Lifeline vs. Low-Cost Plans: Which Phone Service Fits Your Budget
The main difference: who runs the program and what you pay
Lifeline is a federal program that reduces your monthly phone bill to $0–$10 depending on your provider and plan. You must meet income requirements set by the government, and you can have only one Lifeline discount per household. The program works with participating phone companies — you don't apply to Lifeline itself, but to the phone company offering the service.
Low-cost plans are offered directly by phone companies to anyone, regardless of income. These plans typically cost $15–$30 per month and include basic calling and texting. No income check is required, and you can switch providers or plans whenever you want. Some companies offer these plans specifically to make service affordable; others bundle them with Lifeline.
The choice depends on whether you meet Lifeline's income limits. If you do, Lifeline will cost less. If you don't, a low-cost plan is your option.
Key Takeaways
- Lifeline requires you to meet federal income limits, but costs $0–$10 per month if you do.
- Low-cost plans are available to anyone and typically cost $15–$30 per month with no income check.
- You can have only one Lifeline discount per household, but you can switch low-cost plans anytime.
- Some phone companies offer both Lifeline and low-cost plans, so compare what each provider has available in your area.
- You apply for Lifeline through the phone company, not through a government office.
Lifeline income limits and what counts toward them
Lifeline income limits are set by the federal government and are the same nationwide, but they change each year. For 2024, the limit is roughly 135% of the federal poverty line — that means a single person earning around $1,800 per month or a family of four earning around $3,700 per month. The exact number depends on your household size and changes annually.
Income counts as wages, Social Security, unemployment benefits, child support, and most other regular money coming in. Some types of income don't count: tax refunds, one-time payments, and certain benefits like LIHEAP (heating assistance). When you apply, you'll need to show recent pay stubs, tax returns, or benefit statements to prove your income.
If your income is above the limit but you receive certain benefits — like SNAP, Medicaid, or SSI — you may still be able to get Lifeline through the benefit-based path instead of the income-based path. Ask the phone company which route applies to you.
What's included in Lifeline service
Lifeline covers basic phone service: local and long-distance calling, 911 access, and voicemail. It does not include texting, data, or international calls unless your provider adds those as part of their specific plan. Some Lifeline plans include a small amount of texting or data; others don't. The exact features depend on which phone company you choose and which Lifeline plan they offer.
You get one phone line per household. If you have a family, only one person can use the Lifeline discount — the others would need to pay full price or use a low-cost plan on a different account.
Lifeline works on landlines, cell phones, and Voice over Internet Protocol (VoIP) services, depending on what your provider offers. If you already have a phone, you may be able to keep it and just switch to a Lifeline plan with the same company.
Low-cost plans: what to expect and where to find them
Low-cost plans vary widely by provider. Some major carriers offer plans starting around $15–$20 per month for calling and texting. Smaller carriers and prepaid services sometimes offer plans for $10–$15 per month, though these may have limits on minutes or data. The trade-off is usually between price and how many minutes or texts you get each month.
Unlike Lifeline, low-cost plans don't require you to prove your income, and you can switch providers or cancel anytime. You can also add features like data or international calling if you need them, though that will increase your cost. Some plans are month-to-month; others require a short contract.
To find low-cost plans in your area, contact phone companies directly or check their websites. Many have a section labeled "affordable plans" or "basic plans." You can also ask about plans that bundle with Lifeline — some companies offer both, so you can see which works better for your situation.
How to apply for Lifeline through your phone company
You apply for Lifeline directly with the phone company, not with the government. Start by choosing a provider that offers Lifeline in your area — you can search for participating companies on the National Lifeline Accountability Database (NLAD) at lifelinephone.org, or call 211 to ask which providers serve your address.
Once you've chosen a provider, contact them and ask to start a Lifeline plan. They will ask you to fill out a form with your name, address, income information, and household size. You'll need to provide proof of income — a recent pay stub, tax return, or benefit statement — or proof that you receive a may have access to benefit like SNAP or Medicaid. Some providers let you upload documents online; others ask you to mail or bring them in.
The phone company will verify your information with the government database. If you meet the requirements, your discount starts within a few days to a few weeks. If you don't meet the requirements, they'll tell you why and may suggest a low-cost plan instead.
Comparing cost over time
Over a year, Lifeline costs $0–$120 if you meet income requirements. A low-cost plan costs $180–$360 per year. If you may have access to for Lifeline, the savings are significant. If you don't may have access to, a low-cost plan is the next most affordable option.
The table below shows how the two options stack up across the features that matter most when you're choosing between them. Use it to see which one fits your situation and what you'll need to get your free guide.
| Feature | Lifeline | Low-Cost Plan |
|---|---|---|
| Monthly cost | $0–$10 | $15–$30 |
| Income requirement | Yes (roughly 135% of poverty line) | No |
| Proof needed to start | Income or benefit statement | None |
| Includes texting | Varies by provider | Usually yes |
| Includes data | Varies by provider | Varies by provider |
| Can cancel anytime | Yes | Yes |
| One per household | Yes | No |
What happens if your income changes
If you're on Lifeline and your income rises above the limit, you'll need to report the change to your phone company. Some companies check your income once a year; others check more often. If you don't report the change and the company finds out, your Lifeline discount will be removed and you'll owe the difference between what you paid and the full price.
If your income drops and you weren't on Lifeline before, you can start the process at any time. There's no waiting period — you can begin as soon as your circumstances change. If you lose Lifeline for any reason, your phone company should offer you a low-cost plan so you don't lose service entirely. Ask about this when you contact them.
Frequently Asked Questions
Can I have both Lifeline and a low-cost plan?
No. You can have only one Lifeline discount per household. However, if you have family members who don't may have access to for Lifeline, they can have their own low-cost plans on separate accounts.
What if my phone company doesn't offer Lifeline?
Not all phone companies participate in Lifeline. Search the NLAD database at lifelinephone.org to see which providers offer it in your area. If none do, a low-cost plan with any provider is your option. You can also call 211 to ask about Lifeline providers near you.
Do I lose Lifeline if I don't use my phone for a while?
Most phone companies require you to use your Lifeline service at least once every 30 to 60 days, or they may disconnect you. Check your provider's policy. If you're disconnected, you can reactivate by calling them and making a call or sending a text.
Can I keep my current phone number if I switch to Lifeline or a low-cost plan?
Usually yes, if you're switching within the same company or to a company that supports number porting. Ask your current provider whether they can transfer your number to a Lifeline or low-cost plan. If you're switching to a different company, ask the new company about porting your number before you sign up.
What if I can't prove my income?
If you don't have recent pay stubs or tax returns, ask your phone company what other documents they accept. Some accept benefit statements from SNAP, Medicaid, or Social Security. If you receive a may have access to benefit, you may be able to use the benefit-based path instead of proving income directly.