experience a permanent disability, this rider waives future premiums until the policyholder is able to return to work. 

    Affordable Life Insurance FAQ

    Methodology

    We evaluated the cheapest 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.

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