As a Certified Financial Planner, I see underinsured people every day.

What do I tell them?

A million-dollar term life insurance policy might actually be the minimum coverage needed for the typical middle-class household, but it’s affordable.

That might sound like an exaggeration, but if you crunch the numbers – just as we’ll be doing a little bit – you’ll realize that a million-dollar policy might be just what you need.

The good news is term life insurance isn’t nearly as costly as most people think.

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What makes term life insurance even better is that larger policies cost less on a per thousand basis than smaller policies do. You may find the premium on a $1 million policy is only a little bit higher than it is for $500,000.

Do You Really Need a $1 Million Term Life Insurance Policy?

Probably, but let’s find out. A general rule of thumb is that you should get 10x your income as baseline coverage for life insurance.

If you’re young, that may be low because you may want to provide your family with enough to replace your income for 15 years or more.

Today, $1 million has become the new baseline for life insurance by a primary breadwinner. Anything less could leave your family financially impaired.

Typical Obligations to Add When Calculating the Amount You Need

Here’s a list of all the different obligations you may want to have life insurance cover in the unfortunate event you pass away early.

• Your Income (And for How Many Years)

• Your Final Expenses

• Any Debt You May Want to Be Settled

• Future Obligations Such as College for Children

• Other Obligations Such as Business

• Typical Items You Can Subtract When Calculating the Amount You Need

• Current Life Insurance Policies

• Assets (Like Cash or Stock) You Might Choose to Use Instead of Life Insurance

Now that you have an idea of these obligations, let’s punch them into this life insurance calculator to find out if you need a million-dollar policy.

Choosing A Million Dollar Insurance Policy

According to Policy Genius, the average cost for a 20-year $1 million term life insurance policy for a 35-year-old male is $53 per month. However, your rate will vary according to the following factors.

Factors that affect your rate:

• Your Age

• Your Health

• Your Gender

• Your Hobbies

• Your Coverage Amount and Policy Term

Where to start?

The best, and easiest place to start is online. I recommend having two or three insurers compete for your business to make sure you get the best rate and coverage. To see how cheap term life can be, choose your state from the map above to be matched with top life insurance providers instantly.

Factors That Affect How Much You Need

Let’s look at the individual components that can quickly add up to over a million-dollar policy.

Income Replacement

This is where things can get a bit intimidating. Even if you earn a modest income, you may need close to $1 million to replace that income after your death in order to provide for your family’s basic living expenses.

The conventional wisdom in the insurance industry is that you should maintain a life insurance policy equal to between 10 times and 20 times your annual income. So if you earn around $50K per year, that would mean policy coverage between $500K and $1 million.

The complication today is that with interest rates being as low as they are that might not be enough either.

For example, if you have a $1 million policy that could be invested at 5% per year, your family could live on the interest earned – which conveniently comes to $50,000 per year – for the next 20 years.

That would still leave the original $1 million intact to cover other expenses. But with today’s microscopic interest rates, there’s no way to get a guaranteed return of 5% on your money, certainly not for 15 or 20 years.

Also, keep in mind that most insurance companies have a maximum multiplier you can apply to your income for life insurance coverage. For example, it wouldn’t make much sense for a 22-year-old making $27,000 per year to get a $2 million life insurance. Or a 65-year-old that is retired to secure a $3 million dollar policy.

The table below is approximately how much you’re allowed to multiply your income based on your age and income:

Using the table above as a guide, a 35-year-old making $150,000 per year would be capped at taking out a $4.5 million term policy ($150,000 x 30 = $4,500,000).

Your Final Expenses

Here we start with the basics – wrapping up your final affairs.

This will include funeral costs and any lingering medical costs. A reasonable estimate for a typical funeral is around $20,000.

Crazy, right? You can get burial insurance to cover only the most basic of final expenses.

Outstanding Debt

Debt burdens are high in the US, and debt can be especially crushing on remaining family members. Many life insurance customers make sure they can pay off most of their debt with the policy.

Medical Debt

Medical costs are a serious variable. Even if you have excellent health insurance, there are likely to be unpaid medical bills lingering after your death. This has to do with copayments, deductibles, and coinsurance provisions.

Collectively, they can add up to many thousands of dollars. But where things get really complicated is if you die of a terminal illness.

For example, if you are stricken by an illness that lasts for several years, you could incur a number of expenses that are not covered by insurance. This may include the cost of personal care and even experimental treatments.

Mortgage

A home may be a large asset, but it’s also often a homeowner’s largest debt. The average mortgage balance in the US is roughly $236,443 according to Experian data. So you could easily use a life insurance policy to pay off that debt and relieve your loved ones of a monthly mortgage payment. 

Personal Debt

Credit card debt and other personal debt are some of the most expensive obligations carrying rates upward of 20% in some cases. Make sure you have enough to cover this very expensive debt.

Future Obligations For Your Family

Below is a sampling of major expenses your family is likely to incur, either on an annual basis or at some point after your death.

College

Tuition costs continue to skyrocket. The Department of Education suggests that four-year public college tuition has been rising an average of 5% per year, far exceeding the rate of inflation. If you have one child who attends an in-state public school, a second at an out-of-state public school, and a third in a private university, the total expenditure will reach $416,560.

• Annual cost at in-state public college: $20,770 ($83,080 for four years)

• Annual cost at out-of-state public college: $36,420 ($145,680 for four years)

• Annual cost at a private college: $46,950 ($187,800 for four years)

Transportation

Vehicles and other forms of transportation represent another large sum. Unfortunately, with increasing electronics and safety features, the average cost of a new car continues to grow.

Health Insurance

If your family relies on your work for healthcare, take notice. According to eHealth.com, the average health insurance premium for a family is $22,221. That’s a shade under $2,000 per month in additional cost. This cost will only rise, and the need could last for years.

Other Obligations You May Need to Cover

So far, we’ve been describing the financial obligations likely to affect a typical household.
But there may be certain situations that will produce obligations that are less obvious.

Business Owners

For example, if you’re a business owner, there may be debts or other financial obligations that will need to be paid upon your death.

Even though no one in your family may be qualified or interested in taking over your business, the payoff of those obligations may be completely necessary to enable the sale of the business.

Real Estate Investor

Another possibility is that you’re a real estate investor.

If your properties are heavily indebted, extra insurance proceeds may be necessary either to carry the properties until they’re sold, or even to pay off existing indebtedness to free up cash flow for income.

You may even need additional funds if you are taking care of an extended family member, like an aging parent.

These are just some of the many possibilities of expenses that will need to be covered by insurance proceeds.

Factors Affecting Your Life Insurance Premiums

Before we move on to specific life insurance quotes, let’s first consider the factors that affect term life insurance premiums.

Age

This is typically the single most important premium factor. The older you are, the more likely you are to die within the term of the policy.

Health

This is a close second and why it’s so important to apply for a policy as early in life as possible. Premiums on life insurances rates literally increase by each year.

If you have any health conditions that may affect mortality, such as diabetes or hypertension, your premiums will be higher. This is another compelling reason to apply while you are young and in good health.

It’s not that policies are not available to people with health conditions, it’s just that they’re less expensive if you don’t have any.

Policy Term

A 10-year term policy will have a lower premium than a 20-year term policy, which will be lower than a 30-year term. The shorter the term, the less likely it is the insurance company will have to pay a claim before it expires.

Policy Size

Size of the policy matters, but not the way you might think. Yes, a $1 million policy will cost more than a $500,000 policy. But it won’t cost twice as much.

The larger the policy, the lower the per-thousand cost will be.

When the size of the death benefit is considered, the larger policy will always be more cost-effective.

Work, Hobbies, and Habits

For example, certain occupations are more hazardous than others (think policeman versus librarian). Deep-sea diving is higher risk than golf. And smoking is the one activity guaranteed to raise your premiums substantially.

With this information in mind, let’s take a look at whether you should consider a $1 million whole life policy instead.

$1 Million Term Life Insurance vs Whole Life?

Any discussion on life insurance should include a comparison of whole life and term life insurance coverage. After all, both products can be immensely valuable in the right situation, yet one product (whole life) costs considerably more than the other.

Most of the time, the debate is settled in favor of term life insurance based on cost alone.

With that being said, whole life insurance and other investment-type life insurance coverage can be valuable in terms of the cash value you can build up over time. Whole life insurance also offers a fixed benefit amount for your heirs that will last for your entire life, yet the cost of your premiums are guaranteed to stay the same.

The cash value of a whole life insurance policy also grows on a tax-deferred basis, and you can borrow against this amount if you need a loan. Further, many whole life policies from reputable providers also pay out dividends during good years, which can be substantial.

Why Young Families Choose Term Coverage

The problem with whole life and other similar policies like universal life is the fact that premiums can be exorbitant for the amount of coverage you might need.

A couple with young children provides a good example since they might need a $1 million dollar policy or more to provide income protection for their working years and have money left for college tuition and other expenses.

With young families, expenses are already high.

This includes costs for food for a family, childcare, heavy use of health care, and the seemingly endless demand for clothing, furniture, and even entertainment as the children grow.

As you can see from the cost comparison below from State Farm, there’s not enough room in the typical family budget to afford the type of life insurance that’s needed.

A 40-year-old mother and breadwinner in excellent health would pay $80.09 per month for a term life policy that lasts 20 years, whereas a whole life policy in the same amount would cost $1,266.69 per month (or $14,560 annually).

This is a classic situation where term insurance rides to the rescue. The family can afford to buy the amount of coverage they need at an affordable price, whereas paying for permanent life insurance coverage in the same amount would be difficult to justify.

And just as important for people of any age and in any circumstance, the extra funds not being spent on insurance premiums can be invested to gradually improve your financial situation.

So absolutely, term insurance will work best for most people.

$1 Million Life Insurance Rate Examples

As you’ll notice, each table has a wide array of information. Knowing that everybody is in a different situation, I wanted to make sure that I offered term life quotes for almost every conceivable situation.

I’ve included life insurance rates for a 30-year term, 20-year term, and a 10-year term million dollar life policies. If you’re a tobacco user, I’ve also included some quotes from life insurance for smokers.

30-Year $1 Million Term Life Policy

For those that think that a million-dollar term policy is expensive, you’ll quickly notice that a 25-year-old male in good health only costs $645 per year while a 35-year-old costs $795.

On a monthly basis that’s almost next to nothing!

20-Year $1 Million Term Life Policy

There is a big drop-off in life insurance rates between a 20 year and a 30 year since underwriters do not have to worry as much about life expectancy.

For many people, a 20-year policy gets them exactly where they want to be in life when the policy term runs out.

10-Year $1 Million Term Life Policy

Once again, you get a $200 drop in the annual premium by losing another 10 years on the term.

If your life insurance agent isn’t giving you all these term options and is only focused on the death benefit, then you need a different agent.

$1 Million Policy for Smokers – Rates Increase

For all you smokers out there – beware! The cost of your life insurance balloons as you’ll see here. If you’re considering kicking the habit, now is as good time as any.

Some life insurance companies will give you a lower rate if you complete a recognized smoking cessation program, and go on without smoking for at least two years.

It won’t help your immediate situation, but when you see the premium on smoker life insurance rates below, you might agree that it’s something to work toward!

10 steps to securing a million life insurance policy:

If you’ve made the decision that $1 million of life insurance is the right amount of coverage you need and you’re ready to purchase a policy, here are the steps you’ll need to follow.

1. Determine How Much Coverage You Need: This is the first and most important step in securing a million life insurance policies. You need to have a clear understanding of how much coverage you actually need.

2. Choose the Right Type of Policy: There are whole life, term life, and Universal life policies available. Choose the one that best suits your needs.

3. Shop Around: Don’t just go with the first life insurance company you come across. It’s important to compare life insurance rates and coverage from a few different companies before making a decision.

4. Consider Your Health: If you’re in good health, you’ll likely qualify for lower rates. However, if you have health issues, you may still be able to get coverage, but it will probably be more expensive.

5. Consider Your Lifestyle: If you have a risky job or hobby, that could affect your rates.

6. Get Quotes From Multiple Companies: This is the best way to compare rates and find the cheapest policy.

7. Read the Fine Print: Make sure you understand all the terms and conditions of the policy before buying it.

8. Buy Online: You can usually get cheaper rates by buying life insurance online.

9. Pay Attention to Your Payment Schedule: Most life insurance policies require monthly or annual payments. Be sure you can afford the payments before buying a policy.

10. Review Your Policy Regularly: Life changes, and so do life insurance needs. Be sure to review your policy regularly to make sure it still meets your needs.

Following these steps will help you get the best possible rate on a million-dollar life insurance policy.

Make sure you understand all the terms and conditions before signing on the dotted line. Also, make sure to shop around and compare rates from multiple companies before buying a policy.

Yes, I know I’ve said that a few times in this article, but it’s worth repeating. Many people go with the first life insurance company they call, and that isn’t kind to their checkbook. It pays to shop around.

Here’s what you need to know about choosing the best life insurance company for your $1 million policy:

The Best Companies to Purchase $1 Million Life Insurance

When choosing the best life insurance company, it’s important to consider the overall financial health of the insurance company. You want to make sure the company you choose is stable and will be around for years to come. You also want to consider things like the company’s customer service rating and claims-paying ability.

There are a lot of different life insurance companies out there, so it can be difficult to know which one is the best. Each company is rated by different organizations, so it’s important to look at multiple ratings before making a decision.

The companies that rate insurance companies are A.M. Best, Moody’s, and Standard & Poor’s.

A.M. Best is a credit rating agency that specializes in the insurance industry. They rate insurance companies on their financial stability.

Moody’s is another credit rating agency. They also rate insurance companies on their financial stability.

Standard & Poor’s is a credit rating agency that rates companies on their financial stability.

The following life insurance companies are all rated A+ (Superior) by A.M. Best and are considered to be financially stable and have a good claim-paying ability.

1. Northwestern Mutual

2. New York Life

3. MassMutual

4. Guardian Life

5. State Farm

6. Nationwide

7. USAA

8. MetLife

9. The Hartford

10. Allstate

Here are those same top life insurance companies with their respective ratings:

These are just a few of the many life insurance companies out there that could provide you with a $1 million life insurance policy.

When choosing a life insurance company, it’s important to consider their financial stability, customer service rating, and claims-paying ability. The companies listed above are all rated A+ (Superior) by A.M. Best and are considered to be financially stable with a good claims-paying ability.

Northwestern Mutual, New York Life, MassMutual, Guardian Life, State Farm, Nationwide, USAA, MetLife, The Hartford, and Allstate are all good choices for life insurance companies.

You can’t put a price on peace of mind, and with a $1 million life insurance policy you can have the peace of mind knowing that your loved ones will be taken care of financially if something happens to you.

Bottom Line: How Much Does A $1 Million Dollar Life Insurance Policy Cost?

Getting a one-million-dollar term life insurance policy is not as expensive as most people believe. You can start getting quotes today from a variety of top life insurers by selecting your state from the map above.

Even those who opt for the more expensive permanent life insurance policy will many times be surprised at the price.

Either way, you can get these larger amounts of coverage and still not break the bank. But get your policy now, while you’re still young and in good health.

FAQ’s on $1 Million Life Insurance Policy

The post How Much Does A Million Dollar Life Insurance Policy Cost? appeared first on Good Financial Cents®.

After all, life insurance isn’t just a monetary consideration – it’s about ensuring that your loved ones are protected in case of your untimely demise.

However, sometimes circumstances may lead you to contemplate canceling your life insurance policy. The question then arises: should you, and if so, how do you go about it? Let’s delve deeper.

Understanding Life Insurance Policies: More Than Meets the Eye

First off, to make an informed decision, it’s crucial to understand the two main types of life insurance policies that are on the market.

Term Life Insurance: The Straightforward Option

As its name suggests, term life insurance provides coverage for a specified term, which typically ranges from 10 to 30 years. If you pass away during this term, your designated beneficiaries receive the policy’s death benefit.

This type of insurance is often viewed as the simpler and more affordable option, as it strictly provides coverage without any investment component.

Permanent Life Insurance: Coverage Plus Investment

On the other hand, permanent life insurance policies, such as whole life or universal life insurance, provide coverage for your entire lifetime and include an investment element known as cash value.

This cash value portion grows over time and can be borrowed against or even surrendered for cash, making this type of policy more complex and usually more expensive.

Reasons for Canceling Life Insurance: Making the Tough Call

Several scenarios might lead you to contemplate canceling your life insurance policy.

Financial Reasons: When the Premiums Are Too High

It could be that the premiums have become unaffordable due to changes in your financial circumstances.

As the cost of living increases, especially in the light of rising inflation, as highlighted in a recent FT Adviser report, it’s not uncommon for individuals, especially those over 50, to consider cutting back on their life insurance.

Policy No Longer Needed: When Life Takes a Better Turn

Your reasons for canceling could also be positive. Maybe your children have grown up and become financially independent, or your financial status has improved significantly since you first took out the policy.

Reasons for Canceling Life Insurance

Considerations Before Canceling Your Life Insurance: Weigh Your Options

But before you make the decision to cancel your life insurance policy, there are several factors to consider.

Evaluate Your Current Situation: Checking the Safety Net

Firstly, evaluate your current financial situation. You should be sure that you and your dependents won’t need the safety net that life insurance provides in the future.

Understand Potential Consequences: The Trade-Offs

It’s important to understand the potential consequences of canceling your life insurance. If you cancel your term life insurance, you won’t receive any money back and will be left without coverage.

On the other hand, canceling a permanent life insurance policy might allow you to recover some of the cash value, but could also result in surrender charges, especially if the policy is still in its early years, as pointed out by a Forbes Advisor article.

Alternatives to Canceling: Is There a Middle Ground?

Before canceling your policy outright, it’s worth exploring other options. For instance, you could reduce the death benefit to lower the premiums or even switch to a more affordable term life insurance policy if you currently have a permanent life insurance policy.

How to Cancel Your Life Insurance: Following the Right Steps

If, after considering all the implications and alternatives, you still decide that canceling your life insurance is the best course of action, then here are the steps you need to take.

Steps to Cancel Term Life Insurance: It’s All About Communication

The process for canceling term life insurance is generally straightforward. First, you need to contact your insurance provider and inform them of your intention to cancel the policy. This could be over the phone, via email, or sometimes through an online portal.

Steps to Cancel Permanent Life Insurance: A Bit More Complex

The process of canceling a permanent life insurance policy, on the other hand, could be a bit more complex, particularly because of the cash value component. You may need to complete a policy surrender form or send a written request to your insurance provider.

Life After Canceling Your Life Insurance: Managing Your Risks

The aftermath of canceling your life insurance policy requires careful financial planning. Now that you no longer have the protection that the policy provided, you need to manage the financial risk that the policy once covered.

Managing Financial Risk: New Strategies

This risk management could involve several strategies, from building an emergency fund to investing for your long-term financial goals.

Setting up an Emergency Fund: An Essential Buffer

An emergency fund is an essential financial tool that provides a buffer against sudden expenses or financial emergencies. It ensures that even if unexpected costs arise, you have a financial cushion to rely on.

Investing for Long-term Goals: Playing the Long Game

By investing, you can grow your wealth over time and work towards achieving your financial goals. Whether it’s retirement planning, saving for a home, or investing in your child’s education, having a robust investment strategy can provide financial security in the long run.

Conclusion – Canceling Life Insurance: A Guide

Canceling your life insurance policy is a significant decision that should be made with careful consideration. It’s crucial to weigh the potential risks and benefits, evaluate your current and future financial situation, and explore all available alternatives.

The post Canceling Your Life Insurance Policy: A Comprehensive Guide appeared first on Good Financial Cents®.

However, some life insurance policies offer an additional feature – the accumulation of cash value over time.

This is a unique feature that allows the policyholder to access a portion of the insurance money during their lifetime. This article will delve further into the types of life insurance policies that generate immediate cash value.

Decoding Cash Value in Life Insurance

The cash value in a life insurance policy is a savings component that grows over time. This feature is inherent in permanent life insurance policies, unlike term life insurance policies that only provide coverage for a predetermined period.

When a policyholder pays premiums towards a permanent life insurance policy, a portion of these payments contributes towards building the cash value.

This cash value grows over time and can be accessed by the policyholder during their lifetime, offering an extra layer of financial security.

Understanding Different Life Insurance Policies

The life insurance market is diverse, offering several types of policies. Some of the main types include term life insurance, whole life insurance, and universal life insurance. Each of these has its unique features, advantages, and suitability for different individuals.

Term Life Insurance

As highlighted by CNBC, term life insurance is designed to offer coverage for a specific period, typically 10, 20, or 30 years. If the policyholder passes away during this term, the insurance company pays a death benefit to the beneficiaries.

However, according to financial experts like Dave Ramsey, it could be the best option for most people because it’s simple and affordable. It’s like an umbrella for a rainy day, shielding your loved ones financially if you pass away during the policy term.

However, term life insurance does not provide any cash value component. It’s often chosen for its affordability and simplicity, focusing solely on providing financial protection in the event of the policyholder’s death during the policy term.

Whole Life Insurance

Whole life insurance, as the name suggests, offers coverage for the insured person’s entire lifetime as long as the premiums are paid. Unlike term life insurance, it combines a death benefit with a cash value component.

A portion of the premiums paid contributes to this cash value, which grows over time. Importantly, this growth is at a guaranteed rate, offering predictability and security for the policyholder. According to The Motley Fool, this type of insurance is often more expensive than term life insurance due to its cash value component and the lifetime coverage it provides.

Universal Life Insurance

Universal life insurance is another type of permanent life insurance policy that combines a death benefit with a cash value component. However, it differentiates itself with its flexibility in premium payments and death benefits. The cash value component in universal life insurance grows based on prevailing market interest rates.

Policyholders can adjust the premium amount and death benefit within certain limits, providing them with a degree of control over the policy’s costs and benefits.

Life Insurance Policies That Generate Immediate Cash Value

Among the various life insurance policy options, it’s the whole life insurance and universal life insurance policies that generate immediate cash value. From the moment these policies are enforced, the cash value starts growing, offering policyholders access to a part of their insurance payout during their lifetime.

Whole Life Insurance and Cash Value

With whole life insurance policies, the cash value grows at a guaranteed rate, offering a predictable savings growth mechanism. The cash value of whole life insurance is built from the premiums paid by the policyholder. This cash value can be borrowed against, offering a valuable source of funds when needed. Alternatively, the policyholder can choose to surrender the policy and receive the accumulated cash value.

Universal Life Insurance and Cash Value

Universal life insurance is a form of permanent life insurance policy that combines the death benefit of term insurance with a cash value component. This type of policy is known for its flexibility, as it allows policyholders to adjust the premium payments and death benefits within certain limits. This flexibility can be instrumental in managing life’s financial uncertainties.

The cash value of universal life insurance grows based on prevailing market interest rates, offering the potential for significant growth during periods of high-interest rates. It’s important to note that while this offers an opportunity for financial gain, it can also present challenges. In periods of low interest rates, the cash value growth can slow down, potentially affecting the policy’s overall value.

Policyholders can access the cash value in a universal life insurance policy through withdrawals or policy loans. This can offer valuable financial flexibility in times of need.

A Word of Caution on Universal Life Insurance

While universal life insurance offers flexibility and potential cash value growth, it’s not without risks. According to the New York Department of Financial Services, policyholders must be cautious about the fluctuating costs and benefits of these policies.

Interest rates can fluctuate, and when they’re low, the cash value of a universal life insurance policy may not grow as expected. This could mean that the policyholder has to pay higher premiums to keep the policy active, especially if the policy costs are being paid from accumulated cash value.

Policyholders should regularly review their universal life insurance policies. If the policy’s cash value is depleting faster than expected, or if the policy costs are increasing, it might be necessary to adjust the premiums or the death benefit to keep the policy in force.

Factors Influencing Cash Value Growth

The growth of cash value in a life insurance policy is subject to several factors. These can vary greatly from policy to policy, and understanding them can help policyholders make an informed decision. The following are some critical factors:

Premium Payments

The amount of premium paid and the frequency of the payments directly impact the growth of the cash value. Regular and timely premium payments can accelerate the accumulation of cash value over time.

Policy Expenses

Insurance policies come with various expenses, such as administrative fees, mortality charges, etc. These charges are typically deducted from the premium payments before the remaining amount is allocated to the cash value component, thus potentially affecting its growth rate.

Interest Rates

The interest rate at which the cash value grows plays a significant role in its accumulation. A higher interest rate leads to a quicker accumulation of cash value, while a lower rate may slow it down. This is particularly relevant for universal life insurance policies where the interest rate is tied to the prevailing market rates.

Benefits of Life Insurance With Immediate Cash Value

Opting for a life insurance policy with immediate cash value can offer several benefits:

• Financial Flexibility: The cash value in these policies can be accessed during the policyholder’s lifetime, providing financial flexibility for various needs such as emergencies, education expenses, or retirement planning.

• Asset Accumulation: The cash value component of the policy acts as an asset that can grow over time. It can serve as a source of additional funds or supplement retirement income.

• Borrowing Options: Policyholders can borrow against the cash value of their life insurance policy. This can be a convenient source of funds without the need for a separate loan application or credit check.

• Tax Advantages: The growth of cash value in a life insurance policy is typically tax-deferred. This means that policyholders can enjoy the growth without immediate tax obligations until they withdraw or surrender the policy.

Considerations When Choosing a Policy

When selecting a life insurance policy with immediate cash value, it’s important to consider the following factors:

• Financial Goals: Determine your financial goals and how the policy aligns with them. Consider whether you prioritize cash value growth, death benefit coverage, or a combination of both.

• Premium Affordability: Evaluate your budget and ensure that the premium payments are affordable in the long run. Remember that missing premium payments can impact the cash value growth and policy coverage.

• Long-Term Planning: Assess your long-term financial plans and how the policy fits into them. Consider factors such as retirement, education expenses, and other financial milestones.

As Life Happens points out, life insurance is valuable at any age. It’s not just for when you’re in your golden years and start worrying about leaving a financial safety net for your loved ones. With policies that offer immediate cash value, you’re getting both protection and a financial resource you can access during your lifetime.

Remember that gem of a piece of advice from Dave Ramsey? He says, “Term life insurance is bought, while whole life insurance is sold.”

This simply means that term life insurance, with its lower cost and straightforward benefits, is generally the go-to choice for most people. However, the whole life insurance policies, with their additional features, are actively promoted by insurance companies.

Keep in mind that in the wild world of insurance, there’s no right or wrong choice, only what works best for you. It’s like trying to choose between a coffee and a milkshake – they both have their perks, but it ultimately depends on your taste (or, in this case, your financial goals).

Are you someone who wants protection with the added benefit of cash value growth, or do you prefer a no-frills approach with just coverage? Can you consistently afford the premium payments to reap the full benefits? How does a policy fit into your long-term plan, considering things like retirement, education expenses, or other financial milestones?

The Bottom Line – Immediate Cash Value

Choosing a life insurance policy with immediate cash value can provide both protection and financial flexibility. Whole life insurance and universal life insurance policies are two types that offer this benefit. Understanding the factors that influence cash value growth and considering personal financial goals are crucial when making a decision. By selecting the right policy, individuals can secure their loved ones’ future while also building a valuable asset.

The post Types of Life Insurance That Generate Immediate Cash Value appeared first on Good Financial Cents®.

I clearly remember speaking with dumbfounded families who couldn’t believe their husband or father (or wife or mother) never had life insurance in place. Some didn’t have enough money to cover final expenses like the funeral bill, and others confided in me they had no idea how they would pay their bills.

This saddened me greatly since I know first-hand how inexpensive life insurance can be — especially if you’re young and healthy. After all, I’m a 40-year-old woman and I currently have two term policies worth $1 million dollars that set me back a grand total of $53 per month. 

Why People Don’t Buy Life Insurance

The main reason consumers don’t buy this important coverage is simple — they get busy and forget. Most of us know we need life insurance in place during our working years, and that’s especially true for those of us with kids. But it’s easy to let life get in the way, and for the purchase of life insurance to wind up on a list of other to-dos that we never get to. 

Not only that, but people don’t want to think about dying. I specifically remember a family I met in the funeral home who just lost a husband and father who wasn’t even 40 years old. In tears, his wife explained that he had told her he was going to buy life insurance dozens of times, but that he hated even dealing with death.

A final reason people don’t buy life insurance is cost. The thing is, term coverage is so cheap that almost anyone can afford it. People just think it’s expensive, so they shy away from taking the next steps. Life insurance is also just another bill to pay, and many can barely keep up with the bills they have.

That’s probably why so few people have enough coverage. Here are some statistics that should scare you:

• Only around 60 percent of Americans had life insurance in 2022, according to LIMRA’s 2022 Insurance Barometer Study

• Among those with life insurance, 1 in 5 people know they do not have enough

• Consumers surveyed tend to overprice life insurance; millennials in particular believe that life insurance costs 5x the actual amount for a policy

Consequences of Not Having Life Insurance

Based on those statistics, not enough people have life insurance and those who do may not have enough coverage to last. But, what can this mean for your family? Here are the main downsides you’ll face when you don’t buy life insurance now before it’s too late:

Your Income Disappears

Income replacement is one of the most compelling reasons to buy life insurance, and that’s especially true if you have kids. You don’t want your income to suddenly disappear, leaving your family in the lurch. However, this is exactly what happens when you die without life insurance. All of a sudden, your family is left trying to cover regular bills and living expenses without your income.

That’s why many experts suggest buying at least 10x your income in term life insurance coverage. This way, your family will have some cash they can use to replace your income while they mourn and get back on their feet.

Your Debts Don’t 

Your income may disappear when you die, but your debts certainly don’t. With that in mind, you should buy life insurance coverage that will cover major debts you have like your home mortgage, your family car loans, and any credit card debt you have.

If you don’t buy life insurance and you die before your time, your family will be left trying to cover all your debts without your help. It’s shameful to leave them in this position — especially when term life insurance coverage can easily be purchased for the price of a dinner out per month. 

Your Family Could Need a GoFundMe to Pay for Your Funeral

During my final years in the funeral industry, GoFundMe came about. I cannot tell you how many families came in to plan their services without any money only to find that, no, the funeral home wouldn’t let them make payments. After that, they’d set up a GoFundMe and solicit donations from family and friends to pay for a service.

This always made me sad, mostly because families shouldn’t have to struggle or fundraise to pay for final expenses. I always thought that, if only their loved one had a small-term life insurance policy, they would have been able to grieve without the added stress.

You Will Not Leave a Legacy

Finally, life insurance offers you the chance to leave a legacy behind. This could mean leaving enough money to pay for college tuition for your children or having a broad enough policy so your spouse or partner never needs to work again, paving the way for them to stay home and nurture your kids. When you have enough life insurance so your family is taken care of, they will never forget it.

The opposite is also true. Many whose loved ones die without life insurance wind up angry and resentful at their partner for leaving them in such a position. I know because I saw it with my own eyes, and I felt their exasperation as they tried to figure out what to do.

Purchase Life Insurance the Painless Way

Here’s the thing: Buying life insurance doesn’t have to be complicated or stressful. I know because I have purchased $1 million in life insurance coverage and because the second policy I bought online didn’t even require a medical exam. 

The purchase of life insurance can be painless and fast if you plan to buy basic term coverage, and it can also be significantly cheaper than you think it would be. These tips can help you get the coverage you need without any added hassle or stress.

1. Shop Around and Compare Quotes Online

First, you should absolutely shop around and compare life insurance quotes online, mostly because this is such an easy task. A range of online life insurance providers including Haven Life and Bestow make it easy to price out a policy in a matter of minutes online. 

To get a quote from Bestow or Haven Life, for example, all you need to supply is your birth date, your height, your weight, and your zip code. You don’t even need to enter your contact information or your email to get a free quote with either company.

You can also check out our guide to the Best Life Insurance Companies of 2023, which lets you read reviews of all the top providers and compare rates from multiple providers in one place. 

Whatever you do, don’t go with the first life insurance company you come across. Make sure you compare policies in terms of their monthly cost, the amount of coverage, and how long it lasts. Then, and only then, can you know you’re getting the best deal.

2. Play Around With Coverage Amounts

You also need to have a general idea of how much coverage you want and need. We mentioned that most experts suggest buying at least 10x your income in life insurance coverage, but it may be prudent to buy more term coverage than you need. After all, there’s no such thing as having too much life insurance in place, but you can definitely not have enough.

If you’re young and you have young kids, you may want a 30-year policy that will provide income replacement for your entire working life. If you’re in your 40s and you plan to retire at 55, on the other hand, you may feel comfortable with a policy that lasts for 15 or 20 years. There is no “right” or “wrong” answer, but these are factors you should consider.

3. Look for Providers That Don’t Require a Medical Exam

According to LIMRA’s 2018 Insurance Barometer Study, half of all consumers say they are “more likely to purchase life insurance if priced without a physical examination.” And, can you blame them? Medical exams require a blood draw, and you have to set aside time in your schedule for them to boot. It’s easy to procrastinate and never buy a policy when a medical exam is required.

Fortunately, many life insurance providers don’t require a medical exam. Instead, they rely on algorithms to determine who is the greatest risk, and who can purchase coverage that begins right away. The second policy I purchased for myself came from Haven Life, and it did not require a medical exam. 

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I was in my late 30s when I purchased this policy for $750,000, and I only pay around $27 per month. I applied for this policy online and had coverage the next day, and all without seeing a nurse or facing the dreaded needle prick.

The Bottom Line

Since you took the time to read this piece, you are probably on the verge of buying life insurance. You already know you need it, so don’t let another day go by without coverage. You may not think something could happen to you in the next week or the next few months, but life doesn’t always go as planned. If you’re unlucky, your untimely death may be no exception.

Take the time to get a quote for life insurance, and you’ll never have to wonder what your family would do if you died. Life insurance lets you continue providing for them even after you’ve left this Earth, and there’s nothing more thoughtful and loving than that. 

The post What Are the Consequences of Not Having Life Insurance? appeared first on Good Financial Cents®.

When you buy life insurance online, you are essentially entrusting the value of your life over to a financial institution.

After you become deceased, the insurance will have to pay out a benefit to your beneficiaries.

To ensure they keep their investment for as long as possible, insurance companies will avoid insuring people who have a higher death rate than others who are guaranteed to live a long, healthy life.

If you have any kidney problems, your chances of getting approved for life insurance will be significantly lessened. However, there is a chance to get a reasonably good rate depending on your condition, how long you have had the condition and whether or not it has been fully treated.

If you have any kidney problems, you may have been told that you can get life insurance because of your health, but that isn’t true. In fact, there are still plenty of options for affordable and quality life insurance coverage, even with kidney problems

What Is Kidney Disease?

Kidney disease refers to a group of conditions that affect the kidneys, the two bean-shaped organs located in the lower back that filter waste products from the blood and regulate the balance of fluids and electrolytes in the body.

There are several different types of kidney disease, ranging from acute conditions that develop suddenly and are often reversible, to chronic conditions that progress slowly over time and can eventually lead to kidney failure.

Chronic kidney disease, also known as chronic renal disease, is a common and potentially serious condition that can lead to a variety of health problems if not properly managed.

Here is a table summarizing some common types of kidney disease, their symptoms, and treatment options:

Getting Life Insurance With Kidney Problems Is Difficult, but Not Impossible

You have several options if you have kidney problems. You can find an insurance company who accepts people with kidney problems, get premium financing, or check with guaranteed life insurance companies. If you work for a company that offers life insurance, then group benefits will be a great option for you. They are much easier to qualify for.

Consider Graded Insurance Policies

If that is not an option for you, consider graded benefit life insurance. You will not need a medical exam to apply for this type of insurance. The downside is, it takes up to three years for this insurance to payout.  

These types of plans have a waiting period in place, which means that if you were to pass away within the first two or three years after buying the policy, the insurance company would not pay the face value of the plan.

Guaranteed Insurance Policies Are Another Option

Guaranteed life insurance companies offer no medical exam life insurance. However, the rates may be higher, but you can be guaranteed $10,000 to $25,000 of coverage. You can use several of these to build up the coverage you need.

There are some obvious disadvantages to these guaranteed issue policies that you should be aware of when you’re shopping for life insurance. The first, as we mentioned, is that these policies are more expensive than a plan that requires a medical exam.

The insurance company wants to know what type of health you are in before they accept your policy, without the medical exam, they have less information to base their insurance on. To offset that risk, they are going to charge you much more every month.

Another disadvantage is the low limit on how much coverage you can purchase. Most applicants need more life insurance coverage than these guaranteed issue plans offer. Aside from having a life insurance plan, it’s vital that you have enough coverage for your family if anything were to happen to you.

While there are some disadvantages to these types of plans, they are a great option for anyone that has already been declined for insurance coverage by another company. You health shouldn’t prevent you from getting life insurance.

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You Can Also Obtain Premium Financing

This is a way to borrow money from the bank to pay for life insurance if you have impaired risk. The bank guarantees that the premiums will be paid and the insurance company promises the loan will be paid off if the insured dies. The payments for the loan will be fully or partially covered by the bank. If the loan is standard, you will have to make loan payments but those payments will be lower than any premium you would have had to pay. If the loan is non-recourse, then it will be paid off from the insured’s death benefit.

You can also ask your doctor if they will be willing to talk with the underwriting department of your insurance company on your behalf. Your doctor may be able to vouch for your condition with your insurance company. You should also shop around to different insurance companies to see which ones will allow you to get life insurance with kidney problems.

Potential Kidney Diseases That Could Affect Your Life Insurance

There are several different medical conditions that can affect your life insurance coverage.  Each condition will have it’s own unique affect on the cost of insurance.  Here are a few sample conditions:

• Kidney Stones
• Glomerulonephritis
• Proteinuria
• Renal Insufficiency

If you have some sort of kidney disease, here are some questions that we’ll need answered to best get you with the right insurance company and the most affordable life insurance rate.

• Please provide date of first diagnosis with kidney disease.
• Please indicate specific name of the kidney disorder diagnosed by your physician.
• Please provide approximate dates and readings of known blood pressure measurements.

Approximate date, systolic/diastolic reading.

•  Please advise of the following laboratory findings if previously and recently done by your physician:

1. a. Protein in the urine (protein urea)
2. b. Blood in the urine (hematuria)
3. c. Blood urea nitrogen (BUN level)
4. d. Creatinine level.
5. e. Of these, we need to find the date of the most recent test, the level of findings and the normal reference range.

• Does the proposed insured take any medication? If so, list the name of medication, date used, quantity taken and frequency taken.
• Is there any know family history related to kidney or cardiovascular disease?
• If yes, please describe.

Ways To Lower Your Insurance Premiums with Kidney Disease

All of these factors are going to play an important role in how much you pay for your life insurance. The company is going to lo ok at all of these and many more things to calculate how much of a risk you are to insure. The higher the risk, the more you’re going to pay every month for the policy. If you want to get lower premiums, there are several lifestyle changes that you can make to save yourself some money on the coverage.

Improve Your Health

The first is to improve your overall health through diet and exercise. Both of these are going to help you lose weight, lower your blood pressure, lower your heart rate, and much more. The better your health is, the lower your monthly premiums are going to be for your life insurance.

Eliminate Tobacco Use

Another way to increase your chances of being approved for coverage and to get lower rates is to cut any tobacco that you use. If you’re a smoker, that’s going to drastically increase how much you pay for coverage. In fact, it could double your premiums.

Shop Around For Premium Options

Also, make sure to shop around for different premiums based on your age, as one company may offer lower premiums than another. Generally, it really depends on your condition if you are able to get insurance or not. If you are in fairly good health otherwise, then your chances of getting insurance will be much higher.

Benefits of Obtaining Life Insurance with Kidney Problems

Securing life insurance when you have kidney problems offers several essential benefits that can provide peace of mind and financial security for you and your loved ones:

• Financial Protection for Your Family
  Life insurance ensures that your family or beneficiaries receive a financial payout, known as the death benefit, when you pass away. This lump sum can help cover various expenses, such as mortgage payments, daily living costs, outstanding debts, and even future education expenses for your children. It provides a safety net that eases the financial burden on your loved ones during a challenging time.
• Estate Planning and Inheritance
  Life insurance can be a valuable component of your estate planning. It allows you to leave a legacy for your heirs or favorite charitable causes. By designating beneficiaries, you ensure that your assets are distributed according to your wishes, even if you have significant medical conditions like kidney problems.
• Peace of Mind and Reduced Stress
  Knowing that you have life insurance coverage in place can provide you with peace of mind. You can rest assured that your family will have the financial resources they need to maintain their quality of life and achieve their long-term goals. This peace of mind can reduce stress and allow you to focus on managing your kidney condition and enjoying your time with loved ones.

Bottom Line – Life Insurance With Kidney Disease

Life insurance is one of the best purchases that you’ll ever make for your loved ones. If you have any pre-existing health conditions like kidney problems, you may think it’s impossible to find an affordable life insurance plan, but that couldn’t be further from the truth. Don’t wait any longer to get the insurance protection that your family deserves.

FAQs on Life Insurance and Kidney Problems

Research Articles Cited

1. Chronic Kidney Disease in the United States (2021) CKD Is Common Among US Adults. Retrieved from https://www.cdc.gov/kidneydisease/publications-resources/ckd-national-facts.html

The post Life Insurance With Kidney Problems appeared first on Good Financial Cents®.

Their streamlined online application can have you approved in a matter of minutes. And according to Ladder, many applications are approved without a medical exam requirement.

In this Ladder review, I’ll let you know what types of policies they offer, key features, who is eligible, and how much you can expect to pay.

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• Easy to use online applications
• No medical exams for up to $3M in coverage; just answer some health-related questions
• Adjustable coverage

Introducing Ladder Insurance

Ladder is a California-based online life insurance provider offering coverage through established life insurance companies.

Founded in 2015 and launched in 2017, Ladder’s insurance partners include Allianz Life Insurance Company of New York, Fidelity Security Life Insurance Company®, and its affiliate, Ladder Life Insurance Company.

While the entire application process is online, you can get help from licensed insurance professionals, if needed, who are happy to help.

Get Started with Ladder

How Ladder Term Life Insurance Works

Ladder only offers term life insurance policies. Ladder’s mission is to offer affordable policies with speed and ease. Term life insurance best fits that product type.

When applying with Ladder, you should be aware the company does not offer policy riders. These optional additional coverage provisions provide more benefits but at a higher premium. That higher premium is the reason why Ladder doesn’t offer them.

Laddering Up/Laddering Down

The name Ladder hints at its most unique feature – the ability to increase or decrease your coverage as needed. The process is known as ‘laddering up’ or ‘laddering down.’

Existing policyholders can increase their death benefit amount as their needs change, subject to underwriting and approval.

Conversely, if your coverage needs decline, you can reduce the death benefit. In short, Ladder Life puts you in charge of the policy’s face amount and the premium you’ll pay. You can request a change to your coverage by visiting the Ladder account page.

Laddering your policy, up or down, is completely free. And you can ladder your policy as often as you like. Naturally, the premium will increase if you ladder up the policy amount. And if you ladder down the death benefit, the premium will decrease.

Term Length Options

Ladder offers terms ranging from 10 to 30 years, the maximum term you can qualify for, regardless of age. That said, your age at the time of application may reduce the maximum term for which you qualify. The maximum issue age is 60.

Ladder uses a simple calculation to determine the maximum term length of a policy. Your current age, plus the term length, cannot exceed 70. For example, if you’re 40, the longest term is 30 years (40+30 = 70.) If you’re 50, the longest term is 20 years (50+20 = 70.)

Ladder policies are underwritten based on your nearest birthday. For example, if you will be 45 in four months, your age will be considered 45 years, not 44.

Policies are renewable for up to 5 years after the guaranteed level premium term. The new premium will be based on your age at renewal and, therefore, higher, but this is how term life insurance renewals work.

Ladder Pricing

Like all life insurance policies, Ladder policy premiums depend on a combination of factors. Those include your age at the time of application, health condition, occupation, hobbies and pastimes, and even geographic location.

We requested information for a non-smoking 40-year-old male in excellent health with no family history of major illnesses, and we received the following quotes for $1 million in coverage:

• 10 years – $37.50 per month

• 15 years – $47.70 per month

• 20 years – $61.80 per month

• 25 years – $96.90 per month

• 30 years – $114.30 per month

We then requested a policy for a non-smoking 40-year-old female in excellent health with no family history of major illnesses, and we received the following quotes for $1 million in coverage:

• 10 years – $35.40 per month

• 15 years – $46.80 per month

• 20 years – $52.50 per month

• 25 years – $77.10 per month

• 30 years – $88.50 per month

The monthly premiums for men are slightly higher than for women, which is common throughout the life insurance industry. This owes to the fact that women statistically live longer than men by several years.

The premium rate increases with the term of the policy because the longer the term, the greater the likelihood the company will ultimately pay the death benefit.

Get Started with Ladder

Ladder Maximum Coverage Limits

Ladder coverage limits range from a minimum of $100,000 to a maximum of $8 million (up to $3 million in CA).

If you apply for $3 million or less, you won’t have to take a medical exam, just answer health questions. Applicants applying for benefits greater than $3 million may need to submit to a medical exam.

Policies offered through Ladder have a single death benefit payout, which is paid in a lump sum to the beneficiaries upon the death of the insured.

Unlike some life insurance companies, there is no option to distribute benefits in installments or through any other payout method.

As mentioned, Ladder does not offer common life insurance riders, so you won’t have the ability to add provisions, such as a spousal rider, an accelerated death benefit (living benefits), double indemnity (increased death benefit for death caused by an accident), or a conversion provision that enables you to convert the term policy to a permanent, whole life policy before the term expires.

Ladder Coverage Eligibility

Ladder offers coverage for those between the ages of 20 and 60. If you are over 60, you’ll need to make an application elsewhere.

Each application is for a single individual, so there is no capability to apply jointly with your spouse or to add your children. Each person will need to complete a separate application.

Policies are available only to US citizens and lawful permanent resident aliens who have lived in the US for at least two years. Ladder offers policies in all 50 states, as well as the District of Columbia.

Ladder Application Process

The application process takes place online, which helps Ladder keep premiums low.

You can apply for coverage in as little as 5 minutes. You will not be required to complete a medical exam for coverage up to $3 million.

But for coverage above $3 million, the approval decision may be delayed several weeks.

Ladder Underwriting

When completing the application, Ladder will request basic information, like your name and email address.

In making the underwriting decision, they’ll also request the following information:

• Your height and weight.

• The last time you used tobacco or nicotine products.

• Your date of birth.

• Whether a biological parent or sibling has been diagnosed by a physician with diabetes, cancer, heart disease, Huntington’s Disease, or Lynch Syndrome before the age of 60?

• Your annual household income.

• How many children do you have?

• Your remaining mortgage balance.

Your answers to these and other questions will determine your eligibility for life insurance coverage, as well as the premium you’ll pay for the policy.

Get Started with Ladder

Is Ladder Legit?

Ladder Life is a legitimate term life insurance services provider, offering policies in all 50 US states. The following information indicates its financial strength and how it’s perceived within the insurance industry and by its customers.

Financial Strength

Since Ladder is not the direct issuer of the policies it offers, the company is not rated for financial strength by A.M. Best, the industry’s most well-recognized insurance company rating agency.

But the ratings for two of Ladder’s issuing companies are as follows:

• Allianz Life Insurance Company of New York, A+ (Superior)*

• Fidelity Security Life Insurance Company, A (Excellent)*

Since each of the companies is rated “A” or higher by A.M. Best, each is highly likely to have the financial strength to pay the policy death benefit, if necessary.

Ladder’s third issuing company is its affiliate, Ladder Life Insurance Company. Ladder Life Insurance Company has earned a Financial Stability Rating® (FSR) of A (Exceptional) from Demotech, Inc. FSRs are a leading indicator of financial stability, providing an objective baseline of future solvency.

The most current FSRs must be verified by visiting www.demotech.com

Third-Party Ratings

In addition to financial strength ratings by A.M. Best, we’ve also considered the credit rating of each of the three providers behind Ladder. The credit rating indicates the company’s ability to meet its financial obligations and continue operations as a going concern.

The news here is as good as it is with the financial strength ratings. The table below shows the credit ratings of two of the companies from two major corporate credit evaluation agencies:

Customer Service Ratings

Perhaps the best indicator of Ladder’s reputation as a life insurance services provider is to look at the ratings provided by the people who deal most closely with Ladder – its customers.

Ladder has an Excellent Trustpilot score of 4.8/5, based on over 2,600 customer reviews. 89% of customers have assigned them a 5-star rating, and only 4% rated them three stars or fewer.

We could not locate a rating for Ladder with the Better Business Bureau. However, the BBB has an “A+” (highest) rating for Fidelity Security Life Insurance Company® and has been agency-accredited since 1990.

There is, however, no BBB rating for Allianz Life Insurance Company of New York, perhaps because the company is an affiliated organization.

How We Evaluated Ladder Life Insurance

We’ve evaluated Ladder based on the policy terms offered, the dollar amount of the death benefits, and the premiums’ cost. We’ve also taken into account applicant eligibility, as well as the apparent underwriting criteria the company uses.

We’ve also considered third-party information about the company, including its financial strength and reputation. Finally, we considered factors that make Ladder Life unique regarding what niche they fill in the insurance industry.

Get Started with Ladder

Is Ladder a Good Company?

Ladder is one of the best online life insurance companies for term insurance. While they don’t offer as many coverage options as other providers (term life only, no riders), they provide straightforward term coverage that’s affordable and easy to apply for.

You can complete the entire process online, and if you’re in good health, you likely won’t require a medical exam.

Ladder partners with top-notch insurance companies and can boast very high customer ratings. And their Ladder Up/Down features only add to Ladder’s convenience.

Of course, if you fall outside Ladder’s qualifying criteria, i.e., over 60, want universal or whole life insurance, or require specialized coverage via insurance riders, then Ladder is not for you.

The bottom line is if you meet Ladder’s age requirements and are of good health, it’s one of the best places to get term life insurance – which is what the vast majority of American adults need.

How We Review Insurance Companies: 

Good Financial Cents systematically reviews U.S. insurance companies, emphasizing policy offerings, customer experiences, and overall reliability.

Our goal is to present a balanced and comprehensive perspective to potential policyholders. Editorial transparency remains a cornerstone of our approach.

We actively collect information from insurance companies and place significant weight on customer feedback. By integrating this feedback with our research, we can offer a well-rounded evaluation.

Each company is then rated based on multiple criteria, resulting in a star rating from one to five.

For a deeper understanding of the criteria we use to rate insurance companies and our evaluation approach, please refer to our editorial guidelines and full disclaimer. 

Ladder

Product Name: Ladder Life Insurance

Product Description: Ladder is a life insurance services provider that offers term life insurance policies to consumers. It was founded in 2015 and is headquartered in Palo Alto, CA.

• [ Get a Free Quote]

Summary

Ladder offers term life insurance coverage of between $100K to $8M with no medical exams for coverage up to $3M (just answer health-related questions). Adjust coverage anytime.

• Cost and Fees
• Customer Service
• User Experience
• Product Offerings

Overall

4.3

Pros

• Offers adjustable term life insurance ranging from 10 to 30 years in 5-year increments.
• The company has a user-friendly website and offers a range of online tools and resources to help consumers understand and compare different life insurance options.
• Offers no medical exam coverage up to $3M, which may be a good option for individuals who are unable or unwilling to undergo a medical exam as part of the application process. 

Cons

• No-exam life insurance policies are typically more expensive than traditional life insurance policies
• May not be the best option for individuals with pre-existing health conditions or other risk factors
• Do not offer riders on their insurance policies such as: Accidental death and dismemberment (AD&D) rider, waiver of premium rider, or return of premium rider.

*Allianz Life Insurance Company of New York has been rated A+ (Superior) affirmed October 2021 and Fidelity Security Life Insurance Company® has been rated A (Excellent) based on an analysis of financial position and operating performance, by A.M. Best Company, an independent analyst of the insurance industry. For the latest rating, access www.ambest.com.

Ladder Insurance Services, LLC (CA license # 0K22568; AR license # 3000140372) offers term life insurance policies: (i) in California, on behalf of its affiliate, Ladder Life Insurance Company, Menlo Park, CA (policy form # P-LL100CA); (ii) in New York, on behalf of Allianz Life Insurance Company of New York, New York, NY (policy form # MN-26); and (iii) Fidelity Security Life Insurance Company®, Kansas City, MO (policy form # ICC17-M-1069, M-1069 and policy # TL-146) in the District of Columbia and all states except New York and California. Only Allianz Life Insurance Company of New York is authorized to issue life insurance in the state of New York.  Insurance policy prices, coverages, features, terms, benefits, exclusions, limitations, and available discounts vary among these insurers and are subject to qualifications.  Each insurer is solely responsible for any claims and has financial responsibility for its own products.

The post Ladder Life Insurance Review – Term Life Insurance With a Twist appeared first on Good Financial Cents®.

Sproutt Insurance is trying to help by putting a unique spin on the insurance application process.

Sproutt doesn’t sell its own insurance policies – they’re an online marketplace that uses technology to match you with the right insurance provider. In minutes, you can complete a brief application and get a quote from one of their participating life insurance companies.

But is dealing with Sproutt as easy as they make it sound? And is there a benefit to dealing with a marketplace like Sproutt versus going through an individual provider?

I’ll cover this and more in this Sproutt Life Insurance Review.

What Is Sproutt?

Sproutt is an insurance fintech launched in 2018 under the name, Aktibo. They have their headquarters in Hartford, Connecticut, with offices in New York City and Tel Aviv.

Sproutt Life isn’t a direct provider of life insurance but a broker providing an AI-powered online life insurance marketplace.

They offer policies from nearly a dozen insurance companies, a list that includes some of the best-known brands in the industry. Sproutt is available to customers in all 50 states and the District of Columbia.

How Sproutt Works

Sproutt differs from traditional life insurers by using an AI-powered Quality of Life Index (QLI) to assess an individual’s healthy lifestyle behaviors rather than focusing on negative elements.

Sproutt says their self-serve digital process usually requires no medical exam, phone calls, or appointments to obtain life insurance coverage.

Sproutt is free to use, and the company provides live customer support. They have an A+ rating with the Better Business Bureau.

Key Features

• AI-powered online life insurance marketplace.

• Work with almost a dozen insurance companies across all 50 states.

• Quality of Life Index (QLI)takes into account your overall health.

• The QLI matches you with an insurance provider and policy that will be the best overall fit.

• Complete an application within 15 minutes.

• Customer support is available during business hours.

Sproutt Life Insurance Quality of Life Index

The QLI index is at the heart of Sproutt Life Insurance and the key to using their website.

The index uses an algorithm to assess your lifestyle and then provides a personalized set of suggestions, recommendations, and references based on the latest health information available.

The algorithm is called the Guided Artificial Intelligence Assessment (GAIA). To benefit from the index, you’ll need to complete a 15-minute assessment, a process I will cover in more detail further down.

The Index measures five areas of your life – referred to as pillars – to indicate your overall state of health and well-being:

• Movement. In a nutshell, this category assesses the amount of exercise you get.

• Sleep. Used to measure if you are getting an adequate amount of sleep.

• Emotional health. There’s growing evidence of a connection between strong relationships and longevity.

• Nutrition. This category is all about food and diet.

• Balance. It incorporates the other four pillars and also adds an evaluation of your sense of purpose in your life.

Once you’ve completed the QLI Assessment, Sproutt will match you with the best insurance company to fit your profile. This is expected to maximize the likelihood of approval, along with the most favorable premium rate.

Who Is Sproutt Life Insurance Best Suited For?

Sproutt Life Insurance is an excellent choice for applicants who are:

• Under 50 in good or excellent health (they go to age 60).

• In good or excellent health.

• Actively focused on maintaining their health, as determined by the Quality of Life Index Assessment.

• Looking for term life insurance versus whole life.

• Need a life insurance policy quickly.

• Prefer a life insurance policy without the need for a medical exam.

• Prefer the speed and convenience of an all-online application process.

Obtain a Quote from Sproutt Today

Types of Insurance Offered by Sproutt Life Insurance

According to their website, Sproutt offers no-exam life insurance, guaranteed issue life insurance, whole life insurance, critical illness insurance, and universal life insurance – all in addition to term life insurance.

Sproutt’s term life insurance offerings range from 10 years to 3 years. The minimum policy amount is $50,000 but can go as high as $3 million. All other details of the term policies offered are based on the guidelines of the individual insurance companies providing the policies.

As an online life insurance “fintech,” Sproutt undoubtedly targets younger applicants (at least under 60) and in good or excellent health. Though they do offer policies for those who are in less-than-perfect health, it is possible that your application will be denied.

Is Sproutt Life Insurance Legit?

As mentioned, Sproutt has a Better Business Bureau rating of A+ (on a scale of A+ to F). although it is not BBB-accredited.

Though we typically obtain the financial strength rating of insurance companies from A.M. Best, this rating is not available for Sproutt. The company is an online insurance broker and not a direct provider. A.M. Best does not provide financial strength ratings for insurance brokers.  

How Do Customers Rate Sproutt?

Sproutt scores 4.7 out of five stars with Trustpilot. The score is based on 423 reviews, with 89% ranking the company as “excellent” and 8% as “great.”

While the negative reviews were minimal (only 2% 1-star), I did review the comments to see if I could identify recurring themes. Most of the negative reviews were due to a lack of responsiveness and reps not getting back to the clients promptly.

One thing to note, the Sproutt team had responded on Trustpilot to almost all of the negative comments with a promise to follow up.

We could not obtain user ratings from Google Play or The App Store since Sproutt does not have a mobile app.

Sproutt Life Alternatives

When purchasing life insurance, always obtain quotes from multiple companies before making your choice. Even though the products are generally very similar, premiums between different providers can vary considerably.

For a quick comparison to Sproutt Life, I’ve included three companies – Fabric Life, Bestow, Haven Life, and Ladder Life – in a side-by-side comparison.

As you can see from the table, the products offered by each of the four companies closely match one another. One advantage Sproutt Life has is that it is an online life insurance marketplace.

With a single application, you can get quotes from multiple providers – including some of the biggest in the industry.

How to Use Sproutt to Shop for Life Insurance

The application process for Sproutt starts with completing the Quality of Life assessment. It will take about 15 minutes to complete the assessment online.

That process can be accessed from the Quality of Life page, where you can click the green bubble that says “Check your QL Index.”

You’ll be asked to provide the following: your name (you’ll only need to provide your first name), age bracket, gender, and marital status.

Once you provide that information, you’ll be asked the following questions:

• When it comes to taking care of your life, what describes you best? The answers are multiple-choice and will appear as follows:

• Please select your choice of a healthy breakfast.

• For a healthier meal, you should…

• Which of the following is true regarding a sufficient intake of protein:

• Should I eat whole grains?

• To maintain a healthy weight, should I reduce my caloric intake?

• How many hours of physical activity do you do during a normal week?

• What type of activities do you do? (Aga n, you’ll be supplied with a list to choose from.)

• Do you track your physical activities?

• Over the past week, on average, how many steps per day did you take? (determined by a device, like a Fitbit.)

• Do you know how many hours an adult should sleep at night?

• How many hours do you sleep on average?

• Do you use a sleep-tracking device?

• Do you know in which sleep phases the majority of dreams occur?

• Do you know what a circadian rhythm is?

• Do you have trouble falling asleep?

• Do you consume alcoholic beverages to help you fall asleep?

• Do you own a pet?

• Do you sometimes feel that your relationships are not meaningful?

• How many people in your life can you confide in?

• Do you feel hopeless, stressed, or depressed?

• Have you tried stress-reducing techniques such as breathing, meditation, etc.?

• As I get older, things are… much better, somewhat better, same, worse, much worse.

• Do you believe you’ll live past… 60, 70, 80, 90, 120.

Once you’ve completed the questions, the following screen will appear, requiring you to enter your email and submit (the results are blurred, pending receipt of the emailed version):

The next screen will provide your QL Index. I was classified as a “Master,” one of five categories.

Once you click “Check your eligibility,” you’ll be brought to the application process, with your QL Index being part of the recommendations you’ll be provided.

Unfortunately, when I completed the QL Index assessment, Sproutt’s system was undergoing a problem, so I got no immediate life insurance quotes.

But the important takeaway is that up to this point, I only completed the assessment – which is a requirement.

For the application, additional questions will be asked. Those include general questions, like family status, beneficiaries, address, date of birth, a health self-assessment, and other general questions.

Once you complete that information, Sproutt will make a policy recommendation based on the answers to your questions.

Once again, Sproutt Life does not provide the actual policies (it’s an online life insurance marketplace). The participating life insurance companies will offer the policies on the platform.

Once you select the plan you like, the direct provider will likely have additional questions, and you’ll need to complete the application process through that company.

Obtain a Quote from Sproutt Today

How to Save Money on Life Insurance

No matter where you apply for life insurance, there are seven strategies you can use to save money in the process:

• Buy term life insurance vs. whole life. Whole life insurance is far more expensive than the equivalent term coverage. Go with term insurance and get a larger policy at a lower premium.

• Apply when you’re in good health. No single factor will have a greater impact on your premium – or even if you’ll be approved – than the condition of your health. That’s why it’s important to apply when your health is good.

• Maintain good health habits. Exercise regularly, eat a balanced diet, and see your doctor regularly.

• Maintain clean credit and good driving history. Insurance companies also check credit histories and driving records. The cleaner they are, the better your chance at a low premium.

• Choose a shorter term. If you’re going with term insurance, the premiums are lower on shorter terms. For example, a ten-year policy will be less expensive than a 20-year policy.

• Shop around. Never take a policy from the first provider that gives you a quote. Get three or four, then make your choice.

• Don’t wait! Many people put off buying life insurance until “later.” But because age is a major factor in determining premiums – and you’ll never be younger than you are right now – now is the time to apply for coverage.

Obtain a Quote from Sproutt Today

Sproutt Life Insurance Review: Final Thoughts

Sproutt is an excellent choice if you’re beginning your search for life insurance. Because it’s an online life marketplace, you can get quotes from several major insurance companies with a single application.

Live customer support is a value add, given that Sproutt is an all-online platform. And if you’re proactive about your health, Sproutt captures that with their Quality of Life Index. It can help you track your progress and make improvements where needed.

But it’s also important to realize that, as an online life insurance source, Sproutt does focus its business on younger, healthier applicants.

If you’re older or have a significant health condition, you may still be able to get a policy through Sproutt, but you may be better served by working with an independent life insurance broker.

Otherwise, consider Sproutt if you’re looking to buy life insurance.

How We Review Insurance Companies: 

Good Financial Cents systematically reviews U.S. insurance companies, emphasizing policy offerings, customer experiences, and overall reliability.

Our goal is to present a balanced and comprehensive perspective to potential policyholders. Editorial transparency remains a cornerstone of our approach.

We actively collect information from insurance companies and place significant weight on customer feedback. By integrating this feedback with our research, we can offer a well-rounded evaluation.

Each company is then rated based on multiple criteria, resulting in a star rating from one to five.

For a deeper understanding of the criteria we use to rate insurance companies and our evaluation approach, please refer to our editorial guidelines and full disclaimer. 

Sprout Life Insurance Review

Product Name: Sprout Life Insurance

Product Description: Sprout Life Insurance is a life insurance policy that provides financial coverage to individuals in the event of their death. It can cover funeral costs, medical bills, and other costs associated with end-of-life expenses. It also provides beneficiaries with a lump sum payment that can help them cover living expenses in the wake of their loved one's passing.

• [ Learn More Here ]

Summary of Sprout Life Insurance

Sprout Life Insurance is a life insurance company that provides coverage options for individuals and families. The company offers both term and permanent life insurance policies, allowing customers to choose the coverage that best fits their needs and budget. In addition to life insurance, Sprout also offers a wellness program that provides discounts on gym memberships and healthy living products, further emphasizing their commitment to the health and well-being of their customers.

• Cost and Fees
• Customer Service
• User Experience
• Product Offerings

Overall

4.7

Pros

•  Personalized attention: Sprout Life Insurance may offer more personalized attention and customer service, as they are a smaller company and may have fewer customers to serve.
• Innovative offerings: Sprout Life Insurance may offer innovative life insurance options and added benefits, such as their wellness program, that larger insurance companies may not offer.
• Flexibility: As a smaller company, Sprout Life Insurance may be more flexible and responsive to customer needs, compared to larger insurance companies with more bureaucratic processes.

Cons

• Limited coverage options: Sprout Life Insurance may have limited coverage options compared to larger insurance companies, which may have a wider range of offerings.
• Less financial stability: Sprout Life Insurance may have less financial stability compared to larger insurance companies, which may have more resources and a longer track record.
• Less brand recognition: Sprout Life Insurance may have less brand recognition compared to larger insurance companies, which may have a longer history and more established reputation. 

The post Sproutt Life Insurance Review: Is it Legit? appeared first on Good Financial Cents®.

Not only does Fabric offer life insurance policies – and some of the largest available anywhere – but they also help you through the process of making your final arrangements, and they do it free of charge.

That includes drawing up a will to name a beneficiary, appointing a guardian for your children, and spelling out your final arrangements.

In this Fabric by Gerber Life review, I’ll cover some recent changes to the company and let you know how it stacks up to the competition.

Announcement: Fabric is now Fabric by Gerber Life

On October 11, 2022, Fabric announced on its website that they are now Fabric by Gerber Life, owned by parent company Western-Southern Life Assurance Company.

Aside from a new name and branding, customers’ biggest change is that Western-Southern Life will now issue Fabric’s insurance policies instead of Vantis Life Insurance Company.

In a news release on their website, Fabric by Gerber Life assured customers that they will receive “the same digital convenience that you expect from Fabric.”

With the news, Fabric by Gerber Life also informed customers that they can apply for a new or additional policy through an updated application experience. If you are already a policyholder, there is no change to your existing coverage.

Key Takeaways

• Fabric by Gerber Life is a direct provider of life insurance, not an online insurance marketplace.

• The company offers accidental death policies, free will preparation, and the ability to set up 529 college savings plans for your children.

• The application process takes about 10 minutes, can result in immediate approval, and generally does not require a medical examination.

• Fabric’s maximum death benefit of $5 million is at the high end of the online life insurance provider range.

About the Company

• Fabric by Gerber Life is a subsidiary of Western-Southern Life Assurance Company.

• The company offers accidental death insurance in addition to term life insurance.

• Though coverage is available for applicants between the ages of 21 and 60, Fabric strongly focuses on providing family life insurance.

• Customer service is available by phone, email, and live chat, Monday through Friday, from 9:00 AM to 6:00 PM, Eastern time.

• The company issues policies in 48 states (excluding New York and Montana).

Unique Features

• Fabric is a “fintech” insurance provider with an all-online application process that relies heavily on advanced algorithms.

• You can get a quote in a few minutes or complete an application in about 10 minutes.

• Because Fabric relies heavily on information provided by available databases (the Medical Information Bureau, your state department of motor vehicles, pharmacy benefit managers, consumer reporting agencies, and other publicly available sources), the need for a medical exam is often eliminated.

• Fabric by Gerber Life has licensed team members available to answer your questions and help you through the application process.

• Once issued, policy offers are valid for 60 days, giving you plenty of time to review the policy before accepting it.

• Even if you purchase the policy, you’ll have 30 days to decide if you want to keep the coverage or not. If you decide you don’t want it, you’ll be entitled to a full refund of the premium paid.

• In addition to term life and accidental death insurance, Fabric offers free will preparation online. That includes appointing a guardian for the dependent children, naming beneficiaries, and making final arrangements.

• You can open a 529 college savings plan for your child(ren) directly from the Fabric Life Insurance website or mobile app.

• Fabric offers a mobile app to track your policy for Android and iOS users.

To Whom Is Fabric Life Best For

Fabric by Gerber Life is an excellent choice for the following applicants:

• Looking for term life insurance rather than a whole life insurance policy.

• Require a life insurance policy in a hurry.

• Prefer life insurance without the need for a medical exam.

• Want accidental death insurance.

• Need coverage for both themselves and their spouse.

• Could benefit from a comprehensive financial plan .

Types of Insurance Offered by Fabric by Gerber Life

Fabric offers two types of life insurance: term and accidental death coverage. Here’s a closer look at each one.

Term Life Insurance

Term life insurance policies provide a death benefit only, with no cash value accumulation or investment provision. That means premiums are only a fraction of what they are for whole-life insurance policies. Lower premiums mean you can purchase more coverage at a lower cost.

Fabric by Gerber Life term policies are available for applicants and their spouses between the ages of 21 and 60. Policy face values range between $100,000 to as much as $5 million.

Because of the reliance on algorithms and available databases, a policy can be available in as little as a few minutes. However, if additional information or a medical exam is required, the process will take several days longer.

If a medical exam is required, an appointment will be scheduled with a qualified examiner to come to your home or office at no cost to you and on your schedule.

Accidental Death Insurance

Accidental death insurance provides a benefit only if the cause of death is the result of an accident – not an illness. Therefore, an application for accidental death insurance does not require you to answer health questions or submit a medical exam.

Because an accidental death policy excludes death due to illness, it’s generally less expensive than a term life insurance policy – as long as you don’t work in an occupation or regularly participate in hazardous activities.

Fabric by Gerber Life offers accidental death policies in all states except Colorado, Massachusetts, Montana, New York, North Dakota, Pennsylvania, Virginia, and Wisconsin.

The policy offered is a guaranteed issue plan, available to applicants between the ages of 25 to 50, which is the age range most likely to experience accidental death. The application process takes only about five minutes, and coverage begins as soon as your first premium payment is made.

The policy is automatically renewable as long as you make your premium payments. But it will expire on the policy’s anniversary date nearest your 60^th birthday.

Fabric by Gerber Life: Comprehensive Overview of Term and Accidental Death Insurance Policies

Is Fabric by Gerber Life Legit?

Yes, Fabric by Gerber Life is a legitimate business. Its policies are issued by Western-Southern Life Insurance Company, a long-standing business that dates back to 1888. Western & Southern is the parent company of Gerber Life Agency.

According to its website, Western-Southern has been granted a “Superior” A+ rating for financial strength from A.M. Best, the largest global credit rating agency specializing in the insurance industry.

Is Fabric a Good Company?

Whether Fabric by Gerber Life is a good company or not is subjective, but we can point to the online ratings from its customers.

Under its previous name, Fabric, the company enjoys the following ratings:

• 4.8 out of five stars on The App Store on 484 user reviews.

• 4 out of five stars on Google Play on more than 1,000 user reviews.

Under its new name, Fabric by Gerber Life has the following Trustpilot ratings:

• 4.8 out of five stars on Trustpilot on over 2,000 customer reviews.

Looking closely at the Trustpilot reviews, 97% of reviews were four or five stars. I perused the negative reviews and couldn’t identify any recurring issues.

There were a few complaints about wait times, and some reviewers were upset about their policies being declined for various reasons.

Fabric by Gerber Life Alternatives

Fabric is one of the rising numbers of fintech life insurance providers that have become available in the past decade. You may want to investigate similar providers before you purchase term life insurance.

Two of the most popular are Bestow and Haven Life. The table below shows a side-by-side comparison of the major features of all three companies:

Unlike Bestow, Haven Life, and Ladder Life, Fabric offers accidental death insurance coverage. It also offers a higher potential death benefit of up to $5 million.

All three offer no-medical exam policies, at least in most cases. In fact, Ladder Life states that they don’t require a medical exam for policies up to $3 million, although their coverage extends as high as $8 million.

An advantage to Haven Life is that they will accept applicants up to age 64, making it the better choice if you are over 60.

How to Use Fabric to Shop for Life Insurance

Getting policy quotes for applying for insurance on Fabric is straightforward, thanks to the all-online process. You can get a quote or complete the application within minutes. And if no medical exam is required, your policy will be issued shortly after.

When making an application, click the APPLY NOW button (which appears in various places on the website), then answer the following questions:

Screen 1:

• Do you have a spouse or partner?

• Do you have kids under 18?

• Do you have a will?

• Do you have life insurance through work?

• Do you have personal life insurance outside work?

• Assets, such as bank accounts, investments, or a home?

• Do you have a mortgage?

• Do you have a student loan, credit card, or other debt?

Once you complete Screen 1, the following will appear:

When you click NEXT, another screen will appear asking about your age, gender, state of residence, tobacco usage, and health.

You’ll be asked to indicate that your health is excellent, good, or OK. Once you’ve completed that screen, you’ll get your quote after clicking SEE YOUR ESTIMATE.

Getting a Rate Quote

A 40-year-old non-smoking male in excellent health and living in California produces the following results for a $500,000 term life insurance policy:

• 10 years – $16.77 per month

• 15 years – $22.86 per month

• 20 years – $32.29 per month

• 25 years – $46.32 per month

• 30 years – $54.94 per month

The application provides you with a quote tool that looks like this:

You can choose the dollar amount of the policy you want and the term. Once you’ve decided, you can proceed with the application by tapping APPLY NOW.

The application will ask for more specific information, including your age, height, and weight; your medical history and that of your family; employment information, including annual income and net worth; and lifestyle habits, including hobbies, tobacco use, and alcohol consumption.

Upon completion, you’ll either receive 1) an immediate offer, 2) a rejection, or 3) a request for more information, additional time for a more thorough review, or a request that you submit to a medical exam.

Whether you receive a quote or approval, you’re under no obligation to accept the policy. But be aware that your policy will not be in force until you make the first premium payment.

How to Save Money on Life Insurance

Though it may seem as if life insurance is a static product with fixed pricing, there’s plenty you can do to save money.

By following these seven strategies, you can save a small fortune on life insurance:

1. Buy a policy right now. Life insurance premiums are based on your age at the time of application. The younger you are, the lower the premium. Since you’ll never be younger than you are right now, now is the perfect time to apply.

2. Apply when you’re in good health. This is another compelling reason to make an application today. You’ll get the lowest premium possible if you’re in good or excellent health. But if you wait a few years, you may develop a health condition that will cause the policy to cost more.

3. Buy term life insurance rather than whole life. Whole life insurance can cost between five and 15 times the premium for an equivalent amount of term life insurance. You can buy more coverage with a term policy and pay less for the premium.

4. Choose a shorter term. Interestingly enough, the shorter the term, the lower the premium. You’ll pay less by choosing a 20-year term instead of a 30-year one.

5. Maintain good health habits. That means eating a balanced diet, exercising regularly, maintaining a favorable weight-to-height ratio, and visiting your doctor regularly. It also means avoiding health-impairing activities, like smoking and excess alcohol consumption.

6. Maintain clean credit and good driving history. Life insurance companies regularly check your credit report and your driving history. That’s because there is a correlation between bad credit, reckless driving, and early death.

7. Shop around! This may be the single best strategy for a low premium. Premium rates can vary significantly from one company to another. Get quotes from several companies before settling on a policy.

Final Thoughts on Fabric by Gerber Life Insurance

If you want to purchase life insurance online, you should consider Fabric by Gerber Life alongside similar providers, like Bestow and Haven Life. The company offers a quick online application process with fast approvals. Most applicants are approved without the need for a medical exam.

Fabric is especially well-suited to applicants with kids. Not only do they provide a very high death benefit, at $5 million, but they also offer will preparation and the ability to set up 529 college savings plans right from the website for the mobile app.

The fact that they offer live, licensed agents to help walk you through the process is an added bonus. Unfortunately, you won’t qualify for life insurance if you’re over age 60, but in that case, Haven may be a good alternative.

How We Review Insurance Companies: 

Good Financial Cents systematically reviews U.S. insurance companies, emphasizing policy offerings, customer experiences, and overall reliability.

Our goal is to present a balanced and comprehensive perspective to potential policyholders. Editorial transparency remains a cornerstone of our approach.

We actively collect information from insurance companies and place significant weight on customer feedback. By integrating this feedback with our research, we can offer a well-rounded evaluation.

Each company is then rated based on multiple criteria, resulting in a star rating from one to five.

For a deeper understanding of the criteria we use to rate insurance companies and our evaluation approach, please refer to our editorial guidelines and full disclaimer. 

Fabric Life Insurance Review

Product Name: Fabric Life Insurance

Product Description: Fabric Life Insurance is an online life insurance provider that offers flexible and affordable plans to help families provide financial protection in the event of death or other unexpected events. Fabric provides term life insurance, whole life insurance, and universal life insurance plans with no physical exam required. The company also offers additional products such as accidental death & dismemberment coverage and living benefit riders.

• [ Learn More Here ]

Summary of Fabric Life Insurance

Fabric Life Insurance offers comprehensive life insurance policies that provide financial protection and peace of mind for families and individuals. Coverage includes death benefit protection, living benefit riders, and policy customization options to help meet specific needs. Coverage can range from basic term life coverage to more complex universal life coverage.

• Cost and Fees
• Customer Service
• User Experience
• Product Offerings

Overall

4.5

Pros

• Instant coverage: With Fabric Life Insurance, you can get instant coverage after completing the online application process. This means that you don’t have to wait for weeks or even months before your policy takes effect. 
• Low-cost premiums: The premiums associated with Fabric Life Insurance are very affordable, making it an ideal option for those on a tight budget who still want to ensure they are covered in case of an emergency.
• Flexible term lengths: Fabric Life Insurance offers flexible term lengths ranging from 5 to 30 years so you can customize your policy to meet your needs and budgeting preferences.
• Simple application process: The application process forFabric Life Insurance is straightforward and easy to understand, making it an attractive choice for those who want to avoid complicated paperwork and lengthy forms.
• Variety of riders available: Fabric Life Insurance comes with a variety of riders, such as accidental death benefit, disability income protection and children’s insurance, that allow you to tailor your policy even further depending on your individual needs and circumstances. 

Cons

•  Limited Availability: Fabric life insurance is only offered in states where insurance companies are licensed to issue it. This means that many people are unable to acquire this type of policy.
• High Premium Costs: Fabric life insurance tends to be more expensive than traditional policies due to the additional features and benefits it offers.
• Limited Coverage Offered: The coverage offered by fabric life insurance may not be enough for some individuals, depending on their individual needs and financial situation.
• Complex Terms and Conditions: Fabric life insurance policies often come with complicated terms and conditions that can be difficult for the average

The post Fabric by Gerber Life Insurance Review appeared first on Good Financial Cents®.

Life insurance is a crucial component of any financial plan, and the best life insurance companies make it easy to secure coverage.

Whether you are considering inexpensive term life insurance with a generous death benefit, whole life insurance that builds cash value, or another type of permanent policy, the highest-rating life insurance companies have an easily understood application process and solid ratings from third parties and coverage you can trust.

You may be able to line up life insurance coverage within a few days and without any type of medical exam required. That said, it’s crucial to compare life insurance providers before you buy, especially since different companies have their own unique offerings.

If you’re ready to buy life insurance that can protect your family or cover your final expenses, read on to learn more about our top picks.

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Our Picks for Best Life Insurance Companies

To find the best life insurance companies on the market today, we compared them based on coverage options, rankings with agencies like J.D. Power, and corporate ratings for financial strength. The companies below made the cut:

• AIG: Best for Competitive Premiums
• Haven Life: Best for Quick Coverage
• Bestow: Best for No Medical Exams
• Health IQ: Best for Healthy Senior Citizens
• MetLife: Best for Group Life Insurance
• Legal & General: Best for Coverage Up to $10 Million
• Prudential: Best Broad Coverage Options
• Mutual of Omaha: Best Customer Service
• New York Life: Best Life Insurance and Investment Services

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Best Life Insurance – Company Reviews

American International Group (AIG) is one of the largest insurance agencies in the world, and it’s able to offer broad life insurance options and affordable premiums as a result. Individuals can turn to this company to purchase affordable term coverage, universal life insurance, and guaranteed issues for their whole life. AIG even offers “return of premium” policies that refund the premiums you have paid once the term of your policy is up.

While AIG earned less than stellar ratings for customer satisfaction from J.D. Power, the company did receive an ‘A’ rating for financial strength from A.M. Best.

Haven Life operates under the umbrella of MassMutual, which is a well-known and highly-rated company within the insurance space. With a focus on offering affordable term coverage, Haven Life makes it easy to get a free quote online and without sharing your contact information.

Depending on your age and health, you may even be able to get no exam life insurance within a few days. You should know that the Haven Simple policy, which includes the Accelerated Death Benefit rider, is only available through 20-55.

Premiums through Haven Life can also be on the very affordable side. Using their online quote tool, we found that a 42-year-old woman in excellent health could secure a 20-year term policy worth $250,000 for as little as $24.01 per month.

As you compare providers in this space, you should note that Haven Life only offers term life insurance coverage. With that in mind, this company won’t work for your needs if you’re seeking whole life or other policies that build cash value that you can borrow against.

Although Bestow was just founded in 2016, this online insurer has made the process of getting term life insurance easier than ever before. Bestow only offers cheap term life insurance coverage, and you can only apply online since it doesn’t have brick-and-mortar locations. From there, you can get approved instantly for coverage with a no-exam policy.

How inexpensive can coverage options through Bestow be? Using the company’s online quote tool, we found that a 32-year-old woman in excellent health could secure a 30-year term life insurance policy worth $500,000 for as little as $28.08 per month.

Also, note that all policies offered by Bestow are through an A+ rated carrier and a trusted name in the industry. The policies offered by Bestow are provided by North American Company for Life and Health Insurance and Munich RE. That said, there are limits on the type of policy and the amount of coverage you can purchase through Bestow.

For example, coverage is only available for adults ages 18 to 59, and you can only buy up to $1.5 million in term life insurance coverage.

Health IQ is a life insurance marketplace that is tailored to senior citizens who are especially health-conscious. Individuals can apply for up to $100,000 in coverage up to the age of 85, and the company offers great rates for life insurance over 50. A terminal illness rider is also available to those who want to be able to access 50% of their death benefit if they become gravely ill.

As a life insurance marketplace, Health IQ does not offer policies directly. Instead, this company lets you compare policies with myriad top insurers like John Hancock, Prudential, Pacific Life, Transamerica, and more. Fortunately, Health IQ lets you compare pricing from multiple insurers in one place and all at once, helping you save time and money along the way.

MetLife is another well-known provider in the United States that offers term life insurance, whole life, universal life, variable life, and accidental death coverage. However, this company mostly focuses on offering group life insurance plans for employers, so all coverage types are not available for individual purchase.

MetLife has an A+ rating with A.M. Best, yet they also scored lower than average for customer service in J.D. Power’s 2022 U.S. Individual Life Insurance Study.

Legal & General is a highly-rated life insurance company that offers policies through two other companies they partner with, BannerLife and William Penn. Their coverage options include term life insurance policies and universal life. This provider stands out due to the fact they offer life insurance coverage in amounts up to $10 million, which is much higher than many of their competitors.

How much will you pay for coverage through Legal & General? Using their online quote tool, we found that a 42-year-old woman in excellent health could purchase a 30-year term life insurance policy worth $250,000 for less than $35 per month.

Also be aware that this company boasts an A+ rating from A.M. Best for its financial strength.

Prudential is easily one of the best life insurance companies out there based on the broad coverage options they have available. For example, potential policyholders can choose from several types of term life insurance: universal life insurance, indexed universal coverage, variable universal coverage, and survivorship universal life insurance.

One major benefit of Prudential is how easily the company lets you get a free quote for term life insurance online. Policies are also on the affordable side, with a 20-year term life insurance policy worth $500,000 starting at $37 per month for a 30-year-old woman in excellent health.

Currently, Prudential has an A+ rating for its financial strength from A.M. Best.

Mutual of Omaha has been serving customers in the life insurance arena for more than a century with coverage options that include term, whole life, universal life, and accidental death. Mutual of Omaha also offers life insurance coverage options for individuals up to the age of 85. Some policies do not require a medical exam, and the company makes getting a free quote online a breeze.

Policies from Mutual of Omaha can also be highly competitive in terms of pricing. In fact, a 30-year-old man in excellent health may be eligible for up to $250,000 in term life insurance coverage for 20 years for less than $15 per month, which is very affordable.

Mutual of Omaha has also received high ratings from third-party agencies, including the fifth spot out of more than 20 providers in J.D. Power’s 2022 U.S. Life Insurance Study. Mutual of Omaha also has an A+ rating for financial strength from A.M. Best.

New York Life Insurance Company was founded in 1841, so it is one of the oldest providers in the life insurance space. This company currently offers term life insurance, whole life, universal life, and variable life, and they make it easy to compare all of their life insurance products on their website. Unfortunately, New York Life does not make it possible to get a free quote or compare pricing online.

If you’re looking for life insurance and investments in one place, New York Life is definitely worth checking out. In addition to the types of life insurance they offer, customers can also lean on this company for help with annuities, mutual funds, ETFs, long-term care insurance, estate planning, and more. New York Life also has an A++ rating from A.M. Best for its financial strength, which is the best rating available. The company also does the underwriting for AARP’s life insurance program.

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Life Insurance Guide 

Before you purchase life insurance that your loved ones may have to rely on, it’s crucial to have a general understanding of how this insurance product works. Read on to learn more about the different life insurance options that exist and what to look for in the top life insurance companies.

How Does Life Insurance Work?

Life insurance can work differently depending on the type of coverage you select. For example, term life insurance policies offer a death benefit that becomes available if you pass away while your policy is in force.

However, various permanent life insurance policies build cash value  — a living benefit that stays with the insurer when the policyholder passes away — or offers an investment component you can use for wealth planning purposes.

Either way, all policy options require premium payments, usually on a monthly basis. The premiums you’re asked to pay are based on factors such as your age, your health, how much coverage you want to purchase, and how long you want the policy to last. Depending on the coverage you apply for, you may or may not be asked to complete a medical exam.

Generally speaking, individuals purchase life insurance in order to provide their loved ones with a cash payment (e.g., death benefit) if they pass away. Life insurance policies with an investment component are also commonly used for estate planning purposes.

What Types of Life Insurance Policies Are Available?

As you begin shopping around for life insurance, you should think long and hard about the type of life insurance coverage you want to shop for. There are many different types of life insurance, including term life insurance, whole life insurance, universal life insurance, and variable life insurance.

• Term life insurance is purchased to provide coverage for a specific period of time — also called a term — which usually lasts for up to 30 years. This type of coverage is typically best for people who want to protect their loved ones and replace their income during their working years.
• Whole life insurance lasts for your entire life instead of a specific term. This type of coverage provides a death benefit while building cash value you can borrow against.
• Universal life insurance is a type of permanent life insurance that provides a death benefit for your heirs while building cash value. This type of coverage is best for individuals who want some flexibility in their premiums and death benefit over time.
• Variable life insurance is another type of permanent coverage that builds cash value you can borrow against. Due to the way these policies are set up, consumers can decide when to pay higher premiums for a higher death benefit within a certain limit.

How Much Life Insurance Do I Need?

The best life insurance policy (and best company) for your needs can depend on an array of important factors such as how much you earn in your career, how much debt you have, how many dependents you have, and what you hope to accomplish with a policy.

For example, your life insurance needs may require more coverage during your working years and when you have kids at home. During the end of your career or during retirement, on the other hand, a basic life insurance policy with enough coverage to pay for your final expenses may be sufficient.

That said, many experts recommend having at least 10X to 20X your income in life insurance coverage while you still work. If you earn $75,000 per year in your job, for example, that would mean securing life insurance with a death benefit of $750,000 to $1.5 million. If you earn much more than that, you should probably look for the best $2 million term life insurance rates.

While this general rule of thumb can help you figure out where to start the process, you may need to purchase more coverage if you have significant debts or you have kids heading off to college in the future. 

How Much Does Life Insurance Cost?

Cheap term life insurance can cost as little as $10 per month, but premiums for coverage can go up significantly from there. How much you’ll pay for life insurance will depend on your age, your health, and whether you’re buying term life insurance or permanent coverage.

It also depends on your age and the company you buy coverage from. However, a 30-year-old man in excellent health may have eligibility to purchase a 20-year term policy with $1 million in coverage from Bestow for as little as $43.50 per month.

Permanent life insurance, high-risk life insurance, and life insurance for seniors can cost significantly more, although the exact premiums you’ll pay depend on your age, your health, and various other factors.

Is Life Insurance Worth It?

Life insurance is worth it in every scenario, but that’s especially true for those who do not want to face the consequences of not having life insurance. If you can’t imagine how your family would pay bills or keep food on the table if you passed away, for example, you’ll want to make sure you have this important coverage in place.

Also, keep in mind that you don’t have to buy an expensive life insurance policy with all the bells and whistles. If you’re on a budget, you can focus on cheap term life insurance coverage with a basic death benefit only. You can also shop around and compare quotes to find the best deal.

Even if you can only afford enough life insurance to pay some of your bills and your final expenses, that’s definitely better than nothing. 

On the flip side, buying enough life insurance coverage to pay your mortgage and your family’s living expenses for years to come can be the best gift you could ever give. If you can afford to buy enough life insurance to replace 10 to 20 years of your salary upon your death, this purchase will be well worth it in terms of the peace of mind you receive in return.

How We Found the Best Life Insurance Companies

When determining our methodology, we decided to consider several major factors that are unique to the life insurance industry. Not only did we compare ratings for financial strength from A.M. Best, but we also looked at customer service rankings from third parties like J.D. Power and complaints in the National Association of Insurance (NAIC) database.

Other factors we considered include available coverage options, the availability of online quotes, available rider options, and each company’s application process. 

Ultimately, we aimed to include life insurance companies that offer above-average ratings from third parties, easy online quotes, and several coverage options available.

Summary of the Best Life Insurance Companies of March 2024 

• AIG: Best for Competitive Premiums
• Haven Life: Best for Quick Coverage
• Bestow: Best for No Medical Exams
• Health IQ: Best for Healthy Senior Citizens
• MetLife: Best for Group Life Insurance
• Legal & General: Best for Coverage Up to $10 Million
• Prudential: Best Broad Coverage Options
• Mutual of Omaha: Best Customer Service
• New York Life: Best Life Insurance and Investment Services

Bottom Line – 9 Best Life Insurance Companies – Updated 2024

Choosing the right life insurance is vital to ensure financial stability for your loved ones in unforeseen circumstances. 

There are different life insurance providers who each excel in specific areas, from competitive premiums to customer service. 

Whether you’re considering term life, whole life, or another type of policy, these companies offer trustworthy coverage options. It’s essential to compare and understand each provider’s unique offerings to find the best fit for your needs. 

Life insurance not only provides peace of mind but also lays the foundation for a comprehensive financial plan. Prioritize it, compare options, and select the best to safeguard your family’s future.

The post 9 Best Life Insurance Companies – Updated 2024 appeared first on Good Financial Cents®.

But if you are trying to protect a large estate and need a sizable lump sum to cover funeral expenses, estate taxes, and other expenses in the case of your eventual death, then you understand that importance and cost is not an issue.

The Cost of Such a Policy

The concept of a $2 million life insurance policy might seem unaffordable. And this might be the case if you have serious health conditions – what life insurance companies would consider “high risk”.

But if you identified a clear need for this type of life insurance coverage, you owe it to yourself and your family to at least explore all your options.

This, of course, comes with the benefit of knowing your family is secure in the event something unfortunate happens.

Larger plans worth more will cover greater expenses, but have greater monthly policy costs in exchange. To be clear, you can expect to pay anywhere between $105 and $223 dollars for your insurance policy.

How Much Life Insurance Do You Need?

You should plan ahead when considering such a serious decision, though plans for policies up to two million dollars can be purchased under the right conditions. 

The monthly cost for this type of policy will likely be at least several hundred dollars a month, so budget wisely.

If you compare different life insurance companies, you will likely find a rate you can afford each month. Doing this will allow you to get offers from several providers so you do not end up paying more than you should.

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Consulting with your family prior to making any serious purchasing decisions should allow you the chance to explain what will happen in the event this policy is acted upon.

It is an unfortunate situation when they need to be turned in, but it can happen so discuss everything with the people you care about. 

Sample Rates for a $2 Million Dollar Term Policy

How much your $2 million dollar policy will cost will depend on a variety of factors such as age, health, term, and the company you choose.

Below are some sample rates of 20-year term policies for both men and women.

$2 Million Term Life Rates for Men

$2 Million Term Life Rates for Women

In approximate range of how term premiums can increase by age and also by gender.

I was curious to see how much a $2 million policy cost for a male in good health and decided to use one of our partners, Policy Genius, as my guinea pig.

Once you click on their link, you’ll be taken to this page:

You’ll then go through several prompts that ask you key questions to determine what your goals are by purchasing such a large insurance policy.

Don’t rush through these questions. It’s important for them – and you! – so you know you’re getting exactly what you need.

After answering all the discovery questions, I was able to get an approximate cost for a $2 million policy.

Once again I entered information for a 40-year-old male in good health and you can quickly see a few things:

• Policy Genius offers up to $10 million of life insurance – that’s a lot!

• You can choose a shorter term of only 10 years.

• You can also choose a 35-year term policy.

The big takeaway here is you have options!

But if you can’t afford the annual premiums you can also choose monthly pay as I show here:

So if you’re a 40-year-old male and are curious how much a 20-year $2 million term life insurance policy costs you can assume it will be somewhere in the range of $92-$197.

Customize Your Life Insurance Plan

Each plan can be customized to the individual who obtains it, so when talking with the people who end up issuing it to you make sure you fully understand the details. Sometimes there can be areas not entirely understood that if ignored may cause problems.

The people you talk with about these plans can help you learn about the nuisances involved, such as your current health status and even financial state.

You will likely end up with a great plan if you do the research needed for the right life insurance policy.

What Is Covered Under a $2 Million Dollar Policy?

For some people, such a large policy might seem ridiculous and a waste of monthly premiums, but there are a lot of people that should consider a large policy.

If it’s just you and your spouse with no children, then these plans probably aren’t the best option, but if you have several young children and thousands of dollars in debt, you should take a serious look at your life insurance plans.

If you have several children, especially young children, that term life insurance policy that you bought 15 years ago probably isn’t enough. Think of all of the expenses that would be left behind if you were to pass away.

Mortgage payments, car loans, credit card bills, student loans, your children’s student loans in the future, it’s all starting to add up pretty quickly, isn’t it? Fortunately, most $2 million policies are not as expensive as one may think.

Saving Money on Your $2 Million Policy

Because the policy is so large, the monthly premiums will cost more, but check out these tips so that you can get better rates and keep more money in your pocket.

When you’re applying for the policy, the company is going to look at your age and health, as well as any dangerous hobbies that you might have. As long as you aren’t a skydiver or extreme rock climber, most hobbies won’t count against you.

Where most people cause their rates to go up is in the health department. Getting the gym a few months before applying for your policy should be a goal.

This means lowering your cholesterol, lowering your blood pressure, and losing a few extra pounds. Being overweight or obese can add hundreds or thousands of dollars to your monthly premiums. Keep steady at hitting the treadmill and watching your carbs.

Aside from hitting the gym and skipping the extra dessert, tobacco usage is the next biggest factor that can cause your premiums to go through the roof. 

Being considered a smoker can cause your rates to automatically double or triple. While you can still get a policy if you’re a smoker, it’s going to cost you.

Buying $2 Million Dollar Life Insurance

But the easiest ways to save money is to shop around before you buy a policy. Because each company is different, each of them will have different rates for their policies and all of them will look at your health differently.

More than likely, the first company that you contact isn’t going to have the lowest rates available. It’s important to get quotes from dozens of life insurance companies so the ones you love the most are completely covered.

Some companies have more experience than others with larger policies, these companies can help ensure that you’re completely covered for an affordable price.

We can save you hours of time, frustration, and cost. Simply click on the map above, and the quotes will come to you!

Bottom Line: Is $2 Million Life Insurance Worth It?

In deciding whether a $2 million dollar life insurance policy is worth it, several factors come into play. While the cost might seem steep, it can be essential if you have a significant estate to protect, covering expenses like funeral costs and estate taxes. 

The policy’s cost varies based on age, health, and other factors, but it’s important to explore options to ensure your family’s security. Sample rates show that premiums increase with age, and customization is key to finding the right fit. 

If you have substantial debts, dependents, and financial obligations, a larger policy could be prudent. Staying healthy, avoiding tobacco, and shopping around are ways to save on premiums. 

Ultimately, securing adequate coverage ensures peace of mind for your loved ones in case of unfortunate events.

The post $2 Million Dollar Life Insurance: Is It Worth It? appeared first on Good Financial Cents®.