What Happens to Your Medicare if You Move?
You can keep Original Medicare and can usually keep Medigap plans when you move. But if you move far from your current home, you'll need a... Read More
Compare Life Insurance Plans
Compare life insurance quotes and find the best rates for a policy.
Life insurance can help protect your family financially if anything happens to you, but it’s important to make sure you’re not overpaying for the coverage you need.
How does life insurance work?
Life insurance is a planning tool that provides financial protection for your dependents.
The asset provides a tax-free lump sum of money which is paid to your dependent after your death. Typically, life insurance is bought so that your dependents would be able to sustain payments for bills, college tuition or other after-life expenses.
Key components of life insurance policies are:
- Term: When buying life insurance you would choose how many years your policy will last. This will also depend on the type of life insurance that you purchase — permanent insurance has a term that will last your whole life for example.
- Death benefit: The face value for the life insurance policy. This is the amount of money that would be paid to the beneficiary if you passed away.
- Premiums: The monthly or annual payments that you give to the insurer to keep the life insurance policy in place. If you miss a payment or decide not to pay the life insurance policy would be canceled.
How to calculate your life insurance needs
Every individual has a different financial situation and therefore will require different life insurance needs.
When calculating your needs you should consider what the life insurance will be used for and why you may need life insurance in general.
If you are young and do not have any dependents then buying life insurance may not be a necessary purchase at this point in your life. On the other hand, if you are starting a family in which the financial livelihood of the family relies on your salary, then you may want to consider purchasing some life insurance coverage and calculate your future needs.
When beginning to calculate how much life insurance you need, you should start by adding up your current and future financial obligations. This can include obligations such as:
- Future salaries
- Mortgage balance
- Debts
- College costs
- Funeral costs
After you have figured out your obligations, you can add up your current assets such as savings and college funds. Finally, by subtracting your current assets from the obligations you will arrive at a target amount for how much life insurance you will need. It is important to note that this is a rough estimate for coverage and it may be useful to purchase slightly more life insurance to compensate for unexpected financial situations that your dependents might face.
Types of life insurance
Life insurance companies will typically offer two different types of life insurance: term life insurance and permanent life insurance.
A term policy will last for a set period of time before expiring while permanent plans stay in effect for your entire life. Furthermore, some permanent life insurance policies will have a cash value component that will grow as you make premium payments.
Term life insurance | Permanent life insurance | |
|---|---|---|
| Period of coverage | Specified term, usually one to 30 years | Lifelong |
| Cash value | No | Yes |
| Average monthly premium | Cheap | Expensive |
Depending on your situation and what the purpose of your life insurance is, the type of life insurance that you need will change.
For example, if you are looking for a cheap policy to cover future financial obligations like college tuition, then choosing a term life insurance policy with a death benefit that matches the total tuition may be the best option. On the other hand, say you have Type 1 diabetes and have had problems with getting approved for life insurance. In this case, a permanent policy like guaranteed acceptance life insurance may be a better option for coverage.
Average cost of life insurance policies
The cost of your life insurance policy will be dependent on a variety of factors including your health, age, occupation and if you smoke. However, the largest determinant will be if you are a smoker.
Smokers will have an average cost of life insurance that is 306% higher when compared to a nonsmoker.
Average Cost of Life Insurance for Non-Smokers vs Smokers
Find Cheap Life Insurance Quotes in Your Area
Life insurance company reviews
When searching for the best cheap life insurance we would recommend getting life insurance quotes from as many insurers as possible. To aid you in this process we have provided detailed reviews of some of the best life insurance companies in the industry.
You will notice that many life insurance providers will have favorable underwriting requirements for certain individuals. For example, if you smoke you may find that Northwestern Mutual will have some of the best smoker life insurance rates available. Additionally, some insurers will specialize in certain products such as Mutual of Omaha which has one of the cheapest guaranteed whole life insurance products in the industry.
Swipe for More
Swipe for More
Life Insurance Research & Analysis
What Is a PFFS Medicare Plan?
Private Fee-for-Service (PFFS) Medicare Advantage plans let you get medical care without a referral. However, they're unpopular and... Read More
42% of Americans Feel Pressured to Have a 'Beach Body' for Summer
Nearly half of consumers are actively trying to lose weight, but many aren’t focusing on both diet and... Read More
Medicare Changes for 2024
Most Medicare costs are increasing in 2024. Part B costs $174.70 per month in 2024, and deductibles will go up. Medicare Advantage, Medigap... Read More
What Are the Best Medicare Supplement Plans in Florida?
AARP/UnitedHealthcare has the best Medicare Supplement plans in Florida because of its low rates and high customer satisfaction. Mutual of... Read More
Heat-Related Deaths Up 56% Between 2018 and 2021, Provisional Data Shows
ValuePenguin looks at 11 scenarios where heat was listed as an underlying cause of death. Here’s a national and state look at those... Read More
Best Cheap Medicare Advantage Plans in Maryland
UnitedHealthcare sells the best Medicare Advantage plans in Maryland. Its plans are highly rated and cheap. Kaiser Permanente and Humana... Read More
When Does Medicare Start?
When your Medicare coverage starts depends on when you sign up during the year and why you're eligible. Most people are eligible for... Read More
Emergency Department Visits From Grilling Injuries Jump 18% in 10 Years
Children younger than 10 accounted for more than one-fifth of related hospital trips in the same... Read More
Medicare Income Limits 2024
Medicare enrollees pay higher rates for Part B and Part D when their yearly income goes above certain limits. For example, people earning... Read More
Medi-Cal vs. Medicare: Who’s Eligible & What’s Covered?
Both Medi-Cal and Medicare provide health coverage in California. However, Medi-Cal eligibility is based on income, and Medicare is for... Read More
As Summer Approaches, 17% of Americans Don’t Know How to Swim, While Almost 40% Wouldn't Feel Comfortable Saving a Struggling Swimmer
A majority of consumers will have access to a pool this summer, but a lack of safety training poses safety and liability... Read More