Life Insurance is a often viewed as a grim and boring topic, two reasons most people avoid the subject entirely. Unfortunately, the discussion about life insurance often comes too late.
So, when is the right time to discuss life insurance?
- Do you have a family or dependents who would be financially harmed without your income (furbabies count too!)?
- Do you NOT have money set aside for final expenses should something catastrophic happen to you?
If you answered yes to any of these questions, you probably need life insurance.
What type of insurance should I get?
There are two types of life insurance, term and whole. Term life insurance is the most popular because it is the least expensive and offers death benefits for a specific term (usually between 5 and 30 years). Whole life insurance is more expensive, builds cash value over time, and covers you for your entire life.
Most healthy adults settle on term life insurance to protect their young families when they are most vulnerable.
I’m already bored and confused.
We get it, insurance is no fun. But we reviewed these three new life insurance companies that make buying life insurance easy and less complicated.
1. Ethos- Life Insurance For Those Who Don’t Want To Be A Number
We reviewed Ethos Life Insurance, a relatively new company who take in account the person as a whole to offer term life insurance at affordable rates. As a non-smoking, female with mild asthma, my rate was quoted at $29 for a 30-year $365,000 life insurance policy.
If you are in decent shape and a non-smoker, you can get insurance pretty easily without any medical exam. They ask you questions about your health, lifestyle, finances, and person life. For example, they asked me if I’ve ever been on probation or filed for bankruptcy. I was approved in just a few minutes after answering a relatively brief questionnaire. If you’ve had some medical or other health issues recently, you may have to follow up with some documentation.
Once you sign up to get a quote, you get a text message from an agent that is ready to answer any questions you may have.
Unfortunately, this insurance is not available in New York.
2. Haven Life Insurance- If You Want Insurance That’s Backed By An Established Company
The problem with going with a new vs an established insurance company is the guarantee that the money will be there if you need it down the road. Haven Life Insurance is underwritten (a fancy word that means backed up financially) by an established insurer so you have the benefit of that extra peace of mind.
The application process was easy, if not a little more involved than Ethos. Without going through the entire application, my estimate as a 33 year old, relatively healthy, non-smoker living in NY was $38 for a 30-year $350,000 policy
I got a text message from an agent ready to help me with any questions I may have.
The process was a bit more involved and a little bit more expensive. The health questions were more in-depth and they asked for more information about my employer. When I applied, I was ultimately lead to a page that asked me to get a medical exam before an exact quote would be rendered. This is a bit of a pain in the butt, however, I felt like if I didn’t have some health issues, this would have been waived. They do make it easy to print the form and have my doctor submit it.
3. Health IQ: Insurance for The Health Nut
Health IQ is the best option for those who are health-conscious and take care body. They base your quote on how much you exercise and offers discounts based on how health conscious you are. Learn How To Save Money on Health Insurance With HealthIQ.
This service partners up with over 30 life insurance carriers to deliver the best rates based on how healthy your lifestyle is. Taking quizzes and scoring well on their site gives you even more discounts. This is a great idea to not only decrease your rates, but keeps you motivated to stay health conscious as well.
I got a call right away from an agent who was able to offer me what by far was the best rate, a $500,000 30-year policy for only $25 a month!
The process is a little laborious, and requires a phone interview (which may be off putting for some people) and a free visit by a nurse for a brief health check up to verify you are as healthy as you claim to be. It seems for most policies a medical exam is unavoidable. However, if you are in good health, you will save more money.
There is no clear winner here as each company offers different pros and cons to those looking to purchase term life insurance. All of their processes were easy and there was always someone immediately available, whether by phone or by text, to explain the entire process and answer my questions.
Tomorrow is not promised today. If getting life insurance has been on your to do list for awhile, maybe it is time to get up and do something about it. Consider choosing one of these life insurance companies when you decide to do so.