Top 5 Cheap Life Insurance Companies
Term life insurance policies offer the cheapest policies for life insurance types. MarketWatch Guide’s team made sure to include only life insurance providers that offer term life options.
Here are our top choices for affordable life insurance coverage:
- Transamerica: Our top pick
- Bestow: Our top pick for online term policies
- Nationwide: Our pick for bundling insurance
- Ethos: Our pick for no-exam policies
- Fidelity: Our pick for accidental death coverage
How We Ranked Providers
For this list of top life insurance providers, we ranked companies based solely on having the lowest average rates, according to our research
Why Trust MarketWatch Guides
Our editorial team follows a comprehensive methodology for rating and reviewing life insurance companies. Advertisers have no effect on our rankings.
34
Companies Reviewed
100
Hours Reached
19
Rating Factors
2
Expert Approved
Transamerica
Our pick for fast claims
4.4
Pros and Cons
Pros Several options to meet diverse insurance needs High coverage amounts offered Offers coverage for foreign nationals Cons Support only available during business hours Local agents not available in every area
Why We Picked Transamerica
- Policies offered:Term life, index universal life, whole life, final expense, compliant coverage options for foreign nationals
- AM Best rating:A
With diverse types of life insurance offered and high coverage limits, Transamerica can be a good choice for people who might have financial goals tied to their life insurance policies or a complex insurance need. Transamerica is one of the only companies to offer insurance to foreign nationals.
Transamerica gives online quotes and provides easy access to live customer service during business hours. This can be beneficial if your policy becomes complex. Transamerica makes our list because of its range of policy options and its speed in processing claims. Because policyholders have a dedicated account representative, beneficiaries will enjoy faster payouts.
Coverage and Cost
Coverage
Transamerica offers the following types of life insurance coverage:
- Term life insurance
- Whole life insurance
- No-exam life insurance
- Universal life insurance
Cost
We based the rates below on a $500,000 policy with Transamerica for preferred, tobacco-free applicants.
| Age | Term Length in Years | Monthly Rate for Women | Monthly Rate for Men |
| 25 | 20 | $18 | $23 |
| 35 | 20 | $22 | $26 |
| 45 | 20 | $43 | $55 |
| 55 | 20 | $97 | $134 |
| 65 | 10 | $218 | $232 |
Bestow Life Insurance
Our pick for online term policies
3.5
Our Rating
Coverage: 3/5
Riders: 3.1/5
Availability and Ease of Use: 4.7/5
Brand Trust: Not available (AM Best doesn’t rate Bestow for financial strength, nor does J.D. Power and Associates rate the company for customer satisfaction)
Our Review
Pros and Cons
Pros Offers a fast and easy online application process Most applicants get an instant decision Highly rated on Trustpilot and the Better Business Bureau (BBB) Cons Doesn’t offer permanent life insurance options Not rated by AM Best
Why We Picked Bestow
Bestow is a modern insurtech provider that offers no-exam term life insurance through a completely digital application that takes only minutes and often provides instant decisions. The company scored highly in our review for offering five different term period options: 10-, 15-, 20-, 25- and 30 years. Bestow offers no-exam plans to those between 18 and 60 years old with coverage amounts between $100,000 and $1.5 million.
The provider’s online application process is informative and intuitive, based on our experience, allowing you to easily see how factors such as term length and coverage amount impact premiums. If you get stuck, customer care agents are available via phone and live chat and were very responsive and helpful in our experience.
However, if you’re looking for a convertible policy or permanent coverage, Bestow is not the best-suited provider for you. Bestow does not offer whole life insurance or term policies that you can convert into permanent coverage.
Coverage and Cost
Cost
We estimated Bestow life insurance pricing by basing the below rates on a 20-year, $250,000 term policy for a tobacco-free applicant who qualifies for the preferred health rate class. We averaged the rates of female and male applicants.
- 35-year-old: $17
- 45-year-old: $31
- 55-year-old: $68
Available Coverage Options
Bestow offers the following no-exam coverage options:
| Type of Policy | Bestow Insurance Coverage |
| Term life insurance | $100,000–$1.5 million |
Nationwide
Our pick for bundling insurance
4.8
Our Review
BBB RatingA+
Pros and Cons
Pros Easy-to-use online and mobile platforms to monitor your policy Bundling options for home and auto coverage with term life policies Advanced long-term care options Cons Unbundled policies are still affordable but are not the cheapest Online application process can be slow
Why We Picked Nationwide
- Policies offered:Term life, whole life, universal life, variable life
- AM Best rating:A+*
Nationwide is one of the most recognizable and reputable insurance providers in the country, and it offers all of the most popular life insurance policies at reasonable prices. One of the reasons it made our list is because of the ability it gives customers to combine their auto, home, powersports and term life insurance policies to save up to 20% on overall premiums.
With a team of insurance professionals and an app that allows users to monitor their policies, pay premiums and update beneficiaries, Nationwide is a good choice for an affordable yet user-friendly policy. If you already have coverage through Nationwide, exploring low-cost life insurance options may help you save more.
Coverage and Cost
Coverage
Nationwide offers the following types of life insurance coverage:
- Term life insurance
- Whole life insurance
- No-exam life insurance
- Universal life insurance
Cost
We based the rates below on a $500,000 policy with Nationwide for preferred, tobacco-free applicants.
| Age | Term Length in Years | Monthly Rate for Women | Monthly Rate for Men |
| 25 | 20 | $18 | $23 |
| 35 | 20 | $22 | $26 |
| 45 | 20 | $43 | $55 |
| 55 | 20 | $97 | $134 |
| 65 | 10 | $218 | $232 |
Ethos
Our pick for no-exam coverage
4
Our Rating
Coverage: 3.9/5
Riders: 3.1/5
Availability and Ease of Use: 4.5/5
Brand Trust: Not available (AM Best doesn’t rate Ethos for financial strength, nor does J.D. Power and Associates rate the company for customer satisfaction)
Our Review
BBB RatingA+
Pros and Cons
Pros Offers term and whole life insurance products with no medical exam requirements Provides an online application that quickly matches you with coverage Includes free will and estate planning with eligible policy purchases Cons Whole life policies are only available to people ages 65 and older Coverage not currently available in New York
Why We Picked Ethos
Ethos is our pick for the best no-exam life insurance because it provides a streamlined, all-online application you can complete from the convenience of your home. The company is an independent broker that partners with life insurance carriers such as TruStage, Mutual of Omaha and Ameritas to offer term and whole life policies.
When you apply for a term policy through Ethos, the company begins the underwriting process by requesting a report from MIB, formerly known as the Medical Information Bureau, instead of requiring a medical exam. You can choose between, 10-, 15-, 20- and 30-year terms and get anywhere from $20,000 to $2 million in coverage.
Ethos also offers guaranteed-issue whole life insurance without a medical exam to applicants between 66 and 88 years old. The company’s maximum whole life death benefit of $30,000 is lower than some competitors, but its application process is quick and offers coverage in minutes.
Coverage and Cost
Cost
To estimate Ethos’s life insurance pricing, we based the below rates on a 20-year, $250,000 term policy for a tobacco-free applicant who qualifies for the preferred health rate class. We averaged the rates of female and male applicants to arrive at the following:
- 35-year-old: $17
- 45-year-old: $32
- 55-year-old: $75
Available Coverage Options
Ethos offers the following no-exam coverage options:
| Type of Policy | Ethos Life Insurance Coverage |
| Term life insurance | $100,000–$2 million |
| Guaranteed issue whole life insurance | $1,000–$30,000 |
Fidelity Life
Our pick for accidental death coverage
4.2
Our Review
BBB RatingA+
Pros and Cons
Pros Offers no-exam coverage Customers can easily get quotes and apply online Provides an accidental death benefit policy Cons Standard term life policy is only issuable up to age 65 Offers fewer riders than some competitors
Why We Picked Fidelity Life
- Policies offered:Term, whole andguaranteed issue
- AM Best rating*:A-
Fidelity Life could be a good fit if you are older, have serioushealth issuesor have been denied coverage in the past. The company offers several options for permanent no-exam coverage, including whole life,final expenseandaccidental death benefitpolicies.
It holds an A- rating withAM Best, indicating excellentfinancial strength. But if you’re more concerned about customer service, Fidelity Life isn’t the strongestprovideron this list. It receives a higher concentration of complaints from state insurance departments than otherprovidersof its size.
*A.M. Best ratings accurate as of July 2023
Coverage and Cost
Coverage
Fidelity Life offers its customers the following types of life insurance plans:
- Term life insurance
- Whole life insurance
- Guaranteed issue life insurance
Cost
We based the rates below on a $500,000 Fidelity Life policy for preferred, tobacco-free applicants.
| Age | Term Length in Years | Monthly Rate for Women | Monthly Rate for Men |
| 25 | 20 | $26 | $33 |
| 35 | 20 | $32 | $37 |
| 45 | 20 | $58 | $71 |
| 55 | 20 | $122 | $164 |
| 65 | 10 | $176 | $273 |
Life Insurance Cost Calculator
How Much Does Life Insurance Cost?
The biggest factors that influence the price you’ll pay for life insurance are your age, your health and the policy you want. Specifically:
- Age: The younger you are when you purchase life insurance, the lower your premiums will be. Premiums will rise as you age.
- Health: Your health plays a significant role in your life insurance rates. Insurers look at your weight, blood pressure, cholesterol levels and medical history to assess your overall health and judge your life expectancy. Any medical conditions that you have will likely lead to higher premiums.
- Type of life insurance policy: Permanent coverage guarantees a death benefit, which raises the financial risk for insurance providers (and raises your premiums). You can save money by choosing term coverage, which gives financial protection only over a limited period of time.
Each insurer has specific underwriting guidelines and factors that affect premiums. Rates vary widely by company.
How To Make Life Insurance Affordable
Major factors that contribute to the cost of life insurance premiums include your age, health status, lifestyle, and the type and amount of coverage you select. Here are some ways to possibly lower your rates:
- Consider term coverage: Term life insurance is considerably more affordable than whole life insurance. Studies conducted by Policygenius in 2023 showed a healthy 35-year-old policyholder paying approximately $30 per month for a 20-year term plan with $500,000 in coverage. That rate increased to $571 for a whole life policy with the same amount of coverage.
- Apply when you’re younger: If you think you might need life insurance, it is better to buy coverage early rather than wait. Based on our market research, term rates more than double between the ages of 25 and 45 for the same coverage amount.
- Tobacco use: Staying tobacco-free can keep your life insurance rates lower. Of the companies we reviewed, a healthy 35-year-old who does not use tobacco can expect to pay an average rate of $30 per month for $500,000 in coverage and a 20-year term. If that 35-year-old were in the same health class but also used tobacco, he would pay an average rate of more than $100 a month for the same coverage amount.
- Maintaining your health: Applicants with pre-existing conditions like high blood pressure and high cholesterol or being overweight typically face higher life insurance rates. Lowering your blood pressure for a sustained period or losing weight — and keeping it off — could help you become eligible for a lower rate class.
Why Life Insurance Premiums Matter
Your insurance premiums fulfill your responsibility to the insurance company, which in turn will maintain your coverage. Failing to pay your premium can result in your provider canceling your coverage, leaving your beneficiaries without a death benefit if you pass away.
One of the most important factors to consider is that rates can continue to increase as you get older or develop medical conditions. The premium you pay for equivalent coverage as a relatively healthy 25-year-old will go up significantly when you’re 55, especially if you develop one or more health conditions.
The Final Verdict on Cheap Life Insurance Providers
Nationwide, Lemonade and State Farm are our top recommended life insurance providers for affordable coverage. All are tech-forward companies with significant financial underwriting, availability across the U.S. and low-priced policies.
Every insurance provider has a proprietary underwriting process to determine coverages and premium costs. It’s possible to find the same coverage and term from 10 different insurers at 10 price points. To ensure that you get the most affordable coverage possible, we recommend requesting a quote from all our top providers.
Frequently Asked Questions About Life Insurance
Term life insurance is much more affordable than permanent life insurance. Whole life insurance policies guarantee a payout for the policyholders’ beneficiaries, which increases the financial risk the insurance company takes on. This can make whole life coverage prohibitively expensive.
There are a few ways to get cheap life insurance, because premiums are related to your life expectancy. Maintaining good health, being a non-smoker, opting for a term policy and comparing your coverage options before buying can help you find affordable coverage.
According to Progressive, life insurance costs between $13 and $75 per month for most policyholders. Your price will depend on your health stats and specific aspects of your policy.
Our recommended provider for affordable life insurance coverage is Bestow Life. Depending on your age and selected death benefit, Bestow customers can find coverage from $11 per month in most areas.
Methodology: Our System for Ranking the Cheapest Life Insurance Companies
Our goal at the MarketWatch Guides team is to provide you with comprehensive, unbiased recommendations you can trust. To rank the cheapest life insurance companies, we requested quotes directly from each provider and determined reviews based on that factor alone. To learn more, read our full life insurance methodology for reviewing and scoring providers.
AM Best Disclaimer
Sarah HorvathAuthor
Sarah Horvath is one of the home service industry’s most accomplished writers. Her specialties include writing about home warranties, insurance, home improvement and household finances. You can find her writing published through distributors like HouseMethod, Architectural Digest, Good Housekeeping and more. When not writing, she enjoys spending time in her home in Orlando with her fiance and parrot.
Sabrina LopezSenior Editor
Sabrina Lopez is an editor with over six years of experience writing and editing digital content with a particular focus on home services, home products and personal finance. When she is not working on articles to help consumers make informed decisions, Sabrina enjoys creative writing and spending time with her family and their two parrots.
