Best Term Life Insurance
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What is term life insurance?
How to find the best term life insurance companies?
- Evaluate financial strength: Before choosing a term life insurance company, it's important to evaluate its financial strength. You want to choose a company that will be able to pay out your death benefit if the need arises. SuperMoney's financial rating combines ratings from multiple rating agencies that evaluate the financial stability of life insurance companies.
- Compare rates: The cost of term life insurance can vary significantly from one company to the next. Be sure to get quotes from multiple companies so you can compare rates and find the best deal. This can be done by requesting quotes from companies or by using an online insurance marketplace.
- Read reviews: Reading reviews from other policyholders can provide valuable insight into a term life insurance company's customer service, claims handling, and overall satisfaction. Look for reviews on the company's website, as well as on third-party websites like Yelp and the Better Business Bureau.
- Consider policy features: Some term life insurance companies offer additional features like accelerated death benefits or the ability to convert your policy to a permanent policy. Consider which features are most important to you when comparing companies.
Do you need term life insurance coverage?
How much term life insurance coverage do I need?
- Income replacement: A common rule of thumb is to have life insurance coverage that's equal to 10-12 times your annual income. This will help ensure that your loved ones can maintain their standard of living if you were to pass away.
- Debt and expenses: Another approach is to calculate your total debt, including mortgage, car loans, and credit card debt, and add it to your annual expenses. This will give you a sense of how much coverage you need to pay off your debts and cover your family's expenses for a specified period of time, such as 10-20 years.
- DIME formula: The DIME formula is a simple way to estimate how much life insurance coverage you need. DIME stands for debt, income, mortgage, and education. Add up all of your debt, determine how much income you need to replace, estimate the cost of your mortgage, and add the estimated cost of your children's education. This will give you a rough estimate of how much coverage you need.
FAQs about life term insurance
How does term life insurance differ from permanent life insurance?
What factors impact the cost of term life insurance?
Can I convert my term life insurance policy to a permanent policy?
What happens if I outlive my term life insurance policy?
Do I need a medical exam to get term life insurance?
Can I name multiple beneficiaries on my term life insurance policy?
Can I purchase term life insurance online?
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