Life insurance is 1 of the most important insurance policies you need. It not only ensures that all your final expenses are paid, such as burial and funeral services. It also means your insurance beneficiaries are taken care of, and it can provide you many other benefits while we are living.
It's easy to to buy a life insurance policy online. Learn more about life insurance costs and payouts, and find a policy today with our guide.
The Best Life Insurance Companies:
- Best Overall: Life Insurance by Bestow
- Best for Multiple Quotes at Once: Quotacy
- Best Term Life Insurance: Haven Life Insurance Agency
- Best for People With Children: Fabric
- Best for Flexible Coverage: Ladder
- Best to Compare Policies: Sproutt
What is Life Insurance?
A life insurance policy is a contract that you have with an insurance provider. In exchange for your payments, the insurance company will provide a lump-sum payment to your beneficiaries upon your death. Life insurance is available in various amounts based on your needs.
Basically, there are 2 types of life insurance: term life and whole life. Term life insurance provides you with coverage for a set period. Whole life or permanent life insurance provides lifetime coverage that never expires. There are also universal life insurance plans that differ from the 2.
Term Life Insurance
Term life insurance helps provide financial protection over a duration of time such as 10, 15 or 20 years. When you have a traditional term life insurance plan, your monthly premium amount will stay the same throughout your term.
Once the term is up, the policy may offer you continued coverage, which usually has a higher monthly premium. The main benefit of term life insurance plans is that they are usually more affordable than whole or universal life policies.
How Does it Help?
Term life insurance may be used to replace your lost income during your employment years. It can offer a safety net to your beneficiaries and help ensure that your family’s financial goals will stay intact. These goals can include paying off a mortgage, paying for college tuition, or the upkeep of a family business.
Although term life insurance can be used to replace potential income, life insurance benefits are always paid in a lump sum, so your beneficiaries will not receive ongoing payments.
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Whole Life Insurance
Whole life insurance is a form of permanent life insurance that is designed to provide the owner with lifetime coverage. Since the coverage lasts an entire lifetime and never expires, the premiums are much higher than term life insurance. The payments are usually fixed, and unlike term insurance, whole life has a cash value that the owner can borrow against. The cash value works similarly to a savings account and accumulates cash over time.
Whole life insurance policies can be used as part of an estate planning strategy and help preserve the money to be transferred to your beneficiaries in the event of your death.
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Universal Life Insurance
Universal life insurance is a type of permanent insurance plan that can provide coverage throughout your life. Unlike whole life insurance policies, a universal life policy is flexible and allows you to either raise or lower your monthly payments or your coverage amount while the plan is in effect. However, these benefits come at a price which makes universal life insurance plans more expensive than whole or term life insurance.
Universal life insurance policies are often used to help with estate planning and preserve the wealth that is to be transferred to beneficiaries. Another use for this type of coverage is long-term income replacement, which will last longer than your employment years. There are some universal life insurance plans that are designed to focus on providing both death benefits and building up cash value over time that the owner of the policy may borrow against while they are living.
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How Rates Differ for Men and Women
Life insurance companies base their rates for men and women on the national life expectancy statistics and averages. Studies over time have shown that women tend to live longer than men. Men also have a higher risk of mortality due to their high risk of developing life threatening diseases such as heart disease, diabetes, cancer, strokes, pulmonary disease and infections.
Since statistics show that women live longer than men, insurance companies will often charge men a higher premium to help ensure that the company receives enough payments to cover their costs. However, there are several other factors that insurance companies consider when it comes to determining your rate. Factors such as your lifestyle, health history and profession are taken into consideration and help to determine your premium costs.
Average Life Insurance Rates by Age and Gender
The amount you pay each year for your term or whole life insurance depends on several factors. This can include health, lifestyle, and age. Your age when you apply for term or whole life insurance helps determine how much your premium is. Here are a few examples for annual premiums for various age groups.
Age 20
Men
| Male Age 20 - 29 | ||
| Plan | Term | Average Premium Per Year |
| 100,000 Term-life | 20-year plan | $111 per year |
| 100,000 Term- life | 30-year plan | $147 per year |
| Whole life plan | Whole life | $724 per year |
Women
| Female Age 20 - 29 | ||
| Plan | Term | Average Premium Per Year |
| 100,000 Term-life | 20-year plan | $264 per year |
| 100,000 Term- life | 30-year plan | $337 per year |
| Whole life plan | Whole life | $622 per year |
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Age 30
Men
| Male Age 30 - 39 | ||
| Plan | Term | Average Premium Per Year |
| 500,000 Term-life | 20-year plan | $156 per year |
| 500,000 Term- life | 30-year plan | $240 per year |
| Whole life plan | Whole life | $2,385 per year |
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Women
| Female Age 30 - 39 | ||
| Plan | Term | Average Premium Per Year |
| 500,000 Term-life | 20-year plan | $208 per year |
| 500,000 Term- life | 30-year plan | $335 per year |
| Whole life plan | Whole life | $4,142 per year |
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Age 40
Men
| Male Age 40 - 49 | ||
| Plan | Term | Average Premium Per Year |
| 250,000 Term-life | 20-year plan | $210 per year |
| 250,000 Term- life | 30-year plan | $384 per year |
| Whole life plan | Whole life | $3,508 per year |
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| Female Age 40 - 49 | ||
| Plan | Term | Average Premium Per Year |
| 250,000 Term-life | 20-year plan | $185 per year |
| 500,000 Term- life | 30-year plan | $314 per year |
| Whole life plan | Whole life | $3,008 per year |
Women
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Age 50
Men
| Male Age 50 - 59 | ||
| Plan | Term | Average Premium Per Year |
| 1,000,000 Term-life | 20-year plan | $1,692 per year |
| 1,000,000 Term- life | 30-year plan | $3,301 per year |
| Whole life plan | Whole life | $21,480 per year |
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Women
| Female Age 50 - 59 | ||
| Plan | Term | Average Premium Per Year |
| 1,000,000 Term-life | 20-year plan | $1,233 per year |
| 1,000,000 Term- life | 30-year plan | $2,349 per year |
| Whole life plan | Whole life | $17,760 per year |
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Age 60
Men
| Male Age 60 - 69 | ||
| Plan | Term | Average Premium Per Year |
| 250,000 Term-life | 20-year plan | $1,477 per year |
| 500,000 Term- life | 20-year plan | $2,793 per year |
| 1,000,000 Term-life | 20-year plan | $5,393 per year |
| 250,000 Whole life plan | Whole life | $8,783 per year |
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Women
| Female Age 60 - 69 | ||
| Plan | Term | Average Premium Per Year |
| 250,000 Term-life | 20-year plan | $1,033 per year |
| 500,000 Term- life | 20-year plan | $1,911 per year |
| 1,000,000 Term-life | 20-year plan | $3,637 per year |
| 250,000 Whole life plan | Whole life | $7,293 per year |
Compare Life Insurance Quotes
Top Picks for Life Insurance
Ready to find a life insurance policy? Compare our top picks for life insurance now.
- Term life insurance
1. Life Insurance by Bestow
With plans starting at just $8 per month, Bestow is perfect if you're on a budget. This affordable term life insurance allows you to skip the doctor appointment and say “no thanks” to the stacks of paperwork.
You can get a quote quickly and when it’s convenient for you because everything is 100% online. Answer a few simple questions and get a decision instantly.
There is no need to enter your name, email or phone number to get a quote. And Bestow relies on data rather than feedback from a medical exam.
You'll find 10 and 20-year term policies to choose from.
- Comparing term life insurance policies
2. Best for Multiple Quotes: Quotacy
Quotacy provides the tools and resources to help you choose the right term life insurance coverage for you and your family. After you apply online, Quotacy checks other top-rated life insurance companies to make sure you’re getting the best price.
Step 1: Use the quote tool to figure out how much term life insurance you need. As you make adjustments, your quoted rates change so you know your costs. You’ll be given policy options from top insurance companies.
Step 2: Create an online account on Quotacy.com. Set up your account and submit your pre-application and you’ll get a Kickoff doc.
Step 3: Get matched with an ideal insurance company. Review your options and pick the company and policy you wish to move forward with.
Step 4: Go through a phone interview.
Step 5: Complete the free medical exam. They’ll even come to your home or office, wherever it’s most convenient for you. The exam itself will typically take around 20 to 30 minutes where the examiner will simply take your weight and measurements and a blood draw.
Step 6: Wait for approval. After your application has been approved, you'll have 30 days to review your policy. If you have any issues or concerns, you can change it or receive a refund.
Keep your family protected. Use Quotacy’s free online life insurance calculator to estimate how much you need. Apply for coverage today.
- Under Age 64
3. Haven Life Insurance Agency
Haven Life is an innovative life insurance agency that offers a simple way to obtain term life insurance for those between the ages of 18 and 64. You can choose a term length of 10, 15, 20 or 30-years. What’s unique about this term life insurance is the way you can complete an application online and, if approved, digitally purchase coverage.
Haven Life is backed and wholly owned by MassMutual, a nearly 170-year-old life insurance company with a long history of claims-paying ability. Also available is Haven Life Plus, a no-cost rider to the Haven Term policy for customers in eligible states. Some of the great services included with Haven Life Plus are:
- A world-class fitness app with thousands of workouts and (most importantly) great music
- An app that combines the latest sleep and neuroscience research to help prevent jet lag
- A customized, state-specific, legally valid online will
Affordable and dependable, Haven Life offers protection for your family in the event of an unfortunate loss. A 20-year, $500,000 Haven Term policy, issued by MassMutual, for a healthy 35-year-old woman, is $23.34 per month. For perspective, the average American adult spends around $50 every month on subscription services. Apply for Haven Life to help financially protect your loved ones.
- Young families
4. Best for People with Children: Fabric
Fabric offers term life insurance for individuals between the ages of 25 and 50. It believes that life insurance isn’t for you, it’s for your family.
You can apply in as quick as 10 minutes and could be offered coverage on the spot. Its policies are issued by Vantis Life, a Penn Mutual Company, so your policy is backed by a highly-rated, financially-stable provider.
Apply online or in Fabric’s mobile app. It offers a range of term lengths and coverage amounts to help you find a policy that works for you. Choose from 10, 15 or 20-year terms and coverage amounts from $100,000 up to $5,000,000.
A 20-year term life insurance policy for a 29-year-old female in excellent condition with a coverage amount of $250,000 would costs around $14.61 per month.
- Adjustable coverage
5. Ladder
Ladder offers policies with no hidden fees, on-the-spot underwriting and a streamlined website. Coverage ranges from $100,000 to $8 million and you can adjust your coverage over time as your needs change.
Its price lock guarantee ensures your premium won’t increase as your health changes and you age. Policies in New York are issued by Allianz Life Insurance Company and DC by Fidelity Security Life Insurance Company.
The cost of Ladder life insurance is based upon your age, health and family medical history and other factors. Your monthly premium will also depend on your term length and desired coverage.
You can receive a refund within the 1st 30 days if you’re unhappy with your coverage and you can cancel at any time.
6. Sproutt
Sproutt is a new kind of life insurance company. It connects you with a provider and policy to meet your budget and needs.
The company developed the GAIA (Guided Artificial Intelligence Assessment) platform to power its Quality of Life Index. The index assesses your lifestyle and provides personalized recommendations to help you lead a healthy lifestyle. The Quality of Life Index also powers Sproutt's search for your life insurance provider.
Complete the index and answer a few others questions to find the right insurance plan. Follow through with Sproutt's recommended insurance company online to apply immediately.
Plan Ahead
A life insurance policy is a guarantee that your family will be taken care of when you pass away. The money they receive can help pay for your funeral and burial costs, any bills that you have left unpaid, your mortgage, medical bills or any other debts that remain
You can decide what type of insurance plan you choose to take out. Whether it is a term, universal or whole life, your life insurance policy will provide you and your family peace of mind.
Frequently Asked Questions
1) Q: What are the advantages of term life insurance?
A term life policy allows you to purchase coverage at a guaranteed premium for a limited amount of time. This structure makes term life an affordable choice to protect your family if you have a financial commitment that won’t last forever, like a mortgage or the cost of raising kids. A 20-year term life insurance policy is the most popular life insurance policy purchased to protect loved ones if the unexpected happens. Get a quote here from top providers.
2) Q: What are the advantages of whole life insurance?
Whole life insurance, along with universal life insurance and some other variants, is designed to provide coverage for your entire life. This differs from a term policy that offers guaranteed premiums for a limited time. Permanent life insurance has a savings or investment element that helps the policy to build cash value, making it an asset that can be borrowed against or even sold if you no longer need the policy.
3) Q: How much life insurance do I need?
Many in the industry recommend that you carry 8-12 times your annual income in life insurance coverage. A more granular approach can be beneficial, however, and accounting for debt and ongoing financial commitments in more detail when choosing a coverage amount can better provide for your family than an arbitrary multiple of earnings. Get a customized quote for the best policy.