Updated: October 3, 2024
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When the time comes, a life insurance policy provides a financial safety net for your beneficiaries after you are gone. The best way to ensure you get the right kind of coverage at the right price is to shop around and compare rates offered by different life insurance companies in Phoenix.
MoneyGeek helps you choose the right life insurance in Phoenix, Arizona, by comparing their average rates based on your age, gender and smoking history.
BestLife InsurancePhoenix, AZBest Life Insurance Companies in Phoenix, AZ, for 2023
Your policy's coverage amount and gender are among the factors determining the cost of life insurance in Phoenix. For $250K in coverage, MassMutual offers the cheapest rates for both men and women. It charges a monthly average of $11 for men and $9 for women.
Although $250K in coverage might be affordable, your beneficiaries may need to cover their debts and living expenses after your passing. Consider getting Arizona's recommended coverage amount of $708K (based on the state's cost of living, average income, average personal debt and other state-specific factors).
Cheapest For | $250K Coverage | $708K Coverage (Recommended) |
|---|---|---|
Male | MassMutual | Nationwide |
Female | MassMutual | Nationwide |
MoneyGeek found that life insurance companies in Phoenix charge women 3% less than the state's average. Meanwhile, men in Phoenix pay 2% more than men in Arizona for life insurance.
The infographic below compares life insurance coverage rates for men and women with a 250K policy.
For life insurance with 250K coverage in Phoenix, women pay a monthly average of $15, whereas men pay $20. These rates go up when you get the state-recommended coverage amount, which is based on per capita income from the U.S. Bureau of Economics, average mortgage debt, average personal debt and average age.
Arizona recommended coverage of $708K, averages at $28 per month for women and $40 per month for men.
For a 10-year term policy, women pay an average of $18 per month. In contrast, men pay an average of $26 per month for the same policy. This difference exists regardless of the coverage limit chosen by each buyer.
| Nationwide | $12 | $20 |
| MassMutual | $11 | $20 |
| Mutual of Omaha | $12 | $21 |
| Transamerica | $15 | $33 |
| AAA | $17 | $34 |
| State Farm | $21 | $41 |
| Prudential | $30 | $49 |
| Progressive Life | $25 | $53 |
| Nationwide | $10 | $14 |
| Mutual of Omaha | $11 | $15 |
| MassMutual | $9 | $15 |
| Transamerica | $12 | $24 |
| AAA | $13 | $26 |
| State Farm | $16 | $28 |
| Prudential | $18 | $30 |
| Progressive Life | $18 | $36 |
Life insurance policy costs were determined by gathering 10-year term quotes from major life insurance companies in Phoenix using average buyer profile statistics, including the average age of 30, the average weight of 197 pounds for males and 156 pounds for females, and an average coverage need of $708,000.
The gender of a policyholder significantly impacts the cost of a policy. According to the National Center for Health Statistics report, women generally live longer than men, so insurers charge them less for life insurance. Additionally, women are more cautious and less likely to do risky jobs than men.
Despite women's longer life expectancies, studies show that more men purchase life insurance policies than women. It is still essential for women to get a life insurance policy.
The most popular life insurance companies in Arizona based on market share are Prudential Financial Inc. (7%), Northwestern Mutual (6%) and Lincoln Financial (5%). Pacific Life and New York Life also take up 5% each.
The table below shows Arizona's seven most popular life insurance companies and their respective market shares. Together they hold 35% of the total market share in Arizona.
| Prudential | 7% |
| Northwestern Mutual | 6% |
| Lincoln Financial | 5% |
| Pacific Life | 5% |
| New York Life | 5% |
| State Farm | 4% |
| John Hancock | 3% |
Market share represents a percentage of the market that a company controls compared to its competitors in the same industry. The higher the market share, the more dominant the company is in its industry. In terms of life insurance, a high market share means that the company has sold more products than its counterparts.
The market share data used in MoneyGeek's analysis is from S&P Global's 2020 state reports.
Life insurance monthly premiums in Phoenix can range between $16 and $45. According to MoneyGeek, the two insurers offering the cheapest life insurance for young people are:
See the table below for the full list of the most affordable life insurance for young people in Phoenix, Arizona.
| MassMutual | $16 |
| AAA | $17 |
| Nationwide | $19 |
| Transamerica | $21 |
| Mutual of Omaha | $21 |
| State Farm | $22 |
| Progressive Life | $22 |
| Prudential | $45 |
Rates were determined by analyzing quotes for a 25-year-old male non-smoker in Arizona who is 5 feet 10 inches tall and weighs 168 pounds with a 20-year term contract at the average coverage need of $240,000. We chose a 20-year term to provide a longer coverage period for a younger buyer.
As you age, you become more prone to certain diseases that may increase your policy's premiums. Young adults tend to pay less due to their high life expectancy. However, the rates increase as you get older, so it's best to purchase life insurance at a young age and save money.
Seniors living in Phoenix can expect to pay between $39 and $81 monthly for life insurance. The most affordable life insurance companies in the city are:
Use the table below to compare life insurance companies in Phoenix, Arizona, with the lowest rates for seniors.
| MassMutual | $39 |
| Mutual of Omaha | $44 |
| Nationwide | $45 |
| State Farm | $47 |
| AAA | $59 |
| Progressive Life | $71 |
| Transamerica | $72 |
| Prudential | $81 |
Rates were determined by analyzing quotes for a 60-year-old male non-smoker in Arizona who is 5 feet 10 inches tall and weighs 197 pounds with a 10-year term contract at the average coverage level of $73,000.
Seniors pay higher premiums for life insurance because they have a higher chance of passing away while their policy is still active. Most seniors have self-sufficient adult children who may only need less life insurance coverage.
MoneyGeek's sample policy coverage of $73K provides just enough to cover expenses like funeral arrangements and estate tax.
The average price of life insurance for smokers in Phoenix is between $99 and $218 per month. According to MoneyGeek, the two cheapest life insurance providers for smokers in Phoenix are:
The table below has more information about the city's most affordable insurance companies for smokers.
| Transamerica | $99 |
| MassMutual | $118 |
| State Farm | $121 |
| Nationwide | $124 |
| Mutual of Omaha | $131 |
| Prudential | $147 |
| Progressive Life | $185 |
| AAA | $218 |
Rates were determined by analyzing quotes for a 30-year-old male smoker in Arizona who is 5 feet 10 inches tall and weighs 197 pounds that purchases a 20-year term contract at the average coverage need of $708,000.
Because smoking can cause serious health problems in the long run, insurers usually charge smokers higher premiums. While finding affordable life insurance for smokers can be difficult, you can still get options that best suit your needs.
If you are a smoker, we suggest purchasing a policy with extended coverage (20-year term) since rates for smokers dramatically increase as you age.
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. 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.
