Best Term Insurance Quotes in 2018 | Jacksonville, FL
Getting a term life policy is by far the most popular and affordable way to get life insurance. It can provide you and your family with a significant financial safety net should the worst happen, and with minimal upfront costs – at least during the years you plan to be working. That’s part of what makes the best term life insurance policies so inexpensive. You only have them for a set time period (or “term”), when you’re relatively young and healthy.
Determining what policy is going to be best for you and your family simply requires a brief exercise in self-discovery, and a little research. That’s because once you decide on the coverage you actually want, the only way to find the best deal on it is to request quotes from multiple insurers.
Small Cost. Big Protection. That’s Term Life Insurance.GET QUOTE
Term Life Insurance
Term life insurance is the most straightforward form of protection. You generally pay premiums on a monthly or annual basis and your family is protected for that “term.” Term life insurance products to fit your needs, time frame, and budget.
- Provides death benefits only
- Pays benefits only if you die while the term of the policy is in effect
- Easiest and most affordable life insurance to buy
- Purchased for a specific time period, such as 5, 10, 15, or 30 years, known as a “term”
- Becomes more expensive as you age, especially after age 50
- The term must be renewed if you want coverage to be extended beyond the term length
- Can be used as temporary additional coverage with a permanent life insurance policy
- Can be converted to whole life insurance
How Term Plans Work
In case of term plans, if the Insured dies during the time period when the Policy is active, then a Death Benefit will be paid to the family. Otherwise, no Claim is paid either to the person or to the family. Most of the time level term life insurance policies have a Premium that increases slightly over the years, taking into account the reducing value of money, increasing mortality Risk and also the additional costs or levies that might be imposed for a longer than normal guaranteed Coverage period.
Term life insurance or Term plans typically provide protection for a maximum of 30 years. You can have term plans with length of coverage of 10, 15, 20, or 30 years.
How Much Coverage Do You Need?
The first step in choosing the right term life insurance policy is to figure out how much coverage you actually need. You may have been told you can use “a simple formula,” like 10 times your annual salary, to estimate the amount. This is not effective, unfortunately.
The amount of coverage you need depends on a variety of factors besides your salary, like how much debt you have, and if you’re planning on paying for your children’s college someday.
To determine how much life insurance you need, you’re going to have to do the math required to determine the actual cost your death would have to your family. Think of everything you’re planning on being able to pay for – and then needing your policy to cover it.
Filling out a few questions about your family and your finances can give you a more accurate estimate of how much coverage you actually need.
What are the advantages of term life insurance?
Term life insurance provides straightforward death benefit protection without any expensive “cash value” or investment component add-ons.
Your term life insurance policy will offer level premiums for your choice of 10, 15, 25 or 30 years during which the premiums are guaranteed not to increase. As long as you pay your premiums on time, the company cannot cancel you. If the insured dies during the term, the death benefits are paid to the beneficiary without any complicated process or rules.
It doesn’t get any easier than a term life insurance policy, plus it’s the most affordable type of life insurance.
The Average Cost of Term Life Insurance
The following average costs were calculated using these assumptions:
- The individuals are a healthy weight and do not live a hazardous lifestyle.
- They want $500,000 worth of life insurance.
- They want to pay monthly for a 20-year term policy.
Again, the average costs will differ when any of these variables change. For example, a 35 year-old female nonsmoker would pay an average of $61 per month for $1,000,000 worth of life insurance with a 20-year term, and $23.90 per month for $250,000 worth of life insurance with a 20-year term.
What should I look for in a term life policy?
Most high-quality term life policies sold today are guaranteed renewable, which gives you the right to continue your coverage beyond the initial rate guarantee period without a medical exam.
This feature can become extremely important to your family should you become sick and uninsurable towards the end of your initial term life rate guarantee period.
Can I afford term life insurance?
Term life insurance has become very popular with consumers in recent years because premiums for new policyholders have dropped to all-time lows.
Most companies allow you to pay on a monthly, quarterly, semi-annual or annual basis, so whether you’re a pay-all-at-once kind of person or you enjoy spreading it out each month, payment flexibility definitely makes term life insurance even easier to afford.
How do I decide the number of years (term) to choose for my policy?
Choosing an initial rate guarantee period is easy. Simply match the period of time you’ll need coverage to the available rate guarantee period.
For example, if your children are young or you have decades to go on your mortgage, look at 20 or 30 year term life. If your children are leaving the nest and your home is paid off or nearly paid off, perhaps 10 or 15 year term might fit the bill.
Which is better term life insurance or whole life insurance?
Now that you have a better picture of the difference between term and whole life policies, you probably want to compare term life versus whole life insurance costs. To do so, you will need to directly compare the short and long term costs of a whole life policy and a term policy, based on factors like your age, the face value of the policy you want to buy, and whether or not you are a smoker.
You may find that your out-of-pocket costs for whole life insurance seem daunting compared to term life insurance. This is because the dollars you pay into term life insurance premiums are only there to provide a death benefit to your beneficiaries if you die during a specified term, while money you invest in whole life insurance premiums builds cash value that you can use later in life or that will add to the death benefit payout. The percentage of your costs that go into your cash accrual account increases with passing years, as many of the administrative costs associated with setting up the policy and associated investments occurs early in the life of the policy.
The Best Term Life Insurance Companies of 2018
TIAA Life — Best Overall
TIAA met and exceeded all our criteria — it received the highest possible rating from Fitch and A.M. Best, includes flexible and highly customizable policies, as well as online resources to help first-time buyers navigate the process with ease. It offers 10-, 15-, 20-, and 30-year terms to residents of all 50 states. Available coverage limits range from $100,000 to $5 million.
All TIAA Life policies come with guaranteed renewability, so if you eventually decide to extend your insurance term, you can’t be turned down. It’s surprisingly easy to convert your term life policy to a whole life policy through TIAA Life, too. All the top companies listed in this review offer this, but most restrict options, either by limiting what whole life policies you can convert to, or only allowing you to convert in the first 10 years of your term. TIAA doesn’t have these restrictions, so you can switch to any of its whole life products at any time.
New York Life — Most Customizable
New York Life gives customers the flexibility to choose any policy term between 10 and 20 years. If you only needed a policy for 12 years, most companies would require you to go with a 15- or 20-year term to get twelve years of coverage. New York Life will actually write you a policy for just the number of years you need. It doesn’t offer terms longer than 20 years, though, so if you’re looking for a 30-year policy, you’ll have to choose another company, like TIAA Life.
New York Life’s standard policies don’t enable you to convert to a whole life policy after the first 10 years of your term; however, when you make your purchase, you can add a rider that removes this stipulation (which I recommend).
There are more advantages to converting in the early years of your policy, though. If you convert within five years, New York Life will give you the option of either getting a whole life policy at the same rate you would’ve gotten when you first purchased your term life policy, or else getting a credit on your account. If you decide you’d rather renew your policy instead, New York Life gives you the option to do this at several points during your term, rather than making you wait until the end.
Amica’s stand out feature is its Cost of Living Adjustment rider that will continually adjust your policy’s death benefit to keep up with inflation. (No other company on this list offers this.) However, you can’t convert your term policy over to a whole life one after 10 years.
A good option for those who only need a small amount of coverage, Transamerica allows you to purchase anywhere between $25,000 and $100,000 in coverage. Most insurers require you to purchase at least a $100,000 policy. All of its policies include guaranteed renewability, but it restricts what whole life policies are available to you after purchasing a term plan.
Lincoln Financial Group provides numerous coverage options, including term, universal, and variable universal life insurance coverage. Lincoln also has a combination life / long-term care option whereby a policyholder can use a universal policy as an alternative to purchasing a stand-alone, long-term care insurance policy.
The Lincoln Life and Annuity Company has earned high marks from ratings agencies, including an A+ from A.M. Best, an AA- from Standard & Poor’s, an A1 from Moody’s, and an A+ from Fitch.