Updated: October 3, 2024
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If you pass away unexpectedly, your beneficiaries may be left without financial support. Life insurance provides a financial safeguard for your loved ones in the event of your untimely demise.
With several companies to choose from, finding the best policy for your beneficiaries may seem like a daunting task. However, MoneyGeek's comparison of life insurance companies in Montgomery, Alabama, provides useful information to help you choose the right policy for your buyer profile.
BestLife InsuranceMontgomery, ALBest Life Insurance Companies in Montgomery, AL, for 2023
In Montgomery, MassMutual offers the cheapest policies for a $250K coverage limit to men and women for $10 and $9 per month, respectively.
If the policy does not have enough coverage for your beneficiaries, you may want to consider getting a life insurance policy with a higher coverage amount. The state-recommended coverage amount in Alabama of $592K is based on state-specific facts like cost of living, income and age. As such, it may be a good starting point to assess your coverage needs.
For a policy with Alabama's recommended coverage amount, MassMutual offers the cheapest rates to men for $15 per month, while Nationwide provides the most affordable policies to women for $13 per month.
Cheapest For | $250K Coverage | $592K Coverage (Recommended) |
|---|---|---|
Male | MassMutual | MassMutual |
Female | MassMutual | Nationwide |
MoneyGeek compared the average cost of life insurance in Montgomery to the average cost of life insurance in the state of Alabama. We found that men in Montgomery pay 3% less and women pay 2% less than the state average.
Gender is one of the primary factors that impacts the cost of life insurance. On average, men pay $19 per month for a policy with a $250K coverage limit, while women pay $16 per month for the same plan in Montgomery.
The cost of your monthly insurance premium will increase if you choose a policy with the state-recommended coverage amount. Alabama’s recommended coverage amount of $592K is based on state-specific factors like per capita income and average mortgage debt. For policies with a $592K coverage limit, men in Montgomery pay an average of $37 per month, while women pay about $30 per month.
Insurance costs also vary by term length. On average, men and women pay $24 and $20 per month, respectively, for a 10-year term policy, regardless of coverage amount.
| MassMutual | $10 | $15 |
| Nationwide | $10 | $15 |
| Mutual of Omaha | $11 | $16 |
| AAA | $19 | $37 |
| State Farm | $23 | $37 |
| Progressive Life | $22 | $41 |
| Prudential | $26 | $59 |
| Nationwide | $10 | $13 |
| Mutual of Omaha | $11 | $13 |
| MassMutual | $9 | $13 |
| State Farm | $19 | $29 |
| AAA | $16 | $32 |
| Progressive Life | $18 | $33 |
| Prudential | $19 | $43 |
Life insurance policy costs were determined by gathering 10-year term quotes from major life insurance companies in Montgomery using average buyer profile statistics, including the average age of 31, the average weight of 205 pounds for males and 163 pounds for females, and an average coverage need of $592,000.
Women typically pay less than men for life insurance because they have a longer average lifespan. Men die earlier than women for several reasons, of which include an increased risk of heart disease, higher participation in dangerous jobs and fewer visits to healthcare professionals.
Having said that, studies show that men are more likely than women to buy life insurance. However, women are good candidates for life insurance, as they’ll likely be able to obtain policies at a lower rate than men.
The most popular life insurance companies in Alabama include Alfa Life Insurance Corp., Northwestern Mutual and Globe Life Inc. According to MoneyGeek's analysis, Alfa Life Insurance Corp. and Northwestern Mutual have the largest market shares in the state at 8% each, while Globe Life Inc. claims 6% of the market.
The table below lists the largest life insurance companies in Alabama alongside their respective market shares. Together, they account for 41% of the total market.
| Alfa Life Insurance Corp. | 8% |
| Northwestern Mutual | 8% |
| Globe Life Inc. | 6% |
| State Farm | 6% |
| New York Life | 5% |
| Protective | 5% |
| Lincoln Financial | 3% |
A company's market share determines its portion of sales relative to others in its industry. The higher a company's market share, the more the company dominates the market.
To see what life insurance companies in Alabama are most popular with consumers, MoneyGeek evaluated each company’s total written premiums as included in the 2020 S&P Global data reports.
In Montgomery, life insurance rates for young people range between $15 and $42 per month. Based on our research, the following companies offer the cheapest rates to young buyers in the city:
Additional cheap life insurance providers, along with their monthly rates, for young people in Montgomery, are included in the below table.
| MassMutual | $15 |
| Nationwide | $18 |
| Mutual of Omaha | $20 |
| AAA | $21 |
| Progressive Life | $24 |
| State Farm | $25 |
| Prudential | $42 |
Rates were determined by analyzing quotes for a 25-year-old male non-smoker in Montgomery who is 5 feet 10 inches tall and weighs 175 pounds with a 20-year term contract at the average coverage need of $235K. We chose a 20-year term to provide a longer coverage period for a younger buyer.
Long-term financial savings can be achieved by purchasing a life insurance policy while you’re young. Those under the age of 25 can receive lower starting rates and subsequent rates than others that wait to purchase life insurance at an older age. As you age, your monthly life insurance premiums increase as you become more susceptible to age-related illnesses.
On average, seniors in Montgomery pay between $37 and $77 per month for life insurance. The top two senior-friendly life insurance providers in Montgomery are:
If you need information on more life insurance providers in the city of Montgomery that cater to the senior people, you can check the table below.
| MassMutual | $37 |
| Mutual of Omaha | $42 |
| Nationwide | $43 |
| State Farm | $50 |
| Progressive Life | $67 |
| AAA | $70 |
| Prudential | $77 |
Rates were determined by analyzing quotes for a 60-year-old male non-smoker in Montgomery who is 5 feet 10 inches tall and weighs 205 pounds with a 10-year term contract at the average coverage need of $70K.
Because it's more likely that seniors’ life insurance policies will outlive them, insurers typically charge them more for life insurance. Seniors can reduce the cost of their life insurance by purchasing a policy with less coverage since their beneficiaries are usually financially independent. As such, MoneyGeek’s sample coverage amount for seniors — $70K — is lower than other buyer groups but it’s typically sufficient for funeral expenses and estate taxes.
Life insurance for smokers in Montgomery costs between $99 and $188 per month. The prices for this category are relatively high due to the increased health risks associated with smoking, but the following companies offer the cheapest rates to smokers in the city:
MoneyGeek included additional information below for insurance companies that offer cheap insurance for smokers in Montgomery.
| MassMutual | $99 |
| Mutual of Omaha | $107 |
| Nationwide | $107 |
| State Farm | $128 |
| Prudential | $155 |
| Progressive Life | $157 |
| AAA | $188 |
Rates were determined by analyzing quotes for a 31-year-old male smoker in Montgomery who is 5 ft 10 inches and 205 pounds that purchases a 20-year term contract at the average coverage need of $592K. If you are a smoker, we suggest buying a longer-term (20-year) policy to provide longer coverage as rates for smokers increase dramatically as you age.
Smokers are considered high risk by insurance companies because they’re at an increased risk to develop life-threatening health conditions. As such, insurers typically charge them more for life insurance. However, smokers can still find budget-friendly life insurance providers. MoneyGeek also advises purchasing a longer-term policy, at least 20 years, as smoking significantly increases the cost of your premium as you age.
MoneyGeek determined the recommended life insurance coverage by factoring in per capita income from the U.S. Bureau of Economic Analysis, average mortgage debt, average personal debt and average age. Keep in mind that 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.
