A life insurance policy can be a smart way to protect your loved ones. Laura Adams, an insurance expert, says that the right type of life insurance can protect the financial health of the people you love, such as your spouse, children, or parents. You can ensure your spouse’s ability to pay your home’s mortgage, and that your children can achieve their college dreams by purchasing a policy today. Adams says that a life insurance policy can be used as a financial planning tool for paying the estate’s liabilities, such as taxes or legal fees.
There are many types of life insurance that insurers offer, from life insurance that covers you for a few months to life insurance that covers you for your entire life. The type of insurance you select, and the amount you need, will all affect the cost of life insurance. There are many life insurers in the market so finding affordable life insurance can be difficult. But don’t worry! We’ve done the research for you.
The best life insurance companies at a cheap price
Northwestern Mutual
Northwestern Mutual was ranked #4 in 2020 J.D. The 2020 J.D. Power U.S. Life Insurance Study ranked Northwestern Mutual #4. Northwestern provides affordable life insurance. This includes term, universal, and whole life policies. Also, annuities, and long-term care insurance. According to the provider, a 35-year-old healthy man can buy a $500,000 term policy for $306 per annum.
Northwestern requires you to undergo a medical exam to obtain life insurance. However, you can convert the coverage to whole life coverage without any additional exam. According to J.D. According to the J.D. Although you cannot get a quote online from Northwestern Mutual, you can determine how much you will need online and whether it is a temporary or permanent need.
State Farm
The J.D. State Farm is ranked #1 in the J.D. Power survey. They sell term life, universal and whole life policies. State Farm’s term policies provide coverage until age 95. Most of its competitors end coverage once you turn 80.
State Farm’s Instant answer policy offers $50,000 term life insurance up to the age of 50. You don’t need to undergo a physical or medical exam to be eligible for the Instant Answer policy. State Farm offers a multipolicy discount on auto for those who purchase life insurance. This could offset the price of life insurance. Consumer Affairs rates State Farm 4.5 out of 5 stars, while the National Association of Insurance Commissioners has a lower complaint index at 0.19.
Mutual of Omaha
J.D. According to the J.D. Power study, Mutual of Omaha provides quality insurance products since 1909. The carrier offers whole and universal life insurance as well as term coverage starting at $100,000. The term life coverage offered by Mutual of Omaha to policyholders 18-80 years of age is available in terms of 10-30 years.
A Mutual of Omaha policy can be combined with accidental-death coverage. This allows your beneficiary to receive twice the amount if you are killed in an accident. Online quotes can be obtained, but you will need to speak to a representative in order to get your application completed. Mutual of Omaha has 4 stars with Consumer Affairs. However, the NAIC complaint index for the life insurance company is a little higher at 1.19.
Principal Financial
Principal Financial was ranked ninth in the Power’s survey. They offer permanent and term life insurance with terms that range from 1 to 30. Principal’s permanent insurance portfolio covers two individuals with universal, variable, and survivorship coverage. The death benefit is payable after the second insured has died.
Principal Financial has over 140 years of experience in life insurance and superior financial strength. They offer many options for retirement planning and life insurance. Principal Financial has a very low complaint index of 0.05 with NAIC. This is a great performance in comparison to other life insurance providers. Although you can request a quote online, or via the mobile app, a Principal Financial professional will be required to complete the application.
Liberty Mutual
Liberty Mutual was not included in the J.D. Liberty Mutual did not make the J.D. Online quotes for a healthy 35-year old female from Iowa are available for rates as low at $29.25 per monthly for $500,000 coverage on a 20 year term life insurance policy.
To complete your application, Liberty Mutual agents will receive the quotes. Liberty Mutual provides a variety of riders and add-ons to customize your life insurance policy to meet your family’s requirements. Liberty Mutual has a higher than average complaint index of 2.14 which suggests it may not be the right fit for everyone.
There are many reasons to choose term life insurance policies
Term insurance offers the best coverage. Term life policies typically have terms that range from 10 to 30 year and coverage ends when you reach 80. Although term policies offer a death benefit, most don’t pay back your investment if the term ends. Many term life policies offer the option to renew your coverage at any time, usually at a higher rate. Some also allow you to convert your coverage into a permanent, whole-life policy which provides a death benefit and builds a cash value.
Fixed premium rates are available for level-premium term policies. A term life policy is the best way to get the lowest rate. A person in their 30s may be able to purchase term life insurance for as little as $100 per year. Whole life insurance can cost several thousand dollars each year.
“What most people are surprised by is the affordability of a term-life insurance policy. The premium is dependent on your age and health, so the price of your policy will likely go up with time. Adams says it is wise to compare life insurance quotes as soon as possible.
Some insurers offer accelerated term life riders that allow the insured to use part of the death benefit for long-term care or medical bills. A few providers offer an optional return-of-premium rider that pays a percentage of your premiums back if you do not live to the end of your policy’s term.
Term life insurance provides excellent protection for families that are growing. Term life policies are often purchased by homeowners to protect their mortgage terms. This ensures that loved ones can stay in their home even if the homeowner dies suddenly. Term life policies are often purchased by parents to cover college funds for their children or provide financial support for a spouse who is unable to.
How to save money on life insurance
You can reduce your life-insurance rate if you aren’t satisfied.
- Explore the market. The rates of life insurance companies are based on many factors such as your health history, occupation, and leisure activities. There are different underwriting guidelines among insurers so it is worth shopping around to find the best life insurance for you.
- Buy a policy when you are young. You’ll be paying more for life insurance if you wait longer.
- Take control of your own health. Follow your doctor’s instructions if you have a pre-existing condition.
- Be aware of your weight. When determining your premium, all insurance companies consider your body mass index. You can get a lower rate on life insurance if you are healthy for your height.
- Do not smoke or use any other nicotine products. If you smoke, quit now. Although your insurer may not offer you a rate cut immediately after you quit smoking, you will likely be able to get a better premium over the course of time.
- Avoid dangerous activities. People who engage in dangerous pastimes like rock climbing or skydiving will pay more for life insurance.
- Reevaluate your coverage level. You may not require as much life insurance once you’ve paid off the mortgage, and your children have left the nest.
- Inquire about discounts. Many insurers offer discounts for setting up automatic payments, paying annually and choosing electronic billing. You can often get a huge discount if you combine two or more policies like homeowners insurance, life insurance, and car insurance.
- Evaluate employment benefits. Employer benefit programs may offer life insurance at lower rates because they have access to group pricing.
Questions frequently asked
How can I obtain affordable life insurance?
Begin by looking around for the best rate. It is best to buy life insurance when you are young and healthy. Insurers base premiums on life expectancy. Keep your weight under control, avoid smoking and refrain from using nicotine products.
How much does life insurance cost each month?
Cost of life insurance is dependent on several factors such as your age and gender. For a $500,000 term life insurance policy with a 30-year limit, a 30-year-old man will pay $23 per month, and he will pay $20 for the same coverage for women. For a $500,000 30-year term policy, a 50-year-old man would pay about $80 per monthly, while he would have to pay $62 for the same coverage.
Will the insurance company reimburse part of my premiums if I live beyond the term of my term-life policy?
Most term life policies won’t reimburse any payments after the end of the term. Insurers may offer return of premium riders that pay a portion back of your payments if your policy is terminated. You have the option to extend your policy until the end of the term. However, the rate will be higher depending on your age.
Are there any life insurance policies that offer an investment vehicle?
Permanent life insurance policies like whole life, universal and variable life policies can build cash value over time. Permanent life policies let you adjust your premiums, make investments and modify your coverage.