Where you live won't impact your life insurance rates, but it can affect which life insurance companies are available to you, since not all insurers operate in every state. Using our proprietary rating methodology, we picked the best life insurance companies for Alabama residents based on cost, customer satisfaction, and other variables.
We used industry data, pricing from Policygenius carrier partners, and third-party ratings like A.M. Best and J.D. Power to pick the best insurers on the market. Our independent recommendations will help you get life insurance coverage with confidence.
Best life insurance companies in Alabama
Best overall: Banner Life
Cheapest: Banner Life
Best term life insurance: Banner Life
Best no-medical-exam life insurance: Brighthouse Financial
Best whole life insurance: MassMutual
Best for seniors: Prudential
Best for young adults: Brighthouse Financial
Best for people with pre-existing conditions: Lincoln Financial
Best for marijuana users: Lincoln Financial
Best for smokers: Banner Life
Methodology: How we chose the best life insurance companies in each state
We don’t get paid for our company reviews and use an extensive rubric of criteria covering policy details, price, financial confidence, third-party ratings, and customer experience to assign unbiased ratings out of five stars. Any recommendations we make are based on internal and external expert opinions and data from our Policygenius Price Index, which uses real-time rate data from leading life insurance companies to determine pricing trends. Our ratings and reviews can help point you to an insurer you can rely on for your family’s financial protection, but the best life insurance company for you is dependent on multiple factors. A licensed agent at Policygenius can work with you through the application process so you’re getting coverage from the best insurer for your circumstances at the most competitive price.
Best overall life insurance
2023 Policygenius award winner
Banner Life
4.9
30+ year terms
All 50 states
No-medical-exam option
Why we chose it
Banner Life has some of the longest term lengths — up to 40 years — and most competitive life insurance rates available, even for people with a history of medical conditions.
Pros and cons
Pros
Competitive rates for a variety of health conditions
Fast instant-decision option for qualifying applicants
Variety of term lengths up to 40 years
Cons
Application underwriting can take longer than average
Does not have the most competitive rates for older applicants
Banner Life is the best overall life insurance company available to Alabamans. It's highly rated for financial strength and customer satisfaction, meaning you can count on the company to deliver reliable service, even during economic downturns. Banner Life also offers competitive rates across policyholders in various age brackets and health classifications, including those who smoke or have diabetes.
Cheapest life insurance
Banner Life
If you're an Alabama resident in the market for life insurance, Banner Life can save you a lot of money with its affordable premiums, which are cheaper than the industry average. It also offers flexible terms and coverage amounts so you only pay for what you need.
Best term life insurance
Banner Life
Term life insurance provides coverage for a predetermined period of time, which makes it five to 15 times more affordable than whole life insurance, which lasts your entire life. If you're between the ages of 20 and 75, you qualify for Banner Life's traditional tern life insurance policy, which provides term lengths up to 40 years of coverage and puts no upper limit on your coverage amount.
Best no-medical-exam life insurance
2023 Policygenius award winner
Brighthouse Financial
5.0
No-medical-exam option
Why we chose it
Brighthouse Financial offers competitive rates, comprehensive coverage, and application decisions in as little as 24 hours, making it a great choice for people who want to get life insurance coverage without having to take the medical exam.
Pros and cons
Pros
Extremely affordable
Instant-decision applications
Best-in-class no-med option
Cons
Traditional term life not available in CA, IL, LA, ME, or NY
Term life applicants limited to ages 25-50
Brighthouse Financial offers the best no-medical-exam policy on the market, with up to 30 years of coverage and a coverage amount of up to $3 million. Instead of taking a medical exam, it relies on your medical records to determine rates and approval. Brighthouse Financial's application process is very simple, and it delivers application decisions in as little as a day.
Best whole life insurance
2023 Policygenius award winner
MassMutual
4.9
All 50 states
Why we chose it
MassMutual’s whole life insurance plan provides a lifetime coverage option that builds cash value with the potential to earn dividends.
Pros and cons
Pros
Strong financial stability ratings
Higher potential for dividends for whole life policyholders than many competitors
Good customer experience ratings
Cons
High term life premiums
Term life not available through Policygenius
Whole life insurance offers lifelong coverage and a cash value component with a fixed premium. Whole life insurance is an excellent option for high-net-worth individuals and those with advanced estate-planning goals.
If you're an Alabama resident looking for a whole life insurance policy, consider MassMutual. It offers guaranteed cash value growth and higher dividend payouts than its competitors.
Best for seniors
2023 Policygenius award winner
Prudential
4.1
All 50 states
No-medical-exam option
Why we chose it
With nearly four million policyholders and 150 years to its name, Prudential offers competitive coverage options for seniors, as well as people with some of the most common medical conditions, including asthma, depression, and fibromyalgia.
Pros and cons
Pros
Good for people over 60
More flexible income requirements than some other insurers
Considers applicants with a variety of immigration statuses (visas and green cards)
Cons
Younger applicants will likely find better prices elsewhere
No-med option can end up requiring a medical exam most of the time
Older Alabamans may find it challenging to qualify for comprehensive coverage at an affordable rate due to their age. Fortunately, Prudential offers competitive rates for seniors over age 60. In addition, Prudential is a great choice for retirees, offering flexible income requirements and excellent living benefits.
Best for young adults
Brighthouse Financial
While most insurers offer more affordable premiums to young adults, Brighthouse Financial offers some of the best rates in the industry for non-smokers between ages 25 and 50. The company also offers a low-cost no-medical-exam term life policy if you want to opt out of a physical exam.
Best for people with pre-existing conditions
2023 Policygenius award winner
Lincoln Financial
4.8
No-medical-exam option
Why we chose it
Lincoln Financial offers a diverse array of life insurance policies, including competitive no-med and high-net-worth options.
Pros and cons
Pros
Affordable rates
Good for many existing health conditions, including depression, stroke, and heart conditions
Good for marijuana users, including daily users
Cons
Term life not available in New York
Having a pre-existing condition, such as diabetes, won't automatically disqualify you from getting life insurance. However, your options may be limited, and you may be charged higher rates than those without serious health conditions. Lincoln Financial offers some of the most affordable rates in the market if you live in Alabama and have a pre-existing condition.
Best life insurance for marijuana users
Lincoln Financial
Many insurance companies place regular marijuana users in the same classification as tobacco smokers, leading to a 200% to 300% increase in premium costs compared to non-smokers. Lincoln Financial offers non-smoker rates to recreational users of marijuana, lowering life insurance costs significantly.
Best for smokers
Banner Life
While smokers will often have higher rates than non-smokers, Banner Life offers better rates to smokers than the industry average. Additionally, Banner Life lets you reapply for lower rates after just one year of quitting smoking. In contrast, other providers may not drop your rates until you have quit using tobacco and nicotine products for two years.
Ready to shop for life insurance in Alabama?
Comparing the best life insurance companies in Alabama
Company | Policygenius rating | Best for | Types of policies | |
|---|---|---|---|---|
Brighthouse Financial | 5.0 / 5 | No-medical-exam life, young adults | Term life, no-medical-exam life, whole life, short-term life, universal life | |
Banner Life | 4.9 / 5 | Overall, cheapest, term life, smokers | Term life, no-medical-exam life, universal life | |
MassMutual | 4.9 / 5 | Whole life | Term life, no-medical-exam life, whole life, universal life, variable universal life | |
Lincoln Financial | 4.8 / 5 | Marijuana users, people with pre-existing conditions | Term life, no-medical-exam life, indexed universal life, variable universal life | |
Prudential | 4.1 / 5 | Seniors | Term life, no-medical-exam life, short-term life, universal life, indexed universal life |
What is the average cost of life insurance in Alabama?
Several factors influence the cost of your life insurance premium, including your age, lifestyle, occupation, health, and whether you smoke or vape. As of June 2023, Policygenius data estimates a healthy 35-year-old female in Alabama will pay an average of $25.76 per month for a 20-year term life policy with a face value of $500,000, while males will pay an average of $30.79 for the same policy.
What happens if a life insurance company goes bankrupt in Alabama?
If a company goes bankrupt, a beneficiary may be unable to claim the entire amount of a policyholder's death benefit. Fortunately, insurance companies rarely go bankrupt.
If an insurance company in Alabama does become insolvent, the Alabama Life & Disability Insurance Guaranty Association will pay unclaimed benefits to Alabama residents up to the statutory limits designated by the state. ALLIFEGA will cover up to $300,000 in death benefits and $100,000 in cash surrender.
How to find a lost life insurance policy in Alabama
Claiming your benefits can be challenging if you're a beneficiary of a lost insurance policy in Alabama. There are two places to look for the policy: the NAIC's Life Insurance Policy Locator Service, and Alabama's Unclaimed Property website. You will need the deceased policyholder's Social Security number, legal first and last names, date of birth, and date of death.
Alabama life insurance laws
State life insurance laws are designed to protect consumers. Life insurance companies operating in Alabama must adhere to the following regulations.
Free look period
A “dree look period” refers to the number of days new policyholders have to cancel their policy and receive a full refund. In Alabama, life insurance companies must give policyholders 10 days to cancel their policy for a return of their premiums.
Guaranty Fund protection
As noted, above, an insurance company becomes insolvent, the Alabama Life & Disability Insurance Association will reimburse affected policyholders up to $300,000 in life insurance death benefits and $100,000 in cash surrender value.
Contestable period
During the contestability period, insurance companies can deny a claim if they find that the policyholder falsified information on their life insurance application. Per Alabama regulations, the contestability period is two years from the effective date listed on the policy. [1]
Time allowable to settle a claim
Insurers have 30 days to pay claims once they receive the policyholder's death certificate. After 30 days, insurers may have to pay interest on unpaid claims.
Grace period for missed payments
Insurers must give policyholders 30 days to pay late premiums before the company can terminate their policy.
Ready to shop for life insurance in Alabama?
Frequently asked questions
What is the number one life insurance company in Alabama?
Banner Life is the best overall life insurance company for residents of all ages and health categories in Alabama, thanks to its affordable life insurance with up to 40 years of coverage and a no-medical-exam option.
What is the life insurance free look period and grace period in Alabama?
By Alabama law, insurance companies must give policyholders 10 days to cancel their policies and receive a full refund. Insurers must also allow policyholders 30 days to pay late premiums before canceling their coverage.
Which types of life insurance are available in Alabama?
You can purchase term life insurance and whole life insurance in Alabama, along with the other main types of life insurance. You may also qualify for a no-medical-exam term life policy.
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