Best Life Insurance Rates in Alabama

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What do air bags, windshield wipers, and vinyl all have in common? They were all invented in Alabama, along with portable electric hearing aids and Wikipedia. Sweet Home Alabama is home to two of the most popular football teams in the SEC: the Auburn Tigers and the University of Alabama Crimson Tide. However, because Alabama has the highest death rate from stroke, and the third-highest death rate from heart disease, Alabamians may face higher average life insurance premiums, so getting the right insurance is very important.

Alabama Life Insurance Quotes

Shopping for life insurance in Alabama can be a hassle. Heck, it can be a hassle no matter where you live. But it doesn’t have to be and that’s where we come in.

QuoteWizard can help you find the life insurance rates that fit your needs and budget. Compare quotes with us and you’ll quickly and easily learn which insurance company and policy are best for you.

Alabama Life/Health and Fraternal Insurance Market Share

Source: National Association of Insurance Commissioners - 2013
Rank Company Direct Premiums Written (in thousands) Market Share
1 Jackson National Life Group $331,045 6.1%
2 Lincoln National Corp. $306,781 5.7
3 American International Group $291,870 5.4%
4 MetLife Inc. $287,790 5.3%
5 New York Life Insurance Group $247,245 4.6%
6 Prudential Financial Inc. $237,983 4.4%
7 Manulife Financial Corp. $187,911 3.5%
8 Principal Financial Group Inc. $177,605 3.3%
9 AEGON $154,339 2.9%
10 Protective Life Corp. $147,631 2.7%

Financial Strength Ratings of Top 10 Alabama Life/Health Insurers

Source: A.M. Best (Ratings as of 8/28/2015)

  • Jackson National Life Group: A+
  • Lincoln National Corp.: A+
  • American International Group: A
  • Metlife Inc.: A+
  • New York Life Insurance Group: A++
  • Prudential Financial Corp: A+
  • Manulife Financial Corp.: NR
  • Principal Financial Group Inc.: A+
  • AEGON: A+
  • Protective Life Corp.: A+
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Financial Strength Rating Guide

Life Insurance Rate Factors in Alabama

Age – Age is one of the largest factors affecting life insurance rates. The younger you are when you purchase a policy, the less likely it is that it will pay out, so the lower your premiums will be, other things being equal.

Life expectancy at birth in Alabama is 74.6 years, much lower than life expectancy at birth for the US overall, which is 78.9 years. So, if you purchased a 30-year term life policy in Alabama at age 55, you would be more likely than not to pass away before 85 years of age, the end of the term.

On the other hand, if you were 35 years old and purchased a 30-year term life policy, you would be well under Alabama’s life expectancy of 74.6 years when the policy term ended. You’d be a much lower risk to insure and would therefore pay much lower rates than the person in the former example.

Driving Record – This might seem like a confusing inclusion, as this page is about life insurance, not auto insurance, but car accidents are incredibly common; they kill more than 30,000 people per year. If someone has a driving record littered with moving violations, they are at an increased risk of a premature demise. The result is higher rates.

Firearm Deaths – Places that have higher rates of accidental or premature death generally have higher rates. A significant part of these untimely deaths comes from firearm injuries, which account for about 33,000 deaths in the US every year. In Alabama, the death rate from injury due to firearms is 17.6 per 100,000 deaths, the fourth-highest in the country. Nationwide, the average firearm death rate is 10.4 per 100,000.

Gender – Since women live longer than men on average, they pay less for insurance than a similar man would, other things being equal. In Alabama, the percentage of the population that’s male is 48.5%, and the percentage that’s female is 51.5%. In the US as a whole, women are 50.8% of the population, and men are 49.2% of the population.

Gender of Alabama residents that used QuoteWizard last year.

 
         
 
   
56%Female
   
44%Male
 

Health History – While most of us have one or two minor health issues, if you have been diagnosed with a serious illness, or if you have a family history of such illnesses, this can have a significant impact your rates.

There are certain conditions, such as heart disease or certain kinds of cancers, that can make your premiums much higher if you have them or a family history of them. In some cases, a pre-existing condition can make you ineligible altogether, which is why it’s important to get life insurance before something serious happens.

Percentage of QuoteWizard users in Alabama that indicated whether they where healthy or had minor or major health issues.

 
             
 
   
50%Healthy
   
41%Major
   
9%Minor
 

Lifestyle & Hobbies – People who engage in adventure sports or who have potentially dangerous hobbies will pay more for insurance, other things being equal, than those who don’t.

Marital Status – Research shows that on average, married people live longer and are healthier than similar single people. So, if you’re married, you can get a modest insurance discount. According to the most recent data available from the US Census, in Alabama in 2009, the rate of marriage for people over 15 was 39 per 1,000 people, the rate of divorce was 26.6 per 1,000 people, and the rate of widowhood was 14.4 per 1,000 people.

Marriage status of Alabama residents that used QuoteWizard last year.

 
         
 
   
63%Single
   
37%Married
 

Occupation – People with hazardous jobs like logging and fishing will pay more for life insurance than someone with a less dangerous, mundane office job, other things being equal. The most common job in Alabama is a metal and plastic worker.

Tobacco Use – Because tobacco users don’t live as long as non-tobacco users (other things being equal) tobacco users pay substantially more for life insurance than an identical non-tobacco user would pay for the same policy. Tobacco use is associated with a number of health complications, such as heart disease, stroke, and COPD, any of which may cause higher rates and an earlier death.

As of 2013, the national average rate of smoking was 19%. To compare to the most recent data available, in 2013, approximately 21.5% of Alabama adults smoked cigarettes – about 803,000 adults.

Percentage of QuoteWizard users in Alabama that indicated that they smoke last year.

 
         
 
   
89%Don't Smoke
   
11%Smoke
 

Travel - If you regularly travel to developing countries, particularly countries on the US State Department’s Warning List, you will pay more for insurance than a traveler who sticks to developed countries.

Value of Policy – It shouldn’t come as a huge surprise that one of the largest, if not the largest contributing factor, to a life insurance policy’s premiums is the value of the policy. As with anything, you get what you pay for; the more protection that you purchase, the higher the premiums.

Weight – Obesity has surpassed smoking to become America’s largest public health cost and problem.  Like tobacco use, obese or seriously overweight people have a lower life expectancy, which means an increased probability of their policy being paid out. Because obesity increases the likelihood of health problems such as heart disease, stroke, diabetes, and some cancers, overweight and obese individuals can expect to pay higher premiums than similar individuals who are not obese.

As of 2013, the adult obesity rate in Alabama was 32.4%. This makes Alabama the eighth most obese state. Overall, the obesity rate in the US is 34.9%.

While each of these factors plays a big role in the cost of your policy, some aspects of life insurance are entirely individual. Insurance companies calculate your rates based on your own health, habits, and lifestyle. That’s why shopping around and comparing quotes is so important–to make sure you’re getting the best rate possible.

Leading Causes of Death US vs. Alabama - 2013

Source: US Centers for Disease Control
Rank Cause of Death Total Deaths Death Rate State Rank US Death Rate*
1 Heart Disease 12,472 228.4 3rd 169.8
2 Cancer 10,328 182.2 8th 163.2
3 Lower Respiratory Disease 3,043 54.8 7th 42.1
4 Accidents 2,329 47.2 14th 39.4
5 Stroke 2,604 48.1 1st 36.2
6 Alzheimer's Disease 1,398 26.7 20th 23.5
7 Diabetes 1,349 24.3 10th 21.2
8 Influenza/Pneumonia 1,035 19.2 8th 15.9
9 Kidney Disease 1,057 19.3 5th 13.2
10 Suicide 721 14.4 22nd 12.6
*Death Rate calculated as: (deaths from that cause / total population) / 100,000

Alabama Life Insurance Regulations

Insurance in Alabama is governed by the laws defined by the Title 27 of the Code of Alabama, as outlined by the Alabama Department of Insurance.

The state uses over 100 individual regulations to manage and monitor claims and provide certain protections to Alabama consumers, for example:

Grace Period: Any life insurance policyholder in Alabama is entitled to a 30-day “grace period” to make up a missed payment without punishment or file a death claim after the missed payment. This is to prohibit the insurance company from withholding a claim or cancelling a policy because of a slightly late payment. If the insured individual passes away during the grace period, the insurance company is responsible for paying the claim.

Free Look Period: Free look is a period of time in which the consumer can test out their policy after buying it. In most states, the length of time of a free look period is 30 days, but in Alabama, it’s only 10 days. During this period of time, consumers gain better understanding of their policy and have the option to return it for a full refund, with no added fees.

These regulations don’t just protect consumers; they also protect insurance companies from fraud. For example, Alabama insurers may challenge any information in your insurance application for up to two years from the policy’s effective date. If they find any evidence of fraud, they can terminate your policy immediately.

Alabama Life & Disability Insurance Guaranty Association

This organization assists the customers of any insurance company that is found to be insolvent. If you have concerns about the financial well-being of your carrier, you should contact the ALDIGA. Their contact info is below:

Website:
Homepage
Phone:
(205) 879 - 2292
Address:
Alabama Life & Disability Insurance Guaranty Association
6 Office Park Circle, Suite 200
Birmingham, AL 35223

Alabama Office of the Insurance Commissioner

Website:
Homepage
Insurance Commissioner:
Jim L. Ridling
Insurance Hotline:
(334) 269 – 3550
Office Hours:
Monday - Friday
8:00 am to 5:00 pm
File a Consumer Insurance Complaint
Complaint Page

Sources:

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