You want to buy life insurance, and our tool can help you find and compare quotes so you can get the best deal. Even if you don’t need life insurance, we can also help. We’ll show you how to choose a life insurance policy that fits your needs. As you look at different life insurance providers below, learn about important terms and policies. insurance
How to Get Life Insurance Quotes Using the Tool
This tool gives you prices from some of the best life insurance companies. Your age, your life situation, and your income will help us figure out how much life insurance you need. Afterwards, you can expect to see quotes from a lot of different providers.
What you need to know about life insurance terms
If you don’t know the common terms used in life insurance policies, it can be hard to buy life insurance. People may use these words:
- Face value/policy value: The face value of a policy is the same as the death benefit, which is the amount of money your designated beneficiaries will receive if you die during the term.
- Beneficiary: In life insurance, a beneficiary is the person designated by the policyholder to receive the death benefit in the event the insured person dies.
- Underwriting: Underwriting is the process of determining an applicant’s level of risk. In life insurance, underwriters use information about your age, health, and smoking status to determine the likelihood you’ll die during the term. The higher your risk, the higher your premium will be.
- Insured person: This is the person covered by the policy. When this person dies, the death benefit will be paid.
- Policyholder: This is the person who purchased the policy.
- Premiums: A premium is the amount you’ll pay to keep the policy in force. You may be required to pay premiums monthly, quarterly, semi-annually, or annually. You may also pay for a policy in full on the date of purchase.
- Cash value/account value: In permanent life insurance policies, the cash value is the amount that earns interest and is available for you to borrow.
- Surrender value: This is the amount you would receive if you decided to cancel your policy—the cash value minus any early termination costs.
- Dividends: Dividends are portions of an insurance company’s profits that are paid to eligible whole life policyholders. Not all companies pay dividends. You can typically choose to receive these payments in cash, put them towards your premiums, or buy additional life insurance.
Who Needs Life Insurance?
Everyone who has family members who rely on their income to meet their needs should buy life insurance. Ask yourself, “Would my family be able to pay their bills if I died?” Those could be things like paying off a mortgage or other debt or saving for a child’s education.
Even if you don’t have any family members, you might want to buy a life insurance policy if you want to cover your funeral costs. It’s also possible to name your business partner as a beneficiary if your business would fail without you. Most financial experts say that whole life insurance isn’t a good way to save for retirement. Some people also choose to buy it.
What Kind of Life Insurance Should I Get?
During a certain time, like when they are paying off their mortgage, most people only need life insurance to cover them. term life insurance is usually enough and much cheaper than whole life insurance in this case, so it’s usually better to get this kind. If you want to build cash value and get extra benefits, like critical illness coverage, some families prefer a policy that does these things.
There are a few types of life insurance products available to choose from:
Term life insurance protects your family for a specific period of time, typically between five and 30 years. If you die during the term, your beneficiaries receive the full death benefit. However, if the term expires before you die, you won’t get a payout from the policy.
Final expense insurance allows you to prepay for your funeral expenses with a series of premium payments. In most cases, you can get these policies without answering health questions or taking a medical exam
As the name suggests, whole life insurance covers you for your entire life. Your beneficiaries are guaranteed a death benefit, but these policies generally come with a higher cost. Whole life insurance also accrues interest, building a cash value component you can borrow against, and some life insurance companies pay dividends to whole life policyholders.
Getting a Life Insurance Quote Online vs. an Agent or Broker
These agents can only sell you life insurance from one company at a time. If you haven’t already chosen a company, working with a captive agent will limit your choices. This is true even if you already have a company. Independent agents work for a lot of different companies and can help you get a policy and file a claim, but they don’t work with every life insurance company out there, so you might still miss out on opportunities if you do your own research instead.
Brokers are people who help people who want to buy insurance. They can help you figure out what kind of policy you need, how much coverage you should buy, and which company will give you the best price. However, they can’t sign policies, so you’ll still need to work with an agent or provider to get a policy when you apply for one in person.
Getting quotes from every company can take a long time, and it can be hard to compare policies. You can do a lot of the work for yourself, though, by looking at life insurance policies on the web. For people who have never bought life insurance before, they may want to get help from an agent or broker.
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How to Compare Life Insurance Quotes
When you get a life insurance quote, you’ll need to tell them things like your age, height, weight, and income. Your current medical conditions, medications and family history may also be asked about. You may also be asked about your criminal record, driving violations, and family history of health problems. You should get quotes for the same type of insurance policy so that you can compare prices more accurately when you do this. Suppose you want term life insurance. Choose the same term and face value for each quote, or use an online tool to compare quotes. Also think about whether the quote is based on a medical exam.
How to Compare Life Insurance Companies
Consider the following when you filter down the list of life insurance carriers that may be able to fulfil your needs:
- Eligibility: Make sure you’re eligible for the insurance provider’s policies based on your age and health.
- Employer-sponsored vs. individual coverage: You may be eligible for group coverage through your employer, and in most cases, this will be less costly. However, you should ensure the coverage is sufficient for your needs and portable if you leave your job.
- Cost: Look for a company that can provide you with an affordable estimate for the coverage you need.
- Ease of issue: Consider whether you’d prefer a policy that doesn’t require a medical exam and instead offers instant coverage online.
- Complaints: Research any recent lawsuits or enforcement actions against the company and check the company’s complaint index with the NAIC. An index below 1.00 indicates a relatively satisfied customer base.
- Credibility: Check the company’s ranking in the most recent J.D. Power U.S. Life Insurance Study, and look up customer reviews on third-party websites to see if there are customer concerns.
- Financial strength ratings: Make sure the company is well-rated for financial strength from independent agencies such as AM Best and Fitch since this indicates the company can reliably pay claims.
- Availability of riders: If you want to customize your policy with riders such as chronic illness coverage, long-term care, or life insurance for your child, make sure the company has the options to meet your needs.
- Availability of final expense products: If you’re looking to prepay your funeral costs over time, ensure the company you choose offers this type of policy.
- Customer service: Make sure you have plenty of options for contacting the company and prioritize insurers that offer live chat or 24/7 support.
Things to Know Before Buying Life Insurance
- Know your financial obligations and goals: Before you shop for life insurance, you need to decide how much coverage to buy and how long you want the policy in force. “To determine how much life insurance you need, consider how much money is needed to take care of your family and responsibilities,” says Lacrecia Cade, president of the brokerage Atlanta Life Insurance. “This could include ensuring there is money to cover your mortgage, cars, kids’ college or private school tuition, or even additional caregivers who may be needed. You want to estimate what your family would lose if you weren’t able to contribute.”
- Consider your health: Your current health will influence what options are available to you. Cade says some issues could make it difficult to pass automated underwriting, including “any type of chronic illness, as well as obesity based on your BMI, high blood pressure, or having high glucose levels such that you’re considered a pre-diabetic.” If that’s the case, you may need help from a broker to compare the underwriting standards of different companies and find an affordable policy.
- Decide if you want the policy to build cash value: Cade says term policies are less expensive, but a “whole life policy will accrue cash value and you can withdraw it or borrow against it during your life.”
- Decide if you want the policy to provide living benefits: Some providers let you customize your policy to provide more than just a death benefit. “Think of your life insurance as part of a protection portfolio that you need to build,” says Cade. “Many life insurance policies now have accelerated benefits that pay you if you get seriously ill and need cash to help pay your expenses if you’re unable to work. So, consider the full suite of options to make sure you’re protected and ready.”
- Think about how you want to manage your policy: Many life insurance companies offer online tools that make it easy to accomplish changes without calling an agent. Decide if that’s important to you. Some companies even allow you to adjust your coverage online as you go.
- Know the options available from your employer: Consider whether the group coverage offered by your employer is sufficient to cover your needs and portable should you leave your job. You may need to purchase supplemental coverage, either through your employer or as an individual policy. However, Cade says you should look at the two sources of coverage in tandem. “It’s just as important not to over-insure as it is not to under-insure,” she says.
Read More About Life Insurance Companies
It’s natural to question how each firm stacks up in terms of service, dependability, policy options and financial strength when comparing life insurance quotations We do a thorough evaluation of each firm based on accessible price data, third-party ratings, and qualitative research. Once you’ve obtained a few price estimates that are within your price range, our life insurance evaluations may assist you in narrowing down your choices.
Frequently Asked Questions
What Is a Life Insurance Quote?
You may get a life insurance quotation to get an idea of what your premium will be. Your personal quotation is based on your height and weight, age, and smoking status. For example, if you need a medical test to verify your health information, life insurance quotations aren’t always accurate, but they might help you compare prices across firms.
How Much Does Life Insurance Cost?
Most people underestimate how inexpensive life insurance may be. Most Americans, according to the LIMRA 2021 Insurance Barometer Study, believe that life insurance will cost three times what they estimate. Term life insurance for a healthy 30-year-old costs roughly $160 per year, however whole life insurance may be pricey, generally costing 10-15 times as much as term life insurance. Employer-sponsored health insurance plans may cost even less or be provided as an additional perk to your benefits package. However, your unique pricing will be determined by criteria such as your age, gender, and other personal characteristics.
Should I Get a Life Insurance Quote?
One of the greatest methods to start comparing a broad range of life insurance providers is to use a free service to acquire online life insurance quotes. You’ll have a smaller selection of policies to choose from if you go with an independent insurance agent. And finding an expert broker may be difficult and time-consuming. Working with an independent agent or broker, on the other hand, may be a better alternative if you have health conditions that could effect underwriting, difficulties utilising technology or complicated customisation demands Also, bear in mind that internet quotations for whole life insurance policies, particularly those with large face values, aren’t always accessible.