Most Affordable Life Insurance Companies of 2023

Protective Life is tied with Banner in offering the most affordable term coverage of the top companies we reviewed. Protective’s term lengths of up to 40 years are some of the longest in the industry, and an option for conversion mean you can buy what you can afford now and potentially keep your coverage indefinitely. Plus, if you’re 18-45 years old, you can apply for up to $1 million in coverage without taking a medical exam. Term policies include a terminal illness rider at no cost that you can use to access the death benefit if you become terminally ill. 

One drawback is that Protective scored 16th out of 21 insurers for in the J.D. Power 2021 U.S. Individual Life Insurance Study. The study measures customer satisfaction among the largest insurance companies. However, the company had fewer complaints than expected for its size, according to the National Association of Insurance Commissioners (NAIC). The company has an A+ (Superior) grade from AM Best for its financial strength, too. 

There’s a convenient online application for term policies and Protective accepts credit card payments. If affordability is your main concern, Protective is one of the best choices, and it has a lot of other great coverage options as well. 

For more details, see our full Protective Life Insurance review.

Banner Life, a subsidiary of Legal & General America, was a close second for the best overall category, nearly matching Protective’s rates. Banner Life offers affordable term policies of up to 40 years as well, and you can apply for up to $2 million (ages 20-60) in coverage without a medical exam. Banner Life also lets you stack your coverage with 10, 15, or 20-year term riders. For example, you might buy $500,000 in coverage that lasts 30 years and add a $500,000 term rider to boost your coverage for 10 years while you’re paying off your mortgage. It’s a cost-effective way to structure your coverage, and you’d likely pay less over time with this strategy than you would by buying a larger base policy. 

Banner Life lets you convert your term policy to permanent coverage so you have the option to keep your coverage for life. You can also renew coverage annually once it expires, though that’s not a long-term solution to keeping a life insurance policy. Like Protective, the company also offers a terminal illness rider with term policies. 

Banner has an A+ (Superior) financial strength rating from AM Best and far fewer complaints with the NAIC than expected, given its size.

Pacific Life’s high marks for customer satisfaction mean you’ll more likely to have an excellent experience when you work with the company, relative to many other insurers. Pacific Life ranks fourth out of 21 insurers in the J.D. Power life insurance study and received far fewer complaints with the NAIC than expected given its size. In fact, the company received a lower average complaint index than any of the other top companies we reviewed.

You can choose a 10-30 year term and you have the option to convert your policy to permanent coverage. Coverage is very affordable, and Pacific Life received an A+ (Superior) financial strength rating from AM Best.

Perhaps the only drawback is that you won’t find quotes on the company’s website and can’t apply without assistance from an agent.

Of the insurers we reviewed, Penn Mutual offers the highest coverage limits for no-medical-exam coverage, and term coverage is very affordable. You can convert some policies through the level term until age 70 (or for the first 20 years of a 30-year term). This is a particularly nice feature since some life insurers limit the conversion period, such as to the first 10 policy years. Penn Mutual includes a chronic illness rider on the first five years of a conversion, too. 

The company gets high marks for financial strength and customer satisfaction. It has an A+ (Superior) financial stability grade from AM Best and a three-year average complaint index of just 0.14 with the NAIC, indicating far fewer complaints than expected given the company’s market share.

Where Penn Mutual falls short is online tools. The company doesn’t offer online quotes or an online application. And the website has little information regarding policy specifics. If you want a policy from Penn Mutual, you’ll need to work with an agent throughout the process.

Of the cheapest life insurance companies we reviewed, Thrivent had the best financial strength ratings—an A++ (Superior) grade from AM Best. The company also had far fewer complaints with the NAIC than expected given its size, with a three-year average complaint index of just 0.04. Thrivent also offers whole-life policies that pay dividends and its term policies are convertible. 

The company’s main drawback is that you must be a Christian who is “seeking to live out their faith” and share in the company’s statement of faith to get a policy. Additionally, the company offers fewer riders than some other term providers. You’ll also need to call an agent to get your questions answered or apply because details are limited online and there’s no online application.