Life Insurance for Low-Income Families [2023]
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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Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
UPDATED: Jul 7, 2023
It’s all about you. We want to help you make the right life insurance 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 company and cannot guarantee quotes from any single company.
Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code above 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 7, 2023
It’s all about you. We want to help you make the right life insurance 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 company and cannot guarantee quotes from any single company.
Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- 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:
| Company | 10-Year Term Average Monthly Rates | 20-Year Term Average Monthly Rates | 30-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 |
The following chart shows the same information for women:
| Company | 10-Year Term Average Monthly Rates | 20-Year Term Average Monthly Rates | 30-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 |
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:
| Company | Coverage Range | Age Availability | Expiration Age | Annual Cost |
|---|---|---|---|---|
| Banner Life | $5,000-$10,000 | 20-55 | Child’s 25th Birthday | $55/year |
| Mutual of Omaha | $1,000-$10,000 | 18-55 | Child’s 23rd Birthday | $72/year |
| Nationwide | $5,000-$25,000 | 18-55 | Child’s 22nd Birthday | $50/year |
| Pacific Life | $1,000-$10,000 | 18-55 | Child’s 25th Birthday | $55/year |
| Protective | $1,000-$25,000 | 18-64 | Child’s 25th Birthday | $60/year |
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.
Ready to compare quick life insurance quotes?
Your life insurance quotes are always free.
Secured with SHA-256 Encryption
Your life insurance quotes are always free.
Secured with SHA-256 Encryption
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.
Case Studies: Life Insurance for Low-Income Families
Case Study 1: Affordable Coverage for Younger Customers
One low-income family, the Johnsons, were searching for affordable life insurance options to secure their financial future. They came across Lincoln National, which offered the lowest life insurance rates for low-income families.
Being a younger couple, the Johnsons found that the costs were even lower for them. They decided to opt for a term life insurance policy, which provided them with the cheapest option to meet their needs.
Case Study 2: Group Life Insurance for Lower Costs
The Smith family, facing financial constraints, explored different avenues to obtain life insurance coverage. They discovered that group life insurance policies offered by employers could be a viable option.
Mr. Smith inquired with his employer and found that the rates for group life insurance were significantly lower compared to individual plans. Though the coverage was not as extensive, it provided them with affordable protection for their family.
Case Study 3: Adding a Child Rider for Cost Savings
The Thompsons, a low-income family with two young children, were concerned about providing financial security for their kids in the event of an unforeseen circumstance. They learned that children’s life insurance is usually cheaper and found out that they could add a child rider to their existing life insurance policy.
By doing so, they were able to secure coverage for their children at a lower cost instead of purchasing a separate policy.
Your life insurance quotes are always free.
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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.
Frequently Asked Questions
How much does life insurance cost for low-income families?
The cost of life insurance varies based on factors like age, gender, coverage amount, and the insurance company. Lincoln National offers the lowest rates for low-income families.
Is children’s life insurance cheaper?
Yes, children’s life insurance is usually cheaper. You can add a child rider to an existing policy instead of buying a separate plan.
What are the cheapest options for low-income families?
Group life insurance and term life insurance are the cheapest options.
How can low-income families save on life insurance?
Quitting smoking, buying the right amount of coverage, comparing quotes online, choosing term life insurance, and considering group plans can help save money.
What types of life insurance are available?
The main types are term life insurance (coverage for a specific term) and final expense insurance (covers funeral costs).
Your life insurance quotes are always free.
Secured with SHA-256 Encryption
Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
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.
