Life Insurance Policies and Quotes for February 2024

• A life insurance policy pays a sum of money to your beneficiaries if you die while the policy is active.

• There are two main types of policies: term and permanent.

• You may be able to buy a life insurance policy that goes into effect instantly.

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.

A life insurance policy is a contract between you and an insurance company. In exchange for regular payments, called 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. For example, if you’re the breadwinner, a parent, a homeowner or someone with co-signed debt, you may need life insurance coverage.

Beneficiaries can use the money for any purpose, such as repaying debts, replacing your income or covering your funeral and burial costs.

When you’re in the market for a life insurance policy, these are your options:

• Online. Depending on the type of policy you want, you may be able to apply for and buy a policy online and get coverage on the same day. This is known as instant life insurance. Many insurers and brokerages use algorithms to determine whether you qualify for a policy, and ask a series of questions about your health and lifestyle to set your rate.

• Through an agent or broker. If you’re a high-risk applicant or you simply want someone to help you navigate the buying process, you can go through a life insurance agent or broker. Captive agents sell policies from one company, like State Farm, while independent agents typically offer policies from multiple companies.

• Directly from the insurer. Most insurers allow you to buy a policy through their site, over the phone or in person. Before committing to a company, be sure to compare quotes to make sure you’re getting the best possible coverage at the lowest possible price.

In general, there are two main types of life insurance: term and permanent. Term life policies cover you for only a set period of time, such as 10 or 20 years. Permanent life insurance can last your entire life and typically includes a cash value component.

1. Add up any long-term debts like a mortgage or college fees.

2. Multiply your annual income by the number of years you want your beneficiaries to be covered after you die.

3. 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.

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.

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.

Are you looking for the best life insurance policy for a specific need? Check out our roundups for:

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.

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.

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.