Affordable Life Insurance Protection for Your Family
Life insurance is essential of your financial plan if you have anyone in your life who depends on your income for financial support.
Unfortunately, many people choose to go without life insurance, or they don't have the right type of coverage, or the right amount of protection.
About half of all U.S. households have less life insurance than they actually need, according to the Life Insurance Marketing and Research Association.
A separate study by employee benefits provider Unum finds that about a third of all households will experience financial difficulties within the first month of losing the income from a primary breadwinner, should that person die.
The good news is that life insurance doesn’t cost a lot less than most people expect.
In fact, many people expect life insurance to cost up to 5 times more than it actually costs, according to a survey from the Insurance Information Institute (III).
We help make your process of shopping for life insurance as easy as possible by doing the research for you and rating the top life insurance carriers.
How Does Life Insurance Work?
Life insurance is a written contract between an insurance carrier and the person who purchases the life insurance policy – also known as the policy owner.
The insurer agrees to pay out a death benefit to the beneficiary of the life insurance policy upon the death of the insured person, subject to the terms, conditions and exclusions stated in the policy.
In return, the owner of the insurance policy agrees to make regular premium payments to the insurance carrier. The owner also chooses who is the beneficiary of the insurance. The insured person may or may not be the one (owner) who pays the premiums.
What is Term Life Insurance?
Term life is a type of life insurance policy that provides coverage for a specified number of years. The life insurance is temporary, lasting for a specific "Term".
Usually, you may choose a term lasting for a period of 10, 15, 20, 25 or 30 years.
If the insured person dies during the policy term, the death benefit is paid out by the insurer to the beneficiary of the policy.
If the insured person is alive when the policy term expires, there is no benefit paid out and the coverage ends.
What is Whole Life Insurance?
Whole life is life insurance that provides guaranteed lifetime protection, as long as the premiums are paid on time.
A whole life policy provides a death benefit and builds cash value inside the policy over time.
Whole life usually costs up to 5-10 times more for the same amount of life insurance compared to the cost for a term policy.
The additional cost is due to the fact that all death benefits are paid out on whole life insurance policies, unless the policy is no longer "In Force". Insureds do not outlive the duration of the whole life policy, as they may with a term insurance policy.
Also, a loan may be taken out on the cash value in the policy, if needed.
How to Buy Life Insurance?
You can purchase a life insurance policy by applying for coverage online, or by meeting with an insurance agent and completing the application form in person.
Once the application is complete, a physical exam may be required, and the insurer will also look into your health records, driving record and other necessary information to determine if you meet the qualifications to be insured by the life insurance company.
Online applications for life insurance may offer no exam coverage and allow you to start your life insurance the same day you apply online.
Whereas, when you meet with an agent and fill out the application form in person the underwriting process may take up to 4-6 weeks to find out if you meet the qualifications for approval to get insured.
How to Choose The Best Life Insurance Company
Buying a life insurance policy is similar to buying a home, in that you are paying for something that will be part of your life for many years to come.
Just as you inspect a home before you buy it, you should evaluate any insurance company before purchasing a life insurance policy.
Follow these guidelines to make sure the insurance carrier you are considering is a solid, financially sound company, and is expected to be around for many years to come.
Best Life Insurance Companies in the USA for 2020
Haven Life: Rated A++ Superior by A.M. Best Company
Haven Life offers only term life insurance policies and utilizes an online application process without personal interaction with a traditional life insurance agent. While a relatively new player in the insurance business, it's backed by MassMutual. Haven Life aims to offer affordable, easy-to-manage term insurance policies online, without the usual hassles of shopping for life insurance.
Northwestern Mutual: Rated A++ Superior by A.M. Best Company
Northwestern Mutual has more than 160 years of experience in the financial services industry and offers a traditional approach to life insurance protection. Northwestern Mutual offers a variety of coverage options and a personalized method of determining your insurance coverage needs, and its financial advisers are available to help customers through the entire buying process.
State Farm: Rated A++ Superior by A.M. Best Company
MassMutual: Rated A++ Superior by A.M. Best Company
Nationwide: Rated A+ Superior by A.M. Best Company
New York Life: Rated A++ Superior by A.M. Best Company
Mutual of Omaha: Rated A+ Superior by A.M. Best Company
Types of Life Insurance Policies
There are several different types of policies available to meet specific types of needs.
Some plans offer short term protection at low prices, while others offer lifetime protection at much higher premiums.
You’ll want to take into consideration the following before choosing a policy:
Life Insurance Policy Types
What is a Death Benefit?
Death Benefit: The amount of money the insurer pays your beneficiaries after your death. This is often a tax-free payment that can be paid as a lump sum or in installments, depending on your policy. You typically select the amount of coverage when you purchase your life insurance policy.
How Much Life Insurance Do I Need?
Determining the right amount of life insurance coverage requires balancing how much money your beneficiaries may need in the future with a premium payment you can afford to pay now and going forward.
First, ask yourself these questions:
Who is Dependent on Your Income?
In addition to your spouse and your children, does this list include aging parents, siblings, family members, or business partners?
How Long Will Your Family Be Dependent on Your Income?
The answer to this question often dictates if a term life or permanent life insurance policy is best suited for you and your family.
Keep in mind, children usually become self-sufficient after graduating from college, and a spouse may no longer need supplemental income after they begin using funds in their retirement accounts.
What Large Expenses Will Life Insurance Proceeds Provide for in The Future?
Common expenditures include paying off the mortgage loan on the family home, sending your children to college, or helping to pay for your child’s future wedding costs.
What Other Debts Do You Want to Pay Off?
Some debts held in your name may disappear after your death, but you may want to pay off debts jointly held with your spouse, and/or cover estate taxes that your heirs may owe upon your passing.
What End-of-Life Expenses Do You Want to Cover?
This may include funeral expenses, burial costs, hospital and medical bills for an extended illness.
What Assets Do You Currently Own?
Cash accounts, stocks, bonds, real estate, gold, silver, collectibles, investment accounts, other life insurance policies, and retirement accounts, are all assets that can help support your beneficiaries when you die.
Finally, we recommend you use a life insurance needs calculator to assist you in determining how much life insurance to buy. It's quick, easy and there's no delays. You just answer some basic questions, click on a button, and instantly see how much life insurance is right for you.
How to Get the Cheapest Life Insurance Policy
One of the main factors affecting your cost for life insurance is your age. There isn't much that you can do that, but there are other ways you can save money on your policy.
Premium rates vary from one insurer to the next, even for a similar type of policy.
And while some pricier policies come with additional benefits, it isn't a guarantee that paying more gets you better coverage for your beneficiary.
That’s why you want to make certain you compare life insurance policies side-by-side to better understand the terms and benefits of each type of policy when shopping for coverage.
Married couples searching for affordable life insurance protection should be aware that the carriers with the lowest rates for women don't always have the lowest rates on life insurance for men.
Qualifying for a lower rate is one more big reason to take care of your health.
Smoking or using other nicotine products can significantly increase your premiums. Smokers may pay up to 5-10 times more for the same amount of life insurance coverage compared to pricing for Non-Smokers.
Life insurance companies also evaluate other health factors that may impact your longevity (life expectancy), such as your weight, blood pressure, cholesterol levels, and blood sugar levels.
Save on Life Insurance Using These Tips
Key Factors That Influence Life Insurance Premiums
Personal Risk Factors
Life Insurance Quotes in USA
Top Pick – JRC Insurance Group
JRC Insurance Group helps you shop, compare and save on life insurance. Regardless of your age or health background, we'll shop our 40+ insurance companies and find you affordable life insurance you need to protect your family and fit your budget. Compare the best life insurance rates for savings up to 73%. Get Your FREE Quote.
Highly Recommended – Haven Life
Haven Life uses the information provided in your application to make an instant decision on your application. Healthy, qualified applicants (based on the information provided in your life insurance application) can be insured immediately with no medical exam while other applicants can receive immediate coverage pending a medical exam.
Applicants age 60-64 are eligible to apply for up to $1 million in coverage; subject to underwriting approval.
Some qualified applicants (U.S. citizens up to the age of 59) will be able to finalize coverage without the need for a medical exam. The majority of applicants are still required to take a medical exam.
Keep in mind: Issuance of the policy or payment of benefits may depend upon the answers given in the application and the truthfulness thereof.