final verdict
These five companies not only offer some of the most affordable term life insurance coverage on the market, but are financially stable and keep customer complaints to a minimum. That said, you will find that each has unique strengths. For example, Protective is a solid insurer that tops the list with cheap quotes and a simple (agentless) online application process. But that doesn’t match JD Power’s customer satisfaction survey.
On the other hand, Pacific Life Insurance ranked 4th in the study, but you will need to contact an agent if you want to apply for coverage. In short, while all of these insurers are worth checking out for affordable temporary coverage, the best fit will depend on your situation and priorities.
Which is cheaper: term insurance or whole life insurance?
Term life insurance is less expensive than whole life insurance because it is not a permanent policy and has no cash value. Whole life insurance policies are designed to cover you for your entire life, including your most expensive years (old age). Since whole life insurance premiums must cover the cost of insurance and build the cash value component, this type of coverage is more expensive than the term.
Why is term life insurance cheap?
Term life insurance is less expensive than permanent life insurance because it is not permanent and is not designed to be in effect during a policyholder’s most expensive years – old age. . It also has no cash value component. Since the premiums you pay don’t need to fund cash value or cover insurance costs in your later years, it’s a lot cheaper.
Is life insurance worth it?
Life insurance can be a useful tool to protect others against the financial consequences of your death. However, whether or not it is worth it for you will depend on factors such as the people you support, your outstanding debts and your savings. In addition, temporary or permanent coverage may be right for you, depending on your situation and your needs. Here is an overview of each.
However, if you have family who rely on you for care or financial support, it usually makes sense to have at least a term life insurance policy in place. And if you need permanent coverage (for example if you have a child with special needs), it’s often best to get life insurance as soon as possible, in case your own health deteriorates, making a unaffordable or hard-to-obtain font.
How We Choose the Most Affordable Life Insurance Companies
We started the process of finding the most affordable life insurance companies by reviewing third-party consumer studies to determine what consumers are looking for in life insurers. Armed with this knowledge, we moved on to reviewing life insurance offers from 32 life insurance companies. We collected over 50 data points on each insurer, including customer complaint ratings, term life insurance quotes, financial strength, available endorsements, and more.
To choose the most affordable companies, we compared those that offered the cheapest term policies. We gave preference to companies that offer transparent pricing through online quotes, an online (agentless) application experience, and no-medical life insurance. We also favored companies with lower-than-expected customer complaint indices, top ratings from AM Best for financial strength, and a full range of life insurance offerings.
Among the most affordable and reputable companies, we wanted to identify those that best met different consumer preferences (such as the best affordable life insurance without medical exam). To find out, we dug deep into each company’s products, looking at details like maximum coverage amounts, endorsements, no-exam coverage limits, and more.