Affordable Life Insurance Companies (2025)
State Farm and Guardian Life offer cheap life insurance and high financial strength ratings.
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Written byAnna Baluch
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4+ years writing insurance and personal finance content
MBA from Roosevelt University
Anna leverages her personal finance and insurance knowledge to create educational content that helps people make smart financial decisions.
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Edited byBecky Helzer
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Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.
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Table of contents
With a life insurance policy, you can ensure your loved ones are protected financially if you pass away unexpectedly. To find the right coverage and the most affordable rates, shop around and compare options from different insurers, as they all treat rating factors differently.
Below, we’ll dive deeper into how life insurance works, which insurance companies offer the best deals, and how you can save money on coverage.
Quick Facts
Term life insurance is usually the cheapest type of life insurance.
Factors like age, gender, and health status all affect your life insurance premiums.
To make a smart financial decision and save money, apply for coverage earlier rather than later, shop around, and maintain a healthy lifestyle.
Best life insurance companies
Life insurance premiums depend on a number of factors, including your age, health, gender, and existing medical conditions. To find out if you qualify for cheap life insurance from a specific company, it’s a good idea to request a quote.
Here’s a look at five of the best life insurance companies to help you start your search.
Insurance Company ▲▼ | Market Share Rank ▲▼ | AM Best Rating ▲▼ | J.D. Power Rating ▲▼ |
|---|---|---|---|
| State Farm | 3.72% | A++ (Superior) | 699/1,000 |
| Guardian Life | 2.65% | A++ (Superior) | 685/1,000 |
| Northwestern Mutual | 8.50% | A++ (Superior) | 670/1,000 |
| Nationwide | 2.27% | A (Excellent) | 666/1,000 |
| Pacific Life | 2.99% | A+ (Superior) | 657/1,000 |
Best life insurance with no medical exam: State Farm
State Farm offers guaranteed-issue final expense insurance to help cover funeral costs and other end-of-life expenses. This type of policy doesn’t require a medical exam or even answering any medical questions.
It takes only moments to apply and lock in instant coverage for amounts between $10,000 and $15,000, and with this policy, you don’t have to worry about premium increases.
Pros
Guaranteed-issue life option without a medical exam or health questions
Access to a local State Farm agent for support
High financial strength ratings
Cons
No-exam coverage and other policies not available in Rhode Island and Massachusetts
Guaranteed issue coverage caps out at $15,000
No-exam coverage comes with limited rider and benefit options
Best life insurance for men: State Farm
State Farm provides whole, term, and universal life insurance to policyholders in every state except for Massachusetts and Rhode Island. If you’re a man concerned about whether you’ll be approved for coverage, State Farm’s Instant Answer Term Insurance may be a good option. You can get a quote online and apply for coverage. Although you’ll need to answer some questions about your health, you won’t be required to take a medical exam.
Also, if you opt for term life insurance, you can convert it to permanent life insurance any time before you reach the age of 75, no matter your health status.
Pros
No medical exam required for Instant Answer Term Insurance, which can be ideal for men without significant health issues
Bundling discount available for car insurance policyholders
Highest score in J.D. Power’s life insurance study
Cons
No coverage in Massachusetts or Rhode Island
Must work with a State Farm insurance professional to purchase a policy
Final expense life insurance caps out at $15,000
Best life insurance for seniors: Guardian Life
Guardian Life’s lineup of life insurance policies includes term, whole, and universal life insurance. Because the company sells whole life products for people up to age 90, it’s an excellent option for seniors. In addition to offering coverage for people who have HIV (up to age 65), Guardian Life has a number of endorsements available, such as a long-term care rider and charitable benefit rider.
Since Guardian Life earned an A++ rating from AM Best and a 685 out of 1,000 customer satisfaction score from J.D. Power, you can invest in its coverage for yourself or your loved one with peace of mind.
Pros
Whole life insurance policies up to age 90
Available in all 50 states
Can get term life insurance quotes online
Cons
Limited info on policies online
Must work with a financial professional to apply
Customer service only available during business hours
Best life insurer for customer service: Northwestern Mutual
When it comes to customer service, Northwestern Mutual excels. The insurer holds an A++ rating from AM Best and scored above average for customer satisfaction in J.D. Power’s 2024 life insurance study. In addition, Northwestern Mutual announced that it plans to pay out a record $8.2 billion in dividends to policyholders in 2025.
If you prefer a more personal experience, you can choose to work with a local financial adviser. An adviser can provide personalized service, make life insurance recommendations, and help set you up for a successful future.
Pros
High financial strength and customer satisfaction ratings
Access to financial advisers
Website and podcast full of useful financial resources
Cons
No online quotes
Life insurance product availability varies by state
Limited information about policies and riders online
Best life insurance for women: Northwestern Mutual
Northwestern Mutual serves customers with four main types of life insurance: term, whole, universal, and variable. If you’re a woman looking to customize your coverage and receive financial guidance to support you through the various stages of your life (such as when you become a mother, an empty nester, or a retiree), you can enjoy access to a financial planner.
Pros
Access to financial planning
Highest financial strength rating from AM Best
Additional purchase benefit rider lets you buy more coverage after certain life events
Cons
Can’t buy a policy online
Limited information about riders and coverage amounts online
No guaranteed-issue life insurance available
Find Affordable Life Insurance
Save more than 50% on a life insurance policy
Best life insurance for applying online: Nationwide
If you’re interested in a term life insurance policy, you can apply online through Nationwide and get an instant decision. The company offers a term life quoting tool so you can figure out your premiums in advance.
While Nationwide includes detailed product information online, you can always consult a representative if you have any questions or need help with the application process. Plus, its mobile app allows you to make payments and manage your coverage.
Pros
Can get coverage without a medical exam
Variety of available riders, including free options
Highly rated mobile app
Cons
Lower financial stability score than competitors such as State Farm and Guardian Life
No live chat support
No-exam term coverage unavailable in New York
Best life insurance for high coverage limits: Pacific Life
Pacific Life’s diverse selection of life insurance products includes term, universal, indexed universal, and variable universal. While other life insurance companies place a maximum on how much coverage you can buy, Pacific Life offers coverage amounts that exceed $10 million.
Pacific Protector VUL is its newer, affordable variable life financial product that provides guaranteed death benefits and cash value growth.
Pros
Coverage for more than $10 million available
Chance to convert term life to universal life insurance
Offers indexed and variable universal life insurance
Cons
No online quotes
Coverage not available in New York
Doesn’t offer whole life insurance
Insurify’s editorial team picked the best affordable life insurance companies by researching companies with the largest market share in North America, according to the National Association of Insurance Commissioners’ 2023 Life Insurance Market Share report.
We considered industry metrics like financial and credit strength ratings, customer satisfaction rankings, and company complaint scores. We also meticulously assessed each company’s availability, life insurance product types, policy features, and quoting and purchase process.
Types of life insurance
If you’re in the market for life insurance, you can choose from several types. Your budget, health status, and goals will help determine the ideal coverage for your needs. Here’s a closer look at the most common types of life insurance policies.
What is term life insurance?
Term life insurance offers coverage for a set period of time, often between five and 30 years.[1] Once the term expires, your beneficiaries will no longer be eligible for a payout if you pass away. While coverage amounts vary by insurer, many term life products go up into the millions of dollars.
Term life insurance might make sense if you’re looking for an affordable way to protect your family financially while you’re in your prime working years.
What is whole life insurance?
Also known as permanent life insurance, whole life insurance provides coverage that lasts a lifetime. With a whole life policy, the premium stays the same, and the policy builds cash value.[2] As long as you continue to pay for it, a whole life insurance policy won’t expire.
If you can afford the higher premiums and want lifelong coverage that allows you to leave your loved ones with an inheritance, this type of policy is worth exploring.
What is final expense insurance?
Final expense insurance covers end-of-life expenses, including funeral and burial costs. This coverage can also help your family pay for other expenses, such as outstanding debts, upon your death. Also known as burial insurance, final expense insurance doesn’t typically include a cash value component, as it’s solely intended to save your beneficiaries from having to shoulder out-of-pocket expenses.
If your goal is to cover the cost of your funeral and other end-of-life expenses, final expense insurance should be on your radar.
The most affordable type of life insurance
Compared to other types of life insurance, term life insurance tends to be the most affordable option. This is because coverage expires after a set term and doesn’t build cash value. Here’s a quick glance at the benefits and drawbacks of term life coverage.
Pros
Affordable premiums
May be able to apply online and get coverage quickly
Cons
Coverage expires after the policy term ends
No cash value component
How much does term life insurance cost?
As you shop around for life insurance, consider how much you’ll pay for coverage. The table below can give you an idea of what life insurance might cost you each month.
Age/Gender ▲▼ | Term ▲▼ | Monthly Premium for $250,000 Policy ▲▼ | Monthly Premium for $1 Million Policy ▲▼ |
|---|---|---|---|
| 25-year-old woman | 30 years | $14 | $35 |
| 25-year-old man | 30 years | $17 | $46 |
| 45-year-old woman | 20 years | $21 | $66 |
| 45-year-old man | 20 years | $26 | $84 |
| 55-year-old woman | 10 years | $28 | $90 |
| 55-year-old man | 10 years | $37 | $121 |
Source: Insurify partner SelectQuote provided these averages based on 10-year, 20-year, and 30-year term policies from one or more of the companies SelectQuote represents. Rates are for men and women in excellent health. Premiums may vary depending on individual health, issuing company, and other factors.
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Factors that affect life insurance
Each life insurance company determines its own premiums. Several important factors may affect what you pay for policy, including:
Age
In general, the younger you are when you apply for coverage, the more affordable your premiums will be.
Gender
Because women tend to have a longer life expectancy, their life insurance rates are usually lower.
Health status
The healthier you are, the less you’ll pay for a life insurance policy.
Lifestyle
If you’re a firefighter or work in the construction industry, or if you engage in risky hobbies like race car driving or skydiving, you’ll pay higher premiums.
Smoking habits
Smoking will increase your overall life insurance costs.
Policy type
Term life insurance that expires after a set period is typically cheaper than whole life insurance.
Coverage amount
You’ll pay more for $1 million worth of coverage than for smaller coverage amounts of $250,000 or $500,000.
How much life insurance you need
If you decide to invest in a life insurance policy, a few methods can help you determine how much coverage you may need.[3]
10x income rule: The simplest way to figure out the ideal amount of life insurance coverage is to multiply your current income by 10. For peace of mind, you can consider adding an additional $100,000 in coverage for every child you have.
DIME: DIME stands for “debt, income, mortgage, and education.” If your goal is to cover your outstanding debts and children’s college education as well as replace your income until your children turn 18, the DIME method can be a good option. To use it, add up your debts, annual income, remaining mortgage balance, and children’s estimated college expenses.
Is life insurance worth it?
Life insurance might be worth the investment if you have dependents who rely on you financially. It may also make sense if you want to cover your funeral and burial costs or pass down an inheritance. But if you’ve built up enough wealth to pay for your end-of-life expenses and don’t have any dependents, you may choose to forgo life insurance.
How to save on life insurance
You can take steps to ensure you get the cheapest life insurance for your particular situation. Here are several strategies to keep in mind:
Shop around. Get life insurance quotes from at least three different life insurance companies. Compare premiums, coverage options, riders, and the reputation of each company to zero in on the best policy.
Stay healthy or improve your health. Don’t smoke, limit alcohol consumption, eat healthy, and exercise. These tips can keep you healthy and, in turn, lower your life insurance costs.
Consider term life insurance. If you’re on a budget and want coverage for only a certain number of years, term life insurance is a worthwhile purchase. Since it doesn’t build cash value, it’s also the most affordable option.
Pay premiums up front. Some life insurance companies may reward you with a discount if you cover your premiums up front. If you can afford to do so, this is an easy way to save some cash.
Apply early. Don’t wait to apply for life insurance. The younger you are, the more likely you are to get a better deal.
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Affordable life insurance FAQs
If you still have questions about life insurance, check out the additional information below as you search for an affordable policy.
How much does $100,000 of life insurance cost?
A 10-year term life policy with $100,000 worth of coverage costs $13 per month for a 24-year-old male in good health, according to Fidelity Life. The same policy would be $22 per month for a 50-year-old male in good health. Factors like your gender, your age, and the type of policy you choose all play a role in the cost of a life insurance policy.
Which type of life insurance is typically cheaper?
Term life insurance tends to be the most affordable option. This is because it expires after a set length of time and doesn’t have a cash value component.
How much is a $1 million life insurance policy?
The cost of a $1 million life insurance policy depends on a number of factors, such as your age, your gender, and the type of coverage you choose. A $1 million 30-year term life policy for a 25-year-old woman, for example, will cost an average of $35 per month, according to SelectQuote data.
Can you get a $1 million life insurance policy without a medical exam?
Yes, you may be able to lock in $1 million worth of life insurance coverage without a medical exam. Some insurance companies offer guaranteed-issue life insurance that may meet this criteria.
Is getting life insurance through work enough?
Whether the life insurance offered through your employer is enough depends on your unique situation. Most employer-based plans offer coverage for one to two times your annual salary, so you may want to invest in additional coverage, especially if you have dependents.
Sources
- NAIC. "What Type of Life Insurance Is Right for You?."
- Insurance Information Institute. "What are the principal types of life insurance?."
- Ntional Association of Insurance Commissioners. "Life Insurance buyer's Guide."
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Anna BaluchInsurance Writer
Anna Baluch is a Cleveland-based personal finance and insurance expert. With an MBA from Roosevelt University, she enjoys writing educational content that helps people make smart financial decisions. Her work can be seen across the internet on many publications, including Freedom Debt Relief, Credit Karma, RateGenius, and the Balance. Connect with Anna on LinkedIn.
Anna has been a contributor at Insurify since December 2022.
Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.
