4 Best Life Insurance Companies Of 2022

Jonathan Borba on Unsplash

It’s our mission to make money matters a little less insane. We provide financial editorial content free for all and are supported by our affiliate partners included in this post which earns us a commission. We hope you enjoy our content and subscribe to our newsletter.

Buying life insurance is one of the most important things you can do to protect your family financially. A life insurance policy can replace your income in the event of your early death and allow you to leave behind a financial legacy for your loved ones.

Life insurance is a critical part of financial planning, so it’s essential to understand some of the basics. Today, we’ll explore key aspects of life insurance and highlight some of the best insurance companies so you can choose the right company to meet the needs of your family.

The Best Life Insurance Companies

When you need to buy life insurance, the following companies might offer the kind of policy you need.

1. Bestow

Bestow took the process of buying life insurance, something that can take weeks, and whittled it down to a process that can be completed online in just minutes.

When you apply, you’ll answer questions about your health and habits. Bestow uses that information, other data, and algorithms to approve or deny coverage and to determine the premium for your policy.

Type of Policies: Term life insurance with 10 and 20-year terms.

Coverage Amounts: $50,000 to $1,000,000

Why We Like It: Bestow will give you a quote in seconds and sell you a policy in minutes. The entire process is done online, which means no invasive medical exam or blood work.

Cost: Plans start at $16 a month.

Bestow has a 30-day money-back guarantee. If you don’t love having Bestow, simply give them a call within 30 days and they’ll refund your premium.

Click here to get a free Bestow quote in 60 seconds.

2. Ladder

Ladder policies are available in all 50 states to applicants between the ages of 20 and 60. The process can be completed online in minutes, but in some cases, a medical exam will be required before an approval decision is made.

Type of Policies: Term life insurance with 10, 15, 20, 25, or 30-year terms.

Coverage Amounts: $100,000 to $8,000,000.

Why We Like It: Ladder has no policy fees and a price lock guarantee. It allows you to cancel anytime and has a money back guarantee. It has no brokers, no upselling.

Cost: Policies start at $12 a month.

Click here to get a free Ladder quote.

3. Fabric

When you buy life insurance through Fabric, you won’t have to deal with an agent or broker trying to upsell you on products or more coverage than you need.

Apply online in minutes for applicants between the ages of 25-60. Fabric offers term life insurance in all states apart from Montana, California, and New York.

A medical exam may be required but is not necessary for all applicants.

Type of Policies: Term life insurance with terms of 10, 15, and 20 years.

Coverage Amounts: $100,000 to $5,000,000 for term life.

Why We Like It: Policyholders can create a free online will have access to the Fabric Vault, an account that holds all of your financial information in one secure place so it can be accessed by your next of kin in the event of your death.

Click here to get a free Fabric quote.

What is Life Insurance?

A life insurance policy is a contract between an insurance company and a policyholder under which the insurance company guarantees a payout or death benefit to the beneficiaries chosen by the policyholder upon his or her death in exchange for premiums paid by the policyholder.

Types of Life Insurance

There are two main types of life insurance: term and whole life. There are also other less common types of policies that include universal, variable, variable universal, simplified, guaranteed issue, final expense, and group life.

Term Life Insurance

Term life insurance protects your beneficiaries in the event of your premature death. If you have a term policy and die before the end of the term, your heirs will receive a payout. The policy has no additional value.

Terms are usually 10, 20, and 30 years and for most policies. The payout or death benefits and the cost or premium remain the same for the entirety of the term.

Whole Life Insurance

Whole life insurance has a term of your entire life. Your beneficiaries get a payout after your death. It also has an investment component that is known as the cash value of the policy. You can borrow against the cash value or end the policy for a cash payout. If you don’t repay a loan taken against the cash value with interest before you die, the amount of the death benefit is reduced by the amount you failed to pay back.

Who Needs Life Insurance?

Essentially, anyone who has financial dependents needs life insurance. If you were to die, life insurance would help replace your salary so your loved ones could maintain the same standard of living they enjoyed while you were alive.

For those who don’t have financial dependents but have a loan that someone co-signed, life insurance can pay off that loan in the event of your death so the consignor isn’t on the hook for the remaining balance.

How Much Does Life Insurance Cost?

The cost of life insurance varies significantly according to a variety of factors, the two most important being age and health. The younger and healthier you are, the less your premiums will cost. Other factors include:

  • Gender
  • Family medical history
  • Marital status
  • Location
  • Lifestyle
  • Medical test results (if required)
  • Length of the term selected.
  • Amount of coverage selected.

Most people can find affordable life insurance with some policies (depending on the factors mentioned above), costing less than $20 per month.

How to Get Life Insurance

In the past, the only way to get life insurance was to go through a lengthy process of submitting plenty of paperwork and supporting documentation and undergoing a medical exam. In total, the process took several weeks to be approved and for the policy to take effect.

Thanks to a new generation of insurance companies like the four we’ve highlighted as the best life insurance companies, the process is much faster and easier. Generally, these are the steps:

  • Complete an online application
  • Undergo a physical exam and lab work if required
  • Pay the first premium

That’s all there is to it!

Requirements for Life Insurance

Most insurance companies have an age bracket you must fall within to qualify. The answers to your questions during the application process regarding your health and lifestyle are used to determine if your application will be approved or not.

If your answers are “wrong,” you have a family history of chronic diseases or conditions, you smoke, or you work in a dangerous occupation, this doesn’t necessarily mean you won’t be able to qualify for life insurance. Still, your premiums will likely be higher than if your answers were different.

How To Choose the Best Life Insurance Company For You

Price shouldn’t be the only determining factor when you’re shopping for something as important as life insurance. Look for a life insurance company that offers products that fit the needs of your family. Determine the terms of the type of policy you need, the length of the term (if you’ve chosen term rather than whole life), and the amount of insurance you need.

Life Insurance is Essential

We often avoid dealing with things that make us face our own mortality, and shopping for life insurance is one of those things. It’s hard to think about. But what’s even harder to think about is your family being in financial distress because you died without life insurance.

Don’t wait any longer. Buying life insurance is essential, fast, and easy. And with some of the best life insurance companies covered above, you have a great place to start!