Life Insurance for Low-Income Families

Finding affordable life insurance for low-income families is possible if you know where to look for coverage. Lincoln National has the lowest life insurance rates for low-income families and costs are lower for younger customers. Additionally, term life insurance and group life policies offer the cheapest options for low-income families.

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Benjamin Carr was a licensed insurance agent in Georgia and has two years' experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. He is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

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Reviewed by Benji Carr
Former Licensed Life Insurance Agent

UPDATED: Aug 31, 2021

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Quick Facts

  • Lincoln National has the lowest rates for low-income families
  • Life insurance rates are lower for younger customers
  • The cheapest life insurance plans are term life and group life policies

Group life or term life insurance quotes are the cheapest for low-income families. Lincoln National has the lowest life insurance rates, but coverage depends on several factors. Learning more about life insurance for low-income families will help you find affordable coverage.

Before you buy life insurance for low-income families, enter your ZIP code above to compare life insurance rates from local companies in your area for free.

How much are life insurance rates for low-income families?

Comparing rates from the best life insurance companies will help you find affordable life insurance for low-income families. The following charts show the lowest rates for men for a $500,000 term life policy based on term length and company:

Life Insurance for Low-Income Families: Average Monthly Rates for $500,000 Policy by Term Length, Gender, and Company for Males
Company10-Year Term Average Monthly Rates20-Year Term Average Monthly Rates30-Year Term Average Monthly Rates
Lincoln National$13.93$20.31$32.69
MassMutual$15.68$23.48$37.83
Prudential$30.63$33.25$35.44
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The following chart shows the same information for women:

Life Insurance for Low-Income Families: Average Monthly Rates for $500,000 Policy by Term Length, Gender, and Company for Females
Company10-Year Term Average Monthly Rates20-Year Term Average Monthly Rates30-Year Term Average Monthly Rates
Lincoln National$11.99$17.20$27.39
MassMutual$13.93$20.03$31.78
Prudential$23.63$27.13$31.50
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As you can see, Lincoln National has the lowest term life insurance rates for low-income families. Additionally, you’ll notice that rates for women are lower than the rates for men.

Children’s life insurance is usually cheaper than adult coverage because they present little insurance risk. In most cases, you can add a child rider to an existing policy instead of purchasing a standalone plan for a dependent.

A child rider is usually available for children up to 18 years old, but it depends on the company. A single rider will usually cover all children in the family.

If you’re ineligible for a child rider, you might need to purchase a standalone policy for your child. The following chart shows the coverage options for a $10,000 child policy:

Life Insurance for Low-Income Families: Children's $10,000 Policy by Company, Coverage Range, Age Availability, Expiration Age, and Annual Cost
CompanyCoverage RangeAge AvailabilityExpiration AgeAnnual Cost
Banner Life$5,000-$10,00020-55Child’s 25th Birthday$55/year
Mutual of Omaha$1,000-$10,00018-55Child’s 23rd Birthday$72/year
Nationwide$5,000-$25,00018-55Child’s 22nd Birthday$50/year
Pacific Life$1,000-$10,00018-55Child’s 25th Birthday$55/year
Protective$1,000-$25,00018-64Child’s 25th Birthday$60/year
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As you can see, Protective offers the largest range of coverage and availability. Protective, Pacific Life, and Banner Life Insurance have the latest expiration date. Meanwhile, Nationwide has the lowest annual cost.

What are the cheapest options for life insurance for low-income families?

While you can usually get free life insurance quotes for low-income families, there are a limited number of free life insurance programs available. Some companies, like MassMutual, have funds to provide free life insurance to those in need.

For most people, the cheapest family life insurance is through an employer.

Some employers offer group life insurance, which accounts for about 43% of all life insurance policies. There are positives and negatives to this type of coverage.

In most cases, employers subsidize group life insurance. You are guaranteed coverage regardless of your age or health status. The rates are usually much lower than for an individual policy and might even be free.

However, the coverage available usually isn’t enough to fully provide for your family should you pass away. The policy also stays with the company, so you’ll lose coverage if you get fired or leave your job.

If you sign up for a group life insurance plan and get fired or leave your job, you might be able to convert it into an individual policy. However, the rates will likely be higher after the conversion.

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Top Ways to Save on Life Insurance for Low-Income Families

Several factors go into determining life insurance rates. Understanding what companies consider when determining rates will help you find cheap life insurance for family members.

A life insurance company for low-income families is primarily concerned about your life expectancy, so rates largely depend on your health and habits.

Because your life insurance rates will depend on your life expectancy, buying life insurance coverage while you’re young is the easiest way to secure affordable life insurance rates for low-income families.

The following are the top five ways to save on life insurance for low-income families:

#1 – Quit Smoking

Smoking significantly lowers your life expectancy. For this reason, smokers will always see higher life insurance rates than non-smokers. Quit smoking and lower your family life insurance rates.

#2 – Don’t Buy More Coverage Than You Need

Life insurance rates often depend on the amount of coverage you buy. Less coverage usually results in lower rates. Buying the minimum amount of coverage needed for your family will help you obtain lower rates.

#3 – Compare Life Insurance Quotes Online

Life insurance companies weigh factors differently, potentially impacting your rates. Comparing quotes from different companies will help you find the best coverage and rates for your family and lifestyle.

#4 – Buy Term Life Insurance

As previously mentioned, term life insurance is the cheapest type of coverage. If your income increases or you desire more coverage, you can usually convert a term life policy into a permanent life policy, such as whole life or universal life insurance.

#5 – Buy Group Life Insurance

The rates for group life insurance are lower than individual plans. Asking your employer if they offer group life insurance plans will help you find cheaper coverage.

What type of life insurance for low-income families is available?

There are two primary types of life insurance policies. The cheapest type of life insurance is a term life plan. These policies are available in five-year intervals, usually ranging from 10- to 30-year terms.

Another low-cost life insurance option is a final expense plan. These policies pay for final expenses, such as funeral and burial costs. The death benefit for these whole life policies is usually up to $25,000.

Your specific situation determines the amount of coverage you should purchase. Some factors that impact the amount of coverage you need include:

  • Number of dependents
  • Current and probable future debts, income, and assets
  • Costs your estate will owe after you die
  • How loved ones will support themselves without your salary

When looking to buy life insurance for low-income families, you should find a policy with enough coverage that is within your budget.

Life Insurance for Low-Income Families: The Bottom Line

When considering affordable life insurance, term life and group life policies offer the lowest rates. Understanding the personal factors that impact life insurance rates for low-income families will help you find the best coverage.

Now that you know about life insurance for low-income families, enter your ZIP code below to get free life insurance quotes in your area.

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