Updated: November 21, 2024
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Life insurance provides the best solution to financially protect your loved ones in the event of your untimely death. With several companies offering life insurance in Austin, it is prudent to shop around and compare prices to receive the policy that best suits your needs.
MoneyGeek's analysis of the best life insurance companies in Austin based on age, gender and smoking history will help you evaluate the best options.
BestLife InsuranceAustin, TXBest Life Insurance Companies in Austin, TX, for 2023
Life insurance premiums are significantly affected by policy amount and gender. MassMutual provides the lowest $250K coverage in Austin, costing about $11 monthly for men and women, on average. A plan with $250K coverage may be cheaper to purchase but insufficient for your beneficiaries, however.
Based on cost of living, average income, average age, average personal debt and other state-specific data, the state-suggested average amount for Texas of $719,000 offers an ideal level of coverage. MassMutual’s quote of about $20 per month for men and Nationwide’s quote of $18 per month for women are the cheapest at this amount, on average.
Cheapest For | $250K Coverage | $719K Coverage (Recommended) |
|---|---|---|
Male | MassMutual | MassMutual |
Female | MassMutual | Nationwide |
The policyholder's gender can also significantly affect life insurance costs. Compared to the women statewide, women in Austin pay about 16% more, whereas men pay 13% more than men across the state.
On average, men in Austin spend $21 monthly for a $250K policy, while women pay $18 for the same coverage. However, policies with the state-recommended coverage amount (based on per capita income from the U.S. Bureau of Economics, average age and average mortgage debt and personal debt) will have higher insurance premiums.
Obtaining Texas’s recommended coverage amount of $719K costs an average of $44 for men and $38 for women each month. However, regardless of the coverage amount, a 10-year term policy costs an average of $25 per month for women and $28 for men.
| MassMutual | $11 | $20 |
| Nationwide | $12 | $20 |
| Mutual of Omaha | $12 | $21 |
| Transamerica | $16 | $33 |
| State Farm | $21 | $41 |
| AAA | $22 | $49 |
| Progressive Life | $24 | $53 |
| Prudential | $29 | $62 |
| Nationwide | $12 | $18 |
| Mutual of Omaha | $12 | $18 |
| MassMutual | $11 | $18 |
| Transamerica | $14 | $28 |
| State Farm | $23 | $38 |
| AAA | $19 | $43 |
| Progressive Life | $19 | $45 |
| Prudential | $21 | $59 |
Life insurance policy costs were determined by gathering 10-year term quotes from major life insurance companies in Austin using average buyer profile statistics, including the average age of 28, the average weight of 197 pounds for males and 156 pounds for females, and an average coverage need of $719,000.
On average, women have a higher life expectancy than men, according to the National Center for Health Statistics. In contrast, men tend to take more risks, engage in hazardous jobs and acquire heart disease. Men are also more likely to avoid healthcare. These considerations cause insurers to charge men higher premiums.
Men make up the majority of life insurance policyholders. Women now earn more than ever before, and the economic importance of stay-at-home mothers has increased. Besides, having a longer life expectancy qualifies women for cheaper insurance rates. These are all good reasons why women should obtain life insurance.
In Texas, according to the market share, Northwestern Mutual (7%), New York Life (6%) and Lincoln Financial (6%) are the three most popular life insurance companies. About 35% of the market share in the state is owned by the state's top seven companies.
The market share information for the seven most popular life insurance companies in Austin, Texas, is provided below.
| Northwestern Mutual | 7% |
| New York Life | 6% |
| Lincoln Financial | 6% |
| State Farm | 4% |
| Pacific Life | 4% |
| MassMutual | 4% |
| Transamerica | 4% |
Market share is the percentage share of a company's sales relative to other companies in the same industry. The larger a company's market share, the more market domination the company holds. If a company has a large market share in life insurance, it indicates that it has sold a higher number of policies than its competition.
MoneyGeek assessed the market share statistics of life insurance companies based on their total premiums as reported in S&P Global's 2020 data reports.
Life insurance premiums for young adults in Austin range from $15–$26 per month. The cheapest and best life insurance companies in Austin for young individuals, according to MoneyGeek, are:
The following table shows the life insurance premiums for young individuals in Austin as offered by several insurers:
| Transamerica | $15 |
| Mutual of Omaha | $17 |
| MassMutual | $18 |
| AAA | $19 |
| Prudential | $20 |
| Nationwide | $21 |
| State Farm | $25 |
| Progressive Life | $26 |
MoneyGeek determined these rates by analyzing quotes for a 25-year-old male non-smoker in Austin, Texas, who is 5 feet 10 inches tall and 167 pounds. This sample customer purchases a 20-year term contract at the average coverage need of $270,000. We chose a 20-year term to provide a longer coverage period for a younger buyer.
Life insurance is more affordable for persons under the age of 25. As you age and grow more susceptible to certain diseases, your premiums become expensive. Buying life insurance at a younger age is one of the best ways to save money. If you are younger and healthier than the average person, your insurance premiums will be lower.
Life insurance premiums for seniors residing in Austin typically range from $43–$89 a month, on average. The following companies provide seniors with the most affordable life insurance quotes in Austin:
An additional list of the best and cheapest insurers for seniors in Austin may be found in the table below:
| MassMutual | $43 |
| Mutual of Omaha | $49 |
| Nationwide | $50 |
| State Farm | $58 |
| Progressive Life | $78 |
| AAA | $81 |
| Transamerica | $89 |
| Prudential | $89 |
These rates apply to sample quotes for a 60-year-old male non-smoker in Austin, Texas, who is 5 feet 10 inches and 197 pounds, seeking a 10-year term contract at the average coverage need of $82,000.
Life insurance can be more expensive for seniors since it is more probable that their life insurance policy will outlive them. Seniors, on the other hand, may not need as much coverage as the average adult since their beneficiaries are more likely to be financially independent adults.
They usually anticipate the proceeds from their life insurance policies to cover expenses, such as funeral charges and debt repayment. Because of this, MoneyGeek's sample coverage for a senior in Austin is just under $100,000.
Life insurance premiums for smokers in Austin range from about $128–$236 per month, on average. According to MoneyGeek, the cheapest life insurance for smokers in Austin are from the following companies:
Find a list of the city's cheapest and finest insurers for smokers in the table below.
| MassMutual | $128 |
| State Farm | $129 |
| Nationwide | $129 |
| Transamerica | $143 |
| Mutual of Omaha | $144 |
| Progressive Life | $201 |
| Prudential | $214 |
| AAA | $236 |
MoneyGeek determined rates by analyzing quotes for a 28-year-old male smoker in Austin, Texas, who is 5 feet 10 inches and 197 pounds, purchasing a 20-year term contract at the average coverage need of $719,000. If you are a smoker, we suggest buying a longer-term (20-year) policy to provide extended coverage, as rates increase significantly with age.
Due to the long-term negative effects that smoking has on health, insurers consider smokers to be high-risk and charge them higher insurance premiums. Fortunately, there are still affordable options for smokers to obtain life insurance.
MoneyGeek determined the recommended life insurance coverage by factoring in per capita income from the U.S. Bureau of Economics, average mortgage debt, average personal debt and average age. Each buyer is unique and may need more or less coverage depending on their specific circumstances.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
