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Today's top-rated life insurance options
Sorted by our editors based on financial strength, ease of purchase, and policy flexibility. Updated for .
What is life insurance?
Life insurance is designed to provide financial support to your loved ones after you die. It can help cover funeral expenses, mortgage payments, and other financial obligations. When you get life insurance, you enter into a contract with the insurer where you pay them a monthly premium, and in return, they will pay out a tax-free lump sum to your beneficiaries after you die.
Who should get life insurance?
If your death would have a financial impact on the people in your life, then you should get life insurance. People who should consider life insurance include:
- Primary earners in the household
- People with dependents
- Stay-at-home parents
- Small business owners
- Co-signers or co-owners of debt
What do our ratings mean?
What type of life insurance should I get?
There are three main types of life insurance to choose from:
Term life insurance: A lower-cost option that covers you for a set amount of years. Term life insurance is good for those with tight budgets, or who have a specific, short-term financial need for coverage.
Permanent life insurance: Covers you for as long as you pay the premiums. It's usually more expensive than term life insurance. Permanent life insurance is good for those who are willing to spend more to ensure they are covered throughout their life.
No-exam life insurance: Doesn't require the applicant to undergo a medical exam during underwriting. Approval is usually quicker, and it may be more accessible for those with certain health conditions.
How much does life insurance cost?
The cost of life insurance depends on factors like age, health, term length and more. The average cost of life insurance for a 40-year-old buying a 20-year, $500,000 term life policy is about $26 per month. Rates vary based on your life expectancy — factors like age, gender, health, driving record, and occupation all play a role.
How much life insurance do I need?
To figure out how much life insurance you need, add up your financial obligations. Include any long-term payments, like mortgage or student loan payments. Then subtract your assets, such as savings and other available funds. What's left is the gap your life insurance benefits will have to fill.
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