Life insurance can be an important part of a financial plan but can be expensive.
Term life insurance tends to be much more affordable than permanent life insurance, including whole life and universal life insurance policies. With term life insurance, you're covered for a set number of years. After that period, the policy expires.
To find the best cheap life insurance, CNBC Select looked at term life insurance policies that offer affordable premiums, good customer service, and a strong record of financial strength. Here are the top cheap life insurance companies to consider.
Cheapest life insurancecompanies
- Best for flexibility: Ladder
- Best from a large insurer: Guardian Life
- Best for customer satisfaction: State Farm Life Insurance
Best for flexibility
Ladder Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
No
Policy highlights
Ladder is a digital-first life insurance company offering up to $3 million in coverage without an exam. It only offers a single term life insurance policy without riders, but Ladder's policies offer the option to increase or decrease coverage as your needs change.
Pros
- Simple online application and quotes
- Coverage starts at $5 per month
Cons
- No riders available
Who's this for: Ladder is an excellent option for those wanting to skip the hassle of a medical exam and buy their coverage entirely online. Ladder's premiums are also relatively affordable, with policies starting at just $5 per month.
Standout benefits: Ladder's life insurance policies offer the ability to adjust your coverage amount to account for different life milestones, like paying off a mortgage or having a child finish college. While this feature does lower your death benefit, it could also lower your premium to help you save money as your needs lessen with time.
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Best from a large insurer
Guardian Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Guardian offers a variety of policies, including term, whole and universal. Guardian offers term policies that can be converted into whole or universal life policies.
Pros
- A++ AM Best financial strength rating
Cons
- Ranks slightly below other top picks for customer satisfaction
- Policies must be purchased through a financial professional
Who's this for? Guardian's life insurance coverage is an excellent choice for those wanting to get strong coverage without spending a lot. For those who feel their needs could change, Guardian's Level Term product offers the option to convert a term policy to a whole life insurance policy in the first five years without any added costs.
Standout benefits: The company is highly rated for financial strength by A.M. Best. Guardian offers policies to those between ages 18 and 75, one of the higher upper age limits of the companies we reviewed for term life insurance.
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Best for customer satisfaction
State Farm Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
State Farm offers a variety of term, whole, and universal life insurance products to choose from, alongside other types of insurance. It's rated highly for both financial stability and customer service.
Pros
- A++ AM Best financial strength rating
- Highest rated for customer satisfaction
- No medical exam option available
Cons
- Low coverage limit for no medical exam option
Who's this for? For anyone wanting a familiar name or simply the option to bundle your insurance coverages and save, State Farm's life insurance is a strong option. While the company also offers whole and universal life insurance coverage, its term policies stand out for affordability.
Standout benefits: State Farm was the highest-rated company for customer satisfaction in J.D. Power's individual life insurance study. Additionally, a bundling discount could be useful for those also searching for auto insurance.
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More on our top cheap life insurance companies
Ladder
Founded in 2015, Ladder offers life insurance policies completely online for term life policies up to $3 million. Ladder works with major insurers to back its policies, including Fidelity Security Life Insurance Company, Allianz Life Insurance Company of New York, and Amica Life Insurance Company.
Life insurance policies offered
Term life insurance
Age limits
Ages 20 to 60
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Guardian
Guardian offers several different types of life insurance in addition to term life insurance. Since policies are available to those up to age 75, Guardian's coverage can be friendlier to older applicants.
Life insurance policies offered
Term life insurance, whole life insurance, universal life insurance
Age limits
Guardian term policies are available to those between the ages 18 and 75.
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State Farm
While State Farm may be known for its other insurance policies, such as State Farm Auto Insurance, the company also offers a variety of life insurance products. The ability to bundle your insurance policies could make it easier to manage your policies and payments, and also help you save on your policies.
Life insurance policies offered
Term life insurance, whole life insurance, universal life insurance
Age limits
Ages 18 to 75 for a 10-year term, ages 18 to 65 for a 20-year term and ages 18 to 45 for a 30-year term.
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FAQs
What is the cheapest life insurance?
Term life insurance is generally the cheapest type of life insurance. With this coverage, your policy is in force for a set number of years and expires if you survive that term.
How much is life insurance per month?
Life insurance costs vary based on your age, gender, health status, and how much coverage you're buying. According to Policygenius data, a healthy 30-year-old male would pay about $30 a month for a $500,000 term life insurance policy, while a 30-year-old female would pay about $23 for the same coverage.
How much life insurance should I have?
When deciding how much life insurance to get, a general rule of thumb is to choose a death benefit that's at least 10 times your annual income. However, there are other methods of calculating how much life insurance you need to help you find a more personalized number.
Bottom line
Getting life insurance doesn't have to break the bank. Though it doesn't build cash value, term life insurance can be an inexpensive way to make sure your family would be covered if you weren't there to support them, and many companies make it both simple and affordable to get coverage.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every life insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of life insurance products.To research the best life insurance companies, we compiled dozens of data points on more than a dozen life insurance companies. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. Seeour methodologyfor more information on how we choose the best life insurance companies.
Our methodology
To determine the best life insurance companies,CNBC Selectanalyzed dozens of life insurance companies and compared them based on various factors.
While narrowing down the best life insurance companies, we focused on a sample premium for 12 total people across the age spectrum. We gathered sample premium quotes for men and women living in New York (10012) aged 25, 35, 45 in good health without a history of tobacco use for a policy with the following characteristics:
- 30-year term
- $300,000 death benefit
We also gathered sample premium quotes for men and women aged 55, 65 and 75 with the following characteristics:
- 10-year term
- $300,000 death benefit
We also gathered data on financial strength ratings from A.M. Best and customer satisfaction data from J.D. Power's U.S. individual life insurance study.
From there, we sorted our recommendations by the best overall and runner-up, and the best for customer satisfaction.
Note that the premiums and policy structures advertised for life insurance companies are subject to fluctuate in accordance with the company's policies.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
