Life Insurance Finder

Finder’s life insurance experts spent over 500 hours analyzing quotes and policies from 100+ companies, fact-checking their approval process, age cutoffs, medical exam requirements and more. We highlight the fine print as well as each company’s strengths and downsides.

Read accurate, unbiased reviews that help you narrow down insurers to meet your lifestyle and budget.

What life insurance rates should I expect?

The average cost for life insurance is less than $50 a month, according to our price analysis of 14 different life insurers across different ages. For example, a $500,000, 20-year term life policy for a healthy person between ages 25 and 40 costs around $28 a month.

However, your rate depends on many factors like your age, gender, health, job or smoking habits. The coverage amount, term length and the type of policy come into play too.

Insurers weigh factors differently, which is why it’s important to compare quotes from multiple companies.

How much life insurance do I need?

Choosing the right amount of coverage, known as your policy’s face value, comes down to how much you can afford. When you’re doing the math, factor in:

• Income. The golden rule is to buy a policy that would replace your income and cover your family’s cost of living for five to 10 years. To do this, multiply your salary by five or 10.
• Assets. Throughout your life, you may gain assets like a house, car or 401(k) that your life insurance policy should protect. Add the value of these assets to your coverage amount.
• Financial responsibilities. Total all of your expenses now and any future expenses you can expect, including childcare or college tuition.

Life insurance quote comparison

To find the best deal on a comprehensive life insurance policy, look at coverage amounts compared to your premiums and other features that attract you to an insurer, including:

• Minimum and maximum coverage. Learn your insurance policy’s limits and what your loved ones will receive after you die. Some insurers cap coverage for specific careers and age groups.
• Age restrictions. Research whether your age will affect getting approved or whether a policy stops covering you at a certain age. Seniors may find limited insurance options.
• Policy features and riders. If your policy’s features don’t offer the flexibility you’d like, ask about riders that can customize your policy.
• No medical exam policies. You can buy coverage without taking a medical exam or with just a short health questionnaire, though this policy may cost more than standard policies.
• Combining different policies. You might buy multiple policies through one company for a cheaper rate than separate insurers, such as standalone disability income, critical illness and life insurance policies.
• Specialty policies for your job. If you encounter risks on the job, make sure a policy doesn’t exclude paying out for those situations. You could buy from insurers that specialize in your field.

What is life insurance and how does it work?

Who needs a life insurance policy?

If you have loved ones who depend on you financially, you most likely need life insurance. Your policy can help provide for their needs when you’re gone, which is why life insurance is important.

Those with the greatest need for life insurance are:

Take our quiz: Do you need life insurance?

How do I buy life insurance online?

When is life insurance paid out?

The death benefit is paid out when you die, typically as a lump sum — but you can specify paying the death benefit in installments or annuities. Your beneficiaries can use the money however they wish, including:

• Mortgage payments
• Living expenses — like utilities or car insurance
• Cosigned debt that won’t disappear when you die — like student loans or credit cards
• End-of-life expenses — including funeral costs and medical bills
• Child care
• Long-term care — like a nursing home or medical expenses for ailing parents
• College tuition

Is the death benefit taxed?

No, the death benefit isn’t taxable income unless your estate is worth more than the federally set threshold, according to the IRS. If so, your estate will be subject to federal estate taxes. The life insurance payout is considered part of your estate.

What are the types of life insurance I can buy?

Life insurance plans are lumped into several main types of life insurance: term, permanent, no-medical exam and group life policies.

Compare the main types of life insurance

Features like whether a policy is permanent or temporary or has fixed monthly premiums could help you decide which policy type is right for you.

Feature	Term	Whole	Universal	Variable
Lifelong coverage
Requires medical exam
Fixed premiums
Builds cash value
Offers tax-free loans

What life insurance riders can I get?

Most insurers allow you to dress up your policy with riders, including these popular ones:

• Conversion rider. Lets you convert term to permanent life insurance within a time frame.
• Waiver-of-premium rider. Waives premiums if you become unemployed or fully disabled and can’t work.
• Child rider. Pays out if your child dies, and typically expires when your child gets married or turns 25.
• Return-of-premium rider. Reimburses you for premiums paid if you outlive your term life policy.
• Guaranteed insurability rider. Lets you boost coverage without another health questionnaire or medical exam.
• Cost-of-living rider. Keeps your policy’s death benefit in line with inflation.

Common questions about buying life insurance

• Who do insurers classify as a smoker?

  If you’ve smoked tobacco in the last 12 months, most insurers will classify you as a smoker. Some insurers are more lenient, and will allow a celebratory cigar once a month without assigning you a smoking status.

• What happens if I can't make a premium payment?

  Your insurer is legally required to offer a grace period to make up the payment, typically 28 to 31 days. If you don’t pay during the grace period, your insurer will cancel your coverage.

• Should I buy directly or through a broker?

  Both brokers and agents work on behalf of insurers to sell you a life insurance policy, but they have a few differences:

  Buying from a broker

  • Not limited to one insurer, offering a wide variety of products.
  • Can flex their market knowledge to find coverage that suits your circumstances.
  • Can offer advice on the type of life insurance or annuities you need, evaluating your situation.
  • May offer higher coverage levels and stronger features due to shopping the market.

  Guide to life insurance brokers

  Buying from an insurance company

  • Limited to one insurer’s products, though with expertise to talk about them in detail.
  • May let you sign up online or by phone with immediate conditional approval.
  • Online companies may offer faster approvals.

  Guide to life insurance agents

• What if I already have life insurance through work?

  Group life insurance is a solid employee benefit but may be capped at small amounts like $100,000, leaving you underinsured. Group policies may not let you keep your coverage if you change jobs either.

• Can I change my beneficiary?

  You may change or name multiple beneficiaries at any time. Most people name their spouse or children, but you can choose another family member, friend, charitable organization or an estate or trust.

• Can I adjust my coverage level?

  Foresee needing more or less coverage in the future? Some policies allow you to increase or decrease your coverage:

  • Variable life, universal life and variable universal life. These permanent policies give you the freedom to change your coverage amount — just keep in mind that this will also affect the death benefit.
  • Decreasing term life insurance. With this type of term life insurance, the death benefit gradually decreases as you age. It’s ideal for those who know they’ll have less debt as time goes by.

• Can I cancel my policy?

  You can cancel your life insurance whenever you want. But you’ll only receive a refund of any premiums you paid in these situations:

  • An insurer is legally required to give you time to change your mind after buying a policy, called the free look period. The period lasts 10 to 30 days depending on your state.
  • You bought a return of premium rider. If you cancel, you’ll be reimbursed for the premiums you paid — minus administrative fees.

• Do I really need life insurance if I'm a stay-at-home parent?

  As a stay-at-home parent, you probably do a lot of unpaid labor, like cooking, cleaning and chauffeuring the kids around. If you die, a life insurance policy can help your family hire someone else to take over those tasks.

• I'm single and don't have any dependents. Should I buy life insurance?

  It depends. If you have co-signed student loans, a mortgage or other debts that don’t dissolve after you die, a life insurance policy can pay those off. You also may want a policy to cover your own funeral costs.

  That way your loved ones won’t get saddled with your debt or end-of-life expenses unexpectedly.

• I'm a beneficiary. How do I claim the death benefit?

  When the policyholder dies, you’ll need to send a completed claim form, certified death certificate and any other documentation requested to the insurance company.

  The insurer will review the claim and pay the death benefit once approved.