Jeffrey Manola is an experienced life insurance agent and the founder of Top Quote Life Insurance. His mission when he created Top Quote Life Insurance was to provide online consumers searching for life insurance with the absolute best quotes for term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance. Not only does he strive to provide you with the ...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insur...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Nov 4, 2020

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It’s all about you. We want to help you make the right life insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.

The loss of a loved one is devastating, to say the least.

Without a proper plan in place, your loved ones can find themselves in a financial debacle unable to meet their needs.

Life insurance is a pledge to give financial protection to your loved ones when you’re not present to do it anymore.

This is why life insurance is such a life-saver.

Surprisingly, 38% don’t have a life insurance coverage because they’re skeptical about how much to buy or what type of coverage is best for them.

At first glance, the different types of life insurance policies seem bewildering. But having the proper information and knowledge can help significantly when it comes to selecting life insurance quotes and choosing a life insurance policy.

Looking to compare life insurance policies? We can help. Enter your ZIP code to get free quotes from multiple insurers.

Table of Contents

Why Life Insurance is a Prudent Choice

Do I really need life insurance?

The need for life insurance varies and is unique for every individual. Here’s why you need to go out and select quotes if you haven’t already.

  • If you have dependents to worry about, for example, you probably need a life insurance cover. As the sole provider, the last thing you want is for the family income to suffer in the unfortunate case of your demise.
  • If your salary is the main source of family support. Financial obligations such as mortgage repayments, bills, and college education will be covered by your life insurer in the form of death benefits.

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The Life Insurance Options Available to You

We have different types of life insurance policies which include whole life, universal life, variable life, and term insurance.

Our primary focus today, however, is on term insurance and whole life insurance which are the most common forms of life insurance.

Term Insurance Policy

This is the most basic and inexpensive form of life insurance.

Unlike other forms of life insurance, term insurance doesn’t have an equity-building component that can make cash savings. That’s why term insurance is considered one of the least expensive types of life cover.

As the name implies, term life insurance is tailor-made for a specified duration of time. It can range anywhere from a 5-year term to a 30-year term.

You’ll pay premiums for the duration of the term, and once the term expires the death benefits expire with it too.

The good news is most life insurance providers will give you the option of renewing your policy. But there’s a catch to this.

You might face higher premium rates since age is a key factor that determines insurance premium rates.

We’ll take a look at some more evidence of insurability factors in a moment.

If you have a term cover, you can also opt-out of paying any further premiums by choosing not to renew your policy after it expires.

Buying a term life insurance policy means the insurer will only issue a payment of death benefits to your dependents if you pass on when the term is still active.

Whole Life Insurance

This is a type of insurance coverage that provides you and your dependents with a life-long safety net.

It provides the contract holder with coverage until death rears its ugly head and it features an unparalleled level of certainty.

Whole life insurance comes with specified death benefits for your dependents and an added cash value incentive.

This cash value acts as an investment part of your policy. The longer you hold your whole life policy in place, the more money you can expect in the cash account.

Most insurance providers will allow you to stop paying premiums on whole life policies when you reach the age of 95 or 100 years.

Defaulting on premium payments before then means you won’t be able to claim your death benefits. But you’ll still be able to claim the cash value on the policy.

That’s not all. Some policies offer dividends that cut down the cost of the premiums. Cash accumulated in your whole life policy can also be used to pay premiums.

On the flip side, it’s very expensive to buy whole life insurance. Considering 39% of whole life insurance holders get their policies terminated within the first 10 years, getting a term policy can be a bit more appealing.

How to “Select Quotes”

Wondering how you can find the best rates for your insurance policy?

You’ll save a lot of money if you exhaustively compare the rates offered by different insurance companies.

Many tech-savvy and forward-looking insurers have gone digital as well. You can now go online and select quotes from different companies before settling on one.

Factors to Consider

The premiums you pay on your life insurance policy will be determined by a couple of factors such as:

  • Age: The older you are the higher the rate will be.
  • Occupation: If you work in a risky environment, the policy provider may increase your rates or deny you a cover altogether.
  • Do you smoke? Smokers usually pay higher insurance premiums.
  • Gender: Women generally pay lower rates because of their tendency to live longer.

When Comparing Life Insurance Quotes

When you’re thinking about life insurance, reliability and commitment should be a top priority. Select quotes based on value instead of simply picking the cheapest option.

Every family is unique. A policy that worked for a friend or relative before won’t necessarily work for you. Pick a policy you feel will work best for you and those you leave behind.

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What You Need to Know Beforehand

Remember, selecting an insurance quote is a protective measure for your family. It’s not the best tax-saving strategy or investment option.

This is a contract.

Generally, knowing how much life insurance to buy is a game of numbers.

By subtracting all your long-term financial obligations from all existing assets, you’ll get a good estimate of how much insurance you need to buy.

Beyond that basic guideline, however, it’s best to consult with a life insurance agent. You’ll be able to get real-time professional advice on the ideal amount of coverage to buy.

Owning a life insurance policy is a strong pillar of personal finance, and every household should at least consider it.

No one likes talking about the potential death of a loved one. It’s no shocker then why many people avoid the life insurance conversation.

But having an open and candid discussion with your family on the way forward after you pass on will give everyone some peace of mind.

We’d like to hear from you. Please feel free to contact us to discuss this article and learn we can help you select quotes!

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