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.
Ask an expert
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.
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.
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.
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.
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.
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.
FAQs
The minimum term life insurance policy you can purchase is typically $100,000, though some companies offer policies of as low as $25,000 to $50,000.
What is the best affordable life insurance? ›
Compare the Cheapest Life Insurance Companies
| Company | Learn More |
|---|
| #1 | Nationwide » 3.6 U.S. News Rating | Compare Quotes » |
| #2 | Pacific Life » 4.9 U.S. News Rating | Compare Quotes » |
| #3 | State Farm » 3.7 U.S. News Rating | Compare Quotes » |
| #4 | Guardian Life » 4.5 U.S. News Rating | Compare Quotes » |
2 more rowsTop life insurance companies
| Company | Best for | AM Best Financial Strength Rating |
|---|
| Nationwide | Customer satisfaction | A (Excellent) |
| Northwestern Mutual | Universal life insurance | A++ (Superior) |
| Prudential | Policy personalization | A+ (Superior) |
| State Farm | Term life insurance | A++ (Superior) |
3 more rowsThe minimum term life insurance policy you can purchase is typically $100,000, though some companies offer policies of as low as $25,000 to $50,000.
What is the cheapest life insurance for 65 and older people? ›
GEICO and Transamerica are the cheapest life insurance companies for older adults, offering an average rate of $175.74 per month for a 10-year term policy. They also provide the most affordable life insurance rates for seniors who smoke and those in poor health.
What's the cheapest life insurance you can buy? ›
Term life insurance is one of the most affordable life insurance policies.
Which insurance company is usually the cheapest? ›
USAA, Nationwide, Travelers, Erie, Geico and Progressive are the cheapest car insurance companies nationwide, according to our analysis. Car insurance costs continue to rise as we approach fall.
Which life insurance is most beneficial? ›
If you have many dependents, whole life insurance may be a better route. However, if financial planning and cash value are most important to you, universal life insurance may be a strong option. Lastly, if you are a business owner, group life insurance might be the best life insurance option.
How much does a $1,000,000 life insurance policy cost per month? ›
How much is a million-dollar life insurance policy? The average monthly premium for a million-dollar life insurance policy is anywhere from about $50 to more than $1,000, depending on the type of policy, age, health, and other factors.
What is the #1 insurance in America? ›
Currently, the largest car insurance company in America is State Farm. Major auto insurance companies offer financial stability and a variety of coverage plans. To find cheap car insurance rates, you'll need to compare quotes from various providers.
However, depending on the insurer, age limits can vary from around 80 to 85. Whole life insurance policies provide lifelong coverage and a savings component, offering financial protection for loved ones in the event of your passing while accumulating cash value that can be accessed during your lifetime.
What is a reasonable amount to pay for life insurance? ›
What percentage of your income should you spend on life insurance? A common rule of thumb is at least 6% of your gross income plus 1% for each dependent.
What is the cheapest age to buy life insurance? ›
You'll typically pay less for life insurance at age 25 than at age 40. Waiting until age 60 may mean an even bigger rate increase and limited policy options.
What does Colonial Penn give you for $9.95 a month? ›
A unit of Colonial Penn coverage is the life insurance benefit amount you receive for $9.95 per month. Your age and gender determine the exact amount of insurance coverage a single unit provides. The older you are, the more units you will need to purchase in order to get an adequate death benefit.
How much does AARP life insurance cost? ›
How much is AARP life insurance per month? AARP life insurance can cost as little as $11 monthly or as high as $900. The final price depends on the type of policy (whole, term, or guaranteed acceptance), product, age, gender, state of residence, and health.
Is AARP life insurance legit? ›
AARP's life insurance policies are underwritten and managed by New York Life, one of the largest and most dependable life insurance companies in the U.S. It has an A++ (Superior) financial strength rating for life insurance companies from AM Best and gets very few complaints according to the National Association of ...
Which type of life insurance is typically cheaper? ›
Term life insurance typically offers the most affordable premiums of any life insurance policy.
What is the average life insurance cost per month? ›
To determine the average prices, we secret-shopped to obtain quotes for various policy types, coverage amounts and policyholder ages. Based on our research, the life insurance cost per month is $22 for a 30-year-old, $32 for a 40-year-old and $80 for a 50-year-old.
How much is $100,000 whole life insurance policy? ›
On average, a $100,000 whole life policy will cost between $100-$1000 monthly, depending on various factors such as your age. Life insurance pricing is based on your actual age, gender, lifestyle, health, tobacco usage, and coverage amount.
