Best Cheap Life Insurance Companies 2025
Summary: Compare the Best Cheap Life Insurance Companies
What Is the Cheapest Type of Life Insurance?
Term life insurance is typically the cheapest type of life insurance, which is why we focused on term life in our analysis. It gives you fixed premiums for a specific period of time, such as 20 years.
At the end of this level term period, you will usually have the option to renew the policy at a higher premium each year after. However, these renewal rates can quickly become very expensive. It’s best to buy the right policy length to start with so you won’t end up with high renewal rates or shopping for another policy.
You may also have the option to convert your term policy into a permanent life policy if your policy has a conversion feature.
How Much Is Life Insurance?
Life insurance costs an average of $12 a month ($145 a year) for a 20-year, $250,000 term life insurance policy for a female age 30, according to Forbes Advisor’s analysis. The same policy for a male age 30 costs $14 a month ($166 a year).
Cheapest Life Insurance by Demographic
The cheapest company for your demographic may not be one of the cheapest overall because we determined our list by comparing rates across various ages, genders, coverage amounts and terms. Below we’ve identified the companies and policies with the lowest rates for each demographic to show estimates.
Cheapest Life Insurance for 30-Year-Old Female Buyers
Cheapest Life Insurance for 30-Year-Old Male Buyers
Cheapest Life Insurance for 40-Year-Old Female Buyers
Cheapest Life Insurance for 40-Year-Old Male Buyers
Cheapest Life Insurance for 50-Year-Old Female Buyers
Cheapest Life Insurance for 50-Year-Old Male Buyers
Cheapest Life Insurance for 60-Year-Old Female Buyers
Cheapest Life Insurance for 60-Year-Old Male Buyers
Cheapest Life Insurance for Seniors: 70-Year-Old Female Buyers
Cheapest Life Insurance for Seniors: 70-Year-Old Male Buyers
Cheapest Life Insurance for Smokers: 30-Year-Old Female Buyers
Cheapest Life Insurance for Smokers: 30-Year-Old Male Buyers
Cheapest Life Insurance for Smokers: 40-Year-Old Female Buyers
Cheapest Life Insurance for Smokers: 40-Year-Old Male Buyers
Cheapest Life Insurance for Smokers: 50-Year-Old Female Buyers
Cheapest Life Insurance for Smokers: 50-Year-Old Male Buyers
Cheap Life Insurance for Children
Life insurance for children is typically a whole life insurance policy that lasts for the lifetime of the child, as long as the premiums are paid. Premiums for these policies tend to be fixed, which means they won’t increase, and a portion of premiums goes toward building cash value. You can access the cash value while the child is alive and use it for any purpose.
Cost of Life Insurance for Children
| Coverage amount | Average monthly cost for a baby |
|---|---|
| $5,000 | $3 |
| $10,000 | $6 |
| $15,000 | $9 |
Child Rider for Term Life Insurance
One way to insure your child is by purchasing a child life insurance rider on your life insurance policy. The rider will be for a certain coverage amount, such as $10,000, and will remain in place until the child reaches a certain age. At that point, you can usually convert the policy to a permanent life insurance policy for an additional cost.
A child rider for a term life insurance policy generally adds $5 to $7 per $1,000 of coverage to your annual policy premium.
Compare Life Insurance Companies
Compare Policies With Leading Insurers
What Factors Determine How Much Life Insurance Costs?
Your life insurance cost is determined by a number of factors, including the type of life insurance and your age, gender and health, among many other factors.
Here are the main factors that affect life insurance rates:
How Much Life Insurance Do You Need?
When calculating how much life insurance you need, add up the financial obligations you want covered after your death and subtract existing assets that can be used by your family. Examples of financial obligations you want to cover with life insurance may include income replacement, a mortgage, future college tuition bills and credit card debt. Assets that can offset the amount of coverage you need may include savings and existing life insurance you have.
Our life insurance calculator can help you figure out how much coverage you need.
How Can I Get Cheaper Life Insurance?
Tony Steuer
Advisory Board Member
Ashlee Valentine
Insurance Editor
Les Masterson
Insurance Editor
Michelle Megna
Insurance Lead Editor
Penny Gusner
Insurance Senior Writer
Amy Danise
Insurance Managing Editor
Research and Quote Different Companies
Check out all of your options. Each life insurance company has its own specific areas where it is most competitive. For example, some companies may have lower premiums for women or for other niches.
Advisory Board Member
Buy a Term Life Policy Now vs. Later
If price is the factor that matters most to you, I recommend buying a term life insurance policy. I also suggest buying it sooner rather than later. You will lock in the rate for the term length of your policy. Once you have life insurance, your rates can’t go up based on changes to your health or other factors.
Insurance Editor
Ladder Your Life Insurance Policies
I suggest building a life insurance ladder where you buy a few small term life policies that expire at different times to meet different needs, rather than one large policy to cover you for a few decades.
Insurance Editor
Avoid Unnecessary Life Insurance Riders
Although the extra coverage of life insurance riders might be appealing, you can get cheaper life insurance by avoiding riders you don’t necessarily need. I would carefully review each rider option to determine if it is worth the cost.
Insurance Lead Editor
Lower Your Risk by Improving Your Health
By improving your health before you buy a policy—for example, by quitting smoking, losing weight or maintaining healthy blood pressure—you have a much better chance of getting good life insurance quotes. You may need to show that you’ve been maintaining good health for at least a year in order to get the best rates.
Insurance Senior Writer
Take Advantage of Group Life Insurance
If your employer offers group life insurance coverage, you can usually get free life insurance without a medical exam. And if you have the opportunity to buy additional coverage at your own expense, get some quotes to see if it’s a better deal than what you can get in an individual policy. You may need to fill out an “evidence of insurability” form though and you could be rejected for extra coverage.
Insurance Managing Editor
Methodology
To identify the cheapest life insurance companies, we evaluated term life insurance from 18 companies based on:
- Price (100% of score): Because price is the primary concern for those shopping for cheap life insurance, we gave full weight to this category. Our ratings are based on the term life insurance costs from each company for life insurance buyers ages 30 and 40. We analyzed rates for coverage amounts of $250,000, $500,000, $1 million and $2 million and term lengths of 10, 20 and 30 years. Your own rates will be different depending on your age, health and other factors.
Looking For Life Insurance?
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Cheap Life Insurance Frequently Asked Questions (FAQs)
How can I lower the cost of life insurance?
Here are some ways to lower the cost of life insurance:
• Shop around and compare life insurance quotes to make sure you’re getting the best deal, especially if you’re buying term life insurance.
• Determine your coverage needs to ensure you’re not paying for more life insurance than you need.
• Lower your risk level by improving your health, quitting smoking and avoiding driving convictions like speeding tickets and DUIs.
Is term or whole life insurance cheaper?
Term life insurance is cheaper than whole life insurance. But there may be times when a whole life insurance policy is a better choice than term life. For example, whole life insurance may be worth considering if you want the potential for lifelong coverage (usually through age 95 to 120) or you want to fund a trust. Whole life is also a better option than term life if you want life insurance that builds cash value.
Can I switch life insurance companies to save money?
You can switch life insurance companies to save money, but switching will involve buying a new policy from a different company. Your new rates will be based on your current age and health, and you may need to take a new life insurance medical exam as part of the application process. You will also have a new incontestability period and suicide provision.
For example, you might find that life insurance for smokers is much cheaper at another company. But before you cancel your current life insurance, make sure your new policy is in place, so that there are no surprises about the final cost of the new policy.
Can I get discounts on my life insurance?
There are no discounts on life insurance like there are with auto and home insurance. You may get a small price break if you pay your annual life insurance bill in full instead of monthly.
The best way to get a good rate is to compare life insurance quotes and work with an experienced financial advisor or life insurance agent who will know which companies are most likely to give you a low quote based on your age, health and other factors.
