Life insurance is intended to provide financial security for your loved ones following your passing. However, it can be difficult to locate insurance that would fit into your budget over the long term, particularly when looking for permanent coverage. The good news is that term life insurance may provide for the needs of many families while being significantly more economical.
So how can you locate low cost life insurance? Since prices might differ significantly amongst service providers, our staff completed the research for you. We investigated dozens of insurance providers, looking at things like the price of term insurance, their financial standing, their level of customer service, and much more. The outcome? Here is the list of low-cost life insurance companies for 2022.
Is Life Insurance Worth It?
A valuable instrument to shield those you leave behind from the financial effects of your passing is life insurance. But whether it’s worthwhile for you or not will depend on things like who you support, how much debt you have, and how much money you have saved. According to your condition and demands, either term or permanent insurance may make sense for you. Let’s examine each in more detail.
However, it often makes sense to have at least a term life insurance policy in place if you have family members who depend on you for care or financial support.
Additionally, it’s typically preferable to buy life insurance sooner rather than later if you require permanent coverage (such as if you have a child with special needs), in case your health deteriorates and makes a policy expensive or impossible to obtain.
List of low cost life insurance companies
1. Protective
Of all the low cost life insurance companies we looked at, Protective Life Insurance and Banner are tied for providing the most low-cost life insurance package. Our analyses of the top life insurance providers for persons over 50 and for the year 2022, come in first for best-term coverage. Additionally, it is our top choice among term life insurance providers.
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In addition to being reasonably priced, Protective stands out by providing term plans with periods up to 40 years, whereas the majority of other insurers only do so. Additionally, Protective makes it simple to apply online without contacting an agent, in contrast to many other businesses that offer term life insurance.
Regarding dependability, AM Best gave Protective an A+ (Superior) grade, indicating that it has proven to have a superior capacity to fulfil its financial commitments, like paying claims.
In order to determine how many consumer complaints the National Association of Insurance Commissioners (NAIC) received, we also examined the complaint data it provided. With a three-year average complaint index of 0.730, Protective receives fewer complaints than could be anticipated given its size. 2 A full selection of whole life insurance, universal life, indexed universal life, and variable universal life policies are available if you want permanent coverage.
Although the company placed 16th out of the 21 life insurers analyzed in J.D. Power’s 2021 U.S. Individual Life Insurance Study, it did not perform well.
Pros
- Tied for the least expensive term insurance.
- Various insurance options are available.
- Same-day decisions and online applications.
- Policies for a maximum of 40 years.
- Superior ranking for financial strength.
Cons
- Low rating for customer satisfaction.
2. AIG
AIG ranks No. 2 on our ranking of the most affordable low cost life insurance providers in 2022 because its sample rates are comparable to those of Banner Life. The coverage amounts might range from $5,000 to $10 million, depending on the insurance you choose.
With 18 options for terms that range from 10 to 35 years, AIG offers term life insurance. You can convert a term life insurance policy to a permanent one without needing to get a medical exam.
Both AIG’s guaranteed issue complete life and universal life policies don’t require a medical exam. While you can request a quote online, speaking with an agent is eventually necessary for the application process. AM Best has given AIG an A rating.
Pros
- Features term, comprehensive, and universal policies.
- Online estimations are offered
Cons
- Not all policies accept riders
When considering the low cost life insurance company, guardian happens to be the third position as they offer term, universal, whole, and variable universal life insurance. Whole life policies start with $25,000 in coverage, whereas term, universal, and variable life insurance plans start at $100,000.
The insurer’s permanent life insurance products offer a range of coverage options to riders along with variable or guaranteed level rates. Riders that cover long-term care, charitable giving, the abolition of monthly deductions, and higher expedited benefits are available with the company’s universal life insurance coverage.
Guardian Life gives dividends on its entire life insurance policy. While the terms of its term insurance policies range from 10 to 30 years. To help you with all policy types, you will need an agent. There is no online information available about the policies offered by Guardian Life or their features. You can use its online instant quotation tool to get a term life policy estimate, but you’ll still need to speak with an agent after that.
Pros
- Provides term, whole, and universal life insurance.
- On whole life plans, offers yearly dividends.
Cons
- Only term life policies have access to online estimates.
- Policies must be bought via an agent.
4. Banner
In terms of low-cost life insurance, Banner Life Insurance is at the top of the list and is tied with Protective for the cheapest of the policies we looked at. Similar to Protective, it provides an easy online application process and the uncommon 40-year term choice. A medical exam is not necessary to obtain up to $2 million in life insurance coverage for eligible applicants between the ages of 20 and 60.
Banner performs well in terms of financial stability and client happiness. It has much fewer complaints than one might anticipate for an insurer of its size, earning an A+ (Strong) rating from AM Best for exhibiting a superior ability to meet its payment responsibilities.
The company’s shortcomings include the fact that it provides fewer types of policies and riders than its rivals.
Pros
- Tied for the cheapest term insurance.
- Coverage for no medical exams up to $2 million
- Same-day choices, quotes, and online applications.
- A rating for financial strength.
- Fewer complaints than anticipated.
Cons
- Fewer sorts of policies.
- Fewer riders.
5. Penn Mutual
Due to the low cost of its term insurance and the substantial quantity of coverage it offers without a medical exam, Penn Mutual Life Insurance made the list of our low-cost life insurance companies.
Qualifying candidates 65 and younger can obtain up to $7.5 million in life insurance without having to undergo an examination thanks to the insurer’s fast underwriting program. The company is one of the finest no-medical-exam life insurance companies because this is the largest amount we’ve seen without an exam. Additionally, Penn Mutual is on our list of the best whole life insurance providers since it has continuously paid dividends to qualified policyholders for more than 175 years.
Additionally, the insurance was given an A+ (High) rating by AM Best, indicating a superior capacity to fulfil its financial commitments. Additionally, the NAIC three-year complaint index average for this company is just 0.135, which indicates that compared to its size, it receives much fewer complaints.
Penn Mutual offers a wide range of life insurance products, in addition to term insurance, such as whole life, universal life, indexed universal life, and variable universal life. The company has continuously paid dividends to qualified policyholders for more than 175 years, albeit this is not a guarantee.
Pros
- Up to $7.5 million is available for no-medical-exam coverage.
- Inexpensive term insurance
- Various sorts of coverage
- A rating for financial strength
- Several insurances are dividend-eligible
Cons
- There are no online quotes on the page.
- Not using online applications (without an agent)
- Information about the webpage is scant.
6. Pacific Life Insurance
Pacific Life Insurance distinguishes itself for its excellent customer service and highly competitive low cost life insurance.
In terms of overall customer satisfaction, the company came in fourth place in J.D. Power and Associates 2021 Individual Life Insurance Study. 3 Each insurer’s performance was evaluated according to how well it performed in five different categories: communication, interaction, price, offerings, and statements. The company receives good honours for customer service, so it should come as no surprise that, according to the NAIC, it receives significantly fewer complaints than one would anticipate from an insurer of its size.
When three years’ worth of complaint index data were examined, Pacific Life’s average complaint index came in at a very low 0.056—among the lowest of all the insurers we looked at and a sign of very few complaints. As a result, it earned a spot in our ratings of the top no-medical-exam and senior-friendly life insurance providers. A wide range of insurance policy types and riders are also available from Pacific Life. You can choose from universal life, variable universal life, or indexed universal life, albeit term insurance is the most cost-effective option.
Pros
- 4th in terms of consumer satisfaction.
- Inexpensive term insurance.
- Fewer complaints than anticipated.
- Various riders and policies.
- A rating for financial strength.
Cons
- There are no online quotes on the page.
- Not using online applications (without an agent).
7. Thrivent Life Insurance
Thrivent made our list of low-cost life insurance companies for a variety of reasons, notably, because it provides extremely affordable term life insurance and has AM Best’s top financial strength rating.
AM Best assigns insurers a grade based on their capacity to pay their debts, ranging from a D (Poor) to an A++ (Superior). It is quite likely that claims will be paid as promised because Thrivent has received the highest superior rating of A++ (Superior).
In addition, according to NAIC complaint index data, Thrivent receives significantly fewer complaints than one would anticipate for an insurer of its size. Its three-year average complaint index was 0.127.8. The possibility of receiving dividends on whole life, universal life, and variable universal life plans stand out among its life insurance offers. The business also gives term insurance policyholders flexible conversion choices, permissive assured purchase option riders on fixed policies, and an extremely high issue age of 90 years old.
Pros
- A rating for financial strength.
- Inexpensive term insurance.
- 90-year-old maximum issue age is set.
- Significantly fewer complaints than anticipated.
- Returns dividends.
Cons
- Only a few ADB riders (only terminal illness).
- No online form is accessible without an agent.
- Some applicants may not be accepted due to their religious beliefs.
Conclusion
These seven low-cost life insurance companies not only provide some of the lowest-cost term life insurance coverage available on the market, but they also maintain sound financial standing and have few consumer complaints.
Nevertheless, you’ll discover that each has particular advantages. For instance, Protective, a reliable insurer that ranks first on the list, offers affordable term quotes and a simple online application process (without an agent). The J.D. Power customer satisfaction study, does, however, fall short.
Conversely, Pacific Life Insurance came in sixth in the research, but if you want to apply for coverage, you’ll need to contact an agent. Even if each of these is a low-cost life insurance company, your ideal option will depend on your needs and objectives.
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