Life insurance by Banner
Banner has you covered whether you’re in excellent, average or less than average health. They offer two life insurance products:
- Term life insurance – Affordable coverage when you need it most in life
- Universal life insurance – Life insurance that lasts your entire life and builds cash value
However, Banner shines when it comes to their term product, OPterm. The medical exam can be waived if you’re healthy and have a good credit score (700+). Also, their pricing is very affordable.
Banner’s Term life insurance vs Universal life insurance:
|Health||Excellent to average||Excellent to less than average|
|Duration||10 – 40 years||Whole life|
|Best for||Affordability||Cash value|
|Get your price||Get a quote||Get a quote|
*Sample rate is based on healthy 30 year old male, living in Arizona with average build, 20 year duration for term life insurance, whole life duration for universal life insurance.
Key differences between term and universal
The most important differences between Banner’s term life insurance and universal life insurance are health qualification, policy duration, cash value, and as a result of these differences, price.
Health qualification: Both products are traditionally underwritten products. In other words, both generally require a medical exam. However, universal life insurance is typically more health forgiving than term. Note: If you’re in good health and have a good financial history, Banner may let you bypass the medical exam.
Policy duration: Term life insurance is best for you if want life insurance coverage for a predefined duration. If you’re in your early thirties and recently had kids, a 20-year policy will ensure your dependents are financially secure when it matters most. Unlike term life insurance, a universal life insurance policy won’t lapse, as long as you pay the premium. You will remain insured for the rest of your life.
Cash value: Some individuals want more from their life insurance policy. This is where universal life insurance shines. During the years you’re insured, the policy will generate cash value. This cash value can then be used in multiple ways. It can be invested in brokerage accounts or a 401k. It can also be accessed as a loan. Or, if enough cash value has been built up, it can even be used to pay for the policy itself. While this is an attractive bonus, it makes life insurance much more expensive.
Price: Due to the differences mentioned above, term life insurance is much more affordable than universal life insurance. A $1,000,000 policy with a 20-year term can be affordable as $43/month, for a 30-year-old individual. In the meanwhile, a $100,000 universal policy for that same individual will cost upwards of $110/month.