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What is life insurance?
Life insurance is an agreement between you (the policyholder) and the insurance company. You make monthly payments toward your policy, and your beneficiaries receive a tax-free payout, known as the death benefit, if you die while your coverage is active.
→ Read more about what life insurance is and how it works
What are the different types of life insurance?
There are many kinds of life insurance policies, but by far the most common ones are term and whole. Most people find term life insurance to be more practical — it is straightforward, affordable, and only lasts for as long as you need it. But the policy that’s best for you will depend on your individual circumstances, including your financial obligations, income, health, and lifestyle.
Term life insurance
Term life insurance is the most affordable type of life insurance policy. In exchange for relatively low rates, your beneficiaries get a tax-free lump sum of money after you die. It lasts for a fixed period of time — typically 10 to 40 years, depending on your policy — which is all that most people need.
Whole life insurance
Whole life insurance lasts your whole life and, in addition to a death benefit payout, it comes with a cash value that can be used to supplement your savings. This type of policy is best for people who have maxed out other investments or have long-term financial obligations.
Another type of life insurance you might encounter is universal life insurance. Like whole life insurance, universal insurance coverage lasts for life and has a cash value savings feature. But you can adjust the premiums or benefit of a universal life policy, depending on your cash value performance. Unless you’re a high earner looking to maximize your investments, term or whole life are usually a better option than universal.
→ Read more about the different types of life insurance
How much does life insurance cost?
The cost of life insurance depends on many factors, including your age, health, and the specifics of your policy, but a healthy 35-year-old could expect to pay between $25 and $30 per month for a 20-year, $500,000 term life policy. Rates are five to 15 times higher if you buy cash value life insurance, like whole or universal life insurance.
Either way, it’s always better to buy sooner rather than later: Depending on your age, you add anywhere from 4.5% to 9.2% to your premium every year you wait to purchase a policy. We can help you compare life insurance quotes from top-rated companies to find the best policy for you — at your lowest price.
→ Read more about how much life insurance costs
Average term life insurance rates by age, August 2022
Age / Sex | $250K coverage amount | $500K coverage amount | $1M coverage amount |
|---|---|---|---|
25 year old female | $14.13 | $21.04 | $33.42 |
25 year old male | $17.09 | $26.91 | $44.67 |
35 year old female | $16.40 | $25.50 | $42.64 |
35 year old male | $18.61 | $30.26 | $51.75 |
45 year old female | $28.40 | $47.83 | $86.70 |
45 year old male | $35.22 | $60.71 | $112.82 |
55 year old female | $60.18 | $108.98 | $208.28 |
55 year old male | $83.45 | $151.16 | $284.07 |
Why do I need life insurance?
You need life insurance to protect your family from the loss of your income. Your savings will only go so far, especially if you pass away before you’ve had time to pay off all of your debts and save up for the future. People who usually need life insurance include:
Parents, especially new parents and single parents, who have significant financial responsibility ahead of them
Young adults with private student loans or other co-signed loans, like a mortgage
Older adults who are nearing retirement and need coverage to protect their savings plan
Seniors who can’t independently cover their end-of-life medical care or burial expenses
How can life insurance help protect my family?
The death benefit can replace your financial support for decades and ensure your family won’t struggle to cover the costs of a mortgage, a funeral, or care and college for your kids. It also means your spouse can continue to save for retirement or has money to support an aging parent.
What are the best insurance companies?
Protective, Banner Life, and Lincoln Financial are among our top-ranked insurance partners, but when it comes to life insurance, there’s no one-size-fits-all. The right policy for you depends on your individual needs and circumstances. That’s where we come in. As an independent insurance broker, we can give you reviews and recommendations of all the top insurance companies.
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Policygenius customer reviews
The reviews are in. See what our current customers are saying about buying insurance with us.
Very easy to work with
Answered all my questions and helped me make choices and changes to best suit my needs for life insurance. Communications were always informative and timely.
Ashley B.
Caring Group of Professionals
I received everything promised. I am covered! My family is covered! Such pleasant and thoughtful professionals are here. Way to go Geniuses--PolicyGeniuses!!!
Howard
Policygenius was quick and thorough
Their updates, information, and care was very encouraging in a time were chaos and a lack of transparency seemed normal. Kudos to the staff of Policygenius.
Ralph
I thought the service from Policygenius was excellent
Very professional throughout the process. The follow up was superb, very friendly, never pushy and I felt comfortable through every step. I can't say enough good things.
Michael F.
I would do business again
I would do business again with Policygenius. They have excellent customer service support and they kept me abreast of my situation the entire time.
Rose R.
I like the fact that they were not high pressure,
Meaning they do not call you 10 x per day, or email you continuously. As a matter of fact, they only bother you when they need something.
Dixxie
They were great at keeping me informed
They were great at keeping me informed on the status of my account. Easy process.
Customer
So easy to work with and was blown away
Was a terrific experience and my agent led me straight through multiple options and helped me get an amazing price. Very impressed
Jonathan W.
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