Cheap Life Insurance for Low-Income Individuals in 2024 (Top 10 Low-Cost Companies)
Bestow, MetLife, and Allstate top the list for cheap life insurance for low-income individuals. Bestow is our top pick with rates staring as low at $15mo. However, your rates are determined by age, gender, health, and policy type. Some employers provide free life insurance as part of employee benefits.
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Jeff Root
Licensed Life Insurance Agent
Jeff is a well-known speaker and expert in life insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading...
Licensed Life Insurance Agent
UPDATED: Sep 19, 2024
It’s all about you. We want to help you make the right life insurance coverage choices.
Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance company and cannot guarantee quotes from any single company.
Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.
UPDATED: Sep 19, 2024
It’s all about you. We want to help you make the right life insurance coverage choices.
Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance company and cannot guarantee quotes from any single company.
Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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11,413 reviewsThe top picks for cheap life insurance for low-income individuals are Bestow, MetLife, and Allstate. Bestow leads the pack with rates staring as low as $15 monthly.
Read through this guide to learn about the best life insurance for families and life insurance for low-income families. Also, we’ll tell you about factors that determine term life insurance quotes for low-income individuals.
Our Top 10 Company Picks: Cheap Life Insurance for Low-Income Individuals
| Company | Rank | Monthly Rates | First Year Discount | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | $15 | 30% | Low Cost | Bestow |
 | #2 | $17 | 22% | Custom Policies | MetLife |
 | #3 | $19 | 20% | Whole Coverage | Allstate |
 | #4 | $20 | 26% | Flexible Payment | Liberty mutual |
 | #5 | $22 | 31% | Affordable Options | Guardian |
 | #6 | $24 | 24% | Budget-Friendly | Erie |
 | #7 | $25 | 27% | Competitive Rates | USAA |
 | #8 | $27 | 18% | Easy Application | Transamerica |
 | #9 | $31 | 19% | Simple Options | AIG |
 | #10 | $35 | 15% | Cash Value | Travelers |
Are you ready to compare life insurance rates for low-income individuals right now? Enter your ZIP code in the free online quote tool above to start comparing multiple insurance companies near you.
- Health care workers can receive free life insurance
- Your employer can provide group life insurance
- Women pay less for life insurance than men
Ready to compare quick life insurance quotes?
Your life insurance quotes are always free.
Secured with SHA-256 Encryption
Your life insurance quotes are always free.
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#1 – Bestow: Top Overall Pick
Pros
- No Medical Exam: Bestow offers life insurance policies without the need for a medical examination.
- High Coverage Limits: Policies are available for up to $1.5 million in coverage. Read our in-depth Bestow life insurance review for more information.
- Fast Approval Process: Bestow’s application process is streamlined, and approval can often be obtained within minutes.
Cons
- Age Restrictions: Bestow’s policies are limited to individuals between 18 and 60.
- Term Length Limitations: The maximum term length for Bestow’s policies is 30 years.
#2 – MetLife: Best for Custom Policies
Pros
- Financial Planning Services: MetLife provides additional benefits such as financial planning and grief counseling to policyholders.
- Portable Coverage: Policyholders can retain their life insurance coverage even if they change employers.
- Living Benefits: MetLife’s base policies include living benefits which you can learn more about in our review of MetLife life insurance.
Cons
- Limited Online Services: MetLife’s online platform lacks essential features such as claim filing and bill payment, and its mobile app does not cater to life insurance customers.
- No Individual Life Insurance: MetLife does not offer individual life insurance policies.
#3 – Allstate: Best for Whole Coverage
Pros
- Flexible Term Lengths: Allstate offers term life insurance for up to 40 years.
- Bundling Discounts: Potential discounts are available for customers who bundle life insurance with other Allstate policies. See what discounts you qualify for in our Allstate life insurance review.
- Strong Partner Insurers: Allstate provides life insurance coverage through other financially strong insurers.
Cons
- Limited Lump-Sum Payouts: Certain types of life insurance policies may restrict lump-sum payouts.
- Not Nationwide: Allstate life insurance is not available in all U.S. states.
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#4 – Liberty Mutual: Best for Flexible Payment
Pros
- Multiple Coverage Options: Liberty Mutual offers a variety of life insurance policies to meet different needs.
- Available Discounts: Various discounts can help lower premiums for policyholders.
- Additional Features: Extra benefits like coverage for children and accidental death are available. Explore all of Liberty Mutual’s additional features in our Liberty Mutual life insurance review.
Cons
- Limited Specialty Focus: Liberty Mutual’s primary focus is not on life insurance, which may impact the depth of their offerings compared to specialized providers.
- Fixed Death Benefit: The death benefit in their whole life insurance plans does not increase over time.
#5 – Guardian: Best for Affordable Options
Pros
- Wide Range of Policies: Offers term, whole, and universal life insurance policies to suit different needs.
- High Age Limits: Some permanent policies have high age limits, making them accessible to older individuals. Discover more about offerings in our Guardian life insurance review.
- Nationwide Availability: Operates in all states and the District of Columbia, providing coverage nationwide.
Cons
- No Auto or Home Insurance: Guardian does not offer auto or home insurance, limiting bundling options.
- No Mobile App: There is no mobile app available for life insurance policyholders.
#6 – Erie: Best for Budget-Friendly
Pros
- Budget-Friendly: Erie offers some of the most affordable life insurance premiums on the market.
- Comprehensive Coverage Options: Erie offers term, whole, and universal life insurance policies, catering to diverse needs. Explore our comprehensive Erie life insurance review for more information.
- Top Insurance Provider: Erie is recognized as one of the biggest and best insurance companies in the United States.
Cons
- Varied Customer Feedback: Some customers have experienced challenges with customer service and claims processing.
- Limited Availability: Only available in 12 states and Washington D.C.
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#7 – USAA: Best for Competitive Rates
Pros
- Military Benefits: USAA provides several benefits for military members and their families.
- Variety of Policies: Offers term, whole, and universal life insurance policies to meet diverse needs.
- Guaranteed Insurability: Available at no additional cost, ensuring you can increase coverage as needed.
Cons
- Limited Policy Options: USAA offers fewer policy options compared to some other insurers.
- Third-Party Underwriting: Underwriting for life insurance policies may be handled by external companies, which can affect the application process.
#8 – Transamerica: Best for Easy Application
Pros
- Simple Application Process: Transamerica offers an easy application process. Learn how to apply for Transamerica life insurance in our Transamerica review.
- No Medical Exams: Some Trendsetter Super and Trendsetter LB Term Life policies from Transamerica may not require medical exams, offering convenience for applicants.
- High Maximum Ages: Transamerica offers a high maximum age for renewing or converting its term life insurance policies, making it suitable for various age groups.
Cons
- Limited Mobile App: Transamerica’s mobile app is designed primarily for life insurance sales agents and is not accessible for policyholders.
- Age Restrictions: Certain Transamerica plans have age restrictions, varying by state.
#9 – AIG: Best for Simple Options
Pros
- Simplified Policy Options: Offers basic term life insurance policies with straightforward terms and coverage options for those seeking a simple policy.
- Online Services: AIG provides convenient online services that allow customers to complete applications and make payments online.
- Flexible Riders: AIG offers a wide variety of riders that can be added to customize policies. See what
Cons
- Customer Service: AIG has below-average customer service ratings. See what customers have to say in our AIG life insurance review.
- Complaints: AIG receives a high number of complaints, as reported by the National Association of Insurance Commissioners (NAIC), indicating potential issues with customer satisfaction or claims processing.
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#10 – Travelers: Best for Cash Value
Pros
- High Cash Value: Travelers offers whole life insurance policies with high cash value accumulation potential.
- Nationwide Availability: Travelers life insurance is available in all states. See if Travelers is available in your state in our review of Travelers.
- Flexible Payment Plans: Allows customers to choose from annual, semi-annual, quarterly, or monthly payment plans. Read more: Should you pay life insurance premiums monthly or annually?
Cons
- Workplace-Only Availability: Travelers life insurance policies are only available through employer-sponsored plans.
- Third-Party Underwriting: Travelers uses third-party underwriting for their policies.
Cost of Life Insurance for Low-Income Individuals
People between 18 and 35 can get life insurance for $9 a month for a $100,000 policy limit. However, life insurance rates vary for each company.
Read more: How much does a $100,000 life insurance policy cost?
Let’s review the monthly rates of some of the best companies in the U.S.:
Life Insurance for Low-Income Individuals: Monthly Rates by Coverage Level & Provider
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| AIG | $31 | $56 |
| Allstate | $25 | $50 |
| Bestow | $15 | $35 |
| Erie | $24 | $47 |
| Guardian Life | $22 | $45 |
| Liberty Mutual | $20 | $40 |
| MetLife | $17 | $37 |
| Transamerica | $27 | $53 |
| Travelers | $35 | $59 |
| USAA | $19 | $39 |
These rates reflect term life insurance policies with a 10-year term and $100,000 policy limit. Your life insurance rates go up when you increase your term and policy limit (death benefit).
Read more:
How To Get Lower Life Insurance Rates for Low-Income Individuals
You may be in a window of customers that earns too much to receive no-cost life insurance, but don’t be discouraged by life insurance quotes.
Here are a few ways you can bring down life insurance costs.
- Ask your employer about group life insurance
- Get life insurance policies while you’re young
- Quit smoking
- Shop around for free life insurance quotes
- Don’t purchase life insurance coverage that you won’t need
- Buy term life insurance
Kicking a smoking habit could save you a few hundred dollars on life insurance per year. Take advantage of any savings you can get.
It’s more helpful to get life insurance while you’re young as well. A whole life insurance policy or a return-of-premium life insurance policy are good investments.
How To Get Free Life Insurance for Low-Income Individuals
Some employers provide group life insurance for employees. In particular, many healthcare workers can receive free life insurance.
But low-income individuals who don’t work in the medical industry can get no-cost life insurance from companies like MassMutual.
MassMutual’s LifeBridge is a free life insurance program for low-income individuals. But you’ll need to qualify. Here’s how you can get free MassMutual life insurance.
- Recipients must be between the ages of 19 and 42
- Your dependents must be under the age of 18
- The potential policyholder must be in good health
- Your salary must be less than $40,000 per year
Read more: MassMutual Life Insurance Review
The free insurance policy lasts for about 10 years and has a $50,000 death benefit. Also, free or low-cost life insurance doesn’t have the same reach as standard life insurance. Free life insurance from employers is known to give you less than what you need.
If you’re not eligible for no-cost life insurance, you can find cheap life insurance for low-income individuals by shopping around with the best insurance companies.
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Best Life Insurance Companies for Low-Income Individuals
If you’re not sure where to shop for life insurance, try getting life insurance quotes from the best companies first. Check the list below to see the best life insurance companies in the United States:
- Northwestern Mutual
- Haven Life
- State Farm
- Banner Life
- Principal
- Pacific Life
- Guardian Life
- Nationwide
- Primerica
- MassMutual
- New York Life
- Allstate
- John Hancock
- Protective
- Mutual of Omaha
- Prudential
The top life insurance companies carry term life and permanent life insurance options. To save money on life insurance, buy term life insurance and compare rates online before you much.
Read More:
- Northwestern Mutual Life Insurance Review
- American National vs. Banner Life Insurance
- Protective Life Insurance Review
Cheapest Life Insurance Companies
Several factors determine whether affordable life insurance for low-income individuals is an option.
Age, gender, health, policy type, and death benefits affect your life insurance cost. And some companies are better than others at providing coverage for specific customers. Two of the biggest determining factors are age and gender. For more details, see life insurance rates by age and gender.
Here’s a list that shows the cheapest companies based on various factors.
- Cheapest Life Insurance for Women: Banner Life
- Cheapest Life Insurance for Men: Banner Life
- Cheapest Life Insurance for Seniors: Protective
- Cheapest Life Insurance for Smokers: Banner Life
- Cheapest Life insurance for Children: Banner Life
- Cheapest Life Insurance With No Exam: Mutual of Omaha
Banner Life has life insurance policies for people who are on a budget. The more life insurance coverage you need, the more you’ll pay.
But if all you want is the bare minimum for life insurance, stick with a low term and policy limit.
Life Insurance Coverage Requirements for Low-Income Individuals
Life insurance isn’t regulated for individuals.
I recommend that you get a life insurance policy with a death benefit that’s 10 times your current salary.Chris Abrams Licensed Life Insurance Agent
For example, a low-income individual who earns $15,000 should get a life insurance policy with a $150,000 death benefit.
If you pass away suddenly, your beneficiary can collect the $150,000 from the life insurance company.
How to buy Life Insurance for Low-Income Individuals
Low-income life insurance is usually the same as standard life insurance. But some people can get free life insurance or group life insurance through an employer. This question, and others, are answered in life insurance coverage FAQs.
If you need a higher life insurance death benefit, you’ll need to shop around for a private life insurance policy.
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Case Studies: Life Insurance for Low-Income Individuals
These three case studies showcase different options for low-income individuals to obtain life insurance coverage.
- Case Study 1 – The Affordable Option: Mary, a 25-year-old low-income individual, was looking for affordable life insurance coverage. She compared multiple insurance companies and found a term life insurance policy with a $100,000 limit for just $9 a month. This policy provided her with the financial security she needed at a price she could afford. Learn how term life insurance rates are calculated in our article.
- Case Study 2 – Free Life Insurance Program: John, a low-income individual without access to employer-provided life insurance, discovered MassMutual’s LifeBridge program. Despite his limited financial means, John was able to qualify for a free life insurance policy with a $50,000 death benefit. This program provided him with essential coverage for a period of 10 years.
- Case Study 3 – The Budget-Conscious Choice: Sarah, a low-income individual in her early 40s, wanted to secure life insurance while still managing her expenses. She researched different insurance companies and found that Banner Life offered affordable policies for customers on a budget. Read more about Banner in our Banner life insurance review.
By choosing a low term and policy limit, Sarah was able to find a suitable life insurance plan that met her needs without straining her finances.
Don’t settle for high life insurance rates. Shop for low rates and ensure your loved ones are protected by entering your ZIP code below.
Frequently Asked Questions
Can I get free insurance as a low-income individual?
Some employers and programs offer free coverage, but eligibility criteria apply.
Which are the best insurance companies for low-income individuals?
Prudential, AIG, Banner , Protective , among others. Learn more about Prudential in our Prudential life insurance review.
How can I lower insurance rates for low-income individuals?
Quit smoking and get insurance at a younger age.
What type of insurance should low-income individuals get?
Term insurance is affordable and suitable for many.
What is the best life insurance for seniors?
If you are above 80 and wants insurance, you should consider purchasing whole life insurance because the maximum age for term life insurance is 89. For those seeking affordable life insurance for seniors, whole-life policies can provide the necessary coverage, but they often require you to be healthy and pass a medical exam.
However, low-cost life insurance for seniors and cheap life insurance for seniors options are available through specialized insurers or plans tailored to senior needs. Additionally, government life insurance for seniors and life insurance for low-income seniors programs can offer financial protection for those who may not qualify for traditional policies due to age or health restrictions.
How much does insurance cost for low-income individuals?
Rates vary, but it can be around $9 per month.
Is there a free life insurance for low-income families?
While traditional policies might not offer free life insurance, there are some avenues to explore for low-income life insurance. Certain community organizations and government programs provide free life insurance quotes to help families find the cheapest life insurance options available.
Additionally, some employers and non-profit organizations may offer free life insurance as part of their benefits package, which can be a valuable resource for low-income families seeking affordable coverage.
What is the least expensive form of whole life insurance protection?
Term life insurance typically offers the most affordable premiums of any life insurance policy. However, for those seeking affordable whole-life insurance, there are options to consider. While whole life insurance generally has higher premiums compared to term life, some affordable life insurance plans are available that provide lifetime coverage and build cash value over time. Check out this list of the whole life insurance companies to see options and offerings.
It’s essential to compare different affordable life insurance policies and consult with an insurance advisor to find the best affordable life insurance policy for your needs. For those prioritizing cost, affordable term life insurance remains the most budget-friendly choice.
What type of life insurance is best for a family?
For families, term life insurance is often the best choice due to its lower cost and straightforward coverage. It provides cheap life insurance for family needs during crucial years, like when children are young or mortgages are high. Affordable life insurance for families can also be found in whole life policies, which offer lifelong coverage and build cash value.
What is the smallest amount of life insurance?
For most term life insurance companies, the smallest affordable life insurance policy available is $100,000 in coverage. However, some insurers, like Genworth Life Insurance and AIG American General Life Insurance, offer cheap life insurance policies with coverage as low as $50,000 or even $25,000. These options provide a cheap life insurance policy that can still offer financial protection.
Our quote comparison tool below will allow you to shop for affordable life insurance rates from the top companies near you — just enter your ZIP code to get started.
Your life insurance quotes are always free.
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Jeff Root
Licensed Life Insurance Agent
Jeff is a well-known speaker and expert in life insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading...
Licensed Life Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.
