Cheap Life Insurance for Low-Income Families in 2025 (Top 10 Low-Cost Companies)
Cheap life insurance for low-income families is easy to find with the right provider, offering rates as low as $12/month. State Farm stands out as the top pick. Northwestern Mutual provides the best comprehensive plans, while AIG is ideal for international coverage, making them the best family options.
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Brandon Frady
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Agent
UPDATED: Jan 13, 2025
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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: Jan 13, 2025
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.
On This Page

Company Facts
Term Policy for for Low-Income Families
A.M. Best Rating
Complaint Level


Company Facts
Term Policy for Low-Income Families
A.M. Best Rating
Complaint Level


Company Facts
Term Policy for Low-Income Families
A.M. Best Rating
Complaint Level

Northwestern Mutual provides the best comprehensive plans, while AIG is ideal for families needing international coverage, and State Farm is the top pick for cheap life insurance for low-income families, offering affordable rates starting at just $12/month.
These three companies offer great options for low-income families looking for reliable life insurance without breaking the bank.
Our Top 10 Company Picks: Cheap Life Insurance for Low-Income Families
Company | Rank | Mothly Rates | A.M. Best | Best For | Jump to Pros/Cons |
---|---|---|---|---|---|
#1 | $12 | B | Customer Service | State Farm | |
#3 | $14 | A++ | Comprehensive Plan | Northwestern Mutual | |
#2 | $16 | A | International Companies | AIG | |
#4 | $18 | A+ | Easy Enrollment | Mutual of Omaha | |
#5 | $21 | A+ | Custom Coverage | Prudential | |
#6 | $24 | A+ | Family Coverage | Banner Life | |
#7 | $27 | A+ | Budget Friendly | Transamerica | |
#8 | $30 | A+ | Reliable Option | Pacific Life | |
#9 | $36 | A | Comprehensive Plan | Lincoln Financial | |
#10 | $39 | A+ | Wellness Focused | John Hancock |
Learn more about 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.
Some employers offer life insurance as a benefit, and some of these plans are free or come at a low cost. The guide, “Life Insurance Company Reviews” clears it all.
- State Farm offers affordable life insurance starting at $12/month for families
- Northwestern Mutual provides comprehensive coverage for low-income families
- AIG is the best option for international coverage at budget-friendly rates
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#1 – State Farm: Top Overall Pick
Pros
- Great for Affordability: State Farm has cheap life insurance for low-income families, with coverage starting at just $12 a month.
- Flexible Policy Options: it’s easy for low-income families to find one that fits their needs and budget, because State Farm offer a variety of plans.
- Well-Trusted Company: State Farm has been around for a long time and is known for being reliable, which gives families peace of mind.
Cons
- Not Many Discounts: State Farm doesn’t offer as many discounts as some other companies, which can be disappointing for budget-conscious families.
- Higher Costs: If you need a lot of coverage, your monthly premium could become a bit pricey. For more details, check out our guide, “State Farm Life Insurance Review.”
#2 – Northwestern Mutual: Best for Comprehensive Plan
Pros
- Strong and Trusted: It is a good choice for low-income families who need cheap life insurance, because Northwestern Mutual is safe and reliable.
- Affordable Plans: Their plans start at just $14 a month, which works well for low-income families looking for cheap life insurance.
- Helpful Support: Northwestern Mutual is known for excellent customer service and for making it easy for low-income families to understand and get cheap life insurance.
Cons
- Not Many Options: This could be a downside for low-income families wanting cheap life insurance because they don’t offer as many plans as other companies.
- Extras Cost More: They cost extra features, which might not work well for low-income families on a budget, as mentioned in the Northwestern Mutual life insurance guide.
#3 – AIG: Best for International Coverage
Pros
- Affordable Rates: AIG offers cheap life insurance for low-income families starting at $16 a month, which is budget-friendly.
- Covers Global Needs: If you need international coverage, AIG is a great option because it operates worldwide.
- Easy to Understand Plans: AIG keeps things simple, so families don’t get overwhelmed when choosing their coverage.
Cons
- Policy Terms Can Be Tricky: Some of AIG’s policies might feel complicated, which can be tough for families unfamiliar with life insurance.
- Less Personal Support: AIG focuses on online services, so there may not be as much in-person help available. For clarity, see our guide, “AIG Life Insurance Review.”
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#4 – Mutual of Omaha: Best for Easy Enrollment
Pros
- Simple Sign-Up: Mutual of Omaha makes enrollment easy so families can get coverage without a confusing process.
- Affordable Coverage: Their rates are manageable for low-income families looking for cheap life insurance starting at $18 monthly.
- Flexible Payment Options: You can pick a payment plan that works for your budget, which is helpful when money is tight.
Cons
- Not Many Discounts: There aren’t as many ways for low-income families to save on monthly premiums compared to other companies.
- Higher Premiums for Coverage: If you want more protection, the monthly cost might go up quickly. For deeper insights, use “Mutual of Omaha Life Insurance Guide.”
#5 – Prudential: Best for Custom Coverage
Pros
- Customizable Plans: Prudential lets you customized your plan, so you get coverage that fits your family’s specific needs.
- Affordable Start Rates: Prudential is a solid choice for low-income families looking for budget-friendly life insurance.
- Trusted Name: Prudential is a well-known company with a good reputation for serving families well, as explained in the Prudential life insurance guide.
Cons
- Extra Coverage Comes Costly: If you want additional features, the price can climb, which might not suit every budget. With plans starting at $21 a month.
- Some Plans May Be Pricey: Even though they start affordably, some of their more comprehensive plans might cost more than other companies’ options.
#6 – Banner Life: Best for Family Coverage
Pros
- Affordable Starting Rates: Banner Life starts at just $24 a month, making it a good option for families on a budget.
- Fast and Simple Process: Signing up is simple and fast, which works great for busy families. You can check out more in our “Banner Life Insurance Company Review.”
- Financially Strong: Banner Life is a solid and dependable company, so you can feel confident that your family is in good hands.
Cons
- Fewer Policy Options: Banner Life doesn’t offer as many plan choices for low-income families compared to other providers.
- Not Many Discounts: There are limited opportunities for low-income families to save on monthly premiums.
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#7 – Transamerica: Best for Budget-Friendly Plans
Pros
- Affordable Policies: Transamerica offers cheap life insurance for low-income families starting at $27 a month, which fits most budgets.
- Lots of Coverage Options: They have plans for different needs, making it easier to find something that works for your family.
- Financially Reliable: Transamerica has a strong financial reputation, so you know they’ll be there when you need them.
Cons
- Extras Cost More: If you want extra benefits or coverage, the cost can go up quickly. Understand better with our guide, “Transamerica Life Insurance Company Review.”
- Less Personal Support: Most of their services are online, so it’s not ideal if you prefer talking to someone face-to-face.
#8 – Pacific Life: Best for Reliable Option
Pros
- Dependable Coverage: Pacific Life has a long history of providing a reliable life insurance for families.
- Affordable Start: Pacific Life offer an accessible option for low-income families looking for coverage.
- Plans: They offer several plan types, which makes it easier to pick one that suits your need as low-income family, starting at $30 a month.
Cons
- Fewer Discounts: Pacific Life doesn’t offer as many savings opportunities as some competitors.
- Higher Price Tags: If you need higher coverage amounts, the cost can rise quickly for families. Find help in our guide, “Cheapest Life Insurance.”
#9 – Lincoln Financial: Best for Comprehensive Plans
Pros
- Affordable Starter Rates: Lincoln is a solid, affordable option for low-income families, offering reliable coverage and great customer service.
- Reputable and Reliable: Lincoln Financial is a strong, financially well-known company that families trust. Plans start at $36 a month.
- Broad Coverage Options: They offer a wide range of plans, making it easy to find something that works for your family.
Cons
- Extras Come at Cost: For low-income families, extra coverage and benefits can make monthly rates go up and become unaffordable.
- Limited Support: They don’t have as many options for in-person support compared to some other providers. Let our relevant guide, “Life Insurance Cost” teach you.
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#10 – John Hancock: Best for Wellness-Focused Plans
Pros
- Customizable Coverage: John Hancock offers flexible plans so low-income families can get precisely what they need.
- Wellness Perks: Their wellness-focused on options that can reward families for staying healthy, which adds extra value.
- Trusted Company: They are a well-regarded company with a history of providing strong customer support. Discover more in our guide, “John Hancock Life Insurance Review.”
Cons
- Higher Starting Price: Policies start at $39, which might be high for families looking for the cheapest life insurance.
- Complex Plans: Some of their options can be more complicated challenging to understand for families unfamiliar with life insurance.
Can I get Free Life Insurance?
Life insurance is usually isn’t free, but there are some options that might be very affordable, especially for low-income families. Our guide, “Life Insurance Coverage Question,”
Low-Income Families Life Insurance Monthly Rates by Provider & Coverage Level
Insurance Company | Term Policy | Whole Policy |
---|---|---|
$16 | $30 | |
$24 | $39 | |
$39 | $54 | |
$36 | $51 | |
$18 | $33 | |
$14 | $28 | |
$30 | $45 | |
$21 | $36 | |
$12 | $26 | |
$27 | $42 |
Also, some state programs and non-profit organizations offer free or low-cost life insurance to help people in need. Check to see if there are any programs in your area.
Life Insurance Discounts From the Top Providers for Low-Income Families
Insurance Company | Available Discounts |
---|---|
No-Exam, Auto-Pay, Early Signup | |
Multi-Policy, Wellness, Healthy Family | |
Vitality Program, No-Exam, Early Signup | |
Healthy Family, Auto-Pay, Wellness | |
Healthy Lifestyle, Early Bird, No-Exam | |
Wellness, Auto-Pay, Multi-Policy | |
Wellness, Safe Family, Early Signup | |
Auto-Pay, Healthy Family, No-Exam | |
Multi-Policy, Safe Family Discount | |
Healthy Lifestyle, Safe Family, Early Bird |
If you don’t qualify for those, low-cost term life insurance policies might be a good option for you. It’s best to compare prices from different companies to find the most affordable one.
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. We’ll get into that. First, you should figure out what expenses are going to need to be covered after death.
Term life insurance is often the most affordable option for seniors, providing coverage for a set period to protect loved ones from financial burdens.Tim Bain Licensed Agent Insurance
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
The cheapest life insurance for men and the cheapest life insurance for women may be similar providers, but they will pay different costs. 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. 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. Explore more through our guide, “Life Insurance by Age.”
Knowing your financial big picture is taken care of? Good plan. An advisor like Regina Warren makes sure you’re ready for tuition costs, retirement, and all your other short- and long-term goals. pic.twitter.com/3s3KEvAulT
— Northwestern Mutual (@NM_Financial) November 14, 2023
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.
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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 $3,138 per month 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? The best life insurance for low-income families could be one of the big names or it could be the local provider.
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.
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. 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: Finding the Best Life Insurance for Felons
Getting life insurance as a felon can be challenging, but finding affordable options is possible if you know where to look. In these case studies, we’ll examine how three people with felony convictions could find life insurance that worked for them despite the challenges.
- Case Study #1 – Steve’s Smart Decision to Compare Quotes: Having a felony can make life insurance more expensive, but Steve didn’t let that stop him. He didn’t settle for high rates. In the end, he found a plan with Prudential for just $12 a month, which fit his budget, even with his past.
- Case Study #2 – Amy’s Patience and Long-Term Savings: Amy wanted a fresh start after being out of prison for a few years. Her felony made insurance more expensive, but she kept looking. Finally, she found a plan with AIG for $16 a month. It wasn’t perfect, but a few years helped her find a better deal. Patience paid off, and she got a fair rate.
- Case Study #3 – Mark’s Need for Quick Coverage: Mark needed life insurance fast to protect his family, but his felony conviction made him a higher risk in the eyes of insurers. He didn’t want to wait years for a better offer, so he chose a policy from Northwestern Mutual for $14 per month. He chose a policy that met his immediate needs, even if it meant paying a little more.
Getting life insurance as a felon can be challenging, but as these case studies show, finding coverage that works for you is possible by shopping around, being patient, or choosing a policy that meets your immediate needs.
Comparing quotes is integral to finding the best rates possible. Enter your ZIP code into our free tool today to see what quotes might look like for you.
Frequently Asked Questions
What is free government life insurance?
Free government life insurance is a program or policy sometimes offered by government agencies to provide life insurance coverage at no cost to eligible individuals, often including low-income families or veterans.
Can low-income families qualify for life insurance?
Yes, low-income families can qualify for life insurance. Many companies offer low-income life insurance options, making it easier to find affordable plans. You can find the cheapest insurance coverage tailored to your needs by entering your ZIP code.
What is life insurance for poor people?
Life insurance for poor people refers to policies designed to be affordable for individuals with limited income, helping them secure financial protection. Visit our guide, “Life Insurance with Pre-Existing Conditions” for more information.
How can I find low-cost life insurance?
To find low-cost life insurance, compare quotes online, look for affordable life insurance policies, and research how to get cheap life insurance options that fit your budget. Enter your ZIP code to start comparing premiums from highly-rated insurers in your area.
What’s the best life insurance for low-income individuals?
The best life insurance for low-income individuals depends on their needs. Look for low-income life insurance or affordable life insurance plans that provide good coverage at a low price.
Are there affordable life insurance plans for families?
Yes, there are affordable life insurance plans for families, including cheap family life insurance and affordable family life insurance policies that cover both adults and children. Learn more with our guide, “Types of Life Insurance: Find the Right Policy for Your Needs.”
How can someone with poor health get life insurance?
Life insurance for someone with poor health can be challenging, but options like guaranteed issue or simplified issue policies are available. Research how to get cheap life insurance even with health concerns.
What is a family income life insurance policy?
A family income life insurance policy provides regular income payments to your family if you pass away, offering financial security for low-income families.
Is it possible to get cheap life insurance for seniors?
Yes, seniors can find cheap life insurance through providers that specialize in low-cost plans. Look for options like affordable life insurance for adults or plans focused on final expenses. Find out more in guide, “Best Life Insurance for Seniors over 60.”
How can I get free or affordable life insurance?
To learn how to get free life insurance, check government programs or community resources. For low-income families, affordable life insurance options like low-income life insurance or most affordable life insurance plans can provide good coverage without a high cost.
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Brandon Frady
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed 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.