Best term life insurance for 2021
Term life insurance can provide substantial life insurance coverage at an affordable cost, but only for a specified period. Term life insurance policies are sold by almost all of the major life insurance companies to provide greater protection in specific situations. Young families with young children find the low cost of term policies attractive, while beneficiaries can enjoy a relatively large death benefit for the investment made by the policyholder should the worst happen.
Term life insurance is designed to provide a fixed amount of life insurance protection for a specified period. This type of insurance does not have a savings component like permanent policies, such as whole life and universal life, and coverage for a term policy will always expire at the end of the specified term. Term insurance is primarily intended for young people in good health who need significant coverage to meet the needs of their loved ones. The cost of term insurance generally becomes prohibitive as the insured progresses into their later years.
Best term life insurance companies
The best term life insurance company for one person may not be the best for another, as different life insurance companies cater to different demographic segments of consumers. Some carriers focus exclusively on members of the military community, while others focus on people with certain health conditions, such as diabetes or respiratory illnesses. But here we list five of the most popular and established life insurance companies that offer term policies.
Ratings provided by AM Best and Standard & Poor’s assess the financial strength of each carrier. The JD Power Ranking is a score that assesses the company’s customer service based on customer feedback.
North West Mutual
According to the Insurance Information Institute, Northwestern Mutual is the second-largest life insurer in the United States in terms of direct premiums written, and has insured consumers for more than 150 years. This is reflected in JD Power’s high customer satisfaction ratings and represents its deep understanding of the financial protection needs of families. Its term policies allow you to select your period of coverage based on a set number of years or up to a specific age, whichever option works best for you. These plans are also all convertible to whole life insurance when needed, which means your policy can adapt as your needs change. Northwestern Mutual’s A ++ (superior) financial strength rating from AM Best is the highest level available.
State Farm, America’s seventh-largest life insurer, offers a plethora of term insurance products, but its premium return policy is unique. Thanks to it, policyholders can choose between a payment period of 20 or 30 years and recover their premiums if they exceed the period. If you decide you want longer coverage, the Return of Premiums policy can be renewed annually until age 95, so it can cover most people for their entire lives. The premium return option comes at an additional cost, but also creates a cash value. Cash value is not usually included in term life insurance policies, but can be useful in an emergency where money needs to be borrowed from your account. Because State Farm offers a full line of insurance products, including auto and home, its customers have the option of receiving premium discounts by bundling life insurance with another policy.
Mutual of Omaha
Mutual of Omaha, the 17th largest life insurance company in terms of market share, is well known for the plethora of additional endorsements that can be added to its term life insurance policies. Please note that not all endorsements can be used with all types of policies. To find out how much coverage you need and what endorsements can be added to your policy, you may want to consider speaking with an agent.
Principal Financial, the 23rd largest US life insurer, offers term life insurance policies with the option to convert to a whole life policy at any time. Policyholders have the option of choosing durations that suit their current situation, whether they only need one-year coverage or prefer longer periods of 10, 15, 20 or 30 years. If you decide to convert your policy, you could get permanent coverage without having to prove your condition. Principal Financial also offers a full line of cash value policies, including whole life, universal life and variable universal life.
USAA is only available to military personnel, veterans, and their immediate families, but provides life insurance policies worthy of consideration for those who qualify for coverage. Most standard life insurance policies do not pay out a death benefit if the insured dies as a result of an act of war. USAA is an exception to this practice, providing specific coverage to service members while they are deployed. This coverage can be purchased in addition to the group term life insurance that all members of the military can obtain through the government. USAA policies may also pay $ 100,000 in additional benefits to service members under the age of 35 who marry or have children. In fact, all of the service member’s children can be added to the policy for less than an additional $ 8 per month. Additionally, USAA caters to consumers who enjoy buying life insurance virtually and recently introduced a term product that is only available online and does not require a medical exam for coverage.
How To Find The Best Term Life Insurance Company For You
There are several factors to consider when purchasing a quality term life insurance policy. Since your life insurance will ultimately be responsible for providing the coverage you want for your family upon your death, it may be helpful to keep these considerations in mind when determining which provider is right for you. In addition to the types of policies, you may want to consider:
- Financial strength – so that the insurer is financially stable enough to pay claims
- Multiple quotes – to see how similar coverage levels and tenure terms compare in terms of price and benefits
- Assessment of your situation – to better understand why a term life insurance policy is the stage of life you are in compared to other types of life insurance. Among the factors you need to consider is whether you are purchasing it as an affordable temporary form of protection or whether the term of office matches your current situation, such as leaving protection for your children.
Since life insurance is such an important investment in the care of your loved ones, consider giving yourself plenty of time to think through your policy options and choose the best provider to meet your needs. The websites of many insurers have information on how to contact an agent to discuss your needs in more detail.
Frequently Asked Questions
What is the difference between term life insurance and whole life insurance?
Term insurance is designed to provide pure protection against death for a specific period, such as 20 years. When the term expires, the coverage ceases. Whole life insurance is a form of permanent insurance, where the cash value accumulates inside a tax-deferred savings component that is attached to the policy. Whole life insurance is designed to stay in place for the life of the insured as long as the premiums are paid.
What factors affect my life insurance premium?
Your age, weight, health, and occupation are just a few of the pricing factors that will determine how much you will pay for term insurance. Another key factor in determining your cost is the amount of coverage you want to purchase. Insurers take many aspects of your lifestyle into account when setting premiums. For example, smoking usually results in higher premiums because of the associated health risks. In general, the younger and healthier you are, the lower the cost of premiums will be.
What is the best term or permanent insurance?
There is no right or wrong answer to this question. Term insurance can generally provide a much larger death benefit than permanent policies at a much lower price. But if you know you’ll need life insurance at the end of your life, like paying estate taxes, for example, a permanent policy may be the best option for you. It all depends on your financial situation and your goals. Consult your financial advisor or life insurance agent for more information on term versus whole life insurance and which is best for you.
Does COVID-19 impact my ability to purchase term insurance?
The underwriting standard that most life insurers have adopted is that if you have symptoms of COVID-19, or have recently tested positive for the coronavirus, you will not be able to purchase life insurance coverage until after. have recovered and tested negatively. If you’ve had COVID in the past and made a full recovery when applying for coverage, that shouldn’t be a barrier to getting a new temporary policy.