Affordable life insurance: How to find the cheapest life insurance in 2026

How can you find affordable life insurance?

The most effective ways to get affordable life insurance are to buy young, take care of your health and shop around. At any age, comparing quotes from multiple carriers can save you hundreds of dollars a year. Rates range from $664 a year at Corebridge Financial to $1,193 a year with Farmers, a difference of $529 a year for the same 20-year term $500,000 policy. A 25-year-old male will pay $303 a year on average, $426 a year less than a 45-year-old male at $729 for the same policy at Preferred rates; health issues drive up rates at an age, with Regular rates averaging $489 for a 25-year-old male and $1,247 for a 45-year-old male.

If you're looking to buy life insurance later in life, it's still possible to save by shopping around. In the meantime, work on improving your health: quitting smoking, losing weight, and improving factors like cholesterol.

What is the most affordable life insurance policy?

The cheapest type of life insurance is term life, because a term life insurance policy covers you only for a specified period of time, rather than for your entire life, reducing the risk that the company will need to pay a claim.

According to the most recent Insurance.com analysis, a 20-year, $500,000 term life insurance policy can be found for about $22 a month at age 25.

Term life insurance is designed to provide affordable protection when you need it most, such as during the years when you have children at home, and then end when you no longer need it. Different term lengths and coverage amounts allow you to find the right policy and price for your budget and needs.

Dr. Siwei Gao, professor of risk management and insurance at Eastern Kentucky University, says: “Term life insurance would be most suitable for a tight budget. It provides the basic protection against premature death without the saving features. It is most attractive to young parents who have dependents and are at the beginning of their careers.”

It’s possible to get affordable whole life insurance as well, but to get a good rate it’s even more vital to buy when you’re young. Even then, you'll usually get more coverage for your money with a term life policy.

The most affordable life insurance companies

The most affordable life insurance companies among those we surveyed are Corebridge Financial ($664 a year), Transamerica ($665 a year) and Pacific Life ($671 a year), based on a 20-year-term $500,000 policy.

The table below shows annual and monthly average rates from top life insurance companies.

Company	Average annual rate 20-year term, $500,000	Average monthly rate 20-year term, $500,000
Corebridge Financial	$664	$55.33
Transamerica	$665	$55.42
Pacific Life	$671	$55.92
New York Life	$724	$60.33
Penn Mutual	$726	$60.50
John Hancock	$785	$65.42
Lincoln Financial	$803	$66.92
Ethos	$813	$67.75
MassMutual	$840	$70.00
Prudential	$865	$72.08
Mutual of Omaha	$873	$72,75
AAA	$930	$77.50
Guardian	$960	$80.00
Farmers Life	$1,193	$99.42

Is life insurance worth the cost?

Life insurance is worth the cost for the peace of mind and financial protection it brings, especially if you have children or other dependents who would face financial insecurity in the wake of your death.

A young couple with children, for example, have a lot of financial obligations to worry about. Providing for those children if the worst should happen isn’t easily accomplished through investments or savings at that stage of life. “Life insurance is invaluable for everyone who has dependents,” Dr. Gao says.

How to get the cheapest life insurance policy

Get the cheapest life insurance by figuring out how much life insurance you need and how long you think you'll need it to decide on a term length or choose permanent life insurance, and then comparing rates from multiple carriers for that coverage. Note that, if you're healthy, you'll pay less for coverage with a standard policy that requires a medical exam than with a simplified issue policy without one.

There are several ways to calculate how much coverage you need. The easiest way is to use a life insurance calculator, but you can also do the math yourself. Here are two easy ways:

Multiply your annual income times 10, then add $100,000 for each child that will need to go to college.
Employ the DIME method (debt, income, mortgage, and education.) How much debt do you have, what is your annual income and how long will it be needed, how much do you owe on your mortgage, and what do you need for the education of your children?

Once you know how much coverage you need, consider how long you’ll need it. This is different for everyone but can be the number of years left on your mortgage, or the years until your kids are independent. This will tell you the term length you need.

With the term length and coverage amount in mind, you can start gathering and comparing quotes to find the best price. Follow these tips for the best deal:

Buy term life. Term life insurance is the most affordable option for young adults, but it’s also cheaper for almost everyone.
Buy when you’re young. Waiting to buy life insurance will only ensure you pay higher premiums.
Get the correct amount of coverage. When you’re going through the steps above to select a coverage amount, make sure you look into the future and account for any foreseeable needs in addition to the coverage you need right now. It’s cheaper to buy more coverage now than to try to add coverage later.
Speak with an independent agent. An agent can help you with the math and can also provide you with information about various companies.
Get multiple quotes. It’s easy to get free quotes online, so compare as many companies as you can to find the most affordable life insurance plans.
Check company reviews and ratings. As you’re looking at those affordable life insurance quotes, make sure they’re coming from solid companies. Check up on each company’s reputation before you buy.
Choose the best company for your needs. You may want a company that lets you buy online or want a company that lets you add a rider you think you need. Narrow down your choices by your particular needs.
Go through the medical exam. If you have no health concerns, you'll get a better rate if you go through a medical exam than if you choose a no-medical exam life insurance option.

Factors that affect the cost of life insurance

Life insurance rates are calculated based on life expectancy, which indicates the risk of paying a claim and is based on your age, gender, current and past health, lifestyle and occupation or hobbies. The coverage amount you choose also impacts rates; more coverage costs more.

These are the main factors that affect life insurance rates:

Age. The younger you are, the less likely you are to have health problems and the longer you'll likely pay premiums.
Gender. Males have a shorter life expectancy than females.
Health history. Serious or chronic illnesses that affect life expectancy will raise rates.
Lifestyle risks like smoking or alcohol use. Smokers pay more than non-smokers because of the health risks, and the same applies to people who drink heavily or use other drugs.
Occupation and hobbies. Dangerous jobs like firefighting, or hobbies like skydiving, increase life insurance rates.

You will usually need to complete a medical exam, including a blood test, as part of the application process. While there are affordable life insurance policies with no medical exam out there, if you’re healthy you’ll find you get lower life insurance rates if you go through the full underwriting process, including the exam.

Finally, the amount of coverage you choose and the type of policy will also have an impact on rates.

How to lower the cost of your life insurance policy

The best way to lower the cost of life insurance is to improve your life expectancy and lower your risk level by quitting smoking and drinking, losing weight, giving up dangerous hobbies and improving general health with diet and exercise. Unlike home and auto insurance, there isn’t much in the way of life insurance discounts, so shopping around will help you save.

Get better life insurance rates by:

Quitting smoking
Reducing or eliminating alcohol
Losing weight
Giving up dangerous hobbies
Changing your diet and exercising to reduce cholesterol and improve heart health
Shopping around and comparing rates

Methodology

Insurance.com analyzed rates provided by Compulife for a 20-year term policy at $500,000, $750,000 and $1 million in coverage, based on a nonsmoker in California. Unless otherwise indicated, rates are based on the Preferred rating class.

FAQ: Affordable life insurance

What is the average monthly cost of life insurance?

The average monthly cost of life insurance at age 25 is $20 for a female and $25 for a male; at age 45, $47 for a female and $60.79 for a male; and at age 60, $182 for a female and $257 for a male. These rates are based on a 20-year term policy with a death benefit of $500,000 at Preferred rates.

What is the cheapest type of life insurance?

Term life insurance is the cheapest type of coverage, averaging $22 a month at age 25 and $54 a month at age 45 for a 20-year term policy with $500,000 in coverage.

What is the most affordable life insurance policy for young adults?

Term life insurance is the cheapest option for young adults. At age 25, a 20-year term policy costs an average of $22 for $500,000 in coverage, $63 a month for $750,000 in coverage and $76 a month for $1 million.

What is the most affordable life insurance policy for seniors?

The most affordable life insurance for seniors is a final expense policy with a lower face value designed mainly to pay for funeral and related expenses and costs as little as $10 a month, according to Colonial Penn, a carrier that caters to seniors. Final expense coverage is best for seniros who just want a basic policy at an affordable price. “Life insurance is expensive for seniors due to the mortality risk,” says Dr. Gao, “They don't have dependents who need to be taken care of at this age. They also have a certain amount of asset build-up at this age.”