Are you looking for the best life insurance? Simple is best when it comes to life insurance, and buying a term level insurance from a reputable company is as simple as possible.
In this article, we will take a look at what term life insurance is, who needs it and what the best life insurance companies are. If you already know you want to buy life insurance, go ahead to read the advice of money expert Clark Howard and get his top three choices for the best life insurance.
The best term life insurance companies: Summary
What is term level life insurance?
Do you have a family or someone else who is financially dependent on you? Life insurance is meant to replace income when you're gone.
Let's analyze some concepts in the phrase "medium-term life insurance" to better understand the policy.
The "term" part here means that you buy insurance for a specified number of years depending on your age and the needs of your family. Typically, this means that for periods of 20 or 30 years you protect your young children as you raise them into adulthood.
The "level" part means that the prize remains the same for that number of years.
Remember that the only purpose of life insurance is to replace your income (or that of your spouse) for your family if you die.
Fortunately, the cost of term life insurance has been falling for a while.
"Over the years, life insurance has become much cheaper, in part because people live longer," says money expert Clark Howard. “Add in the Internet mix, which made price comparisons extremely easy when buying life insurance. The result is that the costs of term life insurance have fallen by two thirds over the past 15 years. It's a lot! "
Who needs life insurance?
Clark says there are several situations where you would like to have term life insurance.
Let's say, for example, that you have young children and want to provide them with financial security until they are adults. In this case, you may want to purchase a 20-year policy.
Or, let's say you're 35 and it's just you and your spouse. You may wish to provide the rest of your spouse's life in the event of your death. If so, you would probably want a 30-year policy.
Another example that you would like to have life insurance is if you are a parent of an adult child with a disability. This should be done in combination with a trust for special needs.
Finally, you may not need life insurance if there are no children in the photo.
"If you don't have dependents, you don't need to buy any life insurance," says Clark. "And never buy kids insurance. A three year old doesn't earn a salary, so you don't need to replace your income."
Clark Howard's Choices for Term Life Insurance Companies
Now that you know how Clark feels about life insurance, you may be wondering who he would buy it from.
Clark has long sung the praises of two insurers in particular – USAA and Amica Mutual – when it comes to life insurance.
USAA is a diversified financial services company with offerings that include banks, investments and insurance.
While most of the services offered by USAA are available only to military, veterans or military affiliates through direct family ties, the organization makes an exception for life insurance. It is available to anyone, military or otherwise!
2. Mutual friend
Another great life insurance company is Amica Mutual. Amica is often recognized in the industry as being equal to USAA for all types of insurance coverage.
In fact, Clark believes so strongly in USAA and Amica that he has listed them both among the best on his lists of the best auto insurance companies and the best home insurance companies.
3. Haven Life
Haven Life is part of a handful of insurers who issue life insurance policies without medical examination.
When you pass through Haven, selecting qualified applicants (up to 45 years old) can finalize online coverage without the need to undergo a physical or blood test as you would with other insurers.
Some candidates, however, may still need to switch the medical subscription, depending on a variety of factors.
Also, you can consult other life insurance policy providers without a medical exam here.
Term life insurance companies ranked by stability
Clark recommends buying only from companies classified A ++ or A + by A.M. Best: the highest possible ratings from one of the best companies when it comes to measuring the long-term financial strength of different insurers.
“Anything less than A +, even A, is unacceptable. Don't be tempted by low premiums when shopping around, "says Clark." Stick to the insurers of maximum strength, even if you have to pay more for it. "
You can visit AMBest.com to start looking for your favorite insurance company. To use the site, free registration is required.
Here are some popular life insurers' ratings:
Insurance company Coverage signed by A.M. Better rating
Mutual friend (self) A +
USAA (auto) A ++
Haven LifeMassachusetts Mutual Life Insurance Company A ++
State Farm (self) A ++
Prudential (auto) A +
Mortgage of Omaha Group (self) A +
Globe Life (self) A +
John Hancock (self) A +
Understanding the financial strength of an insurance company is of utmost importance. You want to make sure that a company you buy a policy from today is in circulation for the long haul when your family needs it.
Once you understand the puzzle's financial stability piece, then you're really buying coverage based on cost. Clark says you should aim to buy 6 to 10 times your annual coverage income.
"All things being equal, buy life insurance by cost," notes Consumer Reports. "Buy the lowest rates using an online broker with ties to many insurers, not just a few."
Fortunately, buying term life insurance is easy on the Internet. You can compare offers for quotes in one of the numerous sites such as:
Many people avoid buying life insurance simply because they don't understand it. But buying a life insurance can be simple and cheap.
Remember, if you have children or other financial dependents, you need life insurance!
Whatever you do, you understand that it is the term life insurance that Clark recommends – not whole life insurance. To get an idea of the difference between the two types of policies, read our explanation here.
In the meantime, we have a comprehensive guide explaining how to purchase term life insurance right here.
Other insurance stories on Clark.com: