Best Life Insurance in Alabama of 2023

Amanda Hester

Protect your family from unexpected financial burdens with a life insurance policy. Life insurance is not only the keystone of a solid financial plan, but it’s also a very cost-effective way of protecting the people who depend on you financially. We reviewed and compared the top life insurance companies based on policy pricing, available options, customer support, financial strength, and overall quality.

Affordable term life Insurance coverage


Coverage Up To

No (up to $3M)

Medical Exam


With Ladder, you can customize your insurance coverage depending on your unique needs throughout your term. You can remove coverage when necessary and apply to add more. Rates start from $4.95/month based on a 20-year-old female for a 10-year term, preferred plus health class.

What we like

  • Flexibility to adjust coverage throughout the term
  • Coverage you can manage online
  • No medical exam required for coverage up to $3M

What we don't

  • No riders are availabe
  • Coverage ends at 70 years of age

Complete your application online


Coverage Up To

May Need

Medical Exam


Haven Life simplifies the insurance application process to learn about your coverage options. There are two products: Haven Simple and Haven Term. Haven Simple requires no medical exam and has a lower coverage amount, and Haven Term may require a medical exam and has more options for coverage.

What we like

  • Healthy individuals will get cheaper premiums
  • 100% online application - no need to talk to an agent
  • Wide range of coverage options
  • Haven Term has various riders
  • No medical exam for Haven Simple

What we don't

  • Only offers term life insurance
  • Only selected regions are eligible for riders

What is the cost of life insurance in Alabama?

The government doesn’t set life insurance rates in Alabama. Instead, these rates are determined by individual life insurance companies who will base their prices on certain factors related to you and your lifestyle.

The average monthly cost of a life insurance policy ranges from $40 to $55. The real cost of a policy varies depending on the sort of coverage, quantity, and your personal circumstances. Permanent insurance is typically more expensive than term life insurance and is employed differently. 

How are life insurance rates determined in Alabama?

Life insurance rates in Alabama are determined by several factors, such as your age, health status, pre-existing conditions, etc. The most important life insurance rate factor is age.

The cost of life insurance in Alabama varies depending on factors like:

  • Mortality rates: The price of the policy is determined by the insurer based on a statistical analysis of mortality rates. The statistical analysis is based on the results of previous mortality studies, conducted by independent companies. This study includes all previous experience with the policyholders. The study is updated at least every three years.
  • Age: An insurer will charge a younger person a lower premium because the statistical likelihood of their death occurring is much less than an older person. However, this isn’t always the case. A younger person with health issues may be charged a higher life insurance rate than an older person in perfect health.
  • Gender: On an average, women live longer than males. In the United States, women have an expected longevity of 81 years, whereas men have an expected life expectancy of 76 years. As a result of this disparity, females tend to pay less for life insurance than males.
  • Health condition: Health is one of the most important factors in determining your life insurance rate. If you have any medical conditions, it will affect the rates of life insurance. It will result in an increase in premium costs for you because of increased mortality risks.
  • Lifestyle: Managing your lifestyle can play a role in lowering the cost of your life insurance policy. Practising healthy habits will lower your risk factors and likely get you lower premiums. Avoid high-risk activities like skydiving or snowmobiling without proper safety equipment in place. Having a great credit score is also crucial when applying for any type of policy.
  • Smoking Habits: Smoking cigarettes, cigars, or using other tobacco products can lead to health problems. If you smoke, your rate will likely be higher than people who do not because of the added risk factors for early mortality.
  • Tobacco Use: Lower your smoking habits to lower risks of serious illness and ultimately, life insurance costs. Exercise is another way to improve health and reduce the risk of early mortality.
  • Family medical history: Insurance companies consider your family medical history when determining the cost of life insurance, as those with a history of heart disease or cancer can be at a higher risk for premature death. That’s why, you may have to pay more for a policy than someone who has no such family history.
  • Driving History: The cost of life insurance in Alabama also depends on your driving history. If you have a clean driving record, it may decrease the cost of your premium because you will be less likely to cause an accident and injure or kill someone else.
  • Term length and policy type: Life insurance comes in different forms, and the duration of that coverage is called its “term length.” Term life policies typically last for a specific amount of time, such as 20 years. Due to this, term life rates are lower than other forms because you purchase it for a temporary need rather than an ongoing one. Whole life policies are often more expensive than term life because you invest money into them, and they can be used to accumulate cash value.

Difference between term and whole life insurance in Alabama

The main difference between whole life and term life is that the former covers you for your entire lifetime, while the latter only pays out if you pass away within a specific time frame, after which the policy expires.

Term life is generally the most cost-effective form of life insurance. It offers coverage for a specific period, usually from 10 to 30 years, and does not build up any cash value. Generally, term policies provide lower premiums than other types.

There are no medical examinations or tests that need to be taken to get term life insurance. You can also renew your policy when it expires, but the cost will go up every time you do this if you continue living past your policy’s end date.

With whole life insurance in Alabama, on the other hand, you pay one premium for your entire lifetime. The major benefit of whole life coverage is that it’s guaranteed to last until you live. However, one of the biggest drawbacks of term policies in Alabama is that they don’t cover any chronic conditions due to their limited period of coverage.

What does life insurance cover?

Life insurance is designed to provide your loved ones with money after you pass away so they can pay off debt, cover funeral expenses, etc. You should also know that life insurance covers long-term care expenses. The main purpose of this type of policy is to ensure that your family can pay medical bills and other household expenses if something happens to you.

If you have a family, the life insurance coverage will protect them financially by giving them money to replace their loss of income not only during the initial grieving period but also throughout their lives. Life insurance can also be used to help pay for college expenses. Your beneficiaries are free to utilize the coverage’s proceeds as they choose.

Beneficiaries frequently use the financial assistance for:

  • Income Replacement
  • Funeral Expenses
  • Taking Care of a Disabled Family Member
  • Day to day expenses
  • Outstanding Debts
  • Child Care
  • College funds

Essentially, after your beneficiary receives the payment from the life insurance company, they may utilize it for their family, start a business, or any other purpose.

How to choose the best life insurance plan in Alabama?

The best way to choose a life insurance plan is to pick the one that covers your family’s current and future needs while still being affordable enough to fit into your monthly budget. Select the policy that fits your lifestyle and offers flexibility.

Some of the important factors that you may keep in mind while looking for life insurance plans are:

Type of insurance policy

There are three types of policies available namely, term insurance policy, whole life insurance policy and universal insurance policy. Term insurance plan is usually taken during the early stages of your life when you are still young.

When compared to the whole life insurance policy, it’s usually cheaper. However, if your covering needs change over time, you can switch to universal insurance plan for better coverage without any additional cost.

On the other hand, universal insurance plan is an advanced version of term insurance plan that helps you pay premiums even after you turn 50. However, this plan comes with a higher premium amount.

If you are looking at long term financial security for your family members after your demise, it’s better to go for whole life insurance policy as it offers complete protection from the time you take the policy until death.

Sum of money

You may also consider how much money would be required after your demise. Note that the monthly amount you pay for life insurance policy is a part of your overall premium.

Calculate all the expenses and pick a policy that’s in your budget. When it comes to determining the ideal sum, you must not go beyond what would be required for complete family’s survival.

For instance, in case you have a family consisting of spouse and children, the sum should be enough to cover all their expenses. Otherwise, they would face problems after your death.


Certain policies would give you better cover in terms of premium amount when compared to other options. If you go for such policy, you can end up saving a lot of money when compared to what others might be spending on the same product.

However, it’s important to keep in mind that not all additional features come at a lower price. You need to check for monthly charges and other terms & conditions before you opt for a particular feature.

In case you are looking for coverage in a specific location, check whether it’s covered under the policy or not. Know beforehand how much money you will have to pay if your policy is not able to provide you with the benefits in case of accidents or death.

Financial status

Consider your financial status while looking at various life insurance policies. It’s important to consider how much would be required after your demise and ensure that none of your family members have any financial troubles. This way, they can get the best out of your insurance plan.

Current health status

Your current health status also plays an important role when it comes to determining the ideal life insurance policy. For instance, if you suffer from any chronic illness or have recently undergone a surgery, not all plans would give you complete coverage.