Updated: July 10, 2025
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Life insurance premiums vary widely between insurers, even for the same coverage. Comparing quotes can save you hundreds over the life of a policy.
Term life insurance costs less than other types and makes sense when you need coverage for a specific reason, like replacing your income or covering your mortgage until it's paid off.
Whole life insurance is better for complex financial planning situations. It lasts your entire life and builds cash value you can borrow against. However, you'll pay more for these features.
You may need to complete a medical exam when applying. However, no-exam policies are available (often at a higher cost) for those who qualify.
Life insurance applications require detailed information about your health, lifestyle and financial situation. Insurers use this information to assess risk and determine your rates. The process follows predictable steps that help ensure you get the right coverage.
Before you apply, determine how much life insurance you’ll need. This depends on your income, debts, dependents and long-term financial goals. Knowing the amount upfront will help you choose the right policy and avoid being underinsured.
A common starting point is 10 to 12 times your annual salary, but your exact number will vary. Here are the key factors to consider when calculating your coverage:
Factor | Description |
|---|---|
Income replacement | Make sure your family can maintain their lifestyle if you’re no longer around. |
Debt payoff | Cover major debts like mortgages, student loans and credit cards. |
Future expenses | Factor in things like college tuition or childcare for young kids. |
Dependents | Having more dependents requires more coverage. |
Savings and investments | Existing assets can offset how much life insurance you actually need. |
End-of-life costs | You may want your policy to cover funeral and burial expenses. |
Taking stock of your financial situation upfront helps you choose a policy that provides the right level of financial protection without overpaying for coverage you don’t need. You can use our life insurance calculator below to get a personalized estimate.
The best way to buy life insurance starts with understanding your financial needs and how long you need coverage. Conduct thorough research and consider consulting with a financial advisor to ensure you select the right type of policy. Read the fine print to understand the policy terms and conditions fully.
Life insurance policies come in many forms to meet various needs. Understanding the differences is key to choosing life insurance that aligns with your goals. The most common types are term life and whole life insurance, each with specific features, benefits and drawbacks.
Choosing the right life insurance means understanding how each policy works, what it covers and how it fits your financial priorities.
This insurance provides coverage for a specific period (the "term"), typically 10, 20 or 30 years. Your beneficiaries receive a death benefit if you pass away within this term. However, if you outlive the term, the policy expires without value. This straightforward, cost-effective solution allows you to secure substantial coverage at a relatively low premium, making it practical for those buying life insurance policies for the first time.
Who Should Choose Term Life?
Term life insurance is ideal for people who want straightforward, affordable coverage for a specific period, like while raising a family, paying off a mortgage or covering income replacement during working years. Its simple structure, lower premiums and ease of comparison make it a great choice for first-time buyers.
The application process is also more accessible. You can often get quotes online by providing some basic personal information, and a medical exam may or may not be required, depending on the insurer. Many platforms let you compare rates side by side, helping you find a policy that offers strong value with minimal hassle. If you're looking for coverage without complexity, term life is a practical solution.
This permanent insurance provides lifelong coverage and a guaranteed death benefit. Whole life policies include a cash value component that grows over time. While the guaranteed payout and cash value accumulation can be appealing, these benefits come with much higher premiums than term life insurance (often hundreds of dollars more).
Who Should Choose Whole Life?
Whole life insurance is better suited for high-income earners, long-term planners or people with unique financial responsibilities. It can help preserve wealth for heirs, cover estate taxes or provide lifelong support for dependents with special needs.
For those in this category, whole life provides predictability, stability and a built-in financial tool that grows in value over time.
Term life insurance is much cheaper than whole life, making it a popular choice for budget-conscious buyers. Premiums only cover the cost of insurance, not any cash value, which keeps rates low for healthy applicants.
We found that someone in poor health might pay about $34, depending on the condition.
By comparison, whole life insurance includes both coverage and a built-in savings component that grows over time. That extra benefit comes with a much higher price tag, often hundreds of dollars more per month for the same coverage amount.
While the decision between term and whole life insurance ultimately depends on personal circumstances, term insurance is often the more practical and affordable choice. Its simplicity, cost-effectiveness and flexibility make it attractive to many.
However, term life insurance might not be ideal for everyone. For those with significant financial resources or lifelong dependent care responsibilities, the benefits of whole life insurance might outweigh its higher costs.
A life insurance rider is an optional addition you can get for an extra cost, providing additional benefits or coverage. Some popular riders include:
Whether you're getting a life insurance policy for the first time or looking to enhance existing coverage, understand the function and benefits of these riders. They provide an added layer of security, ensuring you're well-prepared for a range of situations.
You can request quotes online, through an agent or via employer-sponsored plans. Most platforms require basic personal information to generate estimates. Comparing policies on an apples-to-apples basis helps you find the best value apart from the cost, including strong customer service, financial stability and flexible coverage.
If you’re in good health, consider quotes that include a medical exam to maximize savings. If speed or convenience is more valuable, no-exam life insurance may be worth exploring.
Life insurance rates can vary widely for the same coverage based on an insurer’s underwriting standards, pricing models and risk appetite. Gather quotes from multiple reputable providers. In addition to comparing prices, evaluate differences in policy features, customer service and financial strength.
Looking beyond the lowest premium can help you find better long-term value, especially with policies that fit your unique needs. Comparing multiple offers could save you hundreds or even thousands of dollars over the life of your policy.
We’ll give you a suggested amount of cover to buy in just 3 easy steps. — it's free, no personal information required, no spam.
Rates updated:
Jul 18, 2025
Don’t stop at the first quote. Comparing policies side by side is the most effective way to find the right balance between cost, coverage and reliability.
Selecting a beneficiary for your life insurance policy affects your family's financial future. It's not just about naming a recipient; it's about leaving a legacy and ensuring the financial protection of those you'll leave behind. Here are the factors to consider:
Factor | Consideration |
|---|---|
Primary vs. Contingent | Designate a primary beneficiary who will receive the death benefit and a contingent or secondary beneficiary as a backup. The secondary beneficiary gets the benefit if the primary beneficiary passes away before you. |
Multiple Beneficiaries | You can name more than one person and decide how the benefit is divided among them. Consider the methods of distribution that best suit your wishes. |
Legal Considerations | Your choice must comply with state laws, especially if considering a minor as a beneficiary. In such cases, set up a custodial account or designate a trusted guardian to manage the benefit until the minor reaches adulthood. |
Regular Updates | Life situations change, and so should your beneficiary designations. Review and update them regularly to ensure your named beneficiaries know when and where to file a claim. |
Trusts and Legal Entities | If you have specific requirements for how the funds should be used, creating a trust and naming it as your beneficiary ensures your desired outcome. |
Insurance companies want to know more about your background and lifestyle. You'll need to provide your age, gender, occupation, income level and number of dependents. They'll also consider your medical history (including any diagnoses, medications or surgeries) and your family's health background. Lifestyle habits (like smoking, drinking and exercise) and risky hobbies (like skydiving or racing) can affect your rates.
Most insurers will send a licensed health professional to your home or office for a medical exam. They'll check your height, weight and blood pressure, plus take blood and urine samples. The lab work screens for things like diabetes, high cholesterol and whether you smoke.
If you're healthy (and especially if you don't smoke), this exam can lower your insurance payments.
No-exam policies offer quick coverage with approvals in just a few days. These work well for younger applicants in good health or those who don't want to wait for medical underwriting. However, premiums can be higher for older buyers or people with health conditions, since insurers are taking on more risk.
Life insurance protects your family financially when you're gone. It ensures that your dependents will be supported even if you can no longer provide for them. Here are ways life insurance can support your long-term financial plan:
Life insurance can help ensure your family maintains their standard of living, even in your absence. It can cover daily living expenses, mortgage payments, educational costs and more, providing financial stability to those you leave behind.
If you pass away with outstanding debts, such as personal loans or credit card balances, life insurance can help pay them off, relieving your family from the burden and securing their financial future.
Life insurance plays an important role in estate planning, providing a tax-free inheritance to your heirs. It can be structured to cover estate taxes, protecting your assets' value and ensuring that your legacy is passed on according to your wishes.
Some life insurance policies, such as whole life or universal life, offer investment opportunities. These policies allow for growth in cash value over time, which can be borrowed against or even withdrawn for financial needs.
Life insurance allows you to leave a lasting legacy by contributing to a charity through your policy. By naming a charitable organization as a beneficiary, you can support a cause close to your heart, making a meaningful impact even after your lifetime.
You have several ways to purchase life insurance, depending on how much guidance or convenience you prefer:
Licensed professionals who can recommend policies tailored to your financial goals and walk you through the process.
Many insurers let you compare quotes, apply and buy coverage entirely online. This is ideal if you want speed and control.
Some employers include group life insurance in their benefits package. It's easy to enroll and often comes at a lower cost, but coverage may be limited.
These professionals can help you choose a policy that fits within your broader financial strategy, especially if you're juggling multiple goals.
Certain groups or associations provide access to exclusive plans with negotiated rates or simplified underwriting.
If term or whole life insurance doesn’t fit your situation, there are other types worth considering. These options are relatively easier to qualify for and may offer quicker approval, especially for those with health concerns or smaller coverage needs.
Some life insurance policies are less common but offer specialized benefits tailored to unique financial needs and preferences. Here’s an overview of these more complex options:
Understanding life insurance terms and definitions helps people purchasing life insurance choose the best policy for their situation and needs. Whether you're applying for life insurance online or getting a policy through more traditional means, knowing all available options can help you choose the right policy to meet your financial goals and risk tolerance.
Life insurance rates differ depending on your age, health, lifestyle and coverage needs. However, price alone shouldn’t drive your decision. The cheapest policy isn’t always the best if it lacks the coverage or reliability you need.
Compare multiple quotes from several insurers and review each policy’s terms, features and eligibility requirements carefully. A solid provider with strong customer service and claims handling can make a big difference when it matters most. To help you get started, we broke down the cheapest life insurance policies for different profiles below.
Your life insurance premium depends on several personal factors. Knowing what insurers look at helps you understand your quotes and find coverage that fits your budget.
Premiums generally increase as you age due to a higher risk of health issues and mortality.
Current or past health conditions can increase premiums.
Women tend to live longer than men, statistically speaking, which often results in lower premiums.
Higher-risk jobs (like construction work or commercial fishing) can increase premiums.
Smoking, excessive drinking or participating in high-risk hobbies can lead to higher premiums.
If your family has a history of certain medical conditions, your premiums might be higher.
Reduce your life insurance premiums with smart planning. Here are some effective strategies for anyone looking to buy life insurance:
Insurers set premiums based on risk assessment. You can lower your risk profile and substantially reduce premiums by improving your health, quitting smoking or avoiding high-risk activities.
Your next decision is which insurance company to trust with your family's future. Look at financial strength ratings first, as they show whether the company has the money to pay your beneficiaries decades from now. You'll also want to review their customer service reputation, claims experience and any third-party ratings or consumer reviews.
Comparing multiple insurers side by side can reveal differences in service quality, policy flexibility and long-term value. The right company offers competitive rates and the confidence that it will actually pay your family when the time comes. We've ranked the best life insurance companies based on different needs to help you get started.
See our ranking of the best life insurance companies and rankings by policy or buyer type:
Buying life insurance without proper research can leave families unprotected. Here are the most expensive mistakes to avoid:
The younger and healthier you are, the lower your premiums. Delaying coverage means paying higher rates as you age and develop health issues.
Premiums vary widely between insurers. We found substantial price differences for identical coverage. Get quotes from at least three companies before choosing.
Many people underestimate their coverage needs. Calculate 10 to 12 times your annual income, then add debt and future expenses like college tuition. Consider your family's long-term financial needs.
Whole life insurance costs more than term coverage. Unless you have specific estate planning needs, consider buying term life insurance and investing the difference in a retirement account.
Lying on applications voids your policy. Insurance companies can deny claims during the first two years if they discover undisclosed health problems. Honesty protects your beneficiaries.
You have to choose a provider that won't struggle to pay claims. Check AM Best ratings and choose companies with A- or higher ratings for financial strength.
We explained how to buy life insurance and choose the right policy based on your needs, goals and budget. Term life insurance is usually the most affordable and flexible option, while whole life offers permanent protection and long-term value for those with more complex financial plans.
Before applying, make sure you’ve estimated how much coverage you need, compared quotes from multiple insurers and understood the trade-offs between policy types. Researching your options now can help you secure coverage that protects your loved ones and fits your future.
Buying life insurance can raise many questions, especially for beginners. Here are answers to common questions, offering insights and tips to help you make informed decisions for your financial security.
A life insurance policy provides a financial safety net for your beneficiaries when you pass away. In exchange for premium payments, the insurer pays out a death benefit to your beneficiaries, helping cover various expenses like funeral costs, debts and ongoing living needs.
Research insurers and familiarize yourself with life insurance terms to determine the coverage you need. The application process involves submitting personal and health details and may include a medical exam.
When looking for a life insurance policy, you can choose between term and permanent policies. Term policies offer coverage for a set period, while permanent life insurance provides lifelong coverage and a cash value component. Each option varies in cost and benefits.
Life insurance requirements vary but often include age, health, occupation and lifestyle information. Applicants may need to undergo a medical exam, provide personal and financial details and meet underwriting standards to qualify for coverage.
Before buying life insurance, consider your current income, dependents, debt obligations and future expenses. Understanding your financial goals helps you choose the right policy to protect your loved ones.
When selecting a life insurance policy, prioritize finding an insurer known for strong financial health, excellent customer service and a diverse range of policy features at competitive prices. Read the terms carefully so you know exactly what's covered and what isn't.
You can buy life insurance from an agent, by going directly to an insurance company or shopping online. Many websites let you compare quotes and apply right away.
To know how much coverage you need, consider your financial obligations, dependents' needs, future expenses and overall financial goals. A rule of thumb is to get coverage 10 to 12 times your income.
Most insurers require your personal details, health history, family health history, lifestyle habits and financial information.
This process takes about four to six weeks, depending on the company and the type of policy.
A medical exam assesses your health to determine your premiums. It can save you money and increase coverage by reducing the insurer's risk.
Life insurance requires premium payments, either monthly or annually. The amount depends on the coverage, policy type and personal factors like age and health. The premiums maintain your policy and ensure a payout to your beneficiaries.
Quotes estimate your life insurance premiums based on the provided details. Comparing multiple quotes ensures you get the best policy at the most affordable price.
Choosing the right policy involves evaluating your financial needs, understanding different types of policies and considering your future obligations. Research on buying life insurance can help you assess coverage options and select a policy that aligns with your goals.
No-exam life insurance offers coverage without a medical exam. The process is quicker, but premiums may be higher, especially for older applicants.
Riders are additional coverage options that tailor your policy to your needs. Common riders include those for accidental death, disability and critical illness.
Life insurance isn't legally required. However, it's highly recommended if you have dependents or financial obligations like mortgages, debts or education expenses that your loved ones would need to cover after your passing.
Choosing life insurance feels overwhelming with so many companies claiming to offer the "best" coverage. That's why we built a research system that cuts through marketing claims to show you which insurers actually deliver value, stability and fair treatment when it matters most.
How We Analyzed Companies
We gathered 1,488 life insurance quotes and scored insurers on what matters most to buyers: cost, reliability, customer treatment, product options and ease of purchase. Each company earned up to five points per category, creating scores on a 100-point scale.
Our standard scoring weights:
Why We Adjusted Weights by Policy Type
Different life insurance needs require different research priorities:
Whole Life Insurance buyers need maximum financial security, so we weighted:
We excluded affordability for whole life due to limited comparable pricing data.
No-Exam Life Insurance shoppers prioritize convenience and options:
Cheap Life Insurance buyers focus primarily on cost:
Our Sample Profile
We used a 40-year-old male, nonsmoker, 5'11", 175 pounds, with excellent health as our baseline profile. This represents the most common life insurance buyer demographic.
We also gathered quotes across ages, genders, tobacco use, health conditions and locations to capture real-world pricing variations. Quotes covered multiple term lengths and coverage amounts, helping us identify which insurers consistently offer competitive rates.
What We Measured
Cost data: Online quote tools from major insurers
Financial strength: AM Best ratings and years in business
Customer treatment: NAIC complaint data (2020–2022)
Digital experience: Online application tools and ease of use
Coverage variety: Policy types and available riders
This approach gives you confidence that our rankings reflect actual value, not just marketing promises.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
