Life Insurance Policies and Quotes for 2023
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When you're shopping for the best life insurance policy for you and your family, there are important decisions to make. We'll show you how to choose the right type of policy and coverage amount, get life insurance quotes and find the best company for you.
What is a life insurance policy?
A life insurance policy is a contract between you and an insurance company. In exchange for regular payments, called insurance premiums, the insurer pays out money after you die. This money goes to the people you choose as life insurance beneficiaries — usually children, a spouse or other family members.
A life insurance policy can be an important safety net if anyone depends on you financially. Beneficiaries can use the money for any purpose, such as repaying debts or replacing your income. In other cases, people use life insurance as an investment, to leave an inheritance or to cover final expenses.
» MORE: 5 reasons to get life insurance
What is the best life insurance policy for me?
Find the best life insurance policy for you by first understanding what types of coverage are available. In general, there are two main types of life insurance: term and permanent.
How to choose a life insurance policy
Each type of policy serves a different purpose. If you’re getting life insurance to cover burial expenses, you’ll likely need a small whole life policy because it typically offers lifelong coverage. But if you want a policy to replace your income during your working years, a 20-year or 30-year term life policy may be a better fit.
Use the below form to find out which policy best suits your coverage situation.
Life insurance medical exams
Depending on the type of life insurance policy you buy, you may be required to take a medical exam. These exams help insurers get a better picture of your health, and subsequently, your life expectancy. The insurer uses the results to determine your eligibility for coverage and set your rate.
If your age or health prevents you from getting coverage, you may want to consider no medical exam life insurance. These policies, such as simplified issue and guaranteed issue life insurance, don’t require a medical exam. However, because the insurer can't estimate your life expectancy as accurately, the rates for these types of policies can be higher.
You can still get life insurance if you have a medical condition, but insurers vary in how they view pre-existing conditions. As such, prices for the same condition may vary between insurers.
If you’re healthy, saying yes to a medical exam gives the insurer a more complete picture of your health and could lower your rate.
How much life insurance should I buy?
To figure out how much life insurance you need, think about your financial obligations now and in the future. Then, aim to take out a policy to match them.
For example:
Add up any long-term debts like a mortgage or college fees.
Multiply your annual income by the number of years you want your beneficiaries to be covered after you die.
Subtract any funds or assets you currently have that can be used to cover these expenses.
Need more help? Use our coverage calculator to estimate your coverage amount.
How much do life insurance policies cost?
In general, term life is cheaper than permanent life insurance. When comparing the different types of permanent coverage, whole life is typically more expensive than universal life.
It’s important to find a policy that you can afford. If you miss payments, the insurer may cancel your policy, leaving your beneficiaries without a payout.
Life insurance rates vary among insurers — sometimes significantly — so it’s a good idea to compare life insurance quotes from several companies before you buy.
Life insurance rates: Super preferred health class
Here are the average annual rates for applicants in the super preferred health class. In general, only non-smokers in optimum health can qualify for these rates. Roughly 4 in 10 of the more than 16,000 policies put in force in the last two years through Quotacy, a life insurance brokerage, were in the super preferred health class.
Issue age | Coverage amount | 20-year term life | Whole life | Universal life |
|---|---|---|---|---|
30 | $250,000 $500,000 $1,000,000 | $138 $206 $315 | $2,185 $4,333 $8,572 | $1,071 $1,968 $3,610 |
40 | $250,000 $500,000 $1,000,000 | $192 $309 $528 | $3,260 $6,483 $12,842 | $1,494 $2,871 $5,320 |
50 | $250,000 $500,000 $1,000,000 | $406 $735 $1,330 | $5,170 $10,303 $20,472 | $2,180 $4,234 $8,125 |
60 | $250,000 $500,000 $1,000,000 | $1,062 $2,014 $3,808 | $8,792 $17,547 $34,952 | $3,622 $7,043 $13,468 |
Source: Quotacy. Lowest three rates for each age and risk class averaged. Data valid as of January 7, 2023. | ||||
Life insurance rates: Standard health class
Here are the rates for applicants in the standard health class. This class is for non-smokers in average health. Roughly 1 in 6 policies put in force over the last two years through Quotacy were in the standard health class.
Issue age | Coverage amount | 20-year term life | Whole life | Universal life |
|---|---|---|---|---|
30 | $250,000 $500,000 $1,000,000 | $227 $375 $632 | $2,342 $4,646 $9,213 | $1,340 $2,098 $4,760 |
40 | $250,000 $500,000 $1,000,000 | $328 $579 $1,050 | $3,528 $7,019 $13,905 | $1,967 $3,775 $7,242 |
50 | $250,000 $500,000 $1,000,000 | $707 $1,336 $3,020 | $5,610 $11,183 $22,222 | $2,918 $5,669 $10,786 |
60 | $250,000 $500,000 $1,000,000 | $1,866 $3,653 $6,966 | $9,552 $19,067 $37,982 | $4,730 $9,247 $17,844 |
Source: Quotacy. Lowest three rates for each age and risk class averaged. Data valid as of January 7, 2023. | ||||
Choosing a life insurance company
Once you know the type of life insurance policy and amount of coverage you need, it’s time to find the best company. Check out some of the top insurers on our list by reading our life insurance reviews.
Term, whole, universal and variable universal. | ||
Term. | ||
Term, whole and universal. | ||
Term, whole, universal and variable universal. | ||
Term, whole, universal and variable universal. | ||
Term, universal, variable universal and indexed universal. | ||
Term, whole and universal. | ||
Term, whole and universal. |
Comparing life insurance companies
Financial strength and complaint data are important factors to consider when comparing life insurance companies.
Financial strength ratings are issued by agencies like AM Best. They typically indicate an insurer’s ability to pay out a future claim. For life insurance, NerdWallet typically recommends considering companies with ratings of A- or higher.
Complaint ratios from the National Association of Insurance Commissioners can give you a better picture of a company’s customer experience. Our life insurance ratings methodology favors companies that have fewer complaints to state regulators.
Are you looking for the best life insurance policy for a specific need? Check out our roundups for:
Understanding life insurance quotes
A life insurance quote is an estimate; it gives you an idea of how much you’ll pay for the coverage. Quotes are typically based on a few details like the type of policy you’re shopping for, the amount of coverage you need and personal factors like your age and smoking habits.
How to compare life insurance quotes
It’s a good idea to compare life insurance quotes from multiple insurers before buying a policy. But when you do, make sure you compare the same features from each company. For example, select the same type of policy with the same coverage amount or term length, and give the same personal details for each quote. This will help you get a more accurate comparison.
Life insurance quotes vs. rates
A quote is an estimate of what you’ll pay based on minimal information. Rates are what you’ll actually pay for the coverage. When you apply for a policy, the insurer typically collects more detailed information about you to calculate your final rate, which may differ from the initial quote.
This final rate is your premium. Life insurance premiums are typically based on your life expectancy. To estimate your life expectancy, each life insurance company weighs factors like your health, family health history, lifestyle and driving record.
Two of the main factors that affect your life insurance premium are your age and health. So, the younger and healthier you are when you apply for coverage, the better your life insurance rate is likely to be.
» MORE: How life insurance works
