LIFE INSURANCE
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Way.com: The Better Way to Shop for Life Insurance
No Medical Exams
100% Online
Get estimates in seconds
4.9/5 Rating on the App Store
Key Takeaways
Life insurance is the first thing that comes to anyone's mind when it comes to financial planning. A life insurance policy is an agreement between an individual and an insurance company where the policyholder pays a premium in exchange for a lump-sum payment as a death benefit to the beneficiaries upon the policyholder's death.
There are different life insurance policies, including term life insurance, whole life insurance, universal life insurance, and variable life insurance. The features and benefits of each type are unique. However, the policy choice will depend on the individual's financial needs and situation.
The coverage is provided by term life insurance for a specified duration. In other words, it protects you for the duration of the fixed term that is specified in the policy. What makes term life insurance a preferable choice is its affordability. If the policyholder passes away while still active, the beneficiary will receive the death benefit from the term life insurance policy.
This policy protects your entire life. However, compared to the premiums for term life insurance policies, the life insurance premiums for whole life insurance are significantly more expensive. This is mainly because it comes with a cash value component that grows. This can also be put towards paying premiums or used as collateral for a loan against the cash value.
Universal life insurance is another type of permanent life insurance policy. It provides coverage for the policyholder's entire life. Universal life insurance policies also include a cash value component. However, this is a flexible policy, as the policyholder can adjust the premiums and death benefits over time.
This policy is similar to whole life insurance but also allows you to invest. Thus, by owning this policy, the policyholder can invest in stocks, bonds, and mutual funds. However, the policy's cash value and death benefit can fluctuate depending on the performance of the investments.
This is a permanent life insurance policy. However, the ability to adjust the premium and death benefit makes it comparable to universal life insurance. The placement of cash value in sub-accounts, similar to a stock index, differentiates it from the latter.
Insurance rates are influenced by a person's age, gender, and medical history. For example, if you are younger and sign up for life insurance, your premium will be lower, considering your health, lifestyle, coverage, and even driving record.
Here we look at the average cost of life insurance policies according to the term length, age, and gender of the insurer.
The average cost for term life insurance varies with age, gender, and the policy amount.
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|
||
|---|---|---|
| Term | Female | Male |
| 10 Years | $138 | $138 |
| 20 Years | $174 | $198 |
| 30 Years | $246 | $276 |
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|
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|---|---|---|
| Term | Female | Male |
| 10 Years | $174 | $198 |
| 20 Years | $234 | $258 |
| 30 Years | $306 | $378 |
|
|
||
|---|---|---|
| Term | Female | Male |
| 10 Years | $306 | $330 |
| 20 Years | $390 | $510 |
| 30 Years | $666 | $906 |
|
|
||
|---|---|---|
| Term | Female | Male |
| 10 Years | $186 | $222 |
| 20 Years | $256 | $306 |
| 30 Years | $342 | $450 |
|
|
||
|---|---|---|
| Term | Female | Male |
| 10 Years | $270 | $282 |
| 20 Years | $342 | $414 |
| 30 Years | $534 | $690 |
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|
||
|---|---|---|
| Term | Female | Male |
| 10 Years | $438 | $570 |
| 20 Years | $702 | $942 |
| 30 Years | $1206 | $1686 |
| Age | Female | Male |
| 25 | $381 | $417 |
| 35 | $498 | $550 |
| 45 | $658 | $717 |
| 55 | $891 | $965 |
| 25 | $755 | $829 |
| 35 | $991 | $1094 |
| 45 | $1312 | $1431 |
| 55 | $1776 | $1925 |
| 25 | $997 | $1061 |
| 35 | $1061 | $1211 |
| 45 | $1469 | $1559 |
| 55 | $1806 | $1904 |
| 25 | $1988 | $2117 |
| 35 | $2417 | $1291 |
| 45 | $2934 | $3111 |
| 55 | $3606 | $3804 |
| Age | Coverage amount | 20-year term life | Whole life | Universal life |
|---|---|---|---|---|
| 30 | $250,000
$500,000 $1,000,000 |
$138
$212 $321 |
$2,191
$4,339 $8,578 |
$1,077
$1,974 $3,616 |
| 40 | $250,000
$500,000 $1,000,000 |
$198
$315 $534 |
$3,266
$6,489 $12,848 |
$1,500
$2,877 $5,326 |
| 50 | $250,000
$500,000 $1,000,000 |
$412
$741 $1,336 |
$5,176
$10,309 $20,478 |
$2,186
$4,240 $8,131 |
| 60 | $250,000
$500,000 $1,000,000 |
$1,068
$2,020 $3,814 |
$8,798
$17,553 $34,958 |
$3,628
$7,049 $13,474 |
| Age | Coverage amount | 20-year term life | Whole life | Universal life |
|---|---|---|---|---|
| 30 | $250,000
$500,000 $1,000,000 |
$233
$381 $638 |
$2,348
$4,652 $9,219 |
$1,346
$2,104 $4,766 |
| 40 | $250,000
$500,000 $1,000,000 |
$335
$585 $1,056 |
$3,535
$7,025 $13,911 |
$1,973
$3,781 $7,248 |
| 50 | $250,000
$500,000 $1,000,000 |
$713
$1,342 $3,026 |
$5,616
$11,189 $22,228 |
$2,924
$5,676 $10,792 |
| 60 | $250,000
$500,000 $1,000,000 |
$1,872
$3,659 $6,972 |
$9,558
$19,073 $37,988 |
$4,736
$9,253 $17,850 |
Any life insurance policy guarantees death benefits to the designated beneficiaries after the policyholder's death. Apart from the death benefits, which are common for all types of life insurance, cash value, and dividends might be exclusive to permanent life insurance policies like whole and universal life insurance.
This is an overview of how a life insurance policy works.
Life insurance can be the key to financial planning, especially when you have set financial goals for the future and consider savings as a part of your budget. Considering its benefits, anyone can opt for life insurance.
Families
If you are a parent or planning to be one, a life insurance policy can greatly support you financially. Childcare and education of your kids will be taken care of after your death.
Spouses
Life insurance covers shared expenses and loans if a spouse dies. Married couples usually live on two salaries. Life insurance ensures that if one spouse dies, the other can stay in their home, pay their mortgage, and live the lifestyle they worked for together.
Those who have dependents
If you have other people who depend on you financially or if you are providing care for an elderly family member, purchasing life insurance can help ensure that their needs will be met even after your death.
Business Owners
Businesses will already have life insurance, especially if they have a family to support. Still, they may require an additional policy to protect their business partners and employees. In this scenario, the policy's beneficiary could be the company or a business partner. The policy would ensure the company could continue operating even if you died.
Young Adults
Purchasing life insurance when you're young will likely be the most cost-effective decision. This is because you can get a head start on saving money and planning for the future by locking in the lowest possible rates right now.
Anyone over 60 years of age
Life insurance can help cover outstanding debts, medical, and end-of-life expenses, providing financial security for seniors and their families.
There aren't one-size-fits-all life insurance plans out there. Your individual needs and circumstances will dictate the best kind of life insurance policy for you to purchase. You should also consider what factors determine your need for a policy. Therefore, the premium you pay for insurance is based on factors such as age, health, financial goals, and family circumstances.
Prioritize your family's needs and your financial situation. Think about the money you'd like to replace in the event of your death and the money you'll need to cover ongoing and future costs, like a mortgage, debts, and your children's college tuition. That evaluation is crucial for picking the right policy and adequate level of protection.
Some factors to consider when choosing an insurance policy are the policy's potential duration, your monthly investment limit, and the expected rate of return.
The most popular and important types of life insurance are term and permanent. However, it's crucial to broaden your options when planning a life insurance policy by becoming knowledgeable about the various kinds offered. For those who view their policy as an asset with growth potential, the cash value component, which is available with universal and whole life insurance, will be useful.
Once you've decided on your policy, you can research to learn more about the trend by comparing quotes and coverage options from different insurance companies. But when choosing a provider, it's important to look at things like how stable the company is financially, how many customer complaints there are, and how often policies payout.
If you find the process overwhelming, contact an insurance agent who can assist you. In addition, you will also receive personalized recommendations that can help you choose the best life insurance policy.
| Company | Policies Offered |
|---|---|
| MassMutual | Term whole, universal, and variable universal. |
| Haven Life | Term. |
| Guardian | Term whole and universal. |
| Northwestern Mutual | Term, whole, universal, and variable universal. |
| New York Life | Term, whole, universal, and variable universal. |
| Pacific Life | Term, universal, variable universal, and indexed universal. |
| State Farm | Term, whole and universal. |
| USAA | Term, whole and universal. |
Many life insurance policies require a medical exam before they can be approved. The exam typically involves a health questionnaire and a physical exam. The medical exam aims to assess your overall health and determine your risk level for future health problems. The results of the exam are used to help determine your life insurance premiums and coverage amounts.
Though most insurance policies require a medical examination, policies like simplified issue life insurance and guaranteed issue life insurance might not need a medical exam; instead, a health questionnaire must be filled out.
The life insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.
Quotes are typically based on a full coverage policy average unless otherwise noted within the content.
These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com
Voluntary life insurance is a type of life insurance coverage offered by an employer as part of a voluntary benefits package. It requires employees to pay a premium to receive coverage.
Voluntary life insurance policies typically allow employees to choose the amount of coverage they want up to a certain limit. The premiums for this coverage are deducted from the employee's paycheck regularly, usually monthly or bi-weekly.
Treating your insurance policy as an asset by investing in whole life insurance will accumulate cash value over time. This cash value can be borrowed against or withdrawn from the policy while you are alive, providing a source of funds for emergencies, debt repayment, or other expenses. Similarly, an accelerated death benefit offered by some policies allows you to receive a portion of the death benefit. At the same time, you are still alive if you are diagnosed with a terminal illness or other qualifying condition.
Permanent life insurance is a type of life insurance policy that provides coverage for the entire lifetime of the insured individual, if the policy premiums are paid and coverage is until the insured individual passes away.
Life insurance provides financial support to your beneficiaries after your death. The death benefits can be used for funeral expenses, to cover debts, or support your dependents.
If you have a permanent life insurance policy that has accumulated cash value, you may be able to borrow against the policy. However, the amount you can borrow will typically be less than the total cash value in the policy.
Access your digital insurance card through the app. You no longer need to carry your physical insurance card with you.
Receive reminders before your renewal. Way.com will also send new quotes from up to 45 insurance companies with your renewal reminder.
Keep everyone on your policy up to date by sharing your insurance information.
Make changes to your policy right from the app (coming soon) and ask for expert advice.
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