Life insurance pays a lump sum (death benefit) to your beneficiaries when you die. It's designed to replace lost income, pay off debts, and cover final expenses so your family isn't financially burdened.
There are two main types: term life (coverage for a set period, usually 10-30 years) and permanent life (whole life, universal life — coverage for your entire life with a cash value component).
Providers we compare
Premiums shown are for a healthy 35-year-old non-smoker purchasing $500,000 coverage. Actual cost varies by age, health, smoking status, coverage amount, and term length.
| Provider | Avg Premium (20-yr term) | Key Feature | Best For |
|---|---|---|---|
| Haven Life | $25/mo | No medical exam (up to $1M) | Healthy applicants wanting speed |
| State Farm | $28/mo | Agent-guided process | In-person advice preference |
| Banner Life | $23/mo | Competitive rates for healthy applicants | Price-conscious shoppers |
| Protective | $26/mo | High-coverage options (up to $10M) | High net worth individuals |
| Ladder | $24/mo | Adjust coverage online anytime | Flexible needs (new parents, career changes) |
How to choose life insurance
1. Determine how much coverage you need
A common rule: 10x your annual income. Factor in debts (mortgage, car loans), future expenses (college tuition), and lost income replacement.
2. Decide between term and permanent
Term life is cheaper and simpler. Permanent life costs 5-10x more but builds cash value. For most people, term life is the better choice.
3. Choose a term length
Match the term to your financial obligations. If your kids are young, a 20-30 year term ensures they're financially independent before coverage ends.
4. Understand the medical exam
Most policies require a health exam (blood, urine, height/weight). No-exam policies exist but cost 20-50% more and cap coverage lower.
5. Name beneficiaries carefully
Be specific. "My children" can be ambiguous. Use full legal names. Consider contingent beneficiaries in case your primary beneficiaries predecease you.
FAQ
What's the difference between term and whole life?
Term life covers you for a set period (10-30 years). Whole life covers you for your entire life and builds cash value (a savings component). Term is cheaper and recommended for most people.
Can I get life insurance if I have a health condition?
Yes, but expect higher premiums or exclusions. Diabetes, high blood pressure, and mild conditions are insurable. Severe conditions (recent cancer, heart disease) may result in denial or very high rates.
Do I need life insurance if I'm single with no kids?
Maybe not. Life insurance is primarily for income replacement. If no one depends on your income, you may not need it. Consider a small policy to cover final expenses.
Can I cancel my policy?
Yes. Term life has no cash value, so you just stop paying. Whole life has cash value you can withdraw or borrow against before canceling.
How long does it take to get approved?
Traditional underwriting takes 4-8 weeks. No-exam policies can approve in days. Instant-approval policies (up to $500k) exist for healthy applicants.
Note: This comparison is for informational purposes only. It is not financial or estate planning advice. Consult a licensed insurance agent or financial advisor before purchasing.