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Life Insurance Policies and Quotes for February 2025
Compare life insurance quotes and find the right policy for you and your family.
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Updated · 3 min read
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NerdWallet's content is fact-checked for accuracy, timeliness and relevance. It undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible.
Georgia Rose is a lead writer on the international team at NerdWallet. Her work has been featured in The Washington Post, The New York Times, The Independent and The Associated Press. Throughout her career, Georgia has written on a variety of subjects, including personal finance, government policy, science and technology. She enjoys researching complex topics and distilling the information for her readers. Before joining the international team, she wrote for the insurance vertical, specializing in life insurance.
Tony Steuer is a financial wellness advocate, podcaster and speaker, and the author of "Questions and Answers on Life Insurance." His advice has been featured in media outlets including The New York Times, The Washington Post, Fast Company, Forbes and CNBC. He has a bachelor of science degree in finance from California State University and holds the following designations: Chartered Life Underwriter (CLU), Life and Disability Insurance Analyst (LA) and Certified Personal and Family Finance Educator (CPFFE).
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Lisa Green leads the life insurance team and oversees insurance-focused data journalism at NerdWallet. A professional journalist since high school, she was an insurance writer at NerdWallet before becoming an assigning editor. Previously, Lisa spent more than 20 years as an editor at The Tennessean in Nashville, where she led business and consumer coverage for several years. At The Tennessean, she was part of a 2011 Pulitzer Prize finalist team for coverage of devastating floods in Middle Tennessee. Her work has also won awards from the Society for Advancing Business Editing and Writing, Investigative Reporters and Editors, and the Society of Professional Journalists. Lisa is an alumna of the Wharton Seminars for Business Journalists at the University of Pennsylvania. She has also studied data journalism with the National Institute for Computer-Assisted Reporting, business editing with the American Press Institute and writing, editing and news research with the Poynter Institute. In addition to her work at NerdWallet, Lisa is a real estate investor and has taught a seminar on how to earn college scholarships. She is based in Nashville.
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.
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.
Key terms within this article
Beneficiary
The person(s) or entity that receives the death benefit when the insured person dies.
Cash value
A component of a permanent life insurance policy that grows over time and allows you to make withdrawals, borrow against it and more.
Death benefit
The amount of money the life insurance company pays a beneficiary after the insured person dies.
Permanent life insurance
A type of life insurance that usually lasts a lifetime and includes a cash value component.
Premium
The cost of maintaining a life insurance policy.
Term life insurance
A life insurance policy that lasts for only a set number of years.
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.
When you’re shopping for a life insurance policy, 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. 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.
More Nerdy Perspective
Since life insurance is a long-term commitment, treat it like a big-ticket purchase. Shop around and get quotes from three to five insurers to make sure you're getting the best possible coverage for the best possible price. There are almost 800 life insurers in the U.S. competing for your business — my advice is to let them!
Katia Iervasi, life insurance editor
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.
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 policies
Types of permanent life insurance 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.
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, you can typically choose from a range of investment options offered by the insurer.
Find the right life insurance plan for you
Make sure you and your loved ones are covered - compare customized life insurance quotes from our partners.
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. When comparing 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 beneficiaries without a payout.
Life insurance rates vary among insurers — sometimes significantly — so it’s a good idea to compare life insurance quotes from several companies before you buy.
Below are average annual life insurance rates for various policy types based on your gender and health.
Super preferred health class for women
Here are the average annual rates for applicants in the super preferred health class. In general, only non-smokers in optimum health can qualify for these rates.
Issue age
Coverage amount
20-year term life
Whole life
Universal life
30
$250,000
$500,000
$1,000,000
$127
$187
$276
$1,960
$3,835
$8,040
$998
$1,898
$3,480
40
$250,000
$500,000
$1,000,000
$178
$282
$476
$3,014
$5,963
$11.803
$1,453
$2,795
$5,146
50
$250,000
$500,000
$1,000,000
$357
$642
$1,129
$4,538
$9,002
$17,863
$2,156
$4,257
$8,261
60
$250,000
$500,000
$1,000,000
$870
$1,656
$3,113
$7,232
$14,375
$28,580
$3,629
$7,062
$13,460
Source: Covr Financial Technologies. Lowest three rates for each age and risk class averaged. Data valid as of July 11, 2024.
Standard health class for women
Here are the rates for applicants in the standard health class. This class is for non-smokers in average health.
Issue age
Coverage amount
20-year term life
Whole life
Universal life
30
$250,000
$500,000
$1,000,000
$207
$337
$559
$2,197
$4,320
$8,847
$1,236
$2,351
$4,351
40
$250,000
$500,000
$1,000,000
$289
$496
$901
$3,169
$6,252
$12,310
$1,809
$3,457
$6,671
50
$250,000
$500,000
$1,000,000
$604
$1,120
$2,090
$4,829
$9,582
$19,017
$2,717
$5,272
$10,115
60
$250,000
$500,000
$1,000,000
$1,542
$2,953
$5,548
$7,703
$15,315
$30,453
$4,298
$8,450
$16,294
Source: Covr Financial Technologies. Lowest three rates for each age and risk class averaged. Data valid as of July 11, 2024.
Super preferred health class for men
Here are the average annual rates for applicants in the super preferred health class. In general, only non-smokers in optimum health can qualify for these rates.
Issue age
Coverage amount
20-year term life
Whole life
Universal life
30
$250,000
$500,000
$1,000,000
$145
$221
$349
$2,532
$4,682
$9,270
$1,154
$2,194
$3,988
40
$250,000
$500,000
$1,000,000
$204
$334
$575
$3,467
$6,867
$13,513
$1,620
$3,148
$5,892
50
$250,000
$500,000
$1,000,000
$448
$819
$1,518
$5,216
$10,353
$20,443
$2,472
$4,835
$9,210
60
$250,000
$500,000
$1,000,000
$1,274
$2,352
$4,465
$8,397
$16,698
$33,083
$4,134
$8,101
$15,535
Source: Covr Financial Technologies. Lowest three rates for each age and risk class averaged. Data valid as of July 11, 2024.
Standard health class for men
Here are the rates for applicants in the standard health class. This class is for non-smokers in average health.
Issue age
Coverage amount
20-year term life
Whole life
Universal life
30
$250,000
$500,000
$1,000,000
$241
$406
$687
$2,560
$5,058
$10,001
$1,428
$2,681
$5,049
40
$250,000
$500,000
$1,000,000
$360
$645
$1,165
$3,729
$7,388
$14,540
$2,098
$4,030
$7,790
50
$250,000
$500,000
$1,000,000
$794
$1,510
$2,874
$5,561
$11,042
$21,803
$3,128
$6,061
$11,704
60
$250,000
$500,000
$1,000,000
$2,151
$4,223
$8,267
$9,033
$17,967
$35,597
$5,150
$10,030
$19,488
Source: Covr Financial Technologies. Lowest three rates for each age and risk class averaged. Data valid as of July 11, 2024.
Compare top-rated life insurance companies in February 2025
Once you know the type of life insurance policy and amount of coverage you need, it’s time to find the best company. Check out some of the top insurers on our list by reading our life insurance reviews.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates consumer experience, financial strength ratings and complaint data.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates consumer experience, financial strength ratings and complaint data.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates consumer experience, financial strength ratings and complaint data.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates consumer experience, financial strength ratings and complaint data.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates consumer experience, financial strength ratings and complaint data.
Term, universal, variable universal and indexed universal.
Find the best life insurance policy for you
Are you looking for the best life insurance policy for a specific need? Check out our roundups for:
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.
How to compare life insurance quotes
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 an estimate of what you’ll pay based on minimal information. Rates are what you’ll actually pay for the coverage. When you apply for a policy, the insurer typically collects more detailed information about you to calculate your final rate, which may differ from the initial quote.
This final rate is your premium. Life insurance 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.
Did you know...
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.
The amount of life insurance you need is based on your current and future financial needs. When calculating your coverage amount, consider your current and future financial obligations, such as income, debts and daily expenses.
What is the average cost of life insurance?
The average life insurance rate is $26 a month, according to Covr Financial Technologies. This rate is based on a $500,000, 20-year term life policy for a healthy, nonsmoking 40-year-old. The average monthly life insurance rate for a $500,000 whole life policy is $498.
What are the main types of life insurance policies?
Term and permanent life insurance are the two main types of coverage. Term life is temporary and lasts only a set period of time, like 10, 15 or 20 years. Permanent life insurance policies typically last your entire life and build cash value over time — once you've accumulated enough cash value, you can begin to borrow against or withdraw funds from your policy.
Do I need to take a medical exam?
Some life insurance policies require a medical exam. These exams help insurers get a better picture of your health, and subsequently, your life expectancy. The insurer uses the results to determine your eligibility for coverage and set your rate. If you want to skip the exam, consider no medical exam life insurance. However, because the insurer can't estimate your life expectancy as accurately, the rates for these types of policies can be higher.
How should I compare life insurance companies?
Financial strength and complaint data are important factors to consider when comparing life insurance companies.
Financial strength ratings are issued by agencies like AM Best. They typically indicate an insurer’s ability to pay out a future claim. For life insurance, NerdWallet typically recommends considering companies with ratings of A- or higher.
is based on your current and future financial needs. When calculating your coverage amount, consider your current and future financial obligations, such as income, debts and daily expenses.
is $26 a month, according to Covr Financial Technologies. This rate is based on a $500,000, 20-year term life policy for a healthy, nonsmoking 40-year-old. The average monthly life insurance rate for a $500,000 whole life policy is $498.
What are the main types of life insurance policies?
are the two main types of coverage. Term life is temporary and lasts only a set period of time, like 10, 15 or 20 years. Permanent life insurance policies typically last your entire life and build cash value over time — once you've accumulated enough cash value, you can begin to borrow against or withdraw funds from your policy.
Do I need to take a medical exam?
Some life insurance policies require a medical exam. These exams help insurers get a better picture of your health, and subsequently, your life expectancy. The insurer uses the results to determine your eligibility for coverage and set your rate. If you want to skip the exam, consider
. However, because the insurer can't estimate your life expectancy as accurately, the rates for these types of policies can be higher.
How should I compare life insurance companies?
Financial strength and complaint data are important factors to consider when comparing life insurance companies.
Financial strength ratings
are issued by agencies like AM Best. They typically indicate an insurer’s ability to pay out a future claim. For life insurance, NerdWallet typically recommends considering companies with ratings of A- or higher.
favors companies that have fewer complaints to state regulators.
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.
