Life Insurance Quotes and Policies for March 2025
on NerdWallet
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
When you're shopping for the best life insurance policy for you and your family, there are important decisions to make. We'll show you how to choose the right type of policy and coverage amount, get life insurance quotes and find the best company for you.
» MORE: Best life insurance companies
What is life insurance?
A life insurance policy is a contract between you and an insurance company. In exchange for regular payments, called premiums, the insurer pays out money after you die. This money goes to the people you choose as life insurance beneficiaries — usually children, a spouse or other family members.
Who needs life insurance?
A life insurance policy can be an important safety net if anyone depends on you financially. For example, if you’re the breadwinner, a parent, a homeowner or someone with co-signed debt, you may need life insurance coverage.
Beneficiaries can use the money for any purpose, such as repaying debts, replacing your income or covering your funeral and burial costs.
How to buy a life insurance policy
When you’re buying life insurance, these are your options:
Online. Depending on the type of policy you want, you may be able to apply for and buy a policy online and get coverage on the same day without taking a medical exam. This is known as instant life insurance. Many insurers and brokerages use algorithms to determine whether you qualify for a policy, and ask a series of questions about your health and lifestyle to set your rate.
Through an agent or broker. If you’re a high-risk applicant or you simply want someone to help you navigate the buying process, you can go through a life insurance agent or broker. Captive agents sell policies from one company, like State Farm, while independent agents typically offer policies from multiple companies.
Directly from the insurer. Most insurers allow you to buy a policy through their site, over the phone or in person. Before committing to a company, be sure to compare quotes to make sure you’re getting the best possible coverage at the lowest possible price.
What is a life insurance quote?
A life insurance quote is an estimate; it gives you an idea of how much you’ll pay for the coverage. Quotes are typically based on a few details like the type of policy you’re shopping for, the amount of coverage you need and personal factors like your age and smoking habits.
It’s a good idea to compare life insurance quotes from multiple insurers before buying a policy. But when you do, make sure you compare the same features from each company. For example, select the same type of policy with the same coverage amount or term length, and give the same personal details for each quote. This will help you get a more accurate comparison.
Life insurance quotes vs. rates
A life insurance quote is just that: a quote. It's based on minimal information, and in most cases, insurers need many more details before settling on the rate you'll actually pay for coverage.
When you officially apply for a policy with your chosen insurer, they'll collect those details and calculate your final rate. This process is known as life insurance underwriting, and it can take anywhere from a few minutes to a few weeks depending on the type of policy you're buying. The insurer might ask you follow-up questions during the underwriting stage, and the final rate you're offered may differ from the initial quote.
This rate is known as your life insurance premium. Premiums are typically based on your life expectancy. To estimate your life expectancy, each life insurance company weighs factors like your health, family health history, lifestyle and driving record.
Two of the main factors that affect your life insurance premium are your age and health. So, the younger and healthier you are when you apply for coverage, the better your life insurance rate is likely to be.
» MORE: How life insurance works
Which life insurance policy is right for me?
In general, there are two main types of life insurance: term and permanent. Term life policies cover you for only a set period of time, such as 10 or 20 years. Permanent life insurance can last your entire life and typically includes a cash value component.
Term life insurance
Most term policies are "level," meaning the premiums and life insurance death benefit stay the same throughout the length of the term. But if you need more flexibillity, there are other options:
Annual renewable term life. This type of policy is for short-term coverage. It renews every year, and premiums typically increase with each renewal.
Instant term life. If you want to get coverage quickly, you can buy instant term life online. These policies don’t require a medical exam and you can get coverage the same day.
Decreasing term life. The death benefit decreases over the term of the policy while the premiums typically stay level. This type of policy is often used to cover a debt. Mortgage protection insurance is an example of decreasing term life.
Permanent life insurance
With permanent life insurance, a portion of the premiums you pay goes toward a cash value. Think of this as a savings account — it earns interest over time at either a fixed or variable rate. The way the cash value grows is the key difference between the main types of permanent life insurance. These include:
Whole life. This is the most popular type of permanent coverage. Whole life offers level premiums, a guaranteed death benefit and guaranteed cash value growth.
Burial insurance. Technically a type of whole life insurance, this is a small policy designed to cover final expenses, like your funeral and end-of-life medical care.
Universal life. This type of coverage offers more flexibility than whole life, allowing you to adjust your premiums and death benefit as your needs change. The cash value growth is typically tied to market interest rates.
Indexed universal life. Similar to universal life, indexed universal life offers flexible coverage. Unlike universal life, the cash value growth is typically based on the performance of a stock or bond index.
Variable universal life. This policy offers the same flexible coverage as universal life, but differs in how the cash value can earn interest. Unlike universal life, this type typically lets you choose from a range of investment options offered by the insurer.
» MORE: Term vs. whole life insurance
Term life insurance is a solid choice for most people — it's predictable, temporary and covers you for the years you have the most financial responsibilities (think: a mortgage or school tuition). Since it's a simpler product, you can get term life insurance quotes quickly and easily online, and some policies can go into effect instantly. If you're interested in a permanent life insurance policy, like whole life, you'll likely need to speak to a commission-based life insurance agent or financial advisor.
How much life insurance should I buy?
To figure out how much life insurance you need, think about your financial obligations now and in the future. Then, aim to take out a policy to match them.
For example:
Add up any long-term debts like a mortgage or college fees.
Multiply your annual income by the number of years you want your beneficiaries to be covered after you die.
Subtract any funds or assets you currently have that can be used to cover these expenses.
Need more help? Use our coverage calculator to estimate your coverage amount.
How much do life insurance policies cost?
In general, term life is cheaper than permanent life insurance. This is because permanent life insurance lasts longer and has the cash value component that grows over time. When digging into the the different types of permanent coverage, whole life is typically more expensive than universal life.
It’s important to find a policy that you can afford. If you miss payments, the insurer may cancel your policy, leaving your life insurance beneficiaries without a payout.
Below are average annual life insurance rates for various policy types based on your gender and health.
» MORE: Average life insurance rates
Which life insurance company should I choose?
Once you've thought about your life insurance needs, it's time to compare quotes from life insurance companies. The top life insurance companies have strong financials and low customer complaints, and offer a smooth customer experience — like the ability to get information online and reach the company via a range of contact methods.
» READ MORE: NerdWallet's life insurance star ratings
Compare top-rated life insurance companies in March 2025
The companies below made NerdWallet's list of the best overall life insurance companies in 2025. You can learn more about these insurers by reading our life insurance reviews.
Insurer | NerdWallet rating | Policies offered |
|---|---|---|
Term, whole, universal and variable universal. | ||
Term, whole, universal and variable universal. | ||
Term, whole, universal and variable universal. | ||
Term, whole, universal and variable universal. | ||
Term, universal, variable universal and indexed universal. |
Best life insurance companies in specific categories
Want to drill down further? Check out our roundups for:
Life insurance ratings methodology
NerdWallet’s life insurance ratings are based on consumer experience, complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and weighted averages of financial strength ratings, which indicate a company’s ability to pay future claims. Within the consumer experience category, we consider ease of communication and website transparency, which looks at the depth of policy details available online. To calculate each insurer’s rating, we adjusted the scores to a curved 5-point scale.
These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2021-2023. To assess how insurers compare with one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.
ON THIS PAGE
