What is life insurance?
Life insurance is a contract between you (the insured) and the insurance company. You make monthly payments on your policy and your beneficiaries receive a tax-free payment, known as a death benefit, if you die while your cover is in effect.
What are the types of life insurance?
There are many types of life insurance policies, but the most common are term and whole life policies. Most people find term life insurance more practical—it’s simple, affordable, and only lasts for as long as you need it. But the policy that’s best for you will depend on your personal circumstances, including your financial obligations, income, health and lifestyle.
Another type of life insurance you may come across is universal life insurance. Similar to life insurance, universal insurance coverage is valid for a lifetime and has the function of saving money. But you can adjust the premiums life insurance quotes or benefits of a universal life policy based on your cash value scores. Unless you have a high income and are looking to maximize your investments, term or whole life is usually a better option than universal.
How much does life insurance cost?
The cost of life insurance depends on many factors, including your age, health and the specifics of your policy, but a healthy 35-year-old can expect to pay $25 to $30 a month for 20 years and $500,000. politicians Rates are five to 15 times higher if you buy cash value life insurance, such as whole or universal life insurance.
In any case, it’s always better to buy sooner than later: depending on your age, you’ll add between 4.5% and 9.2% to your premium every year you wait to buy a policy. We can help you compare life insurance quotes from the best companies to find the best policy for you — at the lowest price.
Methodology: The chart above shows the average life insurance premiums as of September 1, 2022 for non-smoking men and women in the life insurance quotes Preferred Health classification who purchased a 20-year term life insurance policy. Rates are based on the monthly Policygenius Life Insurance Price Index. Index prices are determined by internal actuarial rate tables for the nine life insurance companies that offer policies in the Policygenius marketplace: AIG, Banner Life, Brighthouse, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential and Transamerica.
Why do I need life insurance?
You need life insurance to protect your family from loss of income. Your savings will be depleted, especially if you die before you have time to pay off all your debts and save for the future. People who typically need life insurance include:
Parents, especially young and single parents, who have significant financial responsibilities
Young people with private student loans or other joint loans like mortgages
Seniors who are nearing retirement and need insurance to protect their savings plan
Seniors who cannot pay for end-of-life care or funeral expenses on their own
How can life insurance help protect my family?
A death benefit can replace your financial support for decades and ensure that your family doesn’t have to struggle to cover the costs of a mortgage, funeral or childcare and college. It also means your spouse can continue to save for retirement or have money to support an aging parent.
What are the best insurance companies?
Protective, Banner Life and Lincoln Financial are among our top insurance partners, but when it comes to life insurance, there is no one size fits all. The right policy for you depends on your individual needs and circumstances. This is where we come in. As an independent insurance broker, we can provide you with reviews and recommendations on all the leading insurance companies.
