The Best Online Term Life Insurance Companies [for Free Quotes in 2019]

 

It can hardly be a coincidence that no language on Earth has ever produced the phrase “as fun and exciting as shopping for life insurance.”

That’s because insurance shopping is traditionally a frustrating endeavor.

For one thing, no one wants to think about their own mortality, which makes life insurance shopping something of a bummer from the get-go. Then the difficulty of comparing apples to apples among products and the relentless nature of high-pressure insurance salesmen make it even harder to drum up enthusiasm for this important financial task.

It’s no wonder that 40% of Americans have no life insurance whatsoever.

But going without life insurance is a bad idea, and having inadequate life insurance is only marginally better. This is why we put together this list of the best life insurance companies for term quotes.

Thankfully, with the advent of online life insurance sites, shopping for insurance no longer means that you have to sit through a hard sell presentation from an overzealous insurance salesman.

Best Life Insurance Companies for Term Quotes

You don’t even have to change out of your pajamas to get a life insurance quote from any of the following sites:

Bestow – #1 Recommended for Fast Service

Bestow

bestow logoThis circa-2016 entry to the online life insurance marketplace started with the crazy idea that buying life insurance doesn't need to be a drawn-out process.

With Bestow, there is no medical exam nor do you have to fill out endless paperwork.

In fact, on the Bestow site, you can get a quote, fill out the application, and get term life coverage in minutes. Literally.

Bestow is unlike other online life insurance providers because they underwrite the policies they offer in-house with their own technology. That technology is called “accelerated underwriting.” This process is unlike manual underwriting, which requires in-person interviews, a medical exam, lab tests, and paperwork. Instead, accelerated underwriting asks you basic questions about your lifestyle and health, then uses data and technology to verify that information.

You should be prepared to answer questions about your health and lifestyle. This will include things like your height and weight, tobacco usage, extreme hobbies, future travel plans, and weight loss history. The application process and website are both easy to navigate, beautifully designed, and even a little fun go through.

Bestow offers customizable term life insurance in 2-year, 10-year, and 20-year terms, with coverage ranging from $50,000 to $1 million. The premiums start as low as $3/month for a 2-year coverage policy and $8/month for a 10-year coverage policy.

Check out our full Bestow review here

Pros: Bestow can get you set up with inexpensive coverage that meets your needs within minutes. Bestow offers two-year policies, in addition to standard 10 and 20.

Cons: Bestow is not currently available in Georgia, New York, or Puerto Rico. Adults under age 21 or over age 55 are not eligible for Bestow policies.

Website: www.hellobestow.com

Bestow: Fast Online Term Life Insurance Bestow uses data to remove doctor visits and paper work of traditional life insurance, offering you an affordable plan without the hassle. Bestow: Fast Online Term Life Insurance

Ladder

Ladder

Ladder

Ladder was created with this vision: offer an instant way for people to buy term life insurance rather than going through the hassle of visiting an agent. To do this, Ladder has partnered with Fidelity Security Life Insurance Company (with an A.M. Best “Excellent” rating), and Hannover Re, the third-largest reinsurer in the world, to provide term life insurance policies up to $8 million, the largest available for an instant term product.

Based in Palo Alto, California, Ladder offers fee-free, straight term life insurance at rates that are among the most competitive in the industry. It has no whole life insurance policies because the founders of the company believe that “term life is a pure insurance product that gives you the best bang for your buck.” More info…show

Pros: Ladder offers a quick, online application and an instant insurance decision for term policies up to $8 million, along with the ability to change your coverage amount whenever you like. For some applicants, Ladder may require a lab to get some more health information. Additionally, the site offers a great insurance calculator that can help you determine what level of coverage you need.

Cons: Ladder does not offer insurance to those over 60 years old.

Website: www.ladderlife.com

PolicyGenius

PolicyGenius

Policygenius was created to make navigating insurance a less frustrating process. The cornerstone of the PolicyGenius experience is the Insurance Checkup tool.

For consumers who aren’t sure where their coverage gaps are, the Insurance Checkup can help you figure out both how much and what kind of insurance you need. The entire Checkup process takes approximately five minutes to complete, and it gives you a good starting place for determining where your coverage gaps are–with no sales pitch. If you don’t need a policy, PolicyGenius will not try to sell you one. More info…show

Pros: The site is very user-friendly and intuitive. Customer support is helpful and easily available, and there is no pressure to buy.

Cons: Though Policygenius offers insurance from a number of large carriers, it does not work with smaller niche carriers that could be a better fit for some customers.

Website: www.policygenius.com

Check out our full Policygenuis review.

Haven Life

Haven Life

Imagine you could fill out a life insurance policy application entirely online and get a decision in real-time with no medical exam, and receive affordable, high-quality coverage.

That seemingly impossible scenario is exactly what Haven Life offers. This company offers competitive and fully medically underwritten term life insurance. Applicants must be non-military, between the ages of 18 and 64, and they must have a valid U.S. driver’s license. The application and approval process is quick and painless, and some applicants will not even have to undergo a medical exam. More info…show

Pros: The application process is lightning fast, and you can have a coverage decision in real-time, instead of waiting weeks. The insurance coverage available is the same quality as you would receive through the traditional application process–it’s just much faster.

Cons: Haven Life does not offer policies to military members or those over 64.

Website: www.havenlife.com

SelectQuote

SelectQuote

Select Quote

Founded back in 1985, SelectQuote was the first company to offer direct marketing of term life insurance, long before the Internet made such direct marketing easy. The company calls itself the #1 Term Life Sales Agency in America, and it offers an unbiased price comparison of the best rates from 11 different highly-rated life insurance companies–something it’s been doing for more than 30 years. More info…show

Pros: You can receive your quote within 10 minutes on the phone, after filling out the necessary information online. SelectQuote works with 11 different insurance companies, meaning rates are very competitive for healthy applicants.

Cons: You must work with SelectQuote over the phone, rather than entirely online. Some reviews have described the agents as somewhat aggressive.

Website: www.selectquote.com

How to Evaluate Term Life Insurance Options

When comparing life insurance options, make sure you look at providers that offer coverage in your state. Not every life insurance company offers policies in all 50 U.S. states.

In addition, make sure you check each company’s rating from A.M. Best, Fitch, Standard & Poor’s and Moody’s to ensure it has a good financial rating. Since your policy will be for a number of years, you want a company that will be around–and in good financial standing–for years to come.

Look at Policy Options

Another important consideration should be the types of policies offered by each company. Review all options, terms, and riders so you can create a policy that fits your needs. Another option to consider is guaranteed renewability– the option to convert your term life plan to a whole life policy without a new medical exam.

Factor in Premiums

How much you pay for the exact same coverage can vary from company to company. The best thing you can do is get several different quotes so you can compare between options, coverage, and prices.

Each person’s insurance quote is going to be unique based on a number of factors including perceived risks on part of the insurer. To find the best option for you, narrow down your list of potential insurers based on the policy options they provide than get three to five quotes so you have a better idea of what it will cost.

Consider Customer Service

When doing your research about each company, look at what other people are saying about their experience. This will help you decide if you want to do business with that insurer. Too many complaints can be a big red flag.

Filing an insurance claim is stressful enough, especially with a life insurance company. You want a provider that will make the process easier for your loved ones so you don’t have to worry about how they will get the money.

To evaluate each company, first, pick up the phone and call the customer service line with some questions. The associates should be knowledgable and answer your queries without trying to oversell you.

In addition, review the company’s customer satisfaction scores from J.D. Power & Associates as well as complaints filed against the company with state regulators. Finally, check the company’s history with the Better Business Bureau and review any complaints you may see on file.

Related: Buy the Best Life Insurance in 7 Easy Steps [The Ultimate Guide]

Determine How Much Insurance You Need

There is no cut and dry answer for how much life insurance you should get. However, there is a rule of thumb that recommends getting eight to 10 times your current annual salary. You may end up needing more or less coverage depending on your particular situation.

One of the factors to consider is whether you have any coverage through your current job. Some companies offer one to two times an employee’s annual salary at no cost so check with your Human Resources department. Other considerations include the ages of your kids, your spouse’s income (or lack thereof), how much debt you have, and so on.

There are online calculators available that can help you get a ballpark estimate. Just fill out a few questions about your family’s finances and get an estimate of the coverage you actually need.

Related: The Different Types of Insurance and What Insurance You Need

The Bottom Line

If you have people who depend on you such as a spouse and children, getting a term life insurance policy can be a good investment. Having something in place will help you rest easy at night knowing your loved ones will be covered in case something happens to you.

Before you purchase a life insurance policy, make sure you do your research. Look at different providers and compare policy options to find the best fit for your particular situation. Get at last three quotes before making your final decision.

While no one will ever consider life insurance shopping to be a rollicking good time, using any of the sites on this list can help take the sting out of this dreaded financial task. And it will be good to know that your family has a protection plan in place in case anything happens to you.

Do you have term life insurance? What has been your experience?

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About Emily Guy Birken

Emily Guy Birken is a former English teacher and respected personal finance blogger. She lives in Milwaukee, Wisconsin with her engineer husband and two high-energy little boys. She has written four books: The Five Years Before You Retire, Choose Your Retirement, Making Social Security Work For You, and End Financial Stress Now. Emily's thoughts on parenting and life in general are found at The SAHMnambulist.

Comments

  1. Jim @ Route To Retire says:

    Nice post! I bought my policy (and my wife’s) through my insurance agent a handful of years ago and think I did pretty well on it. I’ve actually never thought about running the numbers again, but it might be worth checking out some of these suggestions to see if I can get a better rate.

    Thanks, PT!

    — Jim

  2. Steven Goodwin says:

    Some interesting companies you have here. I started out just grabbing a term policy through my insurance agent, that was a mistake. Once I smartened up, I went through Zander Insurance and ended up cutting my rate in half for the same policy and extended it by about a year due to when I took the policy out. It was a really easy way to get it done and they sent someone out to the house and everything! I might have to run some quotes for my wife through these other options as well since we need to up her policy anyways as she’s making more money now. I’ve always tried to keep 10-12x our income in insurance with around a 20 year term. Thanks for the suggestions!