Best life insurance companies in Alabama

We picked the five best life insurance companies for Alabamans based on price, customer experience, transparency, and financial strength.

Headshot of Alani Asis

By

Alani AsisContributing WriterAlani Asis is a contributing writer at Policygenius, focusing on insurance company reviews. She is a former Personal Finance Reviews Fellow at Business Insider, and her work has also appeared in LendingTree and Sound Dollar.

Edited by

Julia KaganJulia KaganContributing EditorJulia Kagan is a contributing editor at Policygenius, where she specializes in life insurance. Previously, Julia was the senior personal finance editor at Investopedia for nearly a decade, a vice president and editorial director at Consumer Reports, the editor of Psychology Today, and the vice president of content at Zagat Surveys.
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Reviewed by

Kristi Sullivan, CFP®Kristi Sullivan, CFP®Certified Financial PlannerKristi Sullivan, CFP®, is a certified financial planner and a member of the Financial Review Council at Policygenius. Previously, she was a regional consultant at Fidelity Investments for nine years.

Updated|5 min read

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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

Methodology: How we chose the best life insurance companies in each state

We dont 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

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

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

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

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2023 Policygenius award winner

Brighthouse Financial

Brighthouse Financial logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starFull orange star

5.0

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

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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

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2023 Policygenius award winner

MassMutual

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.9

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

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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

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2023 Policygenius award winner

Prudential

Prudential logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starEmpty gray star

4.1

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A+

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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

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2023 Policygenius award winner

Lincoln Financial

Lincoln Financial logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.8

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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

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.

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 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.

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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. 

References

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Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of oureditorial standards.

  1. Alabama Department of Insurance

    . "

    Life Insurance FAQs

    ." Accessed April 05, 2023.

Author

Alani Asis is a contributing writer at Policygenius, focusing on insurance company reviews. She is a former Personal Finance Reviews Fellow at Business Insider, and her work has also appeared in LendingTree and Sound Dollar.

Editor

Julia Kagan is a contributing editor at Policygenius, where she specializes in life insurance. Previously, Julia was the senior personal finance editor at Investopedia for nearly a decade, a vice president and editorial director at Consumer Reports, the editor of Psychology Today, and the vice president of content at Zagat Surveys.

Expert reviewer

Kristi Sullivan, CFP®, is a certified financial planner and a member of the Financial Review Council at Policygenius. Previously, she was a regional consultant at Fidelity Investments for nine years.

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