Cheapest Life Insurance Companies of August 2026

Striking a balance between affordability and coverage is essential when shopping for life insurance.

There are several types of life insurance, but term is typically the cheapest option. For example, a healthy 40-year-old male buying a 20-year, $500,000 term life policy will pay an average of $37 a month, while a 40-year-old female with the same policy would pay $32 per month, according to life insurance brokerage firm Choice Mutual. That works out to about $444 per year for a male or $384 per year for a female.

That’s a far cry from the cost of whole life insurance: A comparable whole life policy could cost more than $300 each month. However, whole life insurance does have some benefits: These policies build cash value that you can use to pay premiums or for other purposes later in life, and are guaranteed to pay out when you pass away as long as your premiums were paid in full.

CNBC Select picked the best affordable term life insurance in a variety of categories, including coverage limits, convertibility, age restrictions and customer service. For more on how we made our list, check out our methodology.

Who’s this for: Ladder allows many applicants to skip the hassle of a medical exam. It issues term life policies online, with premiums starting at $5 a month — a price that’s lower than many competitors.

Standout benefits: You can adjust your death benefit — the amount your family would receive if you passed away — as often as you need without a fee, which is something other insurers don’t offer.

Who’s this for: Amica streamlines the approval process by letting you get quotes and apply on its website. If you meet the health requirements, you can even skip the medical exam.

Standout benefits: Amica also offers whole life insurance policies, which build cash value you can tap while you’re still alive.

Who’s this for? Corebridge Direct allows seniors aged 80 and older to get covered with guaranteed issue whole life insurance, which are typically small whole life insurance policies meant to cover final expenses. These policies are available to anyone, regardless of health conditions or status, and tend to have with fixed payments for life.

Standout benefits: Living benefits with Corebridge Direct’s guaranteed-issue whole life insurance policies can help with unexpected long-term care costs.

Who’s this for? Symetra’s SwiftTerm policies automatically allow you access to funds while you’re still alive, while other insurers charge extra.

Standout benefits: Available to applicants aged 20 to 60, policies can be underwritten in as little as 18 minutes. SwiftTerm term life policies have death benefits of up to $5 million — a higher limit than most insurers that offer same-day approval.

Who’s this for? While many term life policies max out at $1 million, Pacific Life plans come with limits of $3 million or more. Its competitively priced policies are available in 10-, 20- and 30-year terms.

Standout benefits: With Promise Term, policyholders can convert some or all of their benefits to a new universal life insurance policy without a medical exam before age 70.

Who’s this for? If you think your income, goals or household spending will change, Guardian allows you to convert term insurance into a whole life policy in the first five years at no additional cost.  

Standout benefits: Policies are available to applicants aged 18 to 75, one of the most generous ranges we’ve seen for term life insurance.  

Who’s this for? State Farm came in second place in J.D. Power’s 2025 individual life insurance satisfaction survey, with customers praising its pricing, availability and ability to resolve issues, among other features. The company also received a third as many complaints as similar insurers on the National Association of Insurance Commissioners’ complaint index.

Standout benefits: You can earn a bundling discount with State Farm if you enroll in home or auto insurance along with life insurance.

Whole life: Whole life insurance remains in force as long as premiums are paid. Policies come with a guaranteed fixed death benefit and have a cash value component, which you can use to make withdrawals, pay premiums or as collateral for a loan.

Universal life: Universal life insurance also builds cash value but it offers greater customization, including flexibility in payments and death benefits.

Variable life insurance: This form of permanent life insurance offers a cash-value component that is invested in the market. As a result, your policy can lose value if the market performs poorly. 

Final expense insurance: Also known as burial insurance, this whole life policy is intended to pay for a funeral or cremation, medical and legal bills and other end-of-life expenses. As a result, final expense policies have a smaller payout, typically $30,000 or less.

1. Determine coverage amount: Decide how much life insurance you need by estimating income replacement needs, outstanding debts and any financial support you’ll need to provide for your children or other dependents. A common rule of thumb is to purchase coverage equal to 10 times your annual salary.
2. Get quotes: Check rates with at least three providers that offer online quotes, comparing price, coverage, riders and other features. Insurance marketplaces like Policygenius make it easy to compare offerings side by side.
3. Choose your provider and apply: Select the provider, policy and term you want and complete the application, which will require details about your health, lifestyle, occupation, and financial history. If you need approval quickly or have preexisting health conditions, consider a no-medical-exam policy from insurers like Mutual of Omaha and Amica.
4. Approval and payment: Once you are approved, you’ll need to provide bank or credit card details and make your first payment to activate the policy. 

While term life is only active for a set period and doesn’t build cash value, whole life insurance is, on average, five to 15 times more expensive, according to Experian. Make sure you pick a term length that protects your family when you need coverage the most — when your children are still at home or you’re still paying off your mortgage, for example.

2. Buy a policy when you’re young

The cost of life insurance increases as you get older. Locking in a level-term policy will keep your premiums the same for the length of your plan. And the sooner you get it, the lower they’ll be.

3. Maintain a healthy lifestyle

We can’t control every aspect of our health, but a good diet, regular exercise, limited alcohol use and good sleep habits can mean you’ll pay less for coverage.

4. Don’t smoke

If you smoke, your life expectancy is about 10 years shorter than that of a non-smoker, according to the CDC, and you could be charged up to twice as much for life insurance. Depending on the provider, you can be designated a smoker if you use cigarettes, vapes, chew, nicotine gum or marijuana, even occasionally.

If you take a medical exam before enrollment, you may be given a test to verify your tobacco usage.

5. Don’t skip the medical exam

If you’re young and relatively healthy, a policy requiring a medical exam will have lower premiums and higher coverage amounts than a no-exam policy. It’s paid for by the insurer and can take as little as 30 minutes.

6. Comparison shop

Not every insurance company considers your medical history and risk factors the same. Get quotes from several providers and be sure to ask about discounts.

To determine the best cheap life insurance companies, we focused on sample premiums for term life insurance with a $300,000 death benefit. We looked at rates for six people, ages 25 to 45, buying a 30-year term policy, and six people, ages 55 to 75, buying a 10-year policy.

In addition to price, each provider was assessed based on policy options, terms and coverage limits, age restrictions, endorsements and customer service. We incorporated customer satisfaction scores from J.D. Power, the National Association of Insurance Commissioners and the Better Business Bureau, as well as financial strength ratings from A.M. Best.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

Based on this criteria, our picks for the best cheap life insurance are:

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