Best Life Insurance Companies In Alabama For 2024

My findings have shown that MassMutual is the best life insurance company in Alabama.

min read
Updated: 15 April 2024
Written by
Bob Phillips
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People who live in Alabama, just like people everywhere, want to save some time finding the best life insurance, at a price that won’t break the bank. My goal is to do your research for you and help you locate and secure the best coverage for your situation, as quickly and efficiently as possible.

While conducting my research on life insurance in Alabama, I discovered that the best life insurance company in the state is MassMutual.

If you don’t have adequate life insurance in place, your loved ones might not have the means to live the lifestyle you want for them should you pass away unexpectedly. Purchasing life insurance is a certain sign of your commitment to the ones you care about.

Best Life Insurance Companies In Alabama 2024

mutualofohamaicon-logo
Best for Seniors - Mutual of Omaha
transamerica-icon-logo
Best for Young People - Transamerica
nationwide-icon-logo
Best for Smokers - Nationwide
Best Life Insurance, Alabama, 2024

Compare The Best Life Insurance In Alabama

To help make an evaluation of the best life insurance companies in Alabama, below is a table displaying preferred companies across a few key factors.

Overall Rating Best For Online Experience J.D. Power Rating (Best 1000) A.M. Best Rating Get A Quote
MassMutual
4.8

Best Overall

9.7

780

A++

Instant Quote
Transamerica
4.7

Young Adults

9.8

740

A

Instant Quote
Mutual of Omaha
4.6

Seniors

9.7

801

A+

Instant Quote
State Farm
4.8

Best for Customer Service

9.5

839

A++

Instant Quote
MassMutual
4.8

Best for Cheapest Life Insurance

9.7

780

A++

Instant Quote
Nationwide
4.6

Best for Smokers

9.6

791

A+

Instant Quote
Scroll to see comparisons

Our Methodology

The approach I took in determining the best life insurance companies in Alabama was in-depth and extensive. I considered multiple factors, including online experience, product offerings, pricing, and customer service ratings. In addition, my own experience in sales of life insurance as well as interacting with agents from other insurance providers has given me valuable insights into their services and products.

31

Quotes Analyzed

15+

Years of experience

23

Brands reviewed

32+

Research hours

Best Life Insurance Companies In Alabama


Best Overall

Overall Rating
4.8

Key Statistics

10/10 Affordability
8/10 Customer Reviews
10/10 Claims
10/10 Coverage Level

Why We Like Them

I awarded the title of Best Overall to MassMutual because of its numerous strengths. The company offers a broad selection of first quality life insurance products, including term life, whole life, and universal life insurance, all at extremely competitive rates. Additionally, MassMutual policies offer  various riders to choose from.

Sales agents at MassMutual are highly trained as well as knowledgeable about life insurance. They’re often referred to as “career agents” and have had extensive training on the insurer’s life insurance product line. These agents are dedicated to representing only MassMutual products. This is an advantage to life insurance buyers who wish to familiarize themselves with the different types of life insurance.

MassMutual’s financial strength was another important factor in  selection. It has received the highest possible rating from AM Best (A++ Superior) due to its superior financial strength and ability to pay claims.

Being chosen as the Best Overall is a reflection of MassMutual’s dedication to provide a wide range of products supported by a well trained sales team, instead of  just having the cheapest rates. While MassMutual might not have as high a level of brand recognition or market share as some competitors in Alabama, it’s nevertheless a highly respected and reputable brand of life insurance throughout the Yellowhammer state.

Benefits & Drawbacks

Benefits
  • Superior financial ratings
  • Diverse product portfolio with many riders
  • Cheapest rates in Alabama
Drawbacks
  • Inability to purchase whole life products online
  • Lower J.D. Power rating than some major competitors
  • Exclusive availability through MassMutual agents

Best for Seniors

Overall Rating
4.6

Key Statistics

9/10 Affordability
8/10 Customer Reviews
10/10 Claims
10/10 Coverage Level

Why We Like Them

Mutual of Omaha has long been acclaimed for its expertise in addressing the insurance needs of seniors. For many years, seniors have put their faith in the company, not only because of their popular television show “Mutual of Omaha’s Wild Kingdom,” but also because of the in-depth training their agents undergo on serving the insurance needs of the senior market.

This company is well known for its senior life insurance products portfolio, including two types of products that are designed for seniors with health issues. One of these products is a guaranteed issue policy that doesn’t require a medical exam or a health history questionnaire, which renders it ideal for seniors with serious medical issues like stroke, cancer, or heart attack.

The other is a simplified issue policy that does require answers to medical history questions but does not require a medical exam, making it a splendid choice for seniors with minor medical issues such as high blood pressure or Type 2 Diabetes who don’t want to have a medical examination.

Benefits & Drawbacks

Benefits
  • Competitive rates for seniors in Alabama
  • Offers seniors peace of mind through well-trained agents
  • Demonstrates strong financial stability
Drawbacks
  • Reports a higher ratio of complaints than some competitors
  • Features fewer agents in Alabama compared to many other major insurers

Best Life Insurance Companies For Seniors In Alabama

Company Monthly Cost
MassMutual $38.36
Mutual of Omaha $43.45
Nationwide $44.18
State Farm $51.49
Progressive Life $69.18

*Based on $75,000 of coverage for a 60-year-old male non-smoker buying a 10-year term life contract.


Best for Young Adults

Overall Rating
4.7

Key Statistics

9/10 Affordability
8/10 Customer Reviews
10/10 Claims
10/10 Coverage Level

Why We Like Them

Transamerica is well aware of its company’s strong points, one of which is affordable life insurance premiums for young adults. This company understands that a lot of young people are prudent with their finances, especially when it comes to purchasing life insurance.

That’s the reason Transamerica priced its policies to be accessible to a younger, more budget conscious group of consumers who want to maximize their coverage while staying within their budget.

In addition, the Transamerica website is designed with younger buyers in mind simply because this demographic is all about doing things online, and value clear, concise information that’s easy to find and understand.

The Transamerica site is informative and user friendly, so its customers can navigate their options and find the information they need with ease. Transamerica believes everybody deserves the protection and peace of mind that life insurance provides, no matter their age or budget.

Life insurance companies face a challenging market when it comes to younger age buyers. This is predominantly due to the fact that most younger adults haven’t yet seen the necessity of life insurance. This is a demographic that tends to marry later and postpone securing life insurance until after they get married or have children.

Still, companies such as Transamerica focus on selling life insurance to this age group because they have lower mortality rates, meaning higher profits.

Of all the companies I reviewed, Transamerica got the lowest score in customer service. This might well be attributed to their dependence on independent insurance agents for both sales and service. Some independent agents who work alone without supervision from a company may need to improve in these areas.

Benefits & Drawbacks

Benefits
  • Online availability for purchasing term life insurance
  • Offers policy face amounts as high as $10 million
  • Qualifying applicants can secure coverage of up to $2 million without a medical exam
Drawbacks
  • The minimum term life insurance face amount available is $25,000
  • Records lower customer service satisfaction scores compared to competitors

Best Life Insurance Companies For Young Adults In Alabama

Company Monthly Cost
MassMutual $15.52
Transamerica $15.70
Nationwide $18.58
Mutual of Omaha $20.32
Progressive Life $24.73

*Rates are for a 25-year-old male nonsmoker that purchases a $250,000 20-year term life policy.


Best for Customer Service

Overall Rating
4.8

Key Statistics

9/10 Affordability
10/10 Customer Reviews
10/10 Claims
8/10 Coverage Level

Why We Like Them

For many years, J.D. Power has recognized State Farm as a life insurance company with high customer satisfaction rankings, which are a reflection of the company’s commitment to superior policyholder service. This isn’t surprising, given that State Farm has more agents in the field than any other insurance company in America.

State Farm is renowned for its commitment to superior customer service, which is much appreciated by its policyholders. The company is unique in that it has numerous local neighborhood offices where policyholders are able to meet with their local agent in person to get the sales assistance or policyholder service they require.

State Farm is well known for its superior customer service and prompt claims process, which is a crucial factor in the life insurance sector, especially when a family is mourning and dependent on its life insurer for timely, compassionate assistance.

Benefits & Drawbacks

Benefits
  • Maintains a significantly lower number of customer complaints than the industry average
  • Holds top financial ratings for claims-paying ability
  • Boasts the largest number of agents providing service compared to any other insurer
Drawbacks
  • Limited to purchasing policies exclusively through State Farm agents
  • Offers a restricted number of available riders

Best for Smokers

Overall Rating
4.6

Key Statistics

10/10 Affordability
9/10 Customer Reviews
10/10 Claims
9/10 Coverage Level

Why We Like Them

Nationwide is a top drawer company with numerous local offices for sales as well as service. Their slogan: “Nationwide is on your side,” is nothing less than the truth for smokers in Alabama searching for life insurance. While Nationwide’s rates for smokers are a little bit higher than its major competitors, the conclusion was that it’s the best option overall for smokers due to excellent customer service, competitive rates, and easy access to agents.

Benefits & Drawbacks

Benefits
  • Nationwide policies are marketed through a widespread network of well-trained agents
  • Provides a comprehensive range of life insurance products
  • Maintains numerous offices located throughout Alabama
Drawbacks
  • Absence of online applications for life insurance products
  • Exclusive availability through Nationwide agents

Best Life Insurance Companies In Alabama For Smokers

Company Average Monthly Cost
MassMutual $102.00
Mutual of Omaha $110.00
Nationwide $111.00
Transamerica $118.00
State Farm $130.00

*Rates based on $632,000 of 20-year term life for a 30-year-old male smoker

If you’re a smoker looking to purchase life insurance, you’ll find that you will pay much more than a non-smoker. Still, it’s not impossible to lower your rates comparable to those of non-smokers by showing you haven’t smoked for the past 12-24 months, depending on the insurance company policies. You should know that you’ll have to undergo a paramedical exam along with a blood test to prove that there is no nicotine in your bloodstream.


Best For Cheapest Life Insurance

Overall Rating
4.8

Key Statistics

10/10 Affordability
9/10 Customer Reviews
10/10 Claims
9/10 Coverage Level

Why We Like Them

MassMutual, Alabama’s top life insurance provider, is also a financial leader with highly competitive rates throughout the state. Despite the availability of numerous inexpensive term insurance companies doing business in Alabama, MassMutual’s rates remain the most favorable.

Although it isn’t recommended to base your life insurance purchase exclusively on cost, the truth is that price is a critical factor for most life insurance buyers. MassMutual offers the lowest rates for people who are looking to purchase life insurance in Alabama, even though the company is normally associated with professionalism instead of affordability.

Nevertheless, MassMutual is dedicated to expanding its market share in this state and is using aggressive pricing strategies to achieve that objective.

Benefits & Drawbacks

Benefits
  • A vast network of well-trained agents markets MassMutual policies
  • Provides a comprehensive range of life insurance products
  • Emerges as the most cost-effective option we assessed for life insurance in Alabama
Drawbacks
  • Lacks online applications for life insurance products
  • Exclusive availability through MassMutual agents

Cheapest Life Insurance Companies In Alabama

Company Average Monthly Cost
MassMutual $9.98
Nationwide $10.64
Mutual of Omaha $11.02
Transamerica $11.09
State Farm $23.07

*Rates based on a $250,000 10-year term life policy for a 30-year-old female nonsmoker

How To Find The Best Life Insurance Company For You

If you’re shopping around for life insurance in Alabama, remember that there’s never any one-size-fits-all coverage. Insuranceopedia understands that everyone’s situation is unique to their personal needs. This is why I evaluate multiple insurance providers and have awards for different categories. To find the very best life insurance for your specific situation, I highly recommend following these 3 steps:

  1. Determine how much coverage you require. A lot of life insurance companies provide “life insurance calculators” on their websites to help you figure the amount of coverage you require.
  2. Choose 3 companies to compare. It’s a good idea to compare insurance carriers, not only their rates, but their financial stability, too. Low rates are important, of course, but they would be meaningless in the event your insurer couldn’t pay your claim.
  3. Make an application for coverage. Numerous life insurance buyers never go all the way to complete the purchasing process to secure life insurance. So it’s important not to procrastinate when buying life insurance, because if you need it, it will already be too late to get it. Your family’s whole financial future is on the line, so it’s of utmost importance to act fast.

Largest Life Insurance Companies In Alabama

There are dozens of life insurance companies doing business in Alabama. These are the five largest as measured by market share:

Company Market Share
New York Life 9.79%
State Farm 7.59%
Northwestern Mutual 6.79%
Primerica 3.84%
Southern Farm Bureau Life Insurance 3.69%

Average Cost Of Life Insurance In Alabama For Females 

Company Rates For $250,000 Coverage Rates For $632,000 Coverage
Mutual of Omaha $11.98 $14.97
MassMutual $9.97 $14.29
Nationwide $11.02 $22.15
Transamerica $14.01 $27.04
State Farm $20.01 $32.02

 *Rates based on a 10-year term life policy for a 30-year-old female nonsmoker 

Average Cost Of Life Insurance In Alabama For Males 

Company Rates For $250,000 Coverage Rates For $632,000 Coverage
MassMutual $10.05 $16.06
Nationwide $11.09 $17.07
Mutual of Omaha $12.03 $18.01
Transamerica $14.98 $30.03
State Farm $18.99 $30.05

**Rates based on a 10-year term life policy for a 30-year-old male nonsmoker

Factors That Impact The Cost Of Your Life Insurance In Alabama

The cost of life insurance in Alabama is influenced by several factors, including:

  • Age
  • Gender
  • Smoking habits
  • Your life insurance company
  • Health status
  • Riders added to your policy
  • Smoking habits
  • Credit score

It’s not unusual for males to pay higher insurance premiums than females simply because historically, men have shorter lifespans. By the same token, individuals who smoke are charged higher rates because they also have shorter life expectancies.

In the state of Alabama, insurance providers may also consider your credit score when making a determination of your insurance rate. If you add riders to your policy, such as a disability waiver of premium or child riders, you can expect to pay higher rates.

How Much Life Insurance Do You Need In Alabama?

The amount of life insurance you need will vary based on your individual circumstances. For instance, if you own your home, you’ll ordinarily need more coverage than people who rent their homes. People with dependents, such as children, might need a higher level of protection, as well.

Life insurance agents will typically advise obtaining coverage of 10-20 times your yearly salary to ensure adequate protection for your loved ones. For example, if your annual income is $75,000, you might need coverage ranging anywhere from $750,000 to $1.5 million.

Alabama Life Insurance Laws To Know

If you are thinking about securing life insurance in Alabama, you should familiarize yourself with the state’s guidelines that are in place top protect you as an insurance policyholder. These laws include the following:

Contestable Period

According to Alabama law, life insurance companies can deny payment of a claim if they find out that the policyholder gave false or misleading information on their application within 2 years of the effective date of the policy. But, after 2 years have passed, the insurer can’t contest the application based on any errors or discrepancies.

Free Look Period

After receiving your life insurance policy from the company or agent, you have ten days to review it. If you decide that you don’t want the policy after all during this time, you may return it without incurring a penalty and get a full refund of any premiums you’ve paid to the insurance company.

Grace Period For Missed Payments

If you miss a payment, Alabama law allows for a thirty day grace period during which time you can still make the payment without forfeiting your coverage.

Time Allowable To Settle A Claim

In order for beneficiaries to receive the benefits of a life insurance policy, they’re required to file a claim with the insurer. Once the claim is made, all life insurance companies in the state of Alabama must settle the claim within thirty days.

FAQs

Is life insurance more expensive in Alabama?

The cost of life insurance in Alabama is in line with other states. Insurance providers who charge higher premiums usually do so because they’ve paid more claims than they anticipated.

How much per month is a million-dollar life insurance policy in Alabama?

Findings were that MassMutual offers the most favorable rate for a ten year term life policy of $1 million in Alabama, with a monthly premium of $25.

What is the average monthly cost of life insurance in Alabama?

The premium of a thirty year old male in Alabama may be as little as $9.99 monthly for $250,000 worth of coverage. The same coverage for a thirty year old female in Alabama will cost about $9.40 monthly.

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