The Best Term Life Insurance Policy: To find peace of mind and live a fulfilling life, it’s crucial to get term life insurance. This type of insurance can make your life easier by ensuring your loved ones are protected.
In this article, I’ll explain everything you need to know about term life insurance, including where to buy it. We’ll cover policies that are risk-free and very affordable, with the potential to grow over time.
Understanding Term Life Insurance
Term life insurance lets you choose a coverage period, usually starting at five years. During this period, your rates won’t change. Other common term lengths are 10, 15, 25, and 30 years.
After the initial term ends, you can usually renew the policy each year, but the rates will go up. So, it’s important to choose the right term length from the start.
You can also choose your coverage amount, which can go up to millions of dollars if needed. When you buy the policy, you must name at least one beneficiary. If you pass away while the policy is active, your beneficiary will receive a death benefit.
If your coverage expires and you’re still alive, you won’t get a refund unless your policy includes a “return of premium” option.
Term life insurance is much cheaper than other types like whole life insurance. This is because term life insurance has no cash value; you can’t borrow against it or withdraw money from it.
Who Should Buy Term Life Insurance?
Consider buying term life insurance if you want to boost your financial security. It’s a good option for those looking for affordable life insurance to cover specific needs, like their working years or the length of a mortgage.
We reviewed 26 companies’ term life insurance rates and benefits to find the best providers for different ages and coverage amounts.
With term life insurance, you get a payout for the term you choose, usually 10, 20, or 30 years. When the term ends, you can renew the policy, convert it to a permanent one, or let it expire.
The main purpose of term life insurance is to provide for your dependents, like your spouse, kids, siblings, and parents. The death benefit can help them with expenses like funeral costs or unpaid debts. It offers financial support to your loved ones who depend on you now and in the future.
Best Term Life Insurance Providers
Haven Life
Haven Life is our top pick for term life insurance. Some applicants won’t need a medical exam if they meet certain criteria, but coverage without an exam is capped at $1 million. Higher coverage requires a medical exam.
One downside is that you can’t convert a Haven Life term policy to a whole life policy. However, you might be able to get new whole life coverage after your term policy expires.
Depending on your location, you might get Haven Life Plus at no extra cost. This includes benefits like a free online will, a digital safe for important documents, and a yearly membership to the Adaptiv fitness program.
Note that Haven Life is a digital company and doesn’t issue its own policies. MassMutual or its subsidiaries handle the policies.
Ladder
Ladder stands out for its flexibility. You can adjust your coverage as your needs change. Premiums start at just $5 per month, making it affordable even on a tight budget.
Ladder offers a simple three-step online application process and no cancellation fees, so you can end your coverage anytime without penalties.
One unique feature is that you can change your coverage level online at any time, with corresponding changes in premiums. This helps you maintain an affordable policy, especially if your financial situation changes.
New York Life
New York Life offers both term and permanent life insurance. If you want permanent coverage later, their term policies have a conversion option. They also provide the life insurance plan offered by AARP.
New York Life is ideal if you’re looking for permanent life insurance, which costs more but builds cash value and offers a death benefit. They offer several permanent options, including universal and variable life insurance. You can also add optional riders to customize your coverage.
As a mutual insurance company, New York Life has a solid reputation, and policyholders own part of the company. Depending on your policy, you might receive dividends.
You can’t get quotes online from New York Life; you’ll need to contact an agent for details.
Northwestern Mutual
Northwestern Mutual offers many optional riders, allowing you to customize your policy extensively. They provide term, whole, universal, and variable life insurance.
As a mutual company, Northwestern Mutual pays dividends to policyholders. They consistently rank highly in the industry and have fewer complaints than expected for a company of their size.
John Hancock
John Hancock has been in business for about 160 years and has an A+ rating from AM Best. They offer online quotes, and some applicants can skip the medical exam. Coverage options range from $750,000 to 30 years.
Their Vitality Plus wellness program offers discounts and benefits like free access to the Headspace meditation app and food cost reductions. You can also convert a term policy to a whole life policy without a medical exam.
If you pass away within the term, your beneficiaries receive a death benefit. After the term ends, you need to renew or convert the policy to keep coverage.
Conclusion on The Best Term Life Insurance Policy
This article has highlighted the best aspects of getting term life insurance and the top companies offering it. However, it’s always a good idea to do your own research to find the best policy for your needs.