The goal of life insurance is to provide a measure of financial security to your loved ones should you die. In its simplest form, it’s a tool to protect against the loss of income.
Before purchasing a life insurance policy, you’ll want to carefully consider your financial situation and the standard of living you want to maintain for your surviving loved ones.
Buying term life insurance has never been easier because now you can get coverage from the comfort of your own home. Getting quotes and applying can be done from anywhere at any time.
In This Article
Who needs life insurance?
Not everyone needs life insurance and maybe you are trying to decide if you should purchase or not. To help you determine if you need it, let’s run through a few scenarios.
Are there people in your life that would be negatively impacted financially if you died? This could be a significant other, children, or family members who depend on your income to live.
If you are young and single with no children or independently wealthy, you probably don’t need term life insurance.
Are you a stay-at-home parent? Stay-at-home parents do the job of multiple people combined. If you were to suddenly die, your spouse would quickly be in over their head trying to make up for everything you did at home. Having life insurance can afford the surviving spouse to take time off work to get everything situated and help pay for services the stay-at-home parent provided.
» Learn more: Life Insurance for a Stay-at-Home Parent
Are you a small-business owner? If you died, would the business crumble? A life insurance policy can work to fund a buy-sell agreement. This is a contract among the owners to buy a deceased owner’s share of the business at an agreed upon price in the event of death, disability, or retirement. With this agreement, your partners won’t be scrambling to figure out a way to keep the business afloat and your beneficiaries will still be compensated as well.
» Learn more: The Best Term Life Insurance for Business Owners
Do you have any debt? Did you co-sign a loan with anyone? Do you have any shared credit card accounts? If you answered yes to any of these and don’t want to saddle your loved ones with your remaining balance, then life insurance could help you.
Example: If your parents helped you through college by co-signing your student loans, then anything you didn’t pay off goes to them if you died. Benefits from a life insurance policy would go toward your debt, paying it off so your mom doesn’t have to.
» Learn more: How to Use Life Insurance to Cover Your Debt
Are you young and healthy? Your age and health play a large role in determining policy premiums. Essentially, the younger you are, the cheaper it is so you may consider getting life insurance sooner rather than later.
Example: If you are a newlywed 29-year-old and plan on starting a family soon now may be the perfect time to get life insurance. It would cost less than one dollar a day and it would ensure your spouse and future children are protected.
Example: Maybe your heart belongs to the charity you volunteer at every weekend. Purchasing life insurance now can help you leave a legacy in an inexpensive way.
How much and for how long?
The rule of thumb is that you should have enough life insurance to cover 10 times your annual income, but this is an estimate and is not right for everyone.
Example: A single, childless man with an annual income of $75,000 does not need the same amount of coverage as a married father of three with the same income.
If you have loved ones who depend on your income you’ll want to get enough coverage to allow them to live their lives as planned despite your death, you also want enough to cover your final expenses (funeral/burial) and cover your debt.
Determining the term length can seem like guesswork, but it’s easy to narrow down.
If you’re getting term insurance to make sure your loved ones are protected from your debt then get enough to cover the amount of years it will take to pay off the debt.
Example: If you have a mortgage but believe it will be paid off in 10 years then a 30-year term policy would be unnecessary.
Example: If you are getting term insurance to ensure your four-year-old child can go to college, set the term length for 20 years so their education would still be covered if something happened to you.
If you’re getting term life insurance to make sure your family will have a source of income replacement should you die before your children are independent adults, then get enough to cover the amount of years until your youngest is an adult.
Example: You have a 16-year-old, 10-year-old, and 4-year old child. Get a term life insurance policy with a 25-year term so your family has financial protection until all children are through college and have jobs.
» Learn more: How Long Should Term Life Insurance Last?
See what you’d pay for life insurance
Which life insurance company do I apply to?
The right life insurance company will depend on your risk factors. For example, if you take a prescription to treat anxiety, you may pay $50 per month at one company but only $35 per month at a different one.
To get the best price on life insurance, you need to comparison shop. However, applying over and over at different companies is time-consuming and unnecessary because Quotacy will do it for you.
Quotacy is a life insurance broker. This means we have contracts with many different life insurance companies and can shop your case to find which company will offer you the best price.
All the life insurance companies we work with are A-rated or better so it doesn’t matter too much which one you end up going with. They are all financially-stable and have excellent financial products.
When you go through Quotacy’s quoting tool, you’ll be shown many different options to choose from. If you’re unsure which to go with, we recommend that you choose the least expensive one. Your agent will double-check behind the scenes that you’re paired with the company that will give you the best offer.
How do I get life insurance?
Here at Quotacy we make the process of getting life insurance as easy as possible.
We don’t want you to have to give up your first born and a phone number just to get a term life insurance quote and we don’t want you to worry that your personal information will be sold to third parties.
Simply enter your zip code, gender, birthdate, and smoking status and we’ll instantly show you an estimate for how much your term insurance policy would cost.
» Compare: Term life insurance quotes
After getting your quote you can play around with our slider features. You can adjust your coverage amount, this is how much your beneficiaries would receive, and also how long you want coverage for. As you adjust these sliders your estimated cost is adjusted right along with you so you know exactly what you’re paying for (no hidden fees here!)
Once you are happy with the amount and length of coverage, continue on in the quoting tool to customize your quote further.
Answer a few more questions such as height, weight, and family health history and then see a list of insurance carrier choices and plan options. We only work with the top rated carriers so you don’t need to worry about poor business practices when it comes to your finances.
Once you select the insurance carrier you’d like to apply with, and complete your online application, your dedicated team of agents and application coordinators at Quotacy will take it from there. We make sure you get the best coverage at the price you deserve and we’ll keep you informed every step of the way in whichever method of communication you prefer whether that be phone calls, texts, or e-mails.
» Learn more: 10 Tips to Ensure You Get the Best Term Life Insurance
No one ever anticipates needing to use life insurance, but the unexpected happens. Be prepared and get a free and anonymous term life insurance quote today.
About the writer
Natasha Cornelius, CLU
Senior Editor and Licensed Life Insurance Expert
Natasha Cornelius, CLU, is a writer, editor, and life insurance researcher for Quotacy.com where her goal is to make life insurance more transparent and easier to understand. She has been in the life insurance industry since 2010 and has been writing about life insurance since 2014. Natasha earned her Chartered Life Underwriter designation in 2022. She is also co-host of Quotacy’s YouTube series. Connect with her on LinkedIn.