Life Insurance
Consult our expert research, company reviews and round-ups to ensure you make an educated decision when it comes to finding the right life insurance for your needs.
Life Insurance Basics
It’s important to carefully consider a life insurance policy and ensure it is a good fit before purchasing it. There’s a wide variety of plans ranging from simple to complex, and it can be costly to cancel a policy in its early years or replace it with another policy. It’s important to do your research and find the right policy for your financial needs. Here’s what to know first:
Types of Life Insurance
There are two major buckets for life insurance—term life insurance and permanent—or cash value—life insurance. Term life insurance covers the policyholder for a period of one or more years, while permanent life insurance provides lifelong coverage.
Term Life Insurance: Term life insurance covers the policyholder at a fixed premium for the duration of its term, which is usually between 10 and 30 years. When the term ends, the coverage expires. Term policies are a good fit for people who want affordable coverage for a specific financial concern, like income replacement during their working years.
Permanent Life Insurance: This is a catch-all category for a variety of policy types that offer lifelong coverage and a cash value component that acts as a tax-deferred investment opportunity for the policyholder, helping them plan for the future. Permanent life policies are much more expensive than term life, but the company invests a portion of the premium, building up cash value that the insured can access and use in various ways.
Common types of permanent life insurance include whole, variable and universal life insurance. The policy structure, including premiums and cash value investment options, differ for each type.
No-Exam Life Insurance: No-exam life insurance allows you to skip the medical exam, which can benefit people in poor health who are worried about the rates they would receive for a term or permanent life policy that requires an exam. These plans are typically more expensive and coverage amounts can be limited.
Types of no-exam life insurance include guaranteed issue, simplified issue, instant approval term, and group life insurance.
Life Insurance Riders
It’s important to note that you can purchase add-ons to a life insurance policy to fit your unique financial goals better. These additional coverage options are known as riders. Life insurance riders fall into one of five main categories and augment your policy in various ways, such as providing more coverage, expanding access to your death benefit, and more.
Some riders may be automatically included in a life insurance policy, while others may come with a bump in premium depending on your health, location, carrier and other factors.
What To Consider Before Purchasing a Plan
Life insurance needs are very personal, often hinging on your income, health status, and who might suffer financially upon your death. Because of this and the plethora of policy styles available, the best life insurance policy looks different for each individual.
Consider these factors before choosing a policy:
- Policy type/length: A term policy is ideal for covering a specific financial obligation or period of time. Permanent policies appeal to those looking for lifelong coverage and often include a cash value component that can integrate with a larger retirement savings plan.
- Amount of coverage: Consider the percentage of your family’s income you provide, whether you’ll leave behind outstanding debt, how your family will pay for end-of-life services and other assets you have that your family could use.
- Cost: Life insurance costs primarily depend on the insured’s health, age and sex, although providers consider a series of other factors, too. Term life premiums are also far cheaper than permanent life premiums, and the cost of similar plans can vary between insurers.
- Customer satisfaction: Choose an insurer that other customers have had positive experiences with. Read customer reviews on aggregator sites and look at the number of complaints filed with the company and reported to the National Association of Insurance Commissioners (NAIC).
- Financial strength: Life insurance providers are rated on their financial strength by agencies like AM Best. Strong financials suggest a company won’t go out of business or raise policy costs during hard times.
For a more detailed understanding of life insurance, read our life insurance guide.
Latest Articles
Your employer may offer voluntary life insurance. Read on to learn what voluntary life insurance is and how it could benefit you.
Click here to compare quotes from our top life insurance providers.
Click here to compare quotes from our top life insurance providers.
Life insurance rates typically increase with age as health issues become more frequent. Get a quote from a top provider below.
Suggested Articles
- Cheapest Life Insurance Companies (2024)
- The Best Whole Life Insurance Companies (2024)
- 8 Best Term Life Insurance Companies (2024)
- The 6 Best Senior Life Insurance Companies of March 2024
- The Best No-Exam Life Insurance Companies (2024)
- 7 Best Life Insurance Companies (2024)
- The Best Family Life Insurance Companies (2024)
- 6 Best Burial Insurance Companies | 2024
- 7 Best Life Insurance Companies for Parents (2024)
- The Best Accidental Death Life Insurance Companies (2024)
- The Best Life Insurance Companies for Cancer Patients (2024)
- Lemonade Life Insurance Review | 2024
- Fidelity Life Insurance Review | 2024
- Bestow Life Insurance Review | 2024
- Ladder Life Insurance Review | 2024
- New York Life Insurance Review | 2024
- State Farm Life Insurance Review (2024)
- Globe Life Insurance Review | 2024
- Colonial Penn Life Insurance Review (2024)
- Mutual of Omaha Life Insurance Review
- Nationwide Life Insurance Review (2024)
- AAA Life Insurance Review (2024)
- Allstate Life Insurance Review (2024)
- Farmers Insurance Life Insurance Review
- Prudential Life Insurance Review (2024)
- Primerica Life Insurance Review (2024)
- Voya Life Insurance Review (2024)
- AARP Life Insurance Review
- AIG Life Insurance Review
- Banner Life Insurance Review
- John Hancock Life Insurance Review
- MassMutual Life Insurance Review
- MetLife Life Insurance Review
- Minnesota Life Insurance Review
- Veterans’ Group Life Insurance (VGLI) Eligibility & Benefits
- Aflac Life Insurance Review (2024)
- Guardian Life Insurance Review
- USAA Life Insurance Review (2024)
- Pacific Life Insurance Review (2024)
- Penn Mutual Life Insurance Review (2024)
- Gerber Life Insurance Review (2024)
- TruStage Life Insurance Review (2024)
- Ethos Life Insurance Review | 2024
- How Does Life Insurance Work? (2024)
- What Is Term Life Insurance? (2024)
- What Is Cash Value Life Insurance? (2024)
- Permanent Life Insurance: What Is It and How Does It Work? (2024)
- What Is Whole Life Insurance? (2024)
- Term vs. Whole Life Insurance: Which Is Right for Me?
- What Is Group Life Insurance? (2024 Guide)
- Can I Sell My Life Insurance Policy? (2024 Guide)
- How To Borrow Against Life Insurance (2024 Guide)
- What is Supplemental Life Insurance? (2024)
- Final Expense Life Insurance | 2024
- Variable Life Insurance | 2024 Guide
- What Is Credit Life Insurance? | 2024
- Mortgage Life Insurance (2024 Guide)
- What to Expect in a Life Insurance Medical Exam (2024)
- Types of Life Insurance (2024 Guide)
- Variable Universal Life Insurance | 2024 Guide
- How Much Life Insurance Do I Need? (2024)
- Living Benefits of Life Insurance | 2024 Guide
- What Is 20-Year Term Life Insurance? | 2024 Guide
- What Is an In-Force Life Insurance Illustration? (2024)
- Dividends in Life Insurance | 2024 Guide
- Is Cash Value Life Insurance Taxable? | 2024 Guide
- What Is Indexed Universal Life Insurance (IUL)? | 2024
- What Is Return of Premium Life Insurance?
- What Debts Are Forgiven at Death? | 2024 Guide
- Life Insurance for Business Owners: 2024 Guide
- Life Insurance Underwriting: Understanding the Process and Its Importance (2024)
- Surrendering a Life Insurance Policy (2024 Guide)
- What Is Infinite Banking and How To Start Being Your Own Bank (2024 Guide)
- Life Insurance for Children
- How To Find a Lost Life Insurance Policy
- Understanding Your Life Insurance Payment Grace Period
- A Guide to Life Insurance Riders (2024)
- Convert Term Life to Whole Life Insurance (2024 Guide)
- Is Whole Life Insurance a Good Investment? Evaluating the Pros and Cons
- Understanding Life Insurance Financial Strength Ratings: Assessing Stability and Reliability
- The Best Guaranteed Issue Life Insurance Companies (2024)
- The Single Parent’s Guide to Life Insurance: Protecting Your Children’s Future
- Who Needs Life Insurance: Understanding Your Coverage Needs
- How To Choose the Right Life Insurance Broker or Agent (2024)
- The Benefits of Term Life Insurance (2024)
- How To Cancel Life Insurance: A Step-by-Step Guide (2024)
- How to File a Life Insurance Claim (2024)
- Mortgage Life Insurance vs. Term Life Insurance: The Best Option for You
- How Long Should Term Life Insurance Last? A Comprehensive Guide (2024)
- Understanding Life Insurance Fraud (2024)
- Level Term Life Insurance: What Is It and How Does It Work?
- Short Term Life Insurance: Benefits, Coverage and Cost
- Is Life Insurance Taxable? (2024 Guide)
- Accidental Death and Dismemberment (AD&D) Insurance Explained (2024)
- HIV Life Insurance: Qualifications and Coverage Options
- Life Insurance and Disability Insurance: Do You Need Both?
- Unclaimed Life Insurance Policies: How To Locate and Claim Forgotten Benefits
- Understanding Annual Renewable Term Life Insurance (ART): Features and Benefits
- How Does Instant Life Insurance Work? 2024 Guide
- Is Life Insurance Worth It? Weighing Pros and Cons (2024 Guide)
- Getting Cash From Your Life Insurance Policy: Full Guide (2024)
- Understanding Guaranteed Universal Life Insurance (2024)
- High-Risk Life Insurance: Coverage Options for Higher-Risk Individuals
- What Happens When Term Life Insurance Expires (2024)
- Life Insurance Considerations for Millennials (2024 Guide)
- Understanding the Life Insurance Contestability Period (2024 Guide)
- Choosing Life Insurance Beneficiaries (2024 Guide)
- Can You Buy a Life Insurance Policy on Someone Else? (2024 Guide)
- Can You Have Multiple Life Insurance Policies? (2024 Guide)
- Essential Life Insurance Terms and Definitions to Know (2024)
- Life Insurance as an Investment: Benefits, Considerations and Potential Returns (2024)
- Life Insurance for Married Couples: Coverage and Tips (2024)
- Hybrid Life Insurance and Long Term Care (2024)
- Inheriting Life Insurance: Your Complete Guide (2024)
- Non-Smoker Life Insurance: What To Know (2024)
- Life Insurance for Parents of Special Needs Children: 2024 Guide
- Split-Dollar Life Insurance: What It Is and How It Works (2024)
- Understanding Life Insurance Face Amount: A Comprehensive Guide
- Preferred vs. Standard Life Insurance Rating (2024)
- How and Why To Set Up a Life Insurance Trust for Your Children (2024)
- Life Insurance for Overweight People (2024)
- Modified Endowment Contract: What It Is and How It Affects Your Life Insurance (2024)