Checkout The 10 Cheapest Life Insurance Companies in the USA

Don’t Let the Ads Decide

As you have decided to buy life insurance, it is time you made a list of the cheapest life insurance companies to choose yours from. You must save, mustn’t you?

We have done the job for you.

In fact, we have done more than that.

Alongside finding the cheapest life insurance companies, we have also made sure that they are the nation’s best ones.

Because, you cannot just insure yourself anywhere.

Be warned not to let the ads decide your beloved ones’ future. Let one of the nation’s best insurers be your insurer. 

To do so, you need to focus on 3 important criteria:

Company Age

Competitive Cost; and,

Commendable Ratings

(While making the list we have strictly followed the criteria for you. So, yes, you have a list of the country’s best as well as cheapest insurers here.)

Let’s know what to see in each of the categories.

The Company Age

You need to focus first on the age of the company. When a life insurance company survives in the market for decades, you can very well rely on it. Survival of a company for decades obviously means it has earned its customers’ trust. Customers, you know, make companies.

While considering buying life insurance, we recommend that you consider companies that have stayed in the market for at least 50 years.

Cost of the Products

Insurance policy rates can be very head-rolling. While one life insurance company may offer you a policy for $20, another may charge $60 for the same. What is more confusing is, while one prestigious insurer may offer the cheapest rate, a company off the limelight may demand the highest price for the same product.

As life insurance is a deal, not a service, choosing the prestigious is not inevitable. The fact is it is the deal that matters, not the company. If the time to conversion arrives, the deal will work the same way for both the companies.

So, the name of an insurer with a competitive rate is one you can circle around.

Independent Ratings

You might have noticed that life insurers and insurance bloggers almost invariably refer to ratings from A.M. Best, Fitch, BBB, Moody’s and S&P. These are independent, most trusted and highly professional rating agencies. Ratings from any of these can be a benchmark for you to trust or not trust a life insurance company.

The ratings invariably (among others things) indicate whether a life insurance company is financially strong enough or not. Unless an insurer has positive ratings, be sure to avoid it. The reason is if you buy a policy from a financially insecure company you may place yourself in the wrong perch. Remember, ‘claims paying’ ability of the life insurance company counts a lot.

Now that you know how to find the most reliable companies, it is time you knew which are the cheapest life insurance companies in the USA.

Before we provide the list, let us explain how we chose the 10 cheap insurance companies for you.

Our Picks: How We Prepared It

We got quotes from 25 life insurance companies for a 25-years old non-smoker excellent health youth from Alaska. The coverage amount sought was $500,000 for a 30-years term life insurance policy. The lowest quote for the desired policy was $31.39 while the highest was $63.98. We have mentioned the 10 life insurance companies that gave the lowest quotes. We have left the rest out.

Besides rates, we also focused on how long the companies have been operating in the country. As the country has life insurance companies almost of two centuries old, we chose those which have survived more than 50 years. We think 50+ years is a long enough survival time for a life insurance company to build trust and reliability for its customers.

We have also checked ratings from A.M. Best for three good reasons. The first reason is that A.M. Best is the nation’s oldest rating agency. The second reason is their Financial Strength Ratings (FSR) suffices to tell whether a life insurance company is strong enough or not. Finally, unlike many others they are dedicated to researching exclusively into the country’s life insurance industry.

Here follows the list of the 10 cheapest life insurance companies in the country:

Banner Life Insurance Company

Age

As of 2017, Banner Life Insurance Company has operated in the US for 68 years. It was launched in 1949. Survival in the market for almost seven decades is something you cannot ignore when it comes to the credibility of a company. While its history in the USA is of about seven decades, its original history traces back to 1836 in London where it originated.

In the US, it is headquartered in Maryland as part of Legal and General America. The service of this life insurance company literally extends ‘from coast to coast’ as they are entitled to work in every state including the District of Columbia but except New York. However, they provide service to New York residents through Penn Life there.

Cost of Product

Banner Life’s quote for the youth we were seeking quotes for co-appeared as the most competitive  among the 25 life insurance companies we got quotes from. For $500,000 for the 30-year term life insurance policy, their quote was $31.39 a month.

This rate makes them one of the cheapest life insurance companies in the USA.

A.M. Best Ratings

Banner Life Insurance Company has an A+ from A.M. Best. An A+ from this rating agency means they are a superior standard life insurance company

Protective Life Insurance Company

Age

Protective Life Insurance Company came into operation in 1907. That means, as of 2018, they have been in the insurance market for 111 years. As they claim in their slogan, this has been a proof that they have been able to maintain a ‘legacy of service’. They have their offices across the country.

The company has its headquarters in Birmingham, Alabama, USA. They have their services in all the 50 states of the country.

Cost of Product

Protective Life’s quote for the same policy equaled to Banner’s which was $31.39. As such, they are also one of the cheapest life insurance companies in the USA.

Protective Life Insurance also has A+ rating from A.M. Best. This sends Protective Life in the superior group like their competitor Banner Life.

Massachusetts Mutual Life Insurance (Haven)

Age

Massachusetts Mass Mutual or Haven Life Insurance Company is another oldest and largest life insurance company you can rely on when it comes to trust and cost. Established in 1851, they have been insuring people across the Unites States for more than 160 years.

Cost of Product

Mass Mutual Haven’s quote showed them to be the second cheapest term life insurance provider among the 25 life insurance companies that we sought quotes from. It was little more than Protective and Banner’s. But the cost is highly competitive. The quote read $31.42, negligibly higher than the above two.

A.M. Best Rating

However, Haven Life stands ahead in terms of A.M. Best rating. Although they are also in the superior class, they are in the double plus notch group. That means their rating is A++.

Pacific Life Insurance Company

Age

Pacific Life Insurance Company was founded in 1868 and is one of the oldest life insurance companies in the United States. It is headquartered in Newport Beach, California.

Cost of Product

For the same youth’s 30-year term insurance for $500,000, Pacific’s quote was the third most inexpensive.  Their quote was $31.78 for a month. Their rate makes groups them among the cheapest life insurance companies.

A.M. Best Rating

Pacific Life Insurance Company also has a superior rating of A+ from A.M. Best. This proves they are one of the reliable life insurance companies in the USA.

TransAmerica

TransAmerica is comparatively recent among the companies we have discussed so long. They were established in 1961. That means they have been operational for 56 years in 2017. Passing more than half a century for a financial company speaks well for their credibility. TransAmerica is headquartered at Ceder Rapids, Iowa, USA.

Cost of Product

The quote that we were given by this company was the fourth cheapest for the term life insurance we sought. Their quote was $31.82. In terms of cost, their quote is also highly competitive and sends them among the nation’s cheapest life insurance companies for sure.

A.M. Best Rating

A+ from A.M. Best makes them one of the most trusted life insurance companies in the USA.

Cincinnati Life Insurance 

Cincinnati Life Insurance Company was established in 1950. That means they have in the insurance market for a long time : 67 years.

Cincinnati Life Insurance also gave us a quote of $31.82 and thus they jointly became  the fourth cheapest term life insurance provider. Their service extends in 34 states of the USA. The company is headquartered in Ohio.

Cost of Product

Cincinnati’s cost for the $500,000 coverage was $31.82. Surely, the rate makes them another cheapest life insurance companies in the U.S.

A. M. Best Rating

Cincinnati Life Insurance Company is awarded A+ by A.M. Best.

AIG

More known as AIG, American International Group Inc. is going to celebrate their centennial birth soon. The company was born in 1919 in Shanghai, China. Its founder was an American, Cornelius Vander Starr. Now this company is one of the largest and strongest insurance companies in the world. The company has its service spread in more than 80 countries and jurisdictions. AIG is headquartered in New York city, New York.

Cost of Product

AIG’s quote for the said term policy was $31.92 which made them the fifth cheapest of the companies we compared quotes from.

AIG has A from A. M. Best which categorizes the company in the excellent category, the second best rating of A. M. Best.

Lincoln National Life Insurance Company

Lincoln National has already passed a century. This public company was founded in 1905 and is headquartered in Radnor, Pennsylvania, US. They are one of the Fortune 250 companies.

Cost of Product

Lincoln’s quote for the aforesaid person was $32.65 which made them one of the cheap term life insurance sellers in the USA. In terms of rate, they appeared as the sixth cheapest term life insurance sellers.

A. M. Best Rating

Lincoln National Life Insurance Company has a superior class rating from A. M. Best. It is A+.

American National Insurance Company

American National is another oldest life insurance company that has been serving the nation for more than a century. It was founded in 1905. It is headquartered in Galveston, Texas, USA. They are licensed to work in all the 50 states except New York. However, they conduct their business there through American National Life Insurance Company, one of their subsidiaries.

Cost of Product

Their rate also appeared as competitive. The quote for the aforesaid coverage was $32.83. They are the seventh cheapest term life insurance seller in the USA.

A. M. Best Rating

American National Insurance Company falls in the excellent category in A. M. Best’s rating. They have an A from this rating agency.

Pruco Life Insurance

Pruco Life Insurance is another oldest life insurance company you cannot easily ignore and they also offer competitive rates. The company was established in 1885. So, they are almost one and a half centuries old. Staying in the financial market for this long period is proof that customers have rested their faith with this company.

Cost of Product

Pruco’s quote for the 30-year term for the youth’s $500,000 coverage was $33.25. Though they are the highest quote giver here, they are almost 100% cheaper compared to the highest rate we had for the coverage.

A. M. Best Rating

Pruco enjoys A. M. Best’s superior rating of A+. They are one of the superior companies in the country.

Hopefully, you have got your list of the cheapest life insurance companies in the USA. And, of course, they are the nation’s best ones as well.