Most Affordable Life Insurance Companies of 2024

Protective Life Insurance tied with Banner for offering the most affordable term coverage of all the insurers we reviewed. In fact, it places for best term coverage in our reviews of the best life insurance companies of 2023 and the best life insurance companies for people over 50. It’s also our top pick for best term life insurance companies. 

On top of affordability, Protective stands out by offering term policies up to 40 years—most other insurers only offer terms up to 30. Plus, unlike many other companies offering term life coverage, Protective makes it easy to apply online without having to contact an agent. 

As for reliability, Protective earned an A+ (Superior) rating from AM Best, which means it has demonstrated a superior ability to meet its financial obligations, like paying claims. We also looked at complaint data provided by the National Association of Insurance Commissioners (NAIC) to see how many customer complaints it received. Protective has a three-year average complaint index of 0.69 for individual life insurance—meaning it gets fewer complaints than expected based on its size. And if you want permanent coverage, you can choose from a complete lineup that includes whole life insurance, universal life, indexed universal life, and variable universal life policies.

However, the company didn’t fare well in J.D. Power’s 2022 U.S. Individual Life Insurance Study, placing 15th out of the 21 life insurers evaluated.

Learn more in our Protective Life Insurance review.

Banner Life Insurance also tops the list when it comes to affordable term life insurance coverage—tying with Protective for the least expensive policies of those we reviewed. Like Protective, it offers the rare 40-year term option and an easy online application process. Additionally, qualifying applicants between the ages of 20 and 60 can get up to $2 million in life insurance coverage without needing to undergo a medical exam. 

When it comes to financial strength and customer satisfaction, Banner fares well. It earned an A+ (Superior) from AM Best for demonstrating a superior ability to meet its payment obligations and has far fewer complaints than are expected for an insurer of its size. Drawbacks are that the company offers fewer types of policies and riders than many competitors.

Learn more in our Banner Life Insurance review.

Penn Mutual Life Insurance made the list due to its affordable term policies and the high amount of coverage available without a medical exam. Thanks to the insurer’s accelerated underwriting program, qualifying applicants 65 and under can get up to $7.5 million in life insurance without undergoing an exam. This is the highest amount we’ve seen without an exam which is why the company is one of the best no-medical-exam life insurance companies. Plus, Penn Mutual has consistently paid dividends to eligible policyholders for more than 175 years, placing it in our list of best whole life insurance companies.

The insurer also earned an A+ (Superior) rating from AM Best, demonstrating a superior ability to meet its financial obligations. Further, its NAIC three-year complaint index average for individual life insurance sits at just 0.23, meaning it has far fewer complaints than expected based on its size.

In addition to term coverage, Penn Mutual offers a comprehensive lineup of life insurance products including whole life, universal life, indexed universal life, and variable universal life. While not guaranteed, the company has consistently paid dividends to eligible policyholders for more than 175 years. 

Learn more in our Penn Mutual Life Insurance review.

Pacific Life Insurance offers very affordable term life insurance coverage and stands out for its high-quality customer service. The company ranked 5th in J.D. Power and Associate’s 2022 Individual Life Insurance Study for overall customer satisfaction. The study measured each insurer’s performance in five areas which included communication, interaction, price, offerings, and statements. 

With high marks for customer service, it’s no surprise that the company also has far fewer complaints than are to be expected for an insurer of its size, according to the NAIC. In looking at three years of complaint index data, Pacific Life’s average complaint index was a very low 0.08 for individual life insurance—one of the best of all the insurers we reviewed, and indicating a very low number of complaints. For this reason, it placed in our reviews of the best life insurance companies for seniors and the best no-med-exam life insurance companies. 

Additionally, Pacific Life offers a wide variety of insurance policy types and riders. While term coverage is the most affordable, you can also opt for universal life, variable universal life, or indexed universal life.

Learn more in our Pacific Life Insurance review.

Thrivent made our list for many reasons but primarily because it offers very affordable term life coverage and earned the highest possible financial strength rating from AM Best. AM Best rates insurers based on their ability to meet their financial obligations on a scale from a D (Poor) to an A++ (Superior). Thrivent has earned the highest superior rating of an A++ (Superior) so it’s extremely likely that claims are to be paid as promised. 

Beyond that, Thrivent has far fewer complaints than are to be expected for an insurer of its size, according to NAIC complaint index data. Its average complaint index over three years was 0.076 for individual life insurance. As for its life insurance offerings, a stand-out feature is the potential to receive dividends on whole life, universal life, and variable universal life policies. The company also offers flexible conversion options for term insurance policyholders and lenient guaranteed purchase option riders on permanent policies.

Learn more in our Thrivent life insurance review.