When looking for a place to live, a variety of factors come into play like location, size and cost. Everyone wants to find and move into an apartment that fits their needs and is affordable. While the cost of living is getting more and more expensive across the country, there are some neighborhoods across America that are inexpensive.
If you’re looking for a studio, one-bedroom or two-bedroom apartment, we’ve built a list of the cheapest neighborhoods in America for renters.
Jump ahead:
The cheapest neighborhoods for studios
Studio apartments are open concept living spaces where the kitchen, living room and bedroom are in one larger room and only the bathroom is in its own room with walls and a door. Studios give off an urban vibe and are great for people who are singles or couples.
While studios are often smaller in square footage, they aren’t necessarily cheaper to rent. For example, a studio apartment in San Francisco can cost upwards of $3,300 for roughly 650 square feet!
If you’re looking for an eclectic studio apartment but don’t want to break the bank with rent, there are some neighborhoods worth considering.
5. St. Matthews (Saint Matthews, KY)
Average price per square foot: $1.34
The neighborhood of St. Matthews is a desirable pocket of Kentucky where homes are in high demand and businesses are growing within the community. Residents love the parks, walking paths and playgrounds.
Also, housing is very affordable in this neighborhood and it’s the fifth-cheapest neighborhood for studio apartments with average rent at $748 per month.
4. East Louisville (Louisville, KY)
Average price per square foot: $1.34
Whether you’re a baseball fan or a horse racing fan, Louisville has something to offer for everyone. From shopping to dining to watching a sporting event, you’ll find lots to do in the largest city in the state.
And while it’s a major metro city, studios are still very affordable for renters. If you’re looking to rent a studio apartment in one of the cheapest neighborhoods, check out East Louisville where rent is $748 a month.
3. West San Antonio (San Antonio, TX)
Average price per square foot: $1.09
West San Antonio is the third city in Texas that offers affordable rent for studio apartments. Again, the average cost of rent for a studio is $647. If you’re looking to move to Texas and live in a studio, you have plenty of the cheapest neighborhoods to consider.
2. Far West Side (San Antonio, TX)
Average price per square foot: $1.09
Another cheap neighborhood for studios in San Antonio is Far West Side. This neighborhood is full of fun studios for rent that are both affordable and chic. You can rent one for $647 and live in this city full of rich history, which is home to the historic Alamo.
1. Lackland Terrace (San Antonio, TX)
Average price per square foot: $1.09
Wide-open spaces — that’s what Texas has to offer. Lackland Terrace is a neighborhood in San Antonio full of parks, trails and outdoor spaces. This is a great place to be if you want a city vibe plus lots of open land. Lackland Terrace boasts studio apartments available for rent for as cheap as $647 a month.
The 25 cheapest studio neighborhoods
While these are the top five cheapest neighborhoods for studios, there are cities in America that have studios for rent at a great price. Check out the 25 cheapest studio neighborhoods.
The cheapest neighborhoods for one-bedroom apartments
One-bedroom apartments are great for renters who are single, couples or even small families. You’ll be equipped with a kitchen, living room and a separate bedroom and bathroom.
Prices can vary from city to city, but one-bedroom apartments can cost anything from $500 to $5,000. If you’re looking for a one-bedroom apartment, you can rent in some of the cheapest cities in America.
5. Eastside (Tulsa, OK)
Average price per square foot: $0.87
Oklahoma is more than just the name of a musical. And in Tulsa, you’ll find yourself in the second-largest city in the state. This city has lots of places to shop and eat, as well as green space and parks. Eastside is among the third-cheapest neighborhoods in the state, too, with rent as low as $0.87 per square foot for a one-bedroom apartment.
4. North Baton Rouge (Baton Rouge, LA)
Average price per square foot: $0.85
The neighborhood of North Baton Rouge is great for rent prices granted it’s located in the capital city. If you want to live in the heart of Louisiana but don’t want to pay a fortune for rent, check out this neighborhood where rent is $718 a month for a one-bedroom apartment.
Baton Rouge is located on the Mississippi River and has a plethora of fun things to do — from sightseeing to checking out historic monuments, this is a great city to call home.
3. The Falls (Tulsa, OK)
Average price per square foot: $0.85
The Falls is another neighborhood in Tulsa, OK, where you can find inexpensive one-bedroom apartments to rent. Rent is cheap, yet you’re situated in the heart of a large city full of fun things to do.
2. Parkway Village (Memphis, TN)
Average price per square foot: $0.84
Memphis means “Established and Beautiful,” and that’s what this city is. Here, you can find lots of shops, restaurants, museums, parks and more. Memphis is home to rock ‘n’ roll legend Elvis Presley, so you can find some cool musical memories here, too.
Also, you’ll find rent for as cheap as $585 a month in the charming neighborhood of Parkway Village. You can live in this big city and have affordable housing.
1. South Montgomery (Montgomery, AL)
Average price per square foot: $0.71
Montgomery, AL, is home to the Civil Rights Movement, so you’ll find a city full of rich history and lots of historic sites to visit. But in addition to the historical monuments, you’ll find some charming neighborhoods that are affordable for one-bedroom renters. The average rent for a one-bedroom is $491 in the neighborhood of South Montgomery.
The 25 cheapest one-bedroom neighborhoods
These five cities have the cheapest neighborhoods for one-bedroom apartments, but there are 25 other cities that made our list of the cheapest neighborhoods for renters. Check them out below.
The cheapest neighborhoods for two-bedroom apartments
Two-bedroom apartments are great for families or renters who need a little extra space. While more room equals higher rent, you can still find two-bedroom apartments in some of the cheapest neighborhoods across the country. Here are some of the most affordable housing options in America.
5. Fort Smith Eastside (Fort Smith, AR)
Average price per square foot: $0.63
One of the cheapest neighborhoods in the country for two-bedroom apartments is Fort Smith Eastside in Arkansas. Fort Smith is the second-largest city in the state, so you’ll find plenty of things to do and places to go when living here. Also, you’ll have great rent prices in a medium-sized city — win, win!
4. North Parkway Village (Memphis, TN)
Average price per square foot: $0.63
Located in the heart of Memphis, TN, is a neighborhood called North Parkway Village. Renters can find a variety of two-bedroom apartments with 960-plus square feet for rent for as little as $613 a month. That’s less expensive than some studio apartments with much less space!
3. South Montgomery (Montgomery, AL)
Average price per square foot: $0.63 cents
Montgomery, AL, is a historic city for the Civil Rights movement, but it also is a city that offers great rental prices for both one- and two-bedroom renters. Here, you can find apartments for rent for $600 a month, and you’ll get close to 1,000 square feet to live in. South Montgomery is the neighborhood to look in when looking for some of the cheapest apartments around.
2. John Barrow (Little Rock, AR)
Average price per square foot: $0.59
Little Rock is another city in Arkansas that provides a variety of options for renters looking to save. The neighborhood of John Barrow has large, two-bedroom apartments for rent for roughly $650 a month. This neighborhood has some of the largest apartments for rent for a great price. Enjoy living in the capital city at an affordable rate.
1. Fort Smith Southside (Fort Smith, AR)
Average price per square foot: $0.57
The city of Fort Smith helped settle the “Wild West” and was a western frontier military post back in the 1800s. This city is the second-largest city in the state and while it has a sizable population, you can still find some cheap neighborhoods scattered throughout for two-bedroom renters. Fort Smith Southside is the cheapest neighborhood for two-bedroom apartments with an average rent price of $518 per month.
The 25 cheapest two-bedroom neighborhoods
Looking for another city with cheap neighborhoods for two-bedroom apartments? Here is a list of 25 of the cheapest neighborhoods across America.
Finding affordable housing across the country
Across America, housing prices vary greatly. There are expensive neighborhoods and some of the cheapest neighborhoods scattered throughout the same cities. Finding affordable housing is possible, and you can rent in some of the cheapest neighborhoods in any city in America if you do your research.
Whether you’re looking for a studio, one-bedroom or two-bedroom apartment, there are inexpensive neighborhoods that offer great places to live and call home.
Methodology
We found the cheapest neighborhoods by taking the average rent prices in specific areas and dividing them by the average square footage for each unit type in the area to determine a price per square foot. Neighborhoods with insufficient inventory were excluded.
Rent prices are based on a rolling weighted average from Apartment Guide and Rent.’s multifamily rental property inventory of one-bedroom apartments. Data was pulled in November 2020 and goes back for one year. We use a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
Around half of Americans have a life insurance policy. Financial advisors recommend having life insurance coverage that’s 10 to 15 times the amount of the insured’s annual income.
But additional insurance may be recommended to cover costs such as outstanding debt, children’s college education costs, or lifetime support of a disabled family member. Perhaps it’s no surprise that about one in five people who have insurance think they don’t have enough.
Getting to that life insurance protection point may be made easier by purchasing multiple life insurance policies. How many life insurance policies can a person have? There is no legal limit, and each person has unique life insurance needs, which will influence the number of life insurance policies held. There are also upsides and downsides to buying multiple insurance policies.
Why Have Multiple Insurance Policies?
Time is a big influencer on having multiple life insurance policies. For instance, a financial consumer may still have a whole life insurance policy that was taken out in childhood.
As the policyholder grows up and has a family, they may decide to take out a second life insurance policy to cover those financial dependents.
Or, an existing life insurance policy holder may need additional coverage for specific needs. Consider a homeowner with a family and a home mortgage. The homeowner may need a second life insurance policy to cover the mortgage owed on the home in the event he or she passes away.
Even smaller expenses can trigger the need for an extra life insurance policy. For example, the head of a household might consider buying an extra life insurance policy to cover the cost of funeral expenses, so the grieving family will have one less thing to worry about.
Recommended: 8 Popular Types of Life Insurance for Any Age
How Multiple Life Insurance Policies May Work
Since buying a home or starting a family has such a big impact on a family’s finances, adding more life insurance is certainly understandable.
In that context, adding extra life insurance in the form of an additional policy may make good sense. Using a policyholder with a mortgage and a family as an example, here’s how having multiple life insurance policies might work.
Term Life Policy: Enough life insurance to cover the cost of a home mortgage in the event the policyholder passes away.
Let’s say the head of household needs to cover a $300,000 mortgage. They buy a $300,000 term life insurance policy that expires in 30 years, when presumably the mortgage will be paid off.
If, in the event the policyholder dies sometime during those 30 years, the term life insurance policy pays $300,000, which the family can use to pay off the mortgage and remain in the home. If the policyholder is still alive after the 30-year term ends, the term life insurance contract ends with no more premiums owed on the policy, but no death benefit either.
Additional Term Life Policy
The head of household wants to leave his or her family in good financial shape after passing on. That means not only covering the costs of a mortgage, but also household bills, health care expenses, and the cost of college education for the children. A 20-year policy for $200,000 might ensure the family’s ability to cover necessary expenses, should the policyholder die during the policy term.
In the above example, the policyholder “doubles up” by purchasing one term life insurance policy to cover mortgage protection, so the family can continue living in the home without fear of having to cover mortgage costs and a separate term life policy meant to cover basic household and life expenses .
Life Insurance Laddering
Another approach is buying three life insurance policies and possibly paying less than a large single life insurance policy might cost.
The strategy is called “laddering.” Instead of buying one large life insurance policy for $1 million, for example, the policyholder might buy three smaller, term life insurance policies that equal $1 million, each for a different term. For example:
• A 10-year term life policy for $500,000 worth of coverage. • A 20-year term life policy for $300,000 worth of coverage. • A 30-year term life policy for $200,000 worth of coverage.
By stacking, or laddering, life insurance policies over different timetables, the policyholder is getting the exact financial coverage he or she needs at different stages of their life.
The laddering concept could give the policyholder some financial leverage with their insurance strategy. Typically, as a policyholder grows older, the need for life insurance declines, as the mortgage is paid down and children are grown and financially responsible for themselves.
Note that each person’s insurance cost will be different based on age, gender, health, hobbies, and other factors, so laddering may not be the right choice for everyone.
Pros and Cons of Having Multiple Life Insurance Policies
A person’s unique coverage needs will influence any decision to expand a current policy, add a new life insurance policy, or simply keep their current life insurance as it currently stands.
Pros:
Adding to a group life policy. Those with group life insurance subsidized by their employers may not have adequate financial protection. Coverage through an employer may not follow the employee, either, so if a person changes jobs, typically that coverage will no longer be in effect. Buying additional coverage could give a policyholder the life insurance protection they need.
Providing extra protection for life stages. Big “life stages” events like buying a home, having children, or launching a business may increase the need for more life insurance. As more value is added to a person’s net worth, the need for adequate life insurance to ensure their family is protected after they’re gone increases. An extra life insurance policy may provide that extra cushion of financial support. Term life insurance places a limit on the policy’s length based on insurance protection needs
Curbing risk. It doesn’t happen often, but insurance companies can go out of business. While an extra life insurance policy might add another layer of financial protection in the event of this worst-case scenario, consumers do have some protection through insurance guaranty associations. These guaranty associations provide benefits to policyholders and beneficiaries of policyholders in the case of an insurance company becoming insolvent. Insurance companies are legally required to join guaranty associations in the states where they do business.
Cons:
Coverage denial. Applying for multiple life insurance policies may signal companies that you’re attempting to purchase more life insurance than you actually need.
Insurance companies can and do share encrypted customer data, including the existence of multiple life insurance applications, via an industry organization known as the Medical Information Bureau (MIB).
Insurance providers rely on the MIB to ensure they’re not providing more life insurance coverage to a consumer than is necessary. Thus, having two or more life insurance applications under consideration by different companies could draw attention and end up in a denial of coverage based on a consumer’s intent to purchase more life insurance coverage than is necessary. Generally, during a life insurance interview, insurance companies will ask about other coverage an applicant already has in force or has pending. This double checking is to make sure a person will not be overinsured. The MIB also helps prevent fraud by proposed insureds because the MIB includes previous denials that could be left off of an application.
More complex record keeping. Multiple policies means multiple payments and more paperwork to keep track of. A missed payment could mean termination of a policy. For people who have a difficult time keeping track of household records and payments, multiple policies may not be a good idea. It can be easier to manage everything if all policies are through the same insurer.
Possible increasing premiums. Want to keep the cost of life insurance in check? Premiums are generally less expensive for young, healthy people. Purchasing one larger policy at a relatively young age may cost less overall.
Alternative to Having Multiple Policies
One possible strategy for maximizing life insurance benefits without taking out multiple policies is the use of insurance riders, which can add benefits to a policy without having to take out a new one. An insurance rider is supplementary coverage to an existing policy.
Some examples of riders are conversion of an addition of long-term care insurance to a basic life policy or accidental death and dismemberment for someone with a particularly dangerous job or hobby.
Policies may include conversion privileges, but riders can extend the amount of time the policyholder can convert. The cost of an insurance rider varies depending on the type of rider and the insurer. Each person’s insurance needs will determine which, if any, rider is necessary, and if the cost is affordable to them.
Recommended: What Is Life Insurance and How Does It Work?
The Takeaway
By purchasing multiple life insurance policies, policyholders can have extra coverage that pays out on a specific debt, like a mortgage payment, after the policyholder passes away. Additionally, multiple policies can help consumers get the exact life insurance coverage they need — when they need it most.
If you’re shopping for life insurance, SoFi has partnered with Ethos to offer competitive life insurance policies that are quick to set up and easy to understand. You can apply in just minutes and get an instant decision. As your circumstances change, you can easily change or cancel your policy with no fees and no hassles.
Complete an application and get your quote in just minutes.
Social Finance Life Insurance Agency, LLC (SoFi Agency) does not issue or underwrite insurance. SoFi Agency is compensated by Ethos for each issued term life application submitted.
The policies offered are from Ethos Technologies Inc. Coverage and pricing is subject to eligibility and underwriting criteria. Ethos Technologies Inc. (Ethos) operates in some states as Ethos Life Insurance Services. CA license #0L28949; AR license #100164629. Ethos offers policies issued by the carriers listed at www.ethoslife.com/carriers. Products and their features may not be available in all states. To help avoid requiring a medical exam, the Ethos application asks certain health and lifestyle questions.
SoFi Agency does not guarantee the services of any insurance company. Once you reach Ethos, SoFi is not involved and has no control over the products or services involved.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Buying life insurance is a big decision — one that is often a long-term commitment — so you are probably wondering how much it will cost. You want to know your family will be financially stable when you are no longer around, but you may be concerned that the premiums will take a big bite out of your budget. The truth is, there is no one single number for a life insurance premium.
The price varies based on an array of factors, including the kind of policy you buy, the amount of coverage you want, your age, your health, and other attributes, as well as which provider you select. Even if you have a twin, you and your sibling may well be quoted different prices. Life insurance policies are that personalized.
But that doesn’t mean you can’t get a good ballpark! Let us help you get a handle on the range of possible prices.
Average Cost of Life Insurance
To get started, let’s do a quick overview before we get to the dollars and cents. Though rates will vary, some of the key criteria used in calculations include:
• Age. Generally, the younger you are when you sign up for life insurance, the cheaper it will be. The older you are, the shorter your life expectancy is, meaning your insurer is more likely to have to pay your beneficiaries upon your death (sorry! We don’t like saying it either, but that’s the bottom line of life insurance).
• Gender. Women tend to have longer life expectancies, so females almost always have lower premiums than males even if their age and health status is the same. The latest CDC figures put the average life expectancy for men at 73.2 years and women at 79.1 years.
• Smoking status. While the rate of cigarette smoking among U.S. adults is declining, there’s no denying it’s a health risk. In fact, it’s the leading cause of preventable death in America, according to the CDC. Approximately 480,000 deaths (that’s one out of every five deaths) is attributable to the habit.
• General health history. Overall, the healthier a person is deemed to be, the cheaper the premiums tend to be. This means factors like your height and weight, blood pressure, cholesterol levels, and pre-existing conditions will be considered.
How much you’ll pay also depends on whether you get term or permanent life insurance.
As the name implies, term life insurance covers you for a discrete period of time, and then you are no longer insured. This kind of policy can work well for those who want to know their loved ones are financially secure as a mortgage is paid off or a child pays college tuition.
On the other hand, permanent life insurance guarantees that whenever you may die, your designated beneficiaries will receive a lump-sum payment. Permanent life insurance policies also act as a savings vehicle; more on that in a moment.
Okay, here are some numbers to ponder. These rates are based on the healthiest category of applicants taking out a $500,000 policy. In the case of the term policies, the length is 20 years.
Age
Female, Term Insurance per year
Male, Term Insurance per year
Female, Whole Life Insurance per year
Male, Whole Life Insurance per year
30s
$183
$220
$4,015
$4,652
40s
$281
$220
$5,937
$7,028
50s
$641
$817
$9,443
$11,163
60s
$1,656
$2,361
$15,943
$19,150
70s
$8,204
$9,297
$28,093
$33,325
A word about those life-insurance premiums: They are typically paid monthly, though you may be able to save if you pay annually, up front. It’s important to keep up with your life insurance payments so your policy doesn’t lapse and you and your loved ones receive that halo of protection you are paying for. 💡 Quick Tip: With life insurance, one size does not fit all. Policies can and should be tailored to fit your specific needs.
Average Cost of Term Life Insurance by Age
Term life insurance tends to be the more affordable option. Permanent life insurance can cost considerably more – from five to 15 times as much. However, the costs will vary based on many factors. One obvious one is that a longer policy will have higher premiums than one with a shorter term. Why? Because it’s more likely that the insurance company will need to pay out on a longer one.
When Business Insider gathered rates, they found that a 30-year old could take out a 30-year term policy for $33.65 per month. The average rates climbed by age — from $33.65 per month at age 30 to $56.21 at age 40, $125.12 at age 50, and $252.26 at age 60.
As you see, you may get much better rates, the younger you sign up.
Average Cost of Whole Life Insurance by Age
Now, let’s take a look at whole life insurance, which will pay a death benefit even if you live to be over 100. One kind of permanent life insurance is whole life. It also accrues “cash value,” which can be a source of funding for future needs. Providers may offer unguaranteed dividends, depending on the particular policy you purchase.
Let’s look at how much this kind of life-insurance policy can cost. Recent annual costs for a $500,000 policy averaged $352 for a 30-year-old female and $394 for a male, and $506 for a 40-year-old female and $564 for a male.
Recommended: 8 Popular Types of Life Insurance for Any Age
Average Cost of Life Insurance Without a Medical Exam
Usually, part of the application process for life insurance involves a medical exam. A medical history is taken, and then there’s a brief visit to a healthcare practitioner (or they may come to you). Your height, weight, pulse, and blood pressure are typically recorded; blood and urine samples may be collected, too. The results allow the life insurance company to gauge your health and contribute to the calculation of the premium you will pay.
Some people, however, don’t want to invest the time in this step; signing up can take 4-8 weeks. Or perhaps they just don’t like medical appointments and blood draws. Others may worry about what will turn up in their testing and worry that they won’t qualify for coverage. Regardless of the reason, there are insurance policies that let you sidestep the medical exam. These are referred to as no-exam policies.
Typically, these types of policies offer lower coverage limits than those that do include medical testing. For instance, they might offer from $5,000 to upwards of $3 million in coverage. To acquaint you with how much this could cost, let’s review some prices, per Policygenius
• For a 30-year-old woman, it would be $22.99 per month for $500,000 in coverage.
• For a 30-year-old man, the cost would be $29.33 per month for $500,000 in coverage.
If you are interested in this type of policy, it is also sometimes called simplified-issue insurance or guaranteed-issue insurance.
Average Cost of Term Life Insurance by Health
Here’s another angle on life insurance: looking at how much it will cost you based on your health. As we mentioned above, the insurance industry uses different terms to describe how healthy a policyholder is. Here are some common terms you may hear as you’re researching policies:
• Super preferred (or preferred plus): This is the healthiest category to be in; statistically, you’re more likely to live a long life, and you will get the best rates. Typically, to qualify, one needs no family history of death from cancer or heart disease before age 60 or 65; no tobacco use in recent years, nor a history of substance abuse; healthy blood pressure and cholesterol levels; no personal history of cancer or heart disease; a clean driving record; and your height and weight must fall in a certain range.
• Preferred: This category is typically a bit more liberal in terms of the height/weight limits, cholesterol numbers (perhaps a total limit of 240), and when one might have last used tobacco. This category also encompasses those who have had a close relative die of cancer or heart disease before the age of 60. Rates will be higher than those in the super preferred category.
• Standard: This is the next category and tends to include those with a history of substance abuse as well as those who use tobacco.
So, now you are probably curious how rates stack up based on these categories. Let’s take a look at costs for $500,000 coverage of 20-year term life insurance:
• For a woman who is age 30, the annual premium for standard health could be $417, with preferred costing $235, and super preferred at $174. At age 40, the annual costs would be approximately $641, $350, and $277 in the same categories.
• For a man who is age 30, the annual premium for standard health could be $506 for standard, $292 for preferred, and $219 for super preferred. At age 40, the premiums would be $778, $421, and $327 in those categories.
Average Cost of Life Insurance by Term Length
As you think about buying life insurance, you may be pondering different versions of term insurance. Perhaps you just took out a 30-year mortgage and want to be sure those payments will be covered if a worst-case scenario happened and you weren’t around to write checks. Or maybe you are about to marry someone with a 10-year-old, and you want to be sure the child’s college expenses will be covered, no matter what may happen.
Term insurance can be the perfect vehicle in situations like these. Term life insurance has a straightforward goal: to provide the policyholder with a certain amount of coverage during a designated time period — perhaps 15, 20, or 30 years. If a person dies within the time frame, then beneficiaries typically receive the payout of the policy. If a person does not die during the time frame, no one receives the death benefit.
As you might expect, the longer the term, the higher the premium. You’re buying into more coverage, so that will cost more. Let’s see how some numbers stack up.
For a 30-year-old man with a preferred health rating, here’s how much a monthly premium would be for $500,000 in coverage:
• 10 years of coverage: $21.13
• 20 years of coverage: $29.32
• 30 years of coverage: $42.45
As you see, extending your coverage term from 10 to 20 years doesn’t mean you will pay twice as much. That’s good news in the affordability department! 💡 Quick Tip: Term life insurance coverage can range from $100K to $8 million. As your life changes, you can increase or decrease your coverage.
What Factors Determine the Cost of Life Insurance?
You may wonder why rates vary as you price and compare life insurance policies. Let us break down for you some of the most important factors that influence to cost of a policies:
• The kind of insurance: As we have mentioned above, there are two main kinds of life insurance, term (coverage for a specific period of time) and permanent (life-long coverage). Permanent is pricier.
• The amount of coverage: If you buy $250,000 of coverage, it will of course cost less than a policy that pays a death benefit of, say, $2 million.
• Length of a term policy: If you are shopping for a term policy, expect to pay more for a longer period of coverage. If you buy a 20-year policy, for instance, it will be higher in price than a 10-year policy.
• Age and gender: Younger people in general get lower quotes than older people because it is less likely that the insurer will need to pay out in the near future. Women tend to live longer than men, so females can get a lower premium when all other factors are equal.
• Health status: At a minimum, the insurance application will ask health-related questions. Many life insurance companies also require a medical exam, along with the ability to review health records before a policy can be issued. Certain health conditions, such as cancer and heart disease, can increase premiums and may also prevent coverage from being issued. Weight, blood pressure, and cholesterol levels can also play a role. Plus, even if the applicant is healthy, a family history of health issues can impact premium pricing or policy eligibility.
• Lifestyle: Do you have a high-risk job (say, a pilot or police officer) or hobby (skydiving would be a classic example)? Or do you smoke, which carries health implications? Do you have a history of substance abuse or a recent DUI on your record? These factors can raise your insurance rates.
It’s notable that life insurance companies can have different underwriting policies — so questions asked during the application process may vary from provider to provider.
One key point to keep in mind: Obtaining a life insurance policy when younger and healthier could impact the cost of a policy quote in a very good way. With some life insurance companies, the consumer can lock in a set monthly premium upon signing up — in which case the life insurance premiums would remain stable throughout the entire term of policy.
Recommended: Is Employer Life Insurance Enough?
What Factors Don’t Impact Your Life Insurance Rates?
So, that’s quite a list of things that do impact the cost of life insurance. Now, let’s look at what doesn’t influence the price tag:
• Ethnicity, race, and sexual orientation. Insurers can’t discriminate based on these factors.
• Credit score. Yes, your insurer may look at how you rate over the last seven years, but whether you are a 500 or a 700 shouldn’t make a difference. That said, if you have a bankruptcy on your record, that could influence your perceived risk and may affect premiums.
• Marital status. This doesn’t raise or lower your rates (though, yes, it does matter to car insurance quotes).
• How many beneficiaries you have. It won’t impact your rate if you name one person or several.
When Is the Best Time to Buy Life Insurance?
It’s typically a good idea to buy life insurance as soon as you feel you need it. As we’ve discussed, rates are lowest when you are younger, before health issues typically crop up.
In terms of timing it right, many people buy a policy when they know they will have dependents who’ll rely on their earnings. For instance, getting engaged to be married is a good time to consider purchasing a life insurance policy. You would want to know your spouse is taken care of financially if anything were to happen to you.
Similarly, if you are expecting a child, that is another classic trigger moment for buying a life insurance policy. Knowing that you have protection for your kids, from birth through college, can let you rest a lot easier.
There’s another angle to consider: the half-birthday aspect of insurance premiums. If you apply for life insurance six months or more past a birthday, your insurer will round up to the next birthday. This can wind up locking you into a higher rate for the entirety of your policy. So look at the calendar before you commit to a purchase, and check in with your insurer if there’s a way to back-date your policy if you are past your half-birthday.
How to Choose the Best Policy for You
Armed with all of this intel, you’re ready to go shopping. Here are some considerations as you get acquainted with your options, whether you work with an agent or use the easy, one-click options online.
• You’ll need to decide whether term life insurance or permanent coverage best suits your needs and budget.
• You’ll want to determine the amount of coverage to buy. Some people say to multiply your annual salary by 10; others use the DIME method. There’s also the DIME method to calculate the amount of debt, lost income, mortgage payments, and educational expenses that would need to be covered if you weren’t here to pay them. (This could leave you overinsured, so you could subtract your assets from the figure you calculate.)
• You’ll want to check rates from different, well-rated insurance companies to see where you’ll get the most enticing quote. You can look into the details and evaluate whether the premiums are fixed or if they will increase (if the latter, why and by how much?). You can also decide if you want a policy that requires or waives a medical exam, and consider whether a term policy offers renewal options and how costly they would be.
These factors will help you find a policy that says, “Yup, I’m The One!”
The Takeaway
As you have seen, there’s a galaxy of options when it comes to buying life insurance. Not only are there different kinds of insurance (term versus permanent, and many permutations), but there are also a range of rates to suit many budgets. Factors that can impact rates include how much coverage you want, for how long, your age, your health, and other attributes.
Only you can know what policy will be the perfect, personalized fit for you, but do make sure you seriously consider investing in a policy as soon as possible. This kind of protection is a key element of your financial life, and helps give you peace of mind, no matter how uncertain the times.
SoFi has partnered with Ethos to offer competitive term life insurance policies that are quick to set up and easy to understand. Apply in just minutes and get an instant decision. As your circumstances change, you can update or cancel your policy with no fees and no hassles.
Explore your life insurance options with SoFi Protect.
Social Finance Life Insurance Agency, LLC (SoFi Agency) does not issue or underwrite insurance. SoFi Agency is compensated by Ethos for each issued term life application submitted.
The policies offered are from Ethos Technologies Inc. Coverage and pricing is subject to eligibility and underwriting criteria. Ethos Technologies Inc. (Ethos) operates in some states as Ethos Life Insurance Services. CA license #0L28949; AR license #100164629. Ethos offers policies issued by the carriers listed at www.ethoslife.com/carriers. Products and their features may not be available in all states. To help avoid requiring a medical exam, the Ethos application asks certain health and lifestyle questions.
SoFi Agency does not guarantee the services of any insurance company. Once you reach Ethos, SoFi is not involved and has no control over the products or services involved.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Life insurance is a type of insurance policy that can provide the policyholder with something almost priceless: the reassurance that loved ones will have the financial support they need after the insured person passes away. More technically, it is a contract between the policyholder and the company providing the insurance coverage.
Whichever way you define it, it’s an important tool that can protect those who depend upon you most if you weren’t here to financially care for them.
Let’s take a closer look at what it’s all about and how it can help give your loved ones a financial safety net — and give you peace of mind.
What Is Life Insurance?
Let’s give you an overview of this important product:
• Life insurance is a kind of a contract between a policyholder and the company issuing the insurance. Specifically, that policy guarantees that the beneficiaries who are named will receive, upon the death of the insured, a sum of money known as a death benefit.
• For this kind of coverage, the policyholder pays premiums during their lifetime. They must also disclose details like their health status and some facets of their lifestyle to be insured.
• Life insurance comes in two main varieties: term insurance, which covers you for a specific time period (or term), and permanent insurance, which covers you for however long you live, even if that’s 110!
Life insurance comes in many different forms and with an array of features. But at its core, it can be thought of as a way of making sure that your loved ones have a financial cushion when you aren’t here. Consider these scenarios:
• Let’s say you have a non-working spouse: Life insurance will mean they are covered so housing, food, and other expenses are provided for.
• Perhaps you have toddlers and want to know that, no matter what, their college tuition will be paid.
• Maybe you have a relative who can’t live independently and you will sleep better at night knowing their care will be taken care of if you weren’t here.
We’ll review the options and specifics in more detail so you have all the info you need to pick the right policy for you. Ready? Here we go! 💡 Quick Tip: The group life insurance offered by employers is a nice perk, but it may not be enough to cover your financial obligations. A supplemental life insurance policy can bridge the gap.
How Life Insurance Works
Let’s define some of the life insurance terms you are likely to hear used when you’re shopping for a policy. Here’s what they mean and how they function to give you the coverage you’re hoping for:
• Death Benefit: It’s a scary term, we hear you! But it’s the crux of life insurance policies. This is the lump sum payment that will be paid out at the time of your death to your beneficiaries if you die while covered by a life insurance policy. It can go a long way towards keeping them in good financial shape. Btw, a death benefit is usually not subject to the usual income tax.
• Beneficiaries: These are the people who receive the death benefit from your life insurance policy. You can name one or more people who you want to be covered. (You can also name trusts and charities.) Beneficiaries usually have plenty of flexibility in how to use the funds. Depending upon the specifics of the financial situation and of policy payout, someone might choose to pay off a mortgage loan, for example, or make monthly payments to stay current.
• Premium: This is the monthly or yearly payment you make to the life insurance company to pay for your coverage and keep your policy in effect.
• Cash Value: Permanent life insurance policies have a cash value savings component that grows over time and can be used or borrowed against.
Types of Life Insurance
Now, let’s take a look at some of the main types of life insurance you might be interested in: term life versus whole life.
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Term Life
As the name suggests, this insurance covers you for a specific term or length of time (think 10, 20, or 30 years, though other lengths are often available). This works well for people who want to know that, say, if anything were to happen to them, their non-working spouse would be able to pay the mortgage for the remaining term. Or if you have children and you want to be sure their educational costs are taken care of if you were to die. Typically, term life insurance is more affordable than permanent life insurance. Worth noting:
• Regular payments must be made to keep the policy active.
• Payments on term life insurance policies are typically fixed.
• If the term ends and you are still alive, that’s great! But you probably don’t get any refund of premium payments.
Permanent Life
This kind of life insurance covers you for your entire life. Whenever you die, your beneficiaries will receive their lump-sum death benefit. What’s more, these policies have a cash value; that is, some of your payments go into a savings vehicle on a tax-deferred basis that you can then tap or borrow against. Because of this extended coverage and the savings function, permanent life insurance is the costlier option, with the price often ranging from five to 15 times that of term life insurance. Permanent life insurance comes in an array of options. Let’s spell out a couple of common ones:
• Whole Life: These life insurance policies provide a death benefit as well as the cash-value account. The latter may have a guaranteed rate of return, and as it grows, there may be dividends paid that can be put towards your premium payments or reinvested in the cash-value account.
• Universal Life: This kind of policy gives you more options than whole life. For instance, you can possibly alter your premium payments, and the cash value will accrue in different ways. Its growth might be tied to an indexed fund like the S&P 500; you’ll hear these life insurance policies referred to as an indexed universal life policy. Or you might prefer what is known as a variable universal life policy. These usually have varied investment accounts that you can manage as you like.
Guaranteed Acceptance or Simplified Issue Life Insurance
These are policies that allow the applicant to avoid the medical examination that is usually required for life insurance. (These are brief exams that often involve a blood draw and urine sample, to chart factors like cholesterol that might influence the cost of your policy.) These forms of insurance can be good for people who don’t like doctor’s appointments, who fear learning what these tests might reveal, and also who want to considerably shorten the time it can take for approval of a policy with what’s known as medical underwriting, which can equal a couple of months.
In Guaranteed Acceptance life insurance, as the name implies, you can’t be turned down; your medical status isn’t an issue. However, you will probably be offered a small death benefit (say, $25,000) and rates will be higher than with some other forms of life insurance.
With Simplified Issue life insurance, the applicant may only have to answer a few questions about their health, no exam required. With these kinds of policies, however, the full death benefit may not be paid unless the policy has been held for two years; if the policyholder dies before then, a refund of premiums may be paid out.
Type of insurance
Period of Coverage
Benefits
Downsides
Term Life Insurance
For a finite period of time (say, 5-40 years)
• Affordable
• Term is tailored to your needs
• You might outlive the policy’s term
• When the policy is over, your premium payments aren’t refunded
Permanent Life Insurance
For your entire life; your beneficiaries will definitely receive a payment
• Peace of mind that loved ones are covered
• Cash value savings account
• Expensive
Guaranteed- or Simplified-Issue Life Insurance
A permanent policy that ensures a small benefit when you die
• No medical exam needed
• Easy to apply for
• Quicker approval
• Lower coverage amount
• Expensive
• Death benefit may not be paid if policyholder dies within a few years of getting the insurance
What Does Life Insurance Cover?
Life insurance covers a variety of expenses. Here are some common examples:
• Unpaid debt
• Medical expenses
• End-of-life expenses
• Monthly expenses, such as utilities, food, and rent or mortgage payments
• Replacement of lost income, if the policy owner was still working at the time of their death
• Child care or dependent care
• Cost of education
• Charitable contributions
It’s important to note that there are certain circumstances when life insurance may not pay out. Examples typically include:
• Suicide, if the policy owner ends their life within two years of purchasing a policy
• Death as a result of acts of war or terrorism
• If the policyholder’s beneficiaries murder them or play a role in the murder
• Death as a result of risky behavior or a profession that involves dangerous activities, like professional car racing or flying a private plane
Which Type of Life Insurance Is Right for Me?
So, now, how do you know what type of policy is best for you? Here’s some food for thought. People often choose term life insurance for one or more of these reasons:
• Finite timing: They expect to have saved up enough money or paid off debts by the time this policy expires and would therefore not need to have their income replaced. Or perhaps they believe their beneficiaries will be financially independent by the time the policy expires.
• Affordability: The policy is more affordable and, therefore, easier to fit within their budget.
Whole life policies typically have premiums that are up to 15 times the cost of term life, and some people may prefer to purchase term life — and then personally invest the difference between a term life premium and a whole life one.
That said, there are plenty of people who decide permanent life insurance is right for them. Here are some typical reasons:
• Long-lasting: This type of insurance is designed to be in force throughout the policy holder’s life, which provides a complete sense of security.
• Cash component: This insurance type has a cash value component, as well, which serves as a savings vehicle. The policy holder can borrow against the value at a predetermined interest rate.
• Possibility of “cashing out”: Some people may like having the ability to surrender their whole life policy during their lifetime and receive the cash value of it. Doing so, however, can have tax implications that can be discussed with a tax professional.
How Much Life Insurance Coverage Do You Need?
Everyone’s situation is unique when it comes to getting life insurance. You may have more kids than, say, your brother. He may have a bigger mortgage. One of you may be more concerned about eldercare costs for your parents down the road. There is no one number that says how much coverage is right for either one of you.
But there are helpful formulas that can help you figure out a sensible amount of coverage. One popular option is the DIME formula. The acronym stands for Debts, Income, Mortgage, and Education. Here’s how to use this formula.
Debts
Gather your debt information, from car loans to personal loans, and from student loans to credit card balances. Forecast out for the number of years you want coverage for. In other words, add up everything that’s owed outside of mortgages.
Income
Take the household’s annual income and multiply it by ten (if you are contemplating a 10-year term, that is). This will provide a ballpark estimate of what it would take to replace lost income during that period of time.
If the life insurance policy would be needed to provide financial support for more than ten years (perhaps because there are young children in the household), use a higher multiplier.
Mortgage
Home loans are usually the largest debt of a household, and often have the longest term. As part of calculating the amount of life insurance to take out, include the payoff on mortgages.
Doing so can help to prevent loved ones from taking on the burden of the house payment expenses and/or from potentially being foreclosed upon.
Education
If there are outstanding student loans, they can be incorporated into the life insurance amount. Also consider children who might have future tuition expenses at college, along with their housing costs, textbooks, and so forth.
When adding up debts, income, mortgage, and education (DIME), what is the total dollar amount? This can be a benchmark for the coverage amount of a life insurance policy. If you have any assets, such as a savings account, you can subtract that from the total dollar amount to get a more accurate picture of the possible financial need. 💡 Quick Tip: Term life insurance coverage can range from $100K to $8 million. As your life changes, you can increase or decrease your coverage.
How Much Does Life Insurance Cost?
Life insurance costs will vary tremendously since each person has their own special needs. You might want $300,000 in term life insurance for 20 years and pay one premium. Or maybe you’d prefer $3 million in permanent insurance. Of course, there will be a big difference in those premium payments!
Let’s look at a few scenarios so you have a ballpark idea of costs, but the best way to get prices that reflect your situation is by working with an agent or using a simple online calculator:
• For a 20-year term policy: For $250,000 of coverage, a 30-year old female would pay $142 a year; a male would pay $159, according to an analysis conducted by Forbes. For $500,000 of coverage, the same woman would pay $204, while a man would pay $246. If we scoot the benefit up to $1 million, the annual cost would be $320 for a woman and $399 for a man.
• For a 30-year term life policy: For $250,000 of coverage, a 30-year-old female would pay $198 a year; a male would pay $235. For $500,000 of coverage, the numbers would be $317 and $381; for $1 million, the annual premium would be $525 for a woman and $669 for a man.
• For permanent life insurance, the costs tend to be higher. One recent quote from Forbes saw that $500,000 of coverage in a 30-year term policy would cost approximately $357 a year for a 30-year-old man. A $500,000 whole life policy would cost $4,323 per year, or almost 6 times more.
Of course, there are huge variations in the price of policies. As you see from the above numbers, if you get term life insurance for a longer period, you’ll pay more than for a shorter period. Also, the more coverage you buy, the higher the premium.
Now, let’s look at a few of the factors that influence the cost:
• Age and gender: The older you are, the more expensive a life insurance policy will be, as health issues tend to crop up. Also, since women have a longer life expectancy than men, their rates are usually lower.
• Your health: Those in excellent health will pay less than those who, say, have high cholesterol or blood pressure and a family history of cancer.
• Lifestyle: This includes everything from whether or not you smoke, have a history of substance abuse, and have a clean driving record, to factors like whether your job or hobbies are deemed high-risk (for example, flying airplanes, scuba diving).
What Is the Process of Buying Life Insurance?
Here’s what to expect from the life insurance buying process:
• Once you decide what kind of policy you want and have an idea of the coverage amount, it’s a good idea to explore your options and get some free quotes. You can talk to a life insurance agent or do your own research online; there are many tools that put the information you want just a click or two away.
• Expect to be asked questions about your health, your family history, your hobbies, and your lifestyle as you shop and apply. This is an important step in figuring out your risk factors and life expectancy, which is used to set your rates.
• Once you’ve found a policy and insurer that you like, fill out that carrier’s application as completely as possible. The application will be reviewed as part of what’s called the underwriting process. The carrier will look at the application through the lens of potential risk. In other words, they will review the application to determine how risky it would be to issue a life insurance policy to that particular applicant — and then price it accordingly.
• For many policies, a medical exam is part of the process. Applicants are asked and should honestly answer about family health history, personal health and lifestyle, prescriptions being taken, surgeries performed, and so forth. A physical exam is often done. This can include a height and weight check, the taking of blood pressure, as well as urine and blood samples.
• After that, you have completed your application. For policies that involve a medical exam, it can take 6 to 8 weeks to be informed of your approval.
Choosing a Beneficiary
Once your application is approved, an important step will be choosing your beneficiary or beneficiaries. This is the person or people who would receive the death benefit if you pass away while covered by a life insurance policy. A few points to consider:
• You can name more than one person and determine the percentage of the death benefit each would receive.
• You can name contingent beneficiaries in case a beneficiary dies before the policyholder does.
• You don’t have to name a person as a beneficiary. You can also work with a lawyer to set up a trust and have the death benefit used as you determine.
• It’s wise to review and update your beneficiaries regularly once you have a life insurance policy. A new baby, a divorce, and other events can trigger you to alter your selections (changes can be made at any point).
Can a Beneficiary Make a Claim?
No one wants to think about death, but it’s a fact of life. It’s also the event that a life insurance policy is inextricably linked to; the death benefit is there to support loved ones after the policyholder passes away. So let’s spell out what would actually happen in this situation:
• Notification of death: The insurer will probably pay claims quickly, usually within a month or in as little as a week, but paperwork must be filed and the beneficiary may have to inform them of the death. The issuer of the policy may not know otherwise.
• Death certificate: The beneficiary must submit a certified copy of the death certificate, which the insurance company will keep.
• Make sure you have satisfied all claim requirements: When actually submitting your claim, have all the supporting documentation attached. This can include a claim form and death certificate.
That’s it! Also, here’s a good thing to know: You don’t need a copy of the insurance policy to file a claim, just the name of the insurance company and the fact that you are a beneficiary.
Making Policy Changes
Life insurance often is a part of your life for a very long time, decades and decades. Sometimes, people will want to change some aspects, such as the amount of the death benefit or the company that is providing the policy. Let’s look at how that works:
• Coverage amount: Let’s say you started with a $500,000 policy, but now, five years into it, want to double the coverage. Can you? The answer to this can vary by the insurance company. Some carriers provide flexibility in their policies that allow a policy holder to change the coverage amount. If considering a particular insurance company and this flexibility is important, ask that question before taking out the policy.
• Switching providers: Consider changing the policy first. You may be able to save time and money by amending or adding to your current policy instead of replacing it. Also, there can be surrender charges that you need to pay if you give up a permanent policy so you can sign on for a new one elsewhere.
What’s more, if you are switching policies after a number of years with one insurer, you are older now, and the rates will be higher. Swapping policies may not actually save you money. It’s often best to go through underwriting and get approved for the new policy first, see how the features and prices compare, and then decide whether or not to cancel the original policy and sign up for a new one.
• New policy waiting periods: If you are thinking of forging ahead with a change, note the waiting period. Most new policies have a waiting period before certain kinds of death benefits become effective. Consider this before replacing your old policy.
Life Insurance Riders
One way to make a change to your life insurance policy involves riders; think of these as add-ons that can help tailor your coverage to your evolving needs. Riders deliver additional benefits; yes, you’ll pay extra, but the amount is usually low because not much underwriting is required.
For instance, if you are the sole provider for your family, you might want to add an Accidental Death Rider, which would increase the amount of the death benefit if a fatal accident occurred. Or maybe you want to explore a Long-Term Care Rider, which would help pay expenses were you in need of nursing home or in-home care. Talk with an agent or explore options online to learn more.
Life Insurance Benefits
There are many benefits of life insurance, but perhaps one of the biggest is that it can offer loved ones a financial cushion in the event you die. That money can be used to cover a wide range of expenses, and it’s generally not taxed by the federal government. (Note that any interest you receive from the policy does need to be reported.)
If you purchase a whole life policy, it has a cash value that grows over time tax-deferred. You can cash it out at any time to help pay for a major expense or to borrow against it.
Reasons to Buy Life Insurance
Here are some common reasons why you may want to consider a life insurance policy.
• Life insurance helps replace your income if you die, which can be especially useful for any beneficiaries who depend on you financially.
• The death benefit your beneficiaries receive can be used to pay for your end-of-life expenses, debts, medical expenses, or estate-related expenses.
• Life insurance can be used to pay federal and state “death” taxes so your loved ones don’t have to shoulder the costs themselves.
• Life insurance can allow you to create an inheritance for your heirs, and the money is usually tax-free.
• You can make a significant gift to a beloved charity after you pass away by naming the organization the beneficiary of your life insurance.
How to Shop for Life Insurance
When you’re ready to look for a policy, you have a couple of places to start your research: online or talking with an agent who’s licensed by your state’s insurance department.
No matter which route you choose, you’ll likely find that the prices of life insurance policies will vary. Though it can take more time, getting multiple quotes can help you find the best deal for your needs and budget.
As you’re weighing your options, consider looking into the financial rating of each insurer. The Insurance Information Institute recommends going with “a company that is likely to be financially sound for many years, by using ratings from independent rating agencies.”
Life Insurance Alternatives
Although life insurance can provide loved ones with a financial safety net after you’re gone, you might be able to get a similar result with another type of vehicle. Here are some common alternatives to life insurance to consider exploring:
• Investments. Investing may be able to potentially grow your wealth, which you can leave behind to loved ones after you’re no longer here. Just remember that there’s a degree of risk involved with investing. Plus, proceeds may be subject to estate taxes and probate.
• Accidental death & dismemberment insurance (AD&D). Like the name suggests, AD&D is a type of supplemental life insurance that provides coverage to your beneficiaries if you’re killed or seriously injured in a type of accident that’s covered in the policy.
• Annuities. An annuity guarantees a certain amount of income each month during retirement. Here’s how it works: You pay into an annuity for a predetermined number of years. After that, the insurance company pays you back the money in monthly installments. Note that some annuities charge fees, and if you pass away prematurely, the value of the annuity might decrease.
The Takeaway
Life insurance can be a challenging topic to dig into. But take heart: Part of what makes it seem complex is that it’s designed to meet the needs of so many very different people. Whatever the specifics of your situation and lifestyle, there is probably a policy that can give you peace of mind.
By acquainting yourself with the basic concepts, terms, and processes, you’re now ready to go out and find a life insurance policy that will let you know your loved ones will be well-provided for if a worst-case scenario occurred (though we sure hope it doesn’t!).
SoFi has partnered with Ladder to offer competitive term life insurance policies that are quick to set up and easy to understand. Apply in just minutes and get an instant decision. As your circumstances change, you can update or cancel your policy with no fees and no hassles.
Explore your life insurance options with SoFi Protect.
FAQ
How is life insurance paid out?
Generally speaking, life insurance is paid out in a few different ways. It can be distributed as a lump sum, through a retained asset account, or by way of a life insurance annuity. Contact your insurer to find out which options are available.
Why is life insurance worth it?
Life insurance can provide the policyholder peace of mind that their loved ones are financially protected after they pass away.
How long do you have to pay life insurance before it pays out?
It depends on your plan. Some plans have a waiting period before coverage begins. If you die during that window, your beneficiaries only receive a refund on the premiums you’ve paid.
Can you use life insurance money for anything?
Yes. Once your beneficiaries receive the death benefit, they can generally use the money however they wish.
Coverage and pricing is subject to eligibility and underwriting criteria.
Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers- for further details see ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products.
Ladder, SoFi and SoFi Agency are separate, independent entities and are not responsible for the financial condition, business, or legal obligations of the other, Social Finance. Inc. (SoFi) and Social Finance Life Insurance Agency, LLC (SoFi Agency) do not issue, underwrite insurance or pay claims under Ladder Life™ policies. SoFi is compensated by Ladder for each issued term life policy.
SoFi Agency and its affiliates do not guarantee the services of any insurance company.
All services from Ladder Insurance Services, LLC are their own. Once you reach Ladder, SoFi is not involved and has no control over the products or services involved. The Ladder service is limited to documents and does not provide legal advice. Individual circumstances are unique and using documents provided is not a substitute for obtaining legal advice.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Where you live can play a major role in how enjoyable your retirement is. So, where do the happiest retirees reside? To determine which cities in the U.S. are the happiest places to retire, we studied the 200 largest metropolitan statistical areas (MSAs) using the latest U.S. Census Bureau population estimates, and consulted multiple sources, including the Sharecare Community Well-Being Index, Tax Foundation, Walk Score, Sperling’s Best Places, and County Health Rankings & Roadmaps.
By identifying key elements that contribute to happiness — social networks, financials, and health — and examining 13 pivotal rankings within them, such as community, cost of living, and healthcare access, we created the Happiest Places to Retire in the U.S. in 2024. Read on to learn about the 20 best places to retire in the U.S. to help you explore your options for where to live in retirement.
Key Findings on Retirees’ Favorite Cities
• Barnstable, MA is the happiest city to retire to, ranking #1 of all 200 cities we analyzed. It has the highest ranking overall for community well-being, and one of the highest percentages of residents who are 65-plus. The other cities at the top of the list: Naples, FL at #2, and Ann Arbor, MI at #3.
• Colorado has the highest number of happiest cities for retirees on our top 20 list, beating out Florida. Boulder, CO is the #5 happiest city for retirees, and Fort Collins and Denver also made the list.
• Colder climates are now attracting retirees. Three of our top 5 cities for retirement (Barnstable, MA; Ann Arbor, MI; and Boulder, CO) have average high winter temperatures in the 30s or 40s.
• Naples, FL residents live the longest. The city has the highest average life expectancy (86.1 years) of all 200 cities we analyzed.
• Ann Arbor, MI, has the lowest tax burden for retirees on our top 20 list, followed by Myrtle Beach and Charleston in South Carolina. Meanwhile, Akron, OH has the lowest cost of living of the top 20 cities for retirees, 80.8% of the U.S. average.
Top 20 Happiest Cities to Retire
Looking for information on the happiest places to live after retirement? Whether you dream of an ocean breeze or mountain views, you have plenty of cities to consider.
The top 20 happiest cities for retirees offer a broad range of activities, amenities, and resources. They’re also located all across the nation, as shown in this map of the top 10, so you can find a place in the part of the country you’d most like to live in.
1. Barnstable, MA
Coming in at the top of the happiest cities to retire in the U.S. list is Barnstable. Located on Cape Cod, its beachside beauty attracts retirees, making it one of the top three cities for residents 65 and up. While living here can be expensive (the median household income is $91,438) and there’s less access to healthcare than the other top contenders have, residents enjoy a high level of social interaction and plenty of entertainment and activities.
2. Naples, FL
Those who want to live by the water and enjoy warmer weather can head south to Naples. The cost of living in this city is fairly reasonable, and there’s no state personal income tax, which means your retirement savings can go a lot further. Naples also has the highest life expectancy (age 86.1) of all 200 cities we analyzed.
3. Ann Arbor, MI
Want to enjoy city life without the high prices? Ann Arbor, a college town, has plenty of big city amenities at an affordable price point. Another draw for retirees: Ann Arbor residents enjoy the highest level of healthcare access of the cities on our list, and ranks #1 for health overall.
4. Durham, NC
Friendship and social interaction are important in retirement. Durham, one of the top cities to retire in the U.S., offers a strong sense of community and social well-being, according to the data. Residents will find plentiful healthcare in Durham as well. It ranks #2 out of the top 20 for healthcare access.
5. Boulder, CO
If you like to hit the slopes, Boulder may be the ideal location for your retirement years. The city is #3 on the top 20 list for housing and transportation, so you should be able to find the right place to live and get around easily.
6. North Port, FL
North Port is the second Florida city to make the top 20 list of the happiest places to live in the U.S. Community and social connection is high here, and there’s a sizable population of those aged 65 and up, making it easier to meet new friends. It also has one of the lowest tax burdens among the top 20 cities.
7. Olympia, WA
Retirees who want to live affordably on the west coast can check out scenic Olympia, WA. It ranks as #1 in the financial category, which takes into account factors such as cost of living and household income. It’s also one of the best states to retire in for taxes, which can help retirees stretch their savings. Olympia has the lowest number of residents living below the poverty level of all 200 cities we analyzed.
8. San Jose, CA
Retirees in San Jose enjoy the second-highest average life expectancy (after Naples, FL) of the 200 cities we studied, making it one of the top places for a long and healthy retirement. But there’s a tradeoff: The cost of living in San Jose is extremely high: a whopping 231% of the U.S. average.
9. San Luis Obispo, CA
If being in a comfortable environment is one of your top retirement priorities, look no further than San Luis Obispo. Along with San Jose, the city scored the highest level of comfort for retirees on our top 20 cities list, thanks to its temperate weather.
10. Madison, WI
A low average cost of living plus a high median household income ($83,214) make Madison not only one of the happiest places to live in retirement, but also one of the most affordable. In this relatively walkable city, you can save on transportation costs and live a healthier lifestyle.
Recommended: Average Retirement Savings By State
11. Honolulu, HI
Honolulu combines great weather, pristine beaches, and big city living. It gets high scores for comfortable weather and transportation. And Honolulu has some of the highest scores for social factors and community. Retiring in paradise comes at a price, however — namely, the city’s high cost of living (171.5% of the U.S. average).
12. Salisbury, MD
Salisbury, in the Eastern Shore area of Maryland, is a popular place for retirees. More than a quarter of the population is 65 and over, which means you should have plenty of peers to socialize and do activities with.
13. Washington, DC
If you’re interested in history and culture, Washington D.C. might be a good fit. And many of the city’s major attractions are free of charge. The nation’s capital is also the most walkable city on our top 20 list of the happiest places to live after retirement, so you’ll save on transportation as you get your steps in.
14. Portland, ME
In this city on the coast, you can enjoy all that the ocean has to offer plus metropolitan amenities. Portland ranks as one of the best cities to retire in when it comes to community, and it also has abundant options for art, recreation, and entertainment, which can help you stay happily busy in retirement.
15. Myrtle Beach, SC
Retirees settle down in this popular travel destination to take advantage of the reasonable cost of living and low tax burden. They also love the miles of beaches, plentiful golf courses, and comfortable weather. Myrtle Beach has the 4th highest population of people age 65-plus.
16. Harrisburg, PA
The capital city of Pennsylvania is an affordable place to retire. It has a low cost of living, which means the city’s average median income of $73,739 can go farther. Fewer people live below the poverty line here than in many other cities. Retirees can be active here as well: Harrisburg ranks as #2 of our top cities when it comes to walkability.
17. Fort Collins, CO
If you love the great outdoors, this city, located at the foot of the Rocky Mountains, has a lot to offer. All those outside adventures come with some nice health perks: Fort Collins has one of the higher life expectancies of our 20 top cities for retirees.
18. Denver, CO
Where is the happiest place to retire? It might just be the state of Colorado. Denver is the third Colorado city to make the top 20 list of happy places for retirees to live. Denver has a high level of community and social well-being, which could make retirement a lot more fulfilling. It’s very walkable, too, coming in at #5 out of the top 20 in the walking category.
19. Akron, OH
With the lowest cost of living (80.8% of the U.S. average) of the 20 best cities, Akron offers retirees affordability plus many opportunities for social and community connection. That can make it easier to make new friends in retirement.
20. Charleston, SC
A vibrant cultural scene, great food, ocean access, and lovely architecture make Charleston one of the best places to retire in 2024. Charleston ranks #2 for art, recreation, and entertainment out of the 200 cities studied, following only Los Angeles, so you’ll find plenty to do here in your golden years. And the tax burden is one of the lowest on our 20 happiest cities list.
Best Places to Retire for a Happy Retirement
Want to consider some of the different places that could make for a very happy retirement? The map below shows the top five cities out of the 200 analyzed in each of the three key categories that contribute to happiness: social, financial, and health.
200 Cities Studied for Happiest Places to Retire
Reviewing the full list of 200 cities studied for the Happiest Places to Retire can reveal additional great options for retirement. For example, following Naples, FL, the next three cities with the highest life expectancy — San Jose, CA, San Francisco, CA, and New York, NY — are all bustling, well-populated cities that also rank highly for community and social factors. Take a look at what cities across the U.S. have to offer.
Overall Rank
City
Total Score
Social rank
Financial Rank
Health Rank
1
Barnstable, MA
62.05
1
6
120
2
Naples, FL
61.43
2
18
32
3
Ann Arbor, MI
61.40
64
14
1
4
Durham, NC
57.56
57
13
2
5
Boulder, CO
56.95
21
16
13
6
North Port, FL
56.77
4
37
129
7
Olympia, WA
56.46
32
1
88
8
San Jose, CA
55.52
5
113
7
9
San Luis Obispo, CA
55.18
9
11
41
10
Madison, WI
55.13
84
5
11
11
Honolulu, HI
54.82
7
71
12
12
Salisbury, MD
54.70
11
3
177
13
Washington DC
54.33
23
17
19
14
Portland, ME
53.86
17
35
22
15
Myrtle Beach, SC
53.66
8
20
181
16
Harrisburg, PA
52.39
50
24
24
17
Fort Collins, CO
52.11
34
19
80
18
Denver, CO
52.03
86
9
33
19
Akron, OH
51.64
55
10
69
20
Charleston, SC
51.62
37
55
30
21
Manchester, NH
51.49
47
22
58
22
Seattle, WA
51.44
19
101
15
23
Minneapolis, MN
51.22
48
26
28
24
Richmond, VA
50.56
24
46
40
25
Bridgeport, CT
50.52
25
83
8
26
Daphne, AL
50.50
31
12
171
27
Des Moines, IA
50.49
106
2
158
28
San Francisco, CA
50.42
6
172
4
29
Santa Rosa, CA
50.11
14
81
43
30
Raleigh, NC
50.08
45
42
56
31
Prescott Valley, AZ
49.92
3
118
193
32
Oxnard, CA
49.38
16
78
49
33
Asheville, NC
49.35
10
125
57
34
Bremerton, WA
49.22
22
52
108
35
Boston, MA
49.18
33
139
6
36
Colorado Springs, CO
49.18
95
7
141
37
Pittsburgh, PA
49.14
35
82
47
38
Portland, OR
49.03
58
96
14
39
Hartford, CT
49.02
62
36
16
40
Omaha, NE
49.00
87
25
37
41
St. Louis, MO
48.88
56
73
36
42
Lancaster, PA
48.80
46
48
74
43
Chattanooga, TN
48.79
43
53
122
44
Appleton, WI
48.78
41
30
128
45
Sioux Falls, SD
48.48
92
34
83
46
Salt Lake City, UT
48.42
125
23
25
47
Charlotte, NC
48.40
38
61
90
48
Allentown, PA
48.35
52
43
42
49
Crestview, FL
47.95
61
15
183
50
Cape Coral, FL
47.88
13
119
110
51
New Haven, CT
47.81
73
65
9
52
Austin, TX
47.76
123
40
48
53
San Diego, CA
47.73
27
103
29
54
Peoria, IL
47.60
66
27
91
55
Tucson, AZ
47.56
69
59
67
56
Green Bay, WI
47.33
80
33
92
57
Lexington, KY
47.28
94
79
31
58
Deltonah, FL
47.24
18
58
198
59
Reno, NV
47.08
44
67
117
60
Tyler, TX
47.07
127
28
99
61
Ogden, UT
47.07
101
8
160
62
Santa Cruz, CA
46.99
12
147
27
63
Atlanta, GA
46.97
54
100
60
64
York, PA
46.96
53
49
112
65
Palm Baye, FL
46.89
20
84
182
66
Boise City, ID
46.89
96
32
98
67
Grand Rapids, MI
46.89
140
39
55
68
Cincinnati, OH
46.77
71
74
63
69
Wilmington, NC
46.53
40
105
79
70
Canton, OH
46.52
100
29
131
71
Fargo, ND
46.49
154
21
71
72
Savannah, GA
46.37
107
63
59
73
Provo, UT
46.20
135
4
175
74
Norwich, CT
46.08
49
31
115
75
Roanoke, VA
46.05
28
123
46
76
Baltimore, MD
45.92
29
120
68
77
Philadelphia, PA
45.91
63
109
44
78
Nashville, TN
45.89
99
68
105
79
Anchorage, AK
45.87
136
87
86
80
Indianapolis, IN
45.73
119
44
95
81
Sacramento, CA
45.72
42
98
50
82
Trenton, NJ
45.67
70
110
18
83
Lincoln, NE
45.63
103
38
93
84
Port St. Lucie, FL
45.51
15
126
173
85
Albany, NY
45.48
60
62
38
86
Vallejo, CA
45.16
36
97
89
87
Louisville, KY
45.03
117
47
106
88
Worcester, MA
44.90
82
94
51
89
Virginia Beach, VA
44.90
83
70
64
90
Huntsville, AL
44.81
77
60
142
91
Chicago, IL
44.70
79
107
26
92
Kalamazoo, MI
44.57
149
64
70
93
Poughkeepsie, NY
44.47
90
54
45
94
Spokane, WA
44.35
113
51
111
95
Eugene, OR
44.29
68
108
81
96
Columbia, SC
44.22
105
91
104
97
Kansas City, MO
44.13
75
88
103
98
Phoenix, AZ
43.94
89
104
85
99
Jacksonville, FL
43.71
67
102
152
100
Salinas, CA
43.70
85
86
66
101
Little Rock, AR
43.63
144
80
61
102
Dallas, TX
43.55
130
90
97
103
Cleveland, OH
43.47
139
142
10
104
Greenville, SC
43.41
118
106
75
105
Lansing, MI
43.35
150
56
125
106
Rochester, NY
43.26
114
93
20
107
Cedar Rapids, IA
43.25
104
50
161
108
Winston, NC
43.23
91
116
73
109
Greeley, CO
43.15
141
41
162
110
Detroit, MI
43.15
72
122
116
111
Reading, PA
42.88
76
117
87
112
Fort Wayne, IN
42.52
152
45
168
113
Dayton, OH
42.43
111
95
127
114
Davenport, IA
42.37
110
77
139
115
Atlantic City, NJ
42.26
39
131
100
116
Fayetteville, AR
42.17
122
75
151
117
Santa Maria, CA
42.11
59
134
53
118
Evansville, IN
41.59
161
57
144
119
Knoxville, TN
41.58
74
138
149
120
Oklahoma City, OK
41.21
148
89
150
121
Milwaukee, WI
41.18
98
141
54
122
South Bend, IN
41.14
145
85
167
123
Hagerstown, MD
40.26
81
112
179
124
Columbus, OH
40.23
166
72
137
125
Ocala, FL
40.11
26
153
199
126
Birmingham, AL
39.94
65
159
107
127
Montgomery, AL
39.91
134
92
189
128
Rockford, IL
39.80
143
76
157
129
Pensacola, FL
39.44
133
121
153
130
New York, NY
39.32
51
184
5
131
Syracuse, NY
39.27
137
124
35
132
Killeen, TX
39.26
186
69
114
133
Lynchburg, VA
39.22
155
66
174
134
Buffalo, NY
38.98
128
128
39
135
Wichita, KS
38.67
97
135
163
136
Tallahassee, FL
38.65
147
132
134
137
Providence, RI
38.62
112
167
34
138
Los Angeles, CA
38.60
30
187
23
139
Kennewick, WA
38.45
151
127
123
140
Flint, MI
38.34
171
111
156
141
Orlando, FL
38.33
153
155
72
142
Tulsa, OK
38.31
174
99
169
143
Las Vegas, NV
38.31
121
146
135
144
Salem, OR
38.25
138
130
133
145
Duluth, MN
38.21
116
136
126
146
Erie, PA
37.91
126
137
154
147
Springfield, MA
37.88
115
162
62
148
Hickory, NC
37.71
93
140
194
149
Tampa, FL
37.66
102
174
77
150
Albuquerque, NM
37.59
146
157
65
151
Gainesville, FL
37.58
178
182
3
152
Huntington, WV
37.41
88
161
159
153
Toledo, OH
37.11
168
144
82
154
Scranton, PA
37.05
109
156
143
155
Jackson, MS
36.89
175
148
76
156
Amarillo, TX
36.78
142
149
176
157
Kingsport, TN
36.67
158
133
190
158
Springfield, MO
36.65
164
129
165
159
Youngstown, OH
36.63
78
158
188
160
Houston, TX
35.66
179
164
52
161
Binghamton, NY
35.66
162
114
124
162
Charleston, WV
34.97
132
168
138
163
San Antonio, TX
34.88
184
152
94
164
Waco, TX
34.80
176
143
170
165
Greensboro, NC
34.68
108
175
148
166
Augusta, GA
34.56
120
176
145
167
New Orleans, LA
34.48
172
181
21
168
Utica, NY
34.17
167
115
155
169
Memphis, TN
34.17
182
160
130
170
Lubbock, TX
33.95
183
166
84
171
Lakeland, FL
33.94
124
173
178
172
Stockton, CA
33.82
156
154
146
173
Riverside, CA
33.53
129
169
121
174
Macon, GA
33.03
163
180
101
175
Spartanburg, SC
32.77
131
177
185
176
Longview, TX
31.85
185
150
191
177
Miami, FL
31.74
157
192
17
178
Baton Rouge, LA
31.69
181
170
136
179
College Station, TX
30.49
193
165
96
180
Tuscaloosa, AL
30.35
165
179
180
181
Clarksville, TN
30.17
189
145
200
182
Mobile, AL
29.95
170
185
113
183
Shreveport, LA
29.22
177
191
78
184
Fayetteville, NC
28.42
187
171
184
185
Fort Smith, AR
27.72
159
186
196
186
Beaumont, TX
27.36
197
151
195
187
Gulfport, MS
27.33
173
183
197
188
Fresno, CA
26.58
188
178
119
189
Corpus Christi, TX
26.09
192
189
102
190
Modesto, CA
26.05
169
190
147
191
Visalia, CA
25.28
196
163
166
192
Columbus, GA
24.08
160
193
192
193
Lafayette, LA
23.64
180
196
109
194
Bakersfield, CA
21.84
190
188
186
195
Merced, CA
18.10
191
194
187
196
Yakima, WA
17.32
195
195
164
197
El Paso, TX
8.56
194
198
118
198
McAllen, TX
3.30
200
197
132
199
Brownsville, TX
2.10
198
199
140
200
Laredo, TX
-3.32
199
200
172
Tips for a Happy Retirement
You’ve worked hard, now it’s time to enjoy yourself! These smart strategies can help you find happiness in retirement.
• Create a budget. You may have fewer expenses when you’re retired, but you’ll still need a roadmap for managing them. This is where retirement planning and a budget come in handy. If you are already retired, create a budget that works well for your retirement income. If retirement is still in the future, map out a plan to see how much you’ll need to save to be properly prepared.
• Keep tabs on your retirement savings. Don’t forget to check on your retirement savings regularly to ensure that you’re on track financially. And, of course, make sure you have retirement savings accounts like a 401(k) or a traditional or Roth IRA to help you reach your goal.
Don’t yet have a retirement account? Learn how to set up your own retirement account.
• Prioritize health and wellness. To be at your best, strongest, and happiest in retirement, prioritize your physical and mental health with regular exercise, a balanced diet, and lots of social interaction.
• Pursue your passions. Don’t let retirement slow you down. You can pursue your favorite hobbies, work on fulfilling and meeting your top ambitions and challenges, and do the activities you’ve always wanted to try now that you have the time and freedom for them. When choosing among the best retirement cities, be sure to look for places that cater to your interests.
Methodology
To find the happiest cities for people to retire in the U.S., we looked at the 200 largest metropolitan statistical areas (MSAs) based on the U.S. Census Bureau’s 2022 population estimates for 13 ranking factors across three categories (Social, Finance, and Health).
We graded each factor on a 100-point scale, where 100 was the highest possible score. Each factor was weighted differently.
Socioeconomic Score Factors
• Community well-being
• Social well-being
• Comfort index*
• Percentage of population age 65 and over
• Percentage of art, recreation, and entertainment businesses
Financial Score Factors
• Housing & transportation
• Cost of living index*
• Median household income
• Percentage of people aged 65 and over living below poverty level
• Tax burden**
Health Score Factors
• Healthcare access
• Life expectancy
• Walk Score*
*Data represents city proper data (excluding surrounding metro). **Data represents state level data.
Sources: U.S Census Bureau, Sharecare Community Well-Being Index, Walk Score, Tax Foundation, County Health Rankings & Roadmaps, Sperling’s Best Places.
The Takeaway
When you’re ready to retire, choosing where to settle down is a big and important decision. Exploring our list of top 20 happiest places is a great place to start. You can look for cities that offer affordability, good access to healthcare, entertainment and cultural activities, and opportunities for making social and community connections.
And to ensure that your retirement is as happy and stress-free as possible, you’ll want to have your retirement savings in order. Contributing to your 401(k) or IRA can help you build the retirement nest egg you’ll need.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
Invest with as little as $5 with a SoFi Active Investing account.
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Verification, Lien Release Products; Relying on Interest Rate Predictions? STRATMOR Outlook
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Verification, Lien Release Products; Relying on Interest Rate Predictions? STRATMOR Outlook
By: Rob Chrisman
Thu, Jan 4 2024, 11:00 AM
“My dad always said to me, ‘Work until your bank account looks like a phone number’ so I did. Account balance: $9.11.” You can work harder, or you can work smarter. (I have severe doubts about the validity of this clip; it gave me the willies watching it.) Swimming is certainly a competitive sport. Do you have competitors? Most businesses do. Which is a reason that hotels offer free ice, thanks to a hotel chain that began in Memphis, TN. If the Mortgage Bankers Association is right, and volume does pick up some in 2024, that doesn’t mean the competition to do that business is going to go away. Numbers game. 5 calls, 25 a week, one closed loan $4k, two loans $8k. At these rates, less competition. If rates come down, competition for inventory just increases. (Today’s podcast can be found here, and this week’s is sponsored by the STRATMOR Group, the data-driven mortgage advisory. At STRATMOR, insights and knowledge are applied to guide mortgage clients to make sound strategic decisions and take actions that improve their success. Hear an interview with the STRATMOR Group’s Garth Graham on if industry forecasts for a better market should lead to industry optimism.)
Broker and Lender Programs and Software
Servicers know how much work it takes to release a lien once a mortgage has been paid off. That’s why they’re turning to the new Automated Lien ReleaseSM (ALR) capability in the ICE MSP® servicing system to help lighten the load at the end of a loan. ALR combines document creation and automated workflows to streamline the lien release process. It helps with eSigning and eRecording where available (and prints the release package for wet sign where it’s not) to help servicers cut through the delays and release liens faster. Read the press release to see how you can start releasing fully paid liens in days instead of weeks.
Truv is now an approved third-party service provider supporting Freddie Mac Loan Product Advisor® asset and income modeler (AIM) Revolution Mortgage estimates that they can save up to $20,000 in cost on verifications with TRUV over competitors. “Let’s talk about our documentation costs and those giant monopolies that are out there and laughing at customers and increasing prices because they have a particular monopoly. You want to lower your manufacturing costs” said Femi Ayi, EVP Operations. Contact TRUV today to discuss how we can help you with your income, employment, insurance, and asset verifications. Come join us!
Be Wary of Relying on Interest Rate Predictions
I am asked all the time, “Hey Rob, where do you think rates will be in six months?” My answer, after I say that I can’t even predict where I’m going to have lunch tomorrow, is always the same, “Higher, or lower, or possibly the same.” Or sure, one can have a prediction until a ship becomes stuck in the Suez Canal, a ship is attacked in the Red Sea, or a pandemic occurs. A recent STRATMOR blog is titled, “Interest Rates are Like the Weather? Or Like Signs of the Zodiac?”
The interest rate markets have a way of humbling almost all the ‘experts’ and the very first thing you learn in Secondary Marketing is that you shouldn’t take a view on where rates are headed because half the time, you’re wrong anyway. In Q4 of 2022 the arm-chair prognosticators were predicting that we’d see rates come down by the end of 2023. After reaching a peak in October, Treasury rates did come down to where they were at the beginning of 2023. But mortgage rates were well into the 7 percent range.
The Federal Reserve, in its attempts to control inflation and cool a very strong economy, raised fed funds several times in 2023. Throughout the year, however, we heard, inside the world of mortgage banking, opinions expressed that rates will not only come down, but when to expect this to happen. Based upon what data, one should ask, are their views speculative, biased, or just hopeful?
I would challenge these prognosticators as to the reasons why mortgage rates are positioned to fall. What leads them to predict that? I’m sure some opinions are based on fundamentals: Fed raises rates to control inflation, money is taken out of the economy, the economy cools, Fed cuts rates, and mortgages come down to some predicted level. A lot of the predictions I see are not rooted in actuality, but rather rooted in exuberance for mortgage banking.
In the summer of 2023, little of the macro data even hinted at a reduction of short-term interest rates. Inflation, which has been grinding lower, was a tad north of 4 percent with the Federal Reserve’s target set at 2 percent. Economists have modeled that unemployment would need to reach as high as 7 percent in order for inflation to come down to 2 percent… Not a pretty picture. Remember, when an economy ‘slows’ jobs are not created, historically they’re lost.
The Fed was relatively “hawkish” in its monetary policy for the remainder of 2023 until the end. Anyone predicting where interest rates will be in the future would need to start by predicting where the Federal Funds rate NEEDS to be in order to see inflation that’s appealing to the Fed, and then ultimately, HOW LONG rates needs to remain there; when is it warranted to reduce borrowing rates under recessionary fears? These are two almost impossible questions to answer since the number of variables that you need to get right, coupled with unpredictable world events, play such a strong role in forecasting interest rates.
A year from now, rates will either be higher, lower or the same. So, focus on your products and services!
Capital Markets
Ever wondered how to hedge a mortgage pipeline? Hedging one’s mortgage pipeline typically produces the greatest return over long-term macroeconomic cycles, which is why it is considered an essential step in the growth of a mortgage lender. In MCT’s whitepaper, Mortgage Pipeline Hedging 101, their experts explain what hedging is and why it is a valuable strategy for maximizing profitability in the secondary market. The whitepaper also reviews information on moving to mandatory loan sales, the strategy of hedging, the benefits of hedging, and how to determine if you are ready. Download the whitepaper or join MCT’s newsletter for upcoming releases.
Turning to interest rates, what’s that you say? Markets have gotten ahead of the Fed again? Gasp! Yes, markets aren’t looking all that cheerful in the new year. I don’t put much opinion in here, but I’d say it’s because of investors’ own doing. The added potential for interest rates to stay high for some time is forcing investors to continue to unwind optimistic trades placed in late 2023. The Federal Reserve’s policy makers poured water on predictions of early 2024 interest rate cuts, revealed the minutes from the most recent Federal Open Market Committee meeting, with several voting members seeing the potential for the fed funds rate range to stay at a peak level for longer than the market expects.
Policymakers did acknowledge that we are probably at the peak of rates and that projections show cuts by year-end. Richmond Fed President Barkin cautioned that the potential for more rate hikes remains alive, called a soft landing “increasingly conceivable but in no way inevitable,” and added that any decision on a March cut is a “long way away.” Staff projections point to rate cuts by the end of 2024, but officials do not seem to be supportive of a series of cuts at this time.
The minutes from the Federal Open Market Committee meeting hinted at hard landing concerns amongst board members while recognizing that they could “face a tradeoff between its dual-mandate goals in the period ahead.” Fortunately, there were more indications of optimism about inflation, which is supported by the latest jobs data showing cooling.
U.S. job openings fell in November to 8.79 million in November, the lowest level since early 2021 as fewer workers voluntarily quit and the number of hires fell. People who voluntarily left their jobs as a share of total employment fell to the lowest point since September 2020, signifying that Americans are feeling less confident in their ability to find new jobs or better paying jobs in the current market.
Separately, we also learned yesterday that the December ISM Manufacturing PMI indicated an ongoing contraction in the manufacturing sector, but at a slower pace than the previous month. December marked the 14th straight month the PMI reading has been in contractionary territory. The report was not devoid of good market news, as the Prices Index reflected a further easing of inflation pressures.
Today’s calendar sees some early labor market indicators ahead of tomorrow’s payrolls report. Markets have already received December job cuts from Challenger, Gray & Christmas (34,817 cuts in December, down 24 percent from the 45,510 cuts announced in November) as well as ADP employment for November (164k, higher than expected), and initial (202k, down from 218k) and continued (1.855 million) jobless claims. Later today brings the final December S&P Global services PMI, Treasury announcing the details of next week’s mini-Refunding (consisting of $52 billion 3-year notes, $37 billion reopened 10-year notes, and $21 billion 30-year bonds), and Freddie Mac’s Primary Mortgage Market Survey. We begin the day with Agency MBS prices worse .125-.250, the 10-year yielding 3.98 after closing yesterday at 3.91 percent, and the 2-year at 4.36 after a spate of employment data.
Employment
It’s a new year and Merchants Bank, is off and running, continuing to leverage its diversified business model to grow market share and assist Merchant’s lending partners. Merchants Bank’s Correspondent channel, offering Non-Delegated and Delegated options, recently hired Liberty Tribe as Sales Executive to help grow TX and the Mid South Region. Liberty along with Dan Hastings, CMB, AMP cover the Mid-South (TX, LA, AR, MO, OK, KS). In addition, Merchants is expanding its Financial Institutions channel by adding a Mini-Correspondent offering to their TPO Wholesale platform. If you are interested in learning more, contact Rob Wilson. On the Retail front, Merchants Bank continues to grow there as well and if you are looking for stability, support and products, they want to hear from you. Contact Ron Berry for more information. Their LO centric platform along with the strength and balance sheet of the bank allows them to expand market share in their regional markets.
Planet Home Lending’s new Vice President, Construction Sales Melony Harpe is paving the way for Planet MLOs to increase their construction loan volume in 2024. Interested in building your construction business? Join Planet and you’ll have support for calls with builders, resolving construction issues, and educating stakeholders. “I want MLOs and retail branches to feel confident and supported in their construction lending efforts,” Harpe said. “My role is to give MLOs the tools and resources needed to navigate the complexities of construction lending and expand their connections with builders.” To lay the foundation for a better 2024, contact VP of Talent Peter Briggs or 949-202-8213; all inquiries will be held in strict confidence.
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November home sales dropped from October levels, posting the lowest median sales price in eight months, according to the RE/MAX National Housing Report for November 2023. The report revealed the number of homes for sale also fell slightly.
Indicative of the usual year-end slowdown, home sales in November dropped by 9.8% compared to October and declined 6.5% versus the same period last year. This decline can also be attributed to rising interest rates most of this year and last. Interest rates have decreased over the last two months, which could result in more activity in the market.
The number of homes for sale changed slightly – dropping 1.6% from October and declining 2.6% compared to November 2022.
Across the 52 metro areas surveyed, homes sold for a median price of $405,000, which was $5,000 less than in October but $13,000 higher than in November 2022. New listings, though up 1.5% year over year, were down 19.1% from October.
Key Findings:
Homes sold were on the market an average of 40 days–four days longer than in October and one day more than in November 2022.
Homes sold in November for an average of 99% of the listing price–the same as in October and up from 98% in November 2022.
Months’ supply of inventory in November was 2.6, larger than 2.3 in October and 2.5 in November 2022.
“Although November results are in line with trends we’ve seen this year, there’s reason to think 2024 could be more active, especially with prices and interest rates coming down a bit recently,” said Nick Bailey, President and CEO of RE/MAX, LLC. “When we look at the national picture, it’s a collection of local snapshots, each with different conditions. As the report shows, new listings in a few markets, including Omaha and Orlando, were up more than 25% year over year, while they decreased in others. So, while the results tell an overall story, the key for homebuyers and sellers is to work with a local real estate agent who can speak to the unique local conditions.”
Steve Silcock, Broker/Owner of RE/MAX Heritage in Clermont, FL, said, “November inventory in the Orlando area increased for the sixth month in a row to bump up months’ supply to a level not seen since January 2019. But we are still well below what many consider to be a balanced market, and median home prices are down slightly. However, December activity to date looks promising, especially in our retirement markets, and considering the recent drop in interest rates and the change in tone from the Federal Reserve, we are really looking forward to what we hope will be a strong and exciting 2024.”
New Listings
Of the 52 metro areas surveyed in November 2023, the number of newly listed homes was down 19.1% compared to October 2023 and up 1.5% compared to November 2022. The markets with the biggest decrease in year-over-year new listing percentage were Anchorage, AK, at -20.3%, Birmingham, AL, at -12.7%, and Honolulu at -11.5%. The markets with the biggest year-over-year increase in new listings percentage were Omaha, NE, at +33.2%, Burlington, VT, at +25.9%, and Orlando, FL, at +25.2%.
Closed Transactions
Of the 52 metro areas surveyed in November 2023, the overall number of home sales is down 9.8% compared to October 2023 and down 6.5% compared to November 2022. The markets with the biggest decrease in year-over-year sales percentage were Burlington, VT, at -19.1%, Portland, OR, at -17.1%, and Seattle at -15.9%. The markets with the biggest increase in year-over-year sales percentage were Manchester, NH, at +9.2%, Omaha, NE, at +6.5%, and Orlando, FL, at +4.9%.
Median Sales Price
In November 2023, the median of all 52 metro area sales prices was $405,000, down 1.2% compared to October 2023 and up 3.3% from November 2022. The markets with the biggest year-over-year decrease in median sales price were San Antonio, TX, at -5.7%, Coeur d’Alene, ID, at -3.7%, and New Orleans at -3.6%. The markets with the biggest year-over-year increase in median sales price were Trenton, NJ, at +15.5%, Des Moines, IA, at +15.1%, and San Diego at +12.7%.
Close-to-List Price Ratio
In November 2023, the average close-to-list price ratio of all 52 metro areas in the report was 99%, flat compared to October 2023, and up from 98% in November 2022. The close-to-list price ratio is calculated by the average value of the sales price divided by the list price for each transaction. When the number is above 100%, the home closed for more than the list price. If it’s less than 100%, the home sold for less than the list price. The metro areas with the lowest close-to-list price ratio had a three-way tie between Bozeman, MT, Coeur d’Alene, ID, and Miami at 95%. The metro areas with the highest close-to-list price ratios were Hartford, CT, at 103%, followed by a tie between San Francisco and Trenton, NJ, at 102%.
Days on Market
The average days on market for homes sold in November 2023 were 40, up four days compared to the average in October 2023 and up one day compared to November 2022. The metro areas with the lowest days on market were Baltimore at 13, Washington, DC, at 15, followed by a tie between Philadelphia and Trenton, NJ, at 16. The highest days on market averages were in Fayetteville, AR, at 86, Coeur d’Alene, ID, at 80, and Bozeman, MT, at 71. Days on market is the number of days between when a home is first listed in an MLS and a sales contract is signed.
Months’ Supply of Inventory
The number of homes for sale in November 2023 was down 1.6% from October 2023 and down 2.6% from November 2022. Based on the rate of home sales in November 2023, the month’s supply of inventory was 2.6, up compared to 2.3 in October 2023 and 2.5 in November 2022. In November 2023, the markets with the lowest months’ supply of inventory were Trenton, NJ, at 0.8 and Hartford, CT, at 1.0, followed by a tie between Manchester, NH, and Seattle at 1.1. The markets with the highest months’ supply of inventory were San Antonio at 5.3, followed by a tie between Bozeman, MT, and Miami at 4.8.
To read the full report, including more data, charts, and methodology, click here.
The real estate landscape is rapidly evolving, and technological advancements are reshaping the way properties are bought and sold. Virtual Reality (VR) has emerged as a game-changer in the industry, offering an immersive experience that goes beyond traditional marketing methods. Virtual Reality Tours are paving the way for a revolution in real estate marketing, providing potential buyers with a unique and interactive way to explore properties from the comfort of their homes. In this article, we will delve into the future of real estate marketing and the transformative impact that VR tours are having on the industry.
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The Rise of Virtual Reality Tours
Virtual Reality Tours in real estate involve creating a three-dimensional, computer-generated environment that users can explore. These tours enable prospective buyers to virtually “walk through” a property, gaining a realistic sense of the space and layout. This immersive experience allows users to examine details, such as room dimensions, finishes, and overall ambiance, fostering a deeper connection with the property. If you’ve ever been on Google Earth, it is like that but with the interior of a home you are thinking of buying.
Benefits for Buyers
Remote Exploration: VR Tours eliminate geographical barriers, allowing potential buyers to explore properties regardless of their location. This is particularly beneficial for international or out-of-town buyers who may find it challenging to visit properties in person.
Time Efficiency: Virtual Reality Tours save time for both buyers and sellers. Instead of physically visiting multiple properties, buyers can narrow down their options by virtually touring homes, streamlining the decision-making process. If buyers like what they see, then they can actually book a viewing of the home.
Immersive Experience: VR Tours provide a realistic and immersive experience, allowing buyers to visualize themselves in the space. This emotional connection can significantly impact their decision-making, increasing the likelihood of a successful sale.
Benefits for Sellers
Wider Reach: Virtual tours expand the reach of property listings. Sellers can showcase their homes to a global audience, attracting a diverse range of potential buyers who may not have considered the property through traditional marketing channels.
Time-Saving: Sellers benefit from reduced inconvenience associated with physical property visits. Virtual Reality Tours minimize the need for frequent open houses and private showings, streamlining the selling process.
Competitive Edge: Adopting VR technology gives sellers a competitive edge in the market. Properties that offer virtual tours stand out among listings, capturing the attention of tech-savvy buyers and potentially accelerating the sale process.
The Future Outlook
As technology continues to advance, the future of real estate marketing appears increasingly intertwined with virtual reality. The adoption of augmented reality (AR) is on the horizon, enabling potential buyers to virtually stage and customize spaces to suit their preferences. Additionally, advancements in VR hardware, such as more accessible and user-friendly headsets, will likely contribute to the widespread adoption of virtual tours.
Are you looking for a new home to match the new year? Give us a call today! The experienced real estate agents at Zoocasa are more than happy to guide you through this exciting process!
The landscape of real estate is undergoing significant transformations in 2024, driven by a confluence of technological advancements, shifting market dynamics and evolving consumer behaviors.
1. Technology 2024: Proptech challenges and profitability pursuit
The proptech sector, a technological cornerstone of the real estate space heavily reliant on venture capital, has encountered formidable challenges in the past year. The Federal Reserve‘s rate hikes and a general slowdown in venture capital investment have created a challenging environment, leading to layoffs and financial struggles for prominent companies. The housing market’s conditions, characterized by soaring prices and limited availability, have compounded these challenges.
As we enter 2024, proptech companies are likely to place an unprecedented emphasis on monitoring their balance sheets, with a sharp focus on immediate-term profitability. The year will unfold with a strategic shift in business models, emphasizing the expansion of product offerings and investments in consumer education to adeptly navigate the housing market slowdown. Technology is set to emerge as a crucial tool in such sectors as the rental segment, with the advent of online rental screening software, enhancing efficiency, rent payment reporting and thwarting fraudulent activities.
Despite uncertainties, optimism is likely to pervade the industry, with companies leveraging partnerships and eyeing potentially lucrative IPOs in the future. The resilience and innovation demonstrated by the formation of new companies underscore the sector’s potential to thrive in both adversities and favorable conditions.
The technology likely to have the biggest impact in 2024
Data-driven property management: Real-time insights into property performance optimize rents, maintenance schedules and tenant satisfaction.
Remote work: Technology enablement creates more flexibility and freedom.
Cybersecurity in real estate: Increasing investments protect sensitive property and financial data in the digital realm.
Artificial intelligence (AI) and predictive analytics: Revolutionizing decision-making with data-driven insights, predictive property values and investment opportunities, expediting the process by removing manual tasks.
Augmented reality (AR) and virtual reality (VR): Transforming property viewing experiences with virtual tours and enhanced property visualization.
2. The emergence of secondary markets will challenge the traditionally popular locales in 2024
In a notable departure from its traditionally local focus, more than ever real estate agents in local markets are needing to think more nationally as opposed to regionally. This shift is propelled by the increased migration of people, as evidenced by a variety of data points. RentSpree user statistics have showcased a significant spread of rental applicants across the nation. Between 2021 and 2023, approximately 17% of rental applicants sought housing in other states, reflecting an upward trend from 14% in 2020 and 12% in 2019. This trend is likely to intensify this coming year.
This nationalization is underpinned by two fundamental factors. First, housing affordability has plummeted to its lowest level in over 30 years. The combination of escalating home prices and rapid increases in borrowing costs has prompted individuals to explore housing options beyond their current locations. Secondly, remote and hybrid work options, increasingly prevalent since the pandemic, are becoming a permanent fixture of the professional landscape.
As we prepare for 2024, the challenges of affordability and the evolving nature of work will foster increased migration to secondary markets nationwide. This shift not only holds promise for relative affordability but also aligns with lifestyle preferences. The more nationalized approach to real estate will impact organizations supporting industry professionals and the individuals actively servicing the sector.
3. Multiple listing services need to become the source of truth for rentals
Multiple listing services (MLSs), traditionally recognized as the source of truth in the for-sale segment, will more so than ever face the imperative to extend this role to the rental market in 2024. The current absence of rental listings on most MLSs has significant repercussions, resulting in financial losses for both agents and tenants. More than 60% of rental properties are absent from MLSs, curtailing exposure and profitability for agents and landlords alike.
Advocating for standardized data for rental listings, diverse compensation models for agents and the provision of reliable and timely information for renters will be key, especially this coming year. Rentals will continue to play an increasingly important role in the real estate market and people’s lives given the severe affordability issues permeating the for-sale sector. The inclusion of rentals in MLSs stands to streamline the rental process, minimize delays and instill efficiency. The benefits extend to increased agent commissions, strengthened sales pipelines and a reduction in fraudulent activities.
Bright MLS, one of the largest MLSs nationwide, is leading the way and has integrated rental listings with commendable success. This proactive move serves as a testament to the positive outcomes achievable through aligning MLSs with the evolving dynamics of the real estate landscape.
4. Flourishing during challenging times: A tale of two (interconnected) markets
The prospects of homeownership in 2024 remain elusive for many. With rates hovering between 7% and 8% and single-family home prices still at record highs, the financial barriers to purchasing a house are and will continue to be formidable. The cost differential between buying and renting, with the former averaging 52% higher, underscores the financial challenges associated with homeownership.
In contrast, the rental market is emerging as a pivotal player, presenting increased choices and decreased competition for renters. Construction of new units, as highlighted by a recent Zumper National Rent Report, contributes to a market dynamic where prices will continue to decrease in numerous regions. As a result, the focus in 2024 further pivots towards the rental market, offering a lifeline to those seeking shelter as well as those servicing the housing market.
This paradigm shift in the real estate landscape presents a unique opportunity for real estate professionals. With the for-sale market navigating a precarious juncture marked by compensation lawsuits and affordability concerns, the emphasis in 2024 will be on generating leads and income through other avenues, such as the rental market. Rentals, therefore, will not just help to bridge the gap for agents during challenging times but also serve as an investment into the future for both new and seasoned real estate professionals.
5. Building a fairer financial future toward homeownership
With affordability as the primary concern heading into 2024, tools intended to support greater financial empowerment will continue to gain prominence this coming year. Rent payment reporting is one of the initiatives that will play a more prominent role in fostering a fairer financial future for all participants in the real estate ecosystem.
Major players in the mortgage industry, such as Fannie Mae and Freddie Mac, have initiated programs to incorporate rent payments into credit histories. Fannie Mae’s pilot program, extended until December 2024, signifies a commitment to exploring the far-reaching implications of including rent payment history in credit reporting.
This inclusion carries profound empowering potential, influencing loan approvals and addressing racial disparities prevalent in the housing market. As we chart the trajectory towards a more equitable financial future, additional private sector solutions are likely to emerge in 2024 and become instrumental in facilitating this transformative change.
In summary, the real estate landscape of 2024 is marked by a dynamic interaction of technological advancements, market dynamics and socioeconomic influences. The various trends mentioned above collectively shape a narrative of an industry undergoing constant change. Success in 2024 will hinge on the capacity to embrace change and capitalize on emerging opportunities.
Michael Lucarelli is the CEO and co-founder of RentSpree.
Are you looking for the best game apps to win money? Yes, you can actually play games to win real money on your phone and make extra money. There are lots of apps for both iPhones and Androids that let you do this. If you already spend a lot of time playing games on your…
Are you looking for the best game apps to win money?
Yes, you can actually play games to win real money on your phone and make extra money.
There are lots of apps for both iPhones and Androids that let you do this. If you already spend a lot of time playing games on your phone, then you might as well get paid for it, right?
In this article, I’m going to talk about some really good game apps that let you win actual money prizes. These games include ones like those you might find in a casino as well as easier puzzle games and even arcade style games. So, there’s something for everyone. When you play and collect points or coins, you can get your winnings through easy ways like PayPal and Apple Pay.
Key Takeaways
Playing game apps can be fun and you can even win real money.
The best game apps that pay real money include KashKick, Swagbucks, and InboxDollars.
Popular payout methods include PayPal, Apple Pay, and gift cards.
Game apps pay real money rewards because they make their money from ads and in-app purchases. They give you a portion of their earnings to encourage you to continue playing their games.
Do any game apps actually pay real money?
Yes, some game apps do pay real money or in gift cards. They most likely will never be a main source of income or a full-time job, though – simply just a way to make some extra money.
Why do game apps pay you real money?
Game apps that give out real money usually make money through ads, things you buy in the app, and paid gaming competitions/tournaments. They share a little of what they earn with you to get you to keep playing their games.
Sometimes, game apps have partnered with different game developers and companies so that people will try new games and earn rewards for them. Since the game app is being paid and they want more people to play the game, they then will share some of their earnings with you to get you to keep playing the games in their app.
It’s a win-win! You get to enjoy yourself and make some extra money, and businesses get to showcase their ads and games to a wider audience.
Recommended reading: 30 Best Money Making Apps
Best Game Apps To Win Real Money
Here’s a quick list of the top game apps that pay real cash:
KashKick
Swagbucks
InboxDollars
Below, I dive further into the best game apps to win real money.
1. KashKick
I think the best game app to win real money is KashKick.
KashKick allows you to earn $100 or more by playing popular mobile games like Yahtzee and Monopoly GO. You can also make money by trying new products and services, watching videos, answering surveys, and reading emails.
There are many different games you can play on KashKick such as:
Coin Master
Monopoly GO
Yahtzee
Family Island
Bingo Blitz
Scrabble Go
Solitaire Smash
MGM Slots
For example, here’s how you can make money playing Monopoly Go on KashKick: “Install (make sure to accept tracking requirements on your device!) and reach Board 27 within 8 days from the install date to get $30, reach Board 42 within 12 days for $40 more and reach Board 71 within 24 days for another $50 – for a total of $120!”
Please click here to sign up for KashKick for free.
Recommended reading: KashKick Review
2. Swagbucks
Another favorite game app to win real cash is Swagbucks.
Swagbucks is a very popular rewards site where you can earn money by playing games, taking surveys, watching videos, and shopping online, and you can cash out what you earn with PayPal cash or gift cards.
Swagbucks is a company that I started using years ago, and it has helped me easily earn some extra cash on the side, all from home or while traveling. I have personally earned over 100 free gift cards through Swagbucks, so I know that they are a legit game app that pays you real money!
To play games on Swagbucks, you simply head to the “Play” tab when you are logged in. When I logged in, I had over 20 available games that I could get paid to play, with a total rewards value of $2,264.02 or 226,402 SB points.
Some of the games you can play on Swagbucks include:
Match Masters
Farmville
Lucky Buddies
Dragonscapes Adventure
Wizard of Oz Slots
Solitaire Smash
POP! Slots
Dice Buddies
Swagbucks Live
If you join Swagbucks through my referral link, you can receive a $10 bonus.
Recommended reading: Swagbucks Review
3. InboxDollars
InboxDollars is another good rewards site that pays you cash for taking surveys, shopping online, playing games, and reading certain emails. In fact, InboxDollars has been around since 2000, and they have paid over $80 million in cash and gift cards.
They pay via PayPal cash as well as gift cards to places such as Amazon, Apple, Target, Dunkin’ Donuts, Lowe’s, Barnes & Noble, and Gap.
To play games on InboxDollars, simply head to the tab that says “Games.”
When I log in, I have 8 games available for me to currently play, such as Mahjong Dimensions, Solitaire, Word Wipe, Monkey Bubble Shooter, Pyramid Solitaire, Candy Jam, Pet Hop, and Giant Hamster Run.
Sign up for InboxDollars here and get a free $5 bonus.
4. PrizeRebel
PrizeRebel is a popular rewards site where you can play games (as well as take surveys that pay instantly and more). You can redeem your rewards points for PayPal cash, gift cards, and even cryptocurrency.
Some of the games on PrizeRebel include Bingo Blitz, Solitaire Grand Harvest, Age of Apes, Kingdom Guard, Yahtzee, Woody Sort, Viking Rise, and more.
You can sign up for PrizeRebel here.
5. MyPoints
MyPoints is a rewards platform where you can earn money by playing games, watching videos, and participating in surveys. Your earnings can be redeemed as gift cards or PayPal cash.
To get paid to play games on MyPoints, you log in and head to the “Games” tab, and there you will see games such as Bejeweled, Bingo, Catch 21, Puzzle Match, Wheel of Fortune, and more.
Sign up for MyPoints by clicking here.
6. Blackout Bingo
Blackout Bingo is a highly-rated bingo game app that allows you to win real cash. In fact, there are nearly 90,000 reviews on the App Store alone, with an average of 4.5 out of a 5 star rating.
Over 5,000,000 people have played this bingo app where you can win rewards and cash prizes too.
You play against other players in real time and can cash out your winnings via PayPal.
7. Bingo Cash
Bingo Cash is a fun game of Bingo that you can play for free, and you can play against other people no matter where you are in the world. You get to “travel” to different places in the game and practice your Bingo skills. Plus, you can win really big prizes!
Bingo Cash is a free game that you can play on the popular gaming platform called Papaya.
It’s easy and safe to get your prize money through PayPal. You can choose from lots of cool prizes like Airpods Pro, iPads, and coffee makers!
Note: If you live in AZ, AR, CT, DE, LA, MT, SC, SD, or TN, you can’t join prize tournaments. But don’t worry, you can still play for fun with the game app’s virtual currency.
8. Solitaire Cube
If you like to play solitaire, then this is the game app for you as you can get rewarded for playing just like how you normally do.
Solitaire Cube is a card game app that allows you to test your card skills and win real money. The game is available for free on iOS and Android and is perfect for solitaire fans who want to put their skills to the test.
With this game app, you play against other real players all from your phone. Your rewards can be cashed out for PayPal cash or Apple Pay.
9. Mistplay
Mistplay is one of the most popular game apps to win money, with over 400,000 reviews and an average rating of over 4.1 stars out of 5. There have been over 10,000,000 downloads of this app too!
Mistplay is an app where you can earn money by playing and testing new games on your smartphone. It’s a great option if you enjoy discovering new games and want to make some extra cash.
Mistplay has given away $60,000,000 in rewards for playing games since the site was created too.
You can redeem your points for PayPal cash or gift cards to Visa, Amazon, and more.
Note: This app is currently only available for Android phones on Google Play.
10. Fanduel Fantasy Sports
If you like football, soccer, hockey, baseball, basketball, golf, and other sports, then this is the app for you.
Fanduel Fantasy Sports is a sports betting site where you create your fantasy sports lineup and compete with other players for cash prizes.
With this app, you have a chance to win real money. You simply create your fantasy team, keep an eye on your scores, and compete every day for prizes in lots of different fantasy contests.
Note: Fanduel Fantasy Sports is only open to U.S. residents and users must be 18 or older (19 or older in AL, 21 or older in AZ, IA, LA, MA). Users physically located in DE, ID, HI, MT, NV, and WA are not eligible to participate in paid contests.
11. Cash’em All
If you’re a casual gamer and want to play games in your spare time for a chance to win real cash, give Cash’em All a try.
This app doesn’t bother you with in-app purchases or ad walls. Instead, you earn points, or “coins” as the app calls them, for each second you play their games.
There are many different games that you can play on Cash’em All, such as Candy Crush, Match Masters, Bingo Blitz, Coin Master, and more.
You earn points which then can be exchanged into PayPal cash or gift cards to places such as Netflix, Amazon, and more.
Note: This app is currently only available for Android phones on Google Play.
12. 21 Blitz
21 Blitz is a blackjack and solitaire hybrid card game where you can win real money, and it’s a fun choice for people who like card games. Also, it’s great for practicing blackjack, exercising your brain, or simply having fun.
You can play against real people for free. When you feel ready, you can switch to cash games and have a chance to win real money.
This game is a part of the Skillz platform, which is a popular game app platform where people can win real money through their collection of different games that they have (they have some of the best games to win real money).
13. Pool Payday
Pool Payday is the top pool game app where you can play 1-on-1 pool games and win real cash prizes.
This is a free game app where you can win real money taking pool shots and winning points.
The app is available on iOS devices through the App Store, and you can withdraw your winnings via PayPal cash or Apple Pay.
Note: You can join cash tournaments in most places around the world. However, if you live in AZ, AR, CT, DE, IL, IN, LA, ME, MT, SC, SD, or TN, cash tournaments are not available. But, you can still play for free if you live in these states.
14. Bubble Cash
If you like bubble shooter games, then this is the best bubble shooter game app.
Bubble Cash lets you play against other players in real-time bubble shooter games, with the chance to win cash prizes. Bubble Cash is a bubble shooter game where the more bubbles you pop, the higher your chances of winning.
I know people who spend hours playing these types of games, so this can be a fun way to get rewarded to play a favorite game.
Here’s how to play:
Match three bubbles of the same color to pop and clear the board.
Tap the screen to aim the laser, then lift your finger to shoot the ball.
You can download the app on iOS and Android devices.
15. Solitaire Cash
Solitaire Cash is a card game app where you can play solitaire games for real money.
Once you download the game for free, you can play regular or cash tournaments and have a chance to win real money.
You’ll play against players of similar skill levels, and everyone gets the same deck. So, the game is fair and based on your skills.
The app is available on iOS and Android devices.
16. Rewarded Play
Rewarded Play is an app that pays you for playing games on your phone. If you want to play a variety of games, then this is the app for you.
You can play games such as Scrabble, Yahtzee, Bingo Blitz, Wheel of Fortune, and more.
The way the app works is that they introduce you to new games. Then, the more time you spend playing their games, the more points you can earn. Your points can be redeemed for gift cards to places such as Amazon, Walmart, Target, Nordstrom, and more.
17. Dominoes Gold
Dominoes Gold is one of the best dominoes game apps where you can put your domino skills to the test and win cash prizes.
You play by challenging your opponent in the same games against the computer and see who can win with more points.
The app is available for iOS devices, and you can cash out your winnings via PayPal.
18. AppStation
AppStation is an app that pays you for playing new games on your phone. You can earn coins by trying different games and then redeem them for PayPal cash or gift cards. Games include Fishdom and Match Royal.
Note: Only available for Android users.
19. Jackpocket
Jackpocket is an app that lets you play lottery games and potentially win real cash prizes. You can buy lottery tickets through the app and even be notified if you win. This can be an easy way to play your local lottery games right from your phone.
You can have Powerball, Mega Millions, Cash4Life, and other lottery tickets from NY, NJ, and NH sent directly to your phone.
Just pick your game and numbers (or use Quick Pick), and the app will safely get your ticket from a licensed lottery seller.
If you win less than $600, the money goes directly to your Jackpocket account. For big wins, they make sure to safely deliver you your ticket so that you can redeem your winnings yourself.
20. Cookie Cash
Cookie Cash is a Match 3 puzzle skill game from Papaya Gaming that is for the iPad and iPhone.
With Cookie Cash, you can play as much as you want for free. Then, once you’re ready, you can compete against other players for prizes and real money, such as PayPal cash and Apple Pay.
Note: Cash tournaments are not available in the states of AZ, IA, LA, and SC.
21. Money Well
Money Well has many arcade-style games that you can play to win real money, and this is a very popular game app with over 10,000,000 downloads and an average rating of 4.3 stars out of 5 stars (with over 528,000 reviews!).
You can simply play the games, collect coins, and cash out your earnings for PayPal cash and gift cards to places such as Grubhub and Apple.
22. Bingo Clash
Bingo Clash is a bingo game app from AviaGames with high ratings, and they give real money payouts through PayPal, Apple Pay, Visa, Mastercard, American Express, and Venmo. You can play this game for free and enjoy the competitive nature of real-time bingo.
You’ll play against real players who have similar skills and compete in classic, fun, and fair cash games based on your skills. You can also take part in tournaments with different match styles, and the higher you place, the bigger your prize.
Note: Cash games are not available in the following states of AZ, AR, CT, DE, LA, MT, SC, SD, TN, and VT. But, if you live in one of these states you can still play the game for free.
23. Spades Blitz
Spades Blitz is a card game app where you can win cash earnings by playing and mastering the popular card game of spades.
With Spades Blitz, you compete against real people from around the world in tournaments, where you pay an entry fee to take part.
You can get paid via PayPal cash or check.
Note: The app is available on the App Store and the Galaxy Store. Currently, Spades Blitz is only available for iPhones and Samsung devices.
More Ways To Get Paid To Play Games
There are more ways to get paid to play, other than the game apps listed above. If you like to play games and want to make money, some other ideas to look into include:
Become a Twitch streamer
Twitch is a site where you can make money playing video games, talking, and more.
If you like playing video games, live streaming yourself playing can be a way to make money doing what you love. As you gain followers and subscribers on Twitch, you can earn income through ads shown on your stream, donations from viewers, and monthly subscription fees.
Most Twitch streamers don’t earn a full-time income, but there are some who make well over $100,000 annually. In fact, a few even bring in millions of dollars each year.
To see success on Twitch, I recommend finding ways to keep your audience interested, playing the games that you actually enjoy, and sticking to a regular streaming schedule (because your followers will want to see you consistently!).
You can learn more at How Much Do Twitch Streamers Make?
Play in game tournaments
Playing in gaming tournaments can be a way to make money if you’re really good at a certain game.
Many popular competitive games like Fortnite, League of Legends, and Call of Duty host large-scale tournaments with large prize money.
You’ll need to practice a lot, though, as there are many good players in all games – and you want to be the best in order to actually make some money.
Start a gaming blog
If you love games, then you may be interested in starting a gaming blog.
Starting a gaming blog gives you a platform to share what you know about games, your thoughts on games, and your experiences with other gamers. You can make money from your blog through ways such as affiliate marketing, sponsored content, display ads, or even by selling merchandise.
You can learn more about how to start a blog here.
Become a game creator
If you love gaming and have an interest in design or programming, think about making your own games. Independent game creators can build games for different platforms like PCs, consoles, or even phones.
While a college degree isn’t always required, it can be very helpful. You may want to get a degree in fields like game design, computer science, or graphic design, and also look for courses specific to game design.
First, try finding internships, co-op programs, or beginner-level jobs at companies that make video games. This will give you important experience in the field and let you learn from people who have been doing this for a while.
Sell game merchandise
If there’s a popular game out there, then you may be able to sell merchandise to earn some extra cash.
Some examples of merchandise include T-shirts, posters, or accessories based on popular games.
Of course, you will want to make sure that you can legally do this, as you don’t want to get in trouble for pretending to be a certain game app or anything like that.
My Tips For Playing Game Apps That Pay Real Money
Below are my tips for getting paid to play game apps from your phone.
Be smart about how much time you are spending.
When playing game apps, it can be really, really easy to let time get away from you and play too much (especially if you are a winner!). After all, you are probably having fun and it’s something that you can easily do from your phone.
But, you don’t want to forget about everything else in your life.
You don’t want your game app playing to turn into an obsession (such as with arcade games or trivia games) or into a gambling addiction (as many of the above are similar to casino games).
So, I recommend being careful with any games that require you to pay money (such as to join tournaments) and know your limit. You may want to set a timer for playing and a budget.
You may have to pay taxes.
If you’re winning money from these game apps, then you will need to pay taxes. This means that you will want to save money from any of your winnings for taxes so that you are not surprised at the end of the year with a huge tax bill.
Read real reviews and experience with game apps that pay money.
When you’re trying out different game apps where you win real money, it’s important to read real reviews and experiences. This helps you make a smart choice as reading honest thoughts from other players can give you a clear picture of the app’s pros and cons, how they pay out, how easy they are to play, and if people actually enjoy them.
Some things in game app reviews to look out for include:
If the customer service support is helpful (do they actually answer emails if you have an issue?)
If payments are actually being made and if they are on time (if many people are leaving reviews saying that they are not getting their payments, then you may want to do more research before you start playing games on that specific app)
If the game is fun (of course, this is just an opinion and everyone is different, though)
Keep in mind, while winning real money in gaming apps can be exciting, it’s important to remember that it’s not a full-time job with a full-time income. Always focus on having fun first.
Frequently Asked Questions About Playing Game Apps To Win Money
Below are answers to common questions about playing game apps to win real money.
Which games are best for earning real money? What are some popular real cash games?
There are many game apps that can help you earn real money and some of the top game apps are KashKick, Bingo Cash, Blackout Bingo, Solitaire Cash, and Mistplay. You may want to test a few and see which one is a game that you actually like.
How can I find legit cash games?
To find real cash games that you can trust, you should look for ones that are popular and have good reviews by looking at the Apple Store or Google Play Store to read user ratings and reviews. This can give you a good sense of the game’s legitimacy and whether or not they actually pay out the rewards you earn.
Do any game apps offer instant payouts?
Even if some game apps claim to have instant payouts, the actual time it takes can still vary. Usually, it might range from a few minutes to a couple of days for your rewards to show up in your account.
Are there money-making game apps for iPhones?
Yes, there are several money-making game apps available for iPhone users. Some of the popular ones include Solitaire Cube, 21 Blitz, and Blackout Bingo.
Can I earn money directly to my bank account with game apps?
Certain game apps let you transfer your earnings directly to your bank through direct deposits, while others pay through PayPal, Apple Pay, Amazon gift cards, or other cash rewards.
Game Apps To Win Money – Summary
I hope you enjoyed this article on how to play game apps to win money. As you can see, you have many options!
To sum it up, there are game apps that give real money rewards, and they can be a fun way to spend your time. But remember, they shouldn’t be your main source of income. Think of them as a fun way to make a bit of extra money.
Do you play any game apps to win money? Which one is your favorite?