Find Affordable Life Insurance for Low-Income Families
About 83 percent of potential life insurance buyers find it is too expensive to purchase. Life insurance, particularly for low-income families, serves to protect household income. Perhaps the cheapest life insurance plan for you and your family is group life insurance. This type is a single policy that covers an entire group — such as employer-based policies. Learn more about what free and/or low-cost life insurance is available to low-income families. Always compare life insurance rates for low-income families before making a decision. Use our FREE quote tool today.
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Sara Routhier
Sr. Director of Content
Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...
Sr. Director of Content
UPDATED: Jul 18, 2023
It’s all about you. We want to help you make the right 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 provider and cannot guarantee quotes from any single provider. Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page 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: Jul 18, 2023
It’s all about you. We want to help you make the right 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 provider and cannot guarantee quotes from any single provider. Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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The Brief
- Eighty-three percent of those who want life insurance find it’s too expensive.
- MassMutual.com is one of the few companies that offer free life insurance.
- Due to the COVID-19 pandemic, the company has started a free life insurance program for first responders and health care workers.
Though free life insurance for low-income families is a possibility, it’s not always easy to find. There is at least one company that offers free coverage for families that desperately need it. Purchase policies based on the dos and don’ts of life insurance and the needs of your family.
In this post, you’ll learn tips to find affordable life insurance for low-income families.
Learn more about MassMutual’s free life insurance program and other ways to find cheap life insurance here. If you are already ready to buy life insurance for low-income families, enter your ZIP code to start comparing policies now. Which life insurance company for low-income families is for you? Find out now.
Can I get free life insurance?
Can you get free life insurance?
While getting a life insurance quote may be free, there are a limited number of free life insurance programs out there for low-income families.
So, how much is life insurance? To get an idea of what life insurance costs, see the chart below.
| Insurance Type | Basic Calculation Formula |
|---|---|
| Term and Permanent Life | Minimum 10–12 times annual salary plus mortgage and other major debt |
| Final Expense & Burial | Minimum of $15,000 is recommended |
| Education | At least $100,000 per child plus any outstanding student loans |
| Mortgage (either PMI or Term Life) | Minimum of current mortgage value |
MassMutual is a member-owned company that was founded in 1851. In the past 20 years, the company has grown a fund for families making between $10,000 and $40,000 annually. This program, LifeBridge, donates $50,000 life insurance policies to families nationwide. This is the Massmutual free life insurance COVID prompted earlier this year.
Also, the MassMutual free life insurance for healthcare workers, HealthBridge, is available in some states.
No-Cost Life Insurance
MassMutual free life insurance is a program specifically to help people out.
The LifeBridge program is available to those eligible based on the following qualifications:
- Between the ages of 19 and 42
- The parent or legal guardian of dependents under the age of 18
- In good health as determined by MassMutual
How LifeBridge works is basically a free insurance program for those who fit the eligibility requirements. Since the outbreak of COVID-19, the MassMutual free life insurance for first responders program so that it’s available nationwide.
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Cheapest Life Insurance Companies
The best life insurance companies are those that best serve their customers. However, not everyone has the same needs.
What is the cheapest life insurance for seniors?
Seniors should expect to pay more for life insurance than someone purchasing a policy at a young age. However, that doesn’t mean you can’t find a good deal. Take a look at the following list of cheapest life insurance for seniors.
- Protective Life Insurance (starting at $215 at 65)
- Pacific Life (starting at $216 at 65)
- Principal (starting at $223 at 65)
How much life insurance do you need?
We’ll get into that. First, you should figure out what expenses are going to need to be covered after death.
Who has the cheapest life insurance? This will depend on your needs and what the company can offer based on your background. Keep reading to learn more about this.
Low-Cost Life Insurance for Women and Men
This chart shows the different rates men and women pay for life insurance. The cheapest life insurance for men and the cheapest life insurance for women may be similar providers, but they will pay different costs.
| Company | 10-Year Term Average Monthly Rates | 20-Year Term Average Monthly Rates | 30-Year Term Average Monthly Rates |
|---|---|---|---|
| Mass Mutual | Male: $15.68 Female: $13.93 | Male: $23.48 Female: $20.03 | Male: $37.83 Female: $31.78 |
| Lincoln National | Male: $13.96 Female: $11.99 | Male: $20.31 Female: $17.20 | Male: $32.69 Female: $27.39 |
| Prudential | Male: $30.63 Female: $23.63 | Male: $33.25 Female: #27.13 | Male: $35.44 Female:$31.50 |
Smoking also impacts men and women differently in terms of rates.
Cheapest Life Insurance for Smokers
If all other factors are the same, smokers will pay more for life insurance. This is because they pose a higher risk than a non-smoker. Below is an example of a 20-year term life policy with $1 million in coverage.
| Term Life Insurance Coverage Amount | Average Annual 10-Year Term Rates | Average Annual 20-Year Term Rates | Average Annual 30-Year Term Rates |
|---|---|---|---|
| $100,000 | $9.86 | $11.68 | $15.34 |
| $250,000 | $11.32 | $14.88 | $21.52 |
| $500,000 | $14.63 | $20.89 | $31.42 |
Because smoking diminishes your health and lifespan, non-smokers are likely to get a cheaper policy.
Cheapest Life Insurance for Children
Children pose little insurance risk, so a life insurance policy for a child is pretty affordable. Children are often added as a rider to an existing policy.
| Companies | NAIC Rank | Ages Covered | Coverage Amount |
|---|---|---|---|
| State Farm | 9 | Birth - 18 years | $100,000 - $3,000,000 |
| Mutual of Omaha | 22 | 14 days-17 years | $5,000 - $50,000 |
| Thrivent | 29 | Birth - 15 years | $15,000 - $100,000 |
| Globe Life | N/A | Birth - 18 years | $5,000 - $30,000 |
| Gerber Grow-Up | N/A | 14 days - 14 years | $5,000 - $50,000 |
You may not qualify to add a child as a rider to your policy; it’s best to do your research before getting tied down to a contract that doesn’t suit your needs.
Cheapest Life Insurance with No Exam
Employment-offered life insurance is, generally, offered with no exam. If you do find a legitimate company that offers life insurance with no exam, be ready to answer questions based on your medical history.
The Best Life Insurance Companies
Finding who has the cheapest life insurance (or who has the cheapest life insurance for seniors) is going to vary from person to person.
Here are a few tips specifically for those with limited income seeking life insurance:
- Start online. Yes, just like everything in the world we live in, from ordering food to getting a ride to the airport, buying life insurance starts online. You can begin online to get an idea of the prices, but if you don’t know about the different types of life insurance, or you aren’t in good health, don’t apply before you talk to a broker first.
- Work with a broker. Comparing captive versus independent agents is harder than finding rates online because every life insurance website has rates, but very few will actually be helpful and walk you through the daunting underwriting process, medical exam, and your policy’s delivery.
- Resist the temptation to work with your Farmers Life Insurance or State Farm agent. This is where most unsavvy life insurance customers go first because they know their agent. Your car insurance agent may be a great person who understands a lot about car insurance; however, he/she is no expert in the life insurance field. In fact, they are a captive agent and will only provide rates from their company, which could cause you to pay more than you need to or end up with an unsuitable policy.
- Don’t skip the exam. A no-exam life insurance policy is convenient for sure, but you’ll pay more for the convenience of not taking the exam.
- Stay healthy. Easier said than done for most of us, but remember that even things like keeping a good sense of humor, laughing with friends, and staying positive will help your overall health. Applying while younger and healthy will not only save you money on your policy, but you’ll also have peace of mind knowing your loved ones will be taken care of.
- Stay within your budget. There’s nothing worse than buying a policy that you can’t pay for in the future.
- Does your employer provide coverage? Your employer may offer what is called group life insurance. The benefit of this coverage is that group and free life insurance are based on employment.
Free Life Insurance for Low-Income Families
Life insurance for low-income people may not be a specific program or offers from many companies, However, finding whole life insurance or simply life insurance quotes on a budget does not need to be difficult.
A low-income family is measured by the amount of money the household makes and how many family members live in the household.
According to the U.S. Department of Education, a family of four earning $37,650 per year is considered low-income.
Now, if you are the family’s breadwinner, and you are currently struggling financially, could you imagine what would happen to your loved ones if you were no longer here?
Here are some of the questions you may want to ask yourself:
- Will my children be able to pay tuition?
- Can my surviving spouse pay the mortgage balance?
- How can the remaining family members support themselves?
- Will they even have enough money to bury me?
- Eighty-three percent of potential buyers believe that life insurance is too expensive. When they were asked how much they thought it cost, most replied that it cost nearly three times the actual price.
- Most Americans believe that a healthy 30-year-old pays $400 per year for a $250,000 20-year policy. The actual truth is $146 per year for males and $128 for females.
- Most people do not understand life insurance (which is why you must use a broker).
The best life insurance for low-income families could be one of the big names or it could be the local provider.
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What type of life insurance should I get?
This is a hypothetical question, and since I don’t know anything about your health history or your financial goals, I’ll only cover the basics here.
I can’t stress enough that if you don’t know what policy to buy or are new to purchasing life insurance, you shouldn’t go about it all by yourself. Have a broker guide you through the options.
Term Insurance
Term life insurance offers the best bang for your buck, and it’s the most affordable type of coverage you can buy. In essence, you purchase protection for a particular timeframe, such as 10, 15, 20, or 30 years, where your premium and death benefit remains fixed for your chosen duration.
There is no cash value accumulation or investment component within this coverage, which makes term life an easy and straightforward product to understand.
Buy Term Life Insurance if You Are:
- Looking for mortgage protection or income replacement
- In good to average health
- Under the age of 50 years old
Final Expense
How much is final expense life insurance? It offers a smaller life insurance policy, typically up to a $25,000 death benefit, and is used to cover the charges of affairs specifically related to your death. These expenses might include final medical bills, burial services, and funeral costs.
Buy Final Expense Life Insurance if You:
- Are over the age of 50
- Are not in the best of health
- Need something to last a lifetime
Final expense policies are whole life, which also builds cash value that grows over time. The premiums and death benefit remain level for your entire lifetime.
Case Studies: Affordable Life Insurance for Low-Income Families
Case Study 1: The Johnson Family
The Johnson family consists of four members, with a total household income of $35,000 per year. They are concerned about their financial security in the event of an unexpected tragedy. Mr. Johnson works full-time, and Mrs. Johnson is a stay-at-home parent caring for their two young children.
After conducting research, the Johnsons come across MassMutual’s LifeBridge program. They discover that their income falls within the eligibility criteria and decide to apply. The family successfully qualifies for the program and receives a $50,000 life insurance policy at no cost. This coverage brings them peace of mind, knowing that their children will be financially protected if something were to happen to either parent.
Case Study 2: The Gonzalez Family
The Gonzalez family is a low-income household, earning $25,000 per year. They have three children and live paycheck to paycheck. Mrs. Gonzalez works part-time, while Mr. Gonzalez is the primary breadwinner. They have been looking for affordable life insurance options but have struggled to find something within their budget.
During their search, the Gonzalez family comes across a nonprofit organization that specializes in providing affordable life insurance to low-income families. They reach out to the organization and learn about a tailored policy designed to fit their financial circumstances. The family applies and is approved for a life insurance policy that offers a $25,000 death benefit at an affordable monthly premium. This coverage provides them with the peace of mind they were seeking, knowing that their children will be taken care of financially if anything were to happen to either parent.
Case Study 3: The Smith Company Employees
The Smith Company is a small business that employs several low-income individuals. Recognizing the importance of financial security for their employees, the company decides to offer group life insurance as part of their benefits package. By pooling the employees together under a single policy, the premiums become significantly more affordable for each individual.
One of the employees, Mr. Martinez, takes advantage of the group life insurance policy and includes his family as beneficiaries. As a low-income earner, Mr. Martinez finds comfort in knowing that his family will be protected financially if he were to pass away unexpectedly. The group life insurance policy offered by the Smith Company provides him with an affordable solution to ensure the well-being of his loved ones.
Frequently Asked Questions
Can you get free life insurance without a bank account?
No federal laws require insurance providers to accept any form of payment. You will need to discuss this detail with your provider.
Why do banks offer free life insurance?
Bank-owned life insurance is a form of policy that is is purchased by banks in which they are the beneficiary or owners of the policy.
Is it possible for low-income families to find affordable life insurance?
Yes, it is possible for low-income families to find affordable life insurance. There are various options and strategies available to help families with limited financial resources obtain coverage that fits within their budget.
Where can low-income families start looking for affordable life insurance?
Low-income families can start by researching and comparing life insurance policies from different insurance companies. It’s recommended to explore both traditional insurance providers and nonprofit organizations that offer life insurance specifically designed for low-income individuals and families.
What types of life insurance are typically more affordable for low-income families?
Term life insurance policies are generally more affordable for low-income families compared to permanent life insurance options. Term life insurance provides coverage for a specific period (e.g., 10, 20, or 30 years) and tends to have lower premiums.
Are there any government programs or assistance available for low-income families to obtain life insurance?
In some countries, there may be government programs or assistance available to help low-income families obtain life insurance coverage. It’s recommended to check with local government agencies or social service organizations to inquire about any available programs or subsidies.
How can low-income families determine the amount of life insurance coverage they need?
To determine the appropriate amount of life insurance coverage, low-income families can consider factors such as outstanding debts, funeral expenses, future education expenses for children, and income replacement needs. Online life insurance calculators can also help estimate coverage requirements.
Are there any organizations that specialize in providing affordable life insurance to low-income families?
Yes, there are nonprofit organizations and community-based initiatives that specialize in providing affordable life insurance options to low-income families. These organizations may have specific eligibility criteria and tailored policies to accommodate the unique needs and financial circumstances of low-income individuals and families.
What are some tips for finding the most affordable life insurance options for low-income families?
Compare quotes from multiple insurance providers to find the most competitive rates. Some tips for finding affordable life insurance for low-income families include:
- Consider term life insurance policies with shorter coverage periods for lower premiums.
- Seek guidance from insurance agents or brokers who specialize in serving low-income individuals and families.
- Explore group life insurance options through employers, unions, or membership organizations, which may offer discounted rates.
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Sara Routhier
Sr. Director of Content
Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...
Sr. Director of Content
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.