The closer you get to retirement, the more you start to think about what might happen to your family in your absence.
While everyone is worried about what will happen to them and their family, few of those people actually make any plans for the inevitable. The majority of people drop their life insurance policy or don’t reapply for a new one after they retire. This could be one of the worst mistakes to make.
Age sixty eight is not too late to start thinking about what type of policy is best for you and your needs. Really, no matter you age a life insurance policy is one of the more important financial purchases.
None of us like to think about it, but you aren’t going to live forever. How are you going to provide for your family after you pass away?
If you are healthy you can still secure a reasonable rate. Despite waiting pretty late in the game, you will be surprised to see how many options are still available to you in terms of different types of policies. In most cases, applicants are surprised to see just how cheap some of their life insurance policy options are, even at age 68.
What are Your Life Insurance Options at Age 68?
There are many different ways to go about finding the best plan for you. The internet is a great place to start. Not only can shop across a wide variety of insurance companies, but you can compare several different plans all at once to decide which one is best for you. Because of the accessibility of this information, it is hard for life insurance companies not to be competitive for your business.
Two of the most prevalent types of life insurance that people explore are term life insurance and permanent life insurance. Term life insurance is known for having a term, or an amount of time that you opt to pay for at the beginning of your coverage. Of the two types of insurance, term life insurance is known to be the most affordable. The biggest disadvantage to these plans is the expiration date. These plans are only effective for a predetermined “term”, and after that, you no longer have life insurance coverage unless you reapply for another policy.
Whole life insurance is not as popular among sixty eight year olds as it is most likely the case that you will only need life insurance for a few more years if not less, but just because they aren’t as popular doesn’t mean you shouldn’t consider on of these plans if it fits your needs.
Rates for Life Insurance at Age 68
With your health on your side, obtaining over 60 life insurance is a relatively easy thing to do. Life insurance companies base their rates on a large number of factors. When you are searching the Internet, do not assume the quotes that you see are the same ones that you will be eligible for.
Life insurance companies have a rather complicated system for determining just how much you will pay. Each companies view different factors with more severity than other insurance companies. The key to getting quality insurance at an affordable rate is to find the company that works with your specific situation. Compare across several different companies and policies in order to make sure you are signing up for a policy that is best for your individual needs. Because there are thousands of insurance companies that offer life insurance plans, it could take you months to find the best company for you, but luckily we can help.
Here are some sample quotes for a $250,000 policy at the Preferred health class rating:
Sex
10 Year
20 Year
30 Year
Male
$180.25/month
$253.09/month
$383.91/month
Female
$100.63/month
$139.26/month
$253.31
How Rates are Determined Based on Health
It is still very likely that a sixty eight year old is in great health, but we still recommend to begin shopping for life insurance even in your 50’s or younger. Any pre-existing conditions will affect rates of course as well as other factors such as family history or lifestyle.
A healthy adult is one who is known to not smoke or have any pre-existing or diagnosable diseases. Seeking out the guidance of a licensed insurance agent is advisable in most cases where it may be the case that there are some other conditions that may affect your rates.
As you can see, there are several health factors that go into calculating your monthly rates (and if you’re accepted or not), which means there are several ways that you can save yourself some money. Obviously, you can’t change your age, but there are some things you can change, like tobacco usage, exercise, and diet.
One of the best ways to cut your monthly premiums in half is by quitting smoking. Being listed as a smoker on your insurance applications will automatically cause your premiums to jump by at least double or sometimes even triple that of a nonsmoker. Not only are those cigarettes costing you in the grocery store line, but they are also costing you in your monthly premiums.
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Skipping a life insurance plan could leave your family drowning in debt. If you were to pass away, what would happen to all of the unpaid expenses that you have? All of your debt is being handed down to your family and loved ones. Not exactly the legacy that you want to leave.
Similarly, getting regular exercise and a healthy diet can work wonders on your health and your rates. Being overweight increases your risk of having health problems, which means that you’re a higher risk to insure. This means to offset the risk, the company is going to charge you more in monthly fees. Making a few simple diet and activity changes could have drastic impacts on your life. Losing weight can save you money every month.
By age 53, chances are that you are starting to think about life insurance in terms of how not having it may affect your loved ones. It is actually a very good age to acquire insurance if you haven’t already. There are a lot of people that start thinking that they don’t need a life insurance policy anymore, but that could be one of the worst mistakes that you make for your family.
If you were to pass away tomorrow, what would have with all of your debt? It would be left to your family. Your family could find themselves with thousands of dollars in unexpected expenses. This left behind dead has caused hundreds of thousands of families additional financial strain on top of the emotional wear of losing a loved one.
This is why life insurance is so important. Don’t let your family suffer the hardships of losing a loved one and having to find a way to pay off all of your debt
Not only is a 53-year-old person hopefully still in good health, but they can also obtain insurance at a much lower rate than someone of an older age. When shopping for life insurance, you will find that there are plenty of options and sorting through the ins and outs can be quite the feat.
What are Your Life Insurance Options at Age 53?
When it comes to life insurance at age 53, there are multiple options at your disposal. Two of the most prevalent types of life insurance that people explore are cheap term life insurance and permanent life insurance.
One of the characteristics of term life insurance is that it only lasts for a term that is determined at the point of purchase. This range of time can vary depending on which life insurance company you choose to go with.
Another characteristic of term life insurance is that it is relatively inexpensive compared to other types of insurance. For anyone that is looking to get quality coverage at an affordable rate, term life insurance could be the best way to go. Permanent life insurance on the other hand lasts for an entire lifetime, or at least for as long as you continue to make payments.
The other advantage of permanent life insurance is that it accumulates cash and can be used as an asset for which you can borrow against. Whole life and universal life both fall under the category of permanent life insurance. As you can see, each type of policy has different advantages and disadvantages that you have to consider. Each applicant is different which means that you have to weigh each plan based on your coverage preferences and what you value the most.
Rates for a 53 Year Old
Assuming you are a healthy adult and lead a positive lifestyle, here are a few sample rates that can give you a good idea of what you may pay for life insurance at age 53.
To obtain a $200,000, 20 year term life insurance, a 53 year old male will spend about $1005 per annum. A female on the other hand, a 53 year old female will cost about $723 per year. For a less hefty amount of coverage of $50,000, a man can expect to pay about $1140.
A female will however pay about $957 per year. These rates of course may vary depending on many factors that you may be affected by. The best course of action is to obtain quotes from several different insurance companies. Here are some quotes for a $250,000 term life policy:
Sex
10 Year
20 Year
30 Year
Male
Protective – $32.32/month
SBLI – $55.25/month
Banner – $102.81/month
Female
Protective – $25.78/month
SBLI – $42.63/month
Banner – $75.25/month
How Rates are Determined Based on Health
Hopefully a 53 year old is in decent health, but there are instances where rates can be higher. One such case is if there is a pre-existing health condition. This can be either recently diagnosed or otherwise. If you have any pre-existing health conditions, you could be considered a “high-risk applicant”, which could drastically impact your life insurance coverage.
Even if you are high-risk, that doesn’t mean that you can’t get an affordable insurance policy. Each insurance company tends to view certain conditions more favorably than other companies. It’s vital that you find the company that views your condition the best and has experience with dealing with similar situations.
The best course of action is to seek the guidance of a professional independent insurance agent. These agents don’t work for one specific company, but they represent dozens of the highest-rated insurance companies in the nation.
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This will not only save you time, but it will almost always save you money. People looking to obtain over 50 life insurance need help to sort through all the different types of life insurance that may or may not work for their individual situation.
If you want to ensure that you’re getting the lowest rates for the insurance policy that you choose, you would have to call dozens and dozens of companies around you.
You could spend hours on the phone talking to different agents and answering the same questions, but your time is valuable. An independent agent will shop all of the best life insurance companies that provide coverage in your area and give you quote based off of your personal needs.
Aside from using an independent agent, there are several different ways that you can get the best rates available for your life insurance policy. As we mentioned early, your health is going to play a big role in your life insurance plan, if you want lower rates, you need to be in the best health that you can be.
The results of the medical exam (unless you go with a no-exam policy) can cause you to get excellent rates or make your premiums go through the roof. One of the best ways to do this is by getting regular exercise and following a healthy diet.
Losing any excess weight, lowering your cholesterol, and lowering your blood is one of the best things you can do for your insurance application.
The other tip for getting lower rates is to kick your bad habits like excess alcohol or using tobacco. Smoking cigarettes is a guaranteed way to double or triple your monthly rates. If you want to save money, quit smoking, your lunch and your wallet with both thank you.
Applying for a life insurance policy often involves multiple steps and can take longer than getting other types of insurance. Let’s take a look at what’s commonly involved in the life insurance application process so you can proceed with confidence.
Term or Whole?
Before applying for life insurance, it’s a good idea to consider such things like how much coverage you need, how much you’re prepared to pay for premiums, and which riders you might like to include. You’ll also need to figure out whether a term life or permanent life policy makes sense for you. Whole life insurance is one type of permanent life insurance.
Term life and whole life insurance have important differences. Term life tends to be simpler and more straightforward. Someone purchases a policy for a certain dollar amount and term, and then has life insurance coverage for the designated time period (10, 20, 25, or 30 years, for example).
If the policyholder keeps up premiums and dies within that term, beneficiaries will receive the appropriate payout. Monthly payments are generally fixed with term life policies.
Reasons people choose term life include:
• Term policies almost always cost less than whole life, sometimes significantly so.
• Policyholders predict they’ll have enough money saved by the time the policy expires.
• Beneficiaries are expected to be financially independent by the time the term expires.
Whole life policies, which also require regular payments, are intended to last the holder’s entire lifetime — there is no expiration date. They can cost up to 10 times as much as a term life policy because part of that money is invested into what’s called the policy’s cash value.
Policyholders can typically borrow against their cash value at an interest rate that’s specified in their policy. They may also be able to cash in their policy to receive money; that action closes out the whole life policy. Whatever is left over after the policyholder dies will be distributed to beneficiaries.
Recommended: 8 Popular Types of Life Insurance for Any Age
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The Application Process
When you’re ready to get the ball rolling on obtaining a policy, the first step is to fill out an application with your carrier of choice. The insurance company will review the application for completeness. If any information is missing, they’ll likely follow up to ensure that the application is completely filled out. Some carriers may conduct a phone interview when someone applies, while others do so only if an application is incomplete.
Recommended: How to Buy Life Insurance in 9 Steps
The Underwriting Phase
Next comes the underwriting phase, which every applicant goes through. There are two tracts of underwriting available: traditional and accelerated. The traditional tract requires a medical exam, and your blood and urine samples may be collected. The accelerated tract typically does not require a medical exam or blood or urine tests.
During this time, the insurance company will review your application for a wide range of factors that may include:
• Your age
• Your gender
• Your current health
• Your personal health history, including prescriptions
• Your family health history
• Your lifestyle and personal habits (for instance, a history of alcohol abuse or tobacco use)
• Your occupation
• How frequently you participate in hobbies that could be considered high risk
• Other factors, including your driving record
The insurance company uses this information along with actuarial tables to determine your risk profile, or how much of a risk you are to insure. Your risk profile can impact how much coverage you qualify for and at what cost.
Medical Exams
A life insurance carrier will sometimes require a medical exam before issuing a policy.
The exam may be similar to a person’s regular annual physical. A medical tech will likely ask questions that are similar to those on the application, and a professional will conduct a physical exam. It can include measuring height and weight, checking blood pressure, and taking blood and urine samples.
In some cases, an EKG may be performed to measure the electrical activity of the heart. Men over age 50 may need to have a prostate-specific antigen test done to check prostate health.
When medical exams are required in applying for life insurance, it’s part of the underwriting process that helps a carrier understand the risk level of insuring the applicant. The tests performed can indicate if a person has high blood pressure and/or high cholesterol, elevated glucose, or other health issues.
Contestability
Some people may be tempted to downplay personal health issues when filling out a life insurance application. That is never a good idea. If someone didn’t fully disclose the truth about their state of health and died within two years of getting a policy, the insurance company can delve into the details. If information is found to be lacking or inaccurate, the carrier could deny beneficiaries the death benefit.
The Takeaway
Applying for life insurance often starts with deciding how much coverage you need, how much you’ll pay in premiums, and whether a term life or permanent life policy is right for you. Once you’ve finished comparison shopping and weighing your options, the first step is to fill out an application with the carrier of your choice and then undergo an underwriting process. During this time, the insurance company will consider a number of factors, including your age, gender, current health, personal health history, family health history, and lifestyle. A medical exam may also be required. The insurer uses this information, along with actuarial tables, to determine your risk profile, which can impact how much coverage you qualify for and at what cost.
If you’re shopping for life insurance, SoFi has partnered with Ladder 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.
FAQ
Are there advantages to applying for life insurance when you’re young?
Yes, because carriers generally base policy price on risk factors, buying a policy when you’re young and healthy typically means lower premiums. Plus, with some term life insurance policies, buyers can lock in pricing when they purchase, and locking in at a low rate can be a financial plus.
Can I change the specifics of a life insurance policy — for example, change the amount of coverage?
Yes, some insurance carriers do allow this kind of flexibility. Current policyholders should check with their carrier. New applicants can check with the carrier to see what kind of flexibility is provided.
Is having employer-sponsored life insurance enough?
Maybe. While having this benefit is good, these policies are generally in the amount of one to two times an employee’s salary. That’s typically not enough to address debt and provide sustained financial help to beneficiaries, which is why it may make sense to purchase a second policy. Plus, employer plans may not be portable: If the employee leaves the company, the policy may be terminated.
What’s the right amount of coverage?
Each person’s situation is unique. Some use the DIME formula to determine the right amount. That acronym stands for Debts, Income, Mortgage, and Education. What will be needed to cover all of those bases? To streamline the process, you might want to calculate your life insurance needs.
Does it make sense to use an agent when buying life insurance?
Possibly. An agent can educate a consumer about what’s involved in getting a life insurance policy. This can be especially helpful if the process seems overwhelming. Many agents work on commission, so using one that does charge a commission can cause the cost of the policy to go up. Higher commissions are typically charged on whole life policies than on term life. However, not all agents charge a commission.
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.
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. SOPT0523006
The insurance provider promises to cover certain expenses and losses in exchange for a monthly premium payment. The contract covers a specific period of time and the rates are locked in during the life of the contract.
At the end of the contract, the policyholder may renew the policy and enter into a new contract or simply allow the policy to expire. If you renew the policy, the monthly premium payment will be updated and locked in for the life of the new contract.
Many term life policies can be written to automatically renew with adjustments in premium payments while the amount of coverage remains the same. These plans are usually the most affordable of the different types of life insurance policies.
Life insurance is the best purchase you can make for the financial protection of your family. You’ll sleep better knowing that no matter what happens, your family will be taken care of.
Best Companies for $500k Term Policies
Getting Life Insurance
If you have never bought life insurance before, the process can be confusing, frustrating, and sometimes ever daunting. Don’t worry, buying a life insurance policy is much easier than it sounds. The first thing you have to do is decide which type of policy you want. There are several types: term, whole life, and no exam. Each of these has different advantages and disadvantages.
A term policy is the cheapest of the options, but is only effective for a certain time period. After that time is up, the policy is no longer in force. It’s pretty much like an expiration date.
After you decide which type of policy you’re going to get, you’ll need to calculate how large of a policy you are going to purchase. There is no “magic number” for life insurance plans, but there are a few things to consider.
The first is how much debt would you leave behind if something tragic were to happen? Do you have a mortgage payment? Student loans? Will your kids have student loans? All of your unpaid expenses can add up and leave your loved ones with more debt than you would have realized. Make sure your insurance policy will at least cover all of your final expenses.
The other factor to consider is your annual salary. One of the main purposes of these plans is to replace lost income if you were to pass away. The more people relying on your income, the larger policy you’ll need to purchase. While there are differing opinions, most financial experts agree that ten times your annual salary is a good target.
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How Much Does a $500,000 Term Life Policy Cost?
Term life insurance premiums are based on the length of the term and the health and age of the person covered by the policy. While term life insurance becomes more expensive with age, it still remains a viable and one of the cheapest forms of insurance even for the elderly.
Even as you age, the premiums remain relatively low. If you’re still at a younger age, it could be wise to purchase a longer policy so you lock in those lower rates for a longer time before you have to renew your policy and have the premiums recalculated. Even purchasing life insurance at 50 is cheaper than waiting another 10 years.
$500,000 Term Life Rates Men
Sex
Age
$500,000 20 year Term
Male
30
$20.88/mo
Male
40
$30.45/mo
Male
50
$81.35/mo
Male
60
$218.48/mo
Male
70
$830.81/mo
$500,000 Term Life Rates Women
Sex
Age
$500,000 20 year Term
Female
30
$18.71/mo
Female
40
$26.54/mo
Female
50
$59.08/mo
Female
60
$149.16/mo
Female
70
$532.88/mo
Term life insurance policies are good for people that don’t have a lot of money to invest and need a way to protect their families from the financial burdens of a funeral and loss of income due to a sudden death.
Health and Age Considerations
Insurance providers that issue life insurance policies will review your medical history for serious medical conditions and might require a medical examination if a condition is questionable.
With a medical exam, the insurance company will send a paramedic to your house to take simple vital signs and basic health information. The medical exam will consist of getting your weight, taking a blood sample, urine sample, and blood pressure, and answering questions about your health and family health history, such as if your family has a history of diabetes.
The insurance company then analyzes any medical condition to determine its possible influence on your death.
If you have a medical condition that seriously impacts your health and is potentially shortening your life expectancy, your policy application might be denied or higher premiums may be required.
This is typically referred to as high-risk life insurance.
High-Risk Conditions
If you’re considered “high-risk,” you need to find a company offering cheaper high-risk coverage. Being listed as a “smoker” on your life insurance policy will double or triple your monthly premiums, regardless if you’re in perfect physical health. You can also see here for one of these types of high-risk conditions.
If you have a condition that can be controlled by treatments or medication and is not potentially shortening your life expectancy, your policy should be accepted and there should be no huge impact on your premium payments. If you want to get the lowest rates, it’s important that you focus on your health.
On that note, consider losing weight, lowering blood pressure, lowering cholesterol, etc. The medical exam determines the premiums and chances of being accepted. A healthy diet and regular exercise can work wonders for your body, energy levels, and even your wallet.
The more excess weight you carry, the higher the risk you’ll pose to the insurance company. Losing the extra weight will put extra money in your wallet. It’s a win-win scenario.
The key is being upfront with your agent and letting them know everything about your health. Just because you don’t disclose it upfront, doesn’t mean the life insurance company won’t find out about it. Every one of the top 10 life insurance companies will find out a condition and will adjust your quotes accordingly.
Do I Really Need a $500,000 Policy?
Everyone has different needs, but a term life insurance policy with enough coverage to cover the funeral, pay off debt and have enough left over to live on for a while is always a good idea. It’s especially a good idea if you have children.
If you’re wondering how much to buy, please use our free term life insurance calculator to see the amount your family deserves. Don’t buy ANY plan before you do some number crunching. All you have to do is add your debts and your salary together.
Another way to save money on your $500,000 life insurance company is to shop around with different companies. If you already have different insurance policies, you can save money by bundling your policies with one company. However, don’t automatically go with the company you are already using.
Because every company is different, they all have different ratings and will look at your application through different eyes. You could end up with drastically different rates from one company versus another. If you want to make sure you get the most insurance for your money, get quotes from several different companies before you pick one of them.
A good $500,000 dollar term life policy will provide the security your family needs as it adjusts to the loss of a loved one and learns to make it without your income.
Why You Need Life Insurance
After you use the calculator you may realize that you actually need a bigger policy. A lot of applicants are surprised at just how large of a policy they should purchase. Before you ever purchase a plan though, you should realize the importance of one of these policies.
Your debt is going straight to your family if you die. There is no way around this fact. Do you want to leave that kind of inheritance?
These policies give your family members the resources they need to pay off any debt you would leave behind. They won’t have to worry about covering those expenses. They won’t have to worry about finding money to pay off your credit card bills or have to force themselves back to work because of finances.
Every year there are countless families suffering from the loss of a family member. While going through all of their sufferings, they find themselves under a mountain of debt they have no way to pay for. Don’t let your family become one of these stories.
Getting life insurance coverage is extremely important, but you want to get the best rates available for your age. Having life insurance coverage shouldn’t cost a fortune every month. When you’re shopping around for a $500,000 policy, you’ll notice the premiums are affordable, but some are cheaper than others.
Fill out the quote form and the best rates from the highest rated companies will come to you. We will provide you with quotes matching your specific situation and preferences.
Not only can we give you the best rates, but we can also answer any questions you have about life insurance. Understanding all of the rules, policy types, and terms can be quite confusing. We understand, and we are here to help.
In life, you and your marriage partner may find yourselves facing many troubles and situations. While many of these are easier when together, that is not always going to be the case.
There are times when life is taken from a person quickly, leaving the partner without them. You never know what’s going to happen tomorrow.
You can’t predict the future, but you can prepare for the worst. Nobody wants to think about losing their spouse, but it’s a conversation that you should have
To soften the blow of this, insurance is often used to offer financial stability when the cost of the funeral, hospital stay, and bills are too much to handle alone. The cost of a funeral alone can easily add up to $10,000 or more. This can be a heavy bill to leave behind for your family to pay.
When the surviving partner dies, though, that same insurance might not be enough. For many, a survivorship life insurance policy is the go-to for coverage, security, and stability when it comes to dealing with everything left behind.
Common Use for Survivorship Life Insurance Policies
Most insurance policies work by providing money to a specific person after the one who was insured passes. This helps to ease the financial burden left behind by a death, which includes several expenses and more stressful bills that are without that extra paycheck.
With survivorship life insurance, though, two people are covered to pay for the costs associated with an estate. Unlike your ordinary life insurance, this only pays out when both parties have passed, as the name would suggest. It is mostly to cover the taxes and expenses with an estate so that the heir does not have to pay.
An estate comes with costs that could otherwise ruin its value, or at least drop it dramatically. When passing this to an heir, those costs could cause them to receive far less than promised.
Depending on the situation for which this person is receiving the estate that can be damaging. Not only that, but you would also not be giving the person as much as you had hoped. There is a reason they were chosen to receive your estate, obviously, and not giving them the full amount was probably never your plan. With this, you can ensure that they receive as much of the full amount as possible.
There are thousands of families members that find themselves with drastically less heritage than they assumed they would receive because of unpaid expenses, taxes, fees, and much more. If you want to leave your legacy with your children or loved ones, a survivorship insurance policy will protect your savings and allow your inheritance to reach its full potential.
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Estate Planning with Life Insurance
Having any type of final expense insurance is not difficult.
In fact, it is often easier than your average life insurance because it can be issued as a no medical exam life insurance policy. These policies are exactly what they sound like, you’ll be able to get the insurance coverage that you need, regardless of your health or any pre-existing medical conditions.
This can help you to insure your estate without issue so that whoever is receiving it is not stuck with massive bills that chip away at the overall amount. The ease of getting it also makes it easier on you, obviously. While other types of life insurance have stresses and because you to go through several steps to finally be insured, this makes it easier. When going for this type of insurance, it is possible to get it and get out without becoming stressed, worried, or bothered by what must be done.
With the importance of your estate, it is necessary to ensure it goes to your chosen heir in a complete amount. Having survivorship life insurance is the option to keep your estate at full value and help your heir get it without spending large sums of money.
It’s always best to meet with a trusted estate planning attorney to see if you are in need of a survivorship life insurance policy. There are a lot of different factors that you have to consider when deciding if you need a survivorship life insurance policy or a traditional plan. An estate planning attorney can help walk you through the process and make the best decision for you and your family.
Advantages and Disadvantages of Survivorship Life Insurance
Because there are so many different life insurance options, it’s important to understand the pros and cons of each option. Life insurance is one of the most vital purchases that you can make for you and your family, you should make well informed and educated decisions.
Not having the right type of policy, or not having a policy at all, is one of the worst mistakes that you can make. It could leave your loved ones with a mountain of debt and no way to pay for it. That’s not the inheritance that most people want to leave behind after they pass away.
One of the advantages to these survivorship life insurance policies is the standards that most companies used to issue them. If you go with a plan that uses medical underwriting, it’s going to be very different from a traditional term life insurance policy, because it’s based on the health of two people instead of just one.
This means that even if one person doesn’t have perfect health, you’ll still be able to get coverage as long as the other person is in good health. For anyone with any serious health complications or any pre-existing conditions, this can be extremely beneficial.
Another major advantage to these policies is the monthly premiums. In most cases, a survivorship life insurance policy is going to be cheaper than buying two separate policies for each person. These plans will give you life insurance coverage for less expensive monthly payments.
Just like other life insurance plans, there are disadvantages to these policies. The biggest disadvantage is obvious, you won’t receive any payment for the loss of your spouse.
When the first person dies, the surviving spouse will be left with all of the funeral expenses, medical bills, unpaid debts, and much more, but they won’t receive any funds from the life insurance policy. For a grieving spouse, it can be difficult to pay for all of these expenses.
This is where a traditional policy is an excellent tool. One alternative to the survivorship life insurance is purchasing a traditional term life insurance policy for both you and your spouse. These policies only cover one party instead of two.
In most cases, a term policy is much less expensive than most applicants think. Aside from how affordable they are, it’s also much more beneficial when your spouse dies, it will leave you with the money you need to pay off any debts or pay for any funeral expenses.
Just like with most other policies, you can always go with a no medical exam term life insurance plan. They are easy to apply for, and you can get insurance coverage quickly. In some cases, it can be as quick as a couple of days.
Getting Life Insurance
It’s easy to see why everyone should have a quality life insurance policy, but getting an affordable plan can be a long and stressful process. There are hundreds of companies that offer dozens of different insurance products.
There are a few different types of life insurance policies to choose from when you’re shopping for coverage. That includes whole life insurance, which is a permanent type of life insurance policy that remains in place for your entire life and guarantees a death benefit, as long as premiums are paid. But while whole life insurance can offer a number of unique perks, it may not be the best option for everyone. Before you make a decision on your life insurance coverage, it may benefit you to learn more about the pros and cons of whole life insurance, as well as how it works, in order to make the best choice possible for your unique circumstances.
Key takeaways
Whole life insurance is a permanent policy that remains in force for your entire life, as long as premiums are paid, and guarantees a death benefit.
Whole life insurance policies may cost two to three times more than term life insurance policies because of the expected payout.
Whole life insurance policies usually have a cash value component that you may be able to put towards premiums when enough funds accumulate.
What is whole life insurance?
Whole life insurance offers coverage for your entire life as long (in most circumstances) as you’re paying your premiums. In return, the death benefit is essentially guaranteed to be paid out to the beneficiaries in the event that the policyholder passes.
In addition, whole life policies include other benefits, like a cash value component, which is an account that accumulates funds over time. This account is funded by the policy’s premiums, which are what you pay to keep your policy active. As the policyholder, you can choose to borrow against the cash value component during your lifetime under certain circumstances.
How does cash value work?
The cash value component of a whole life insurance policy can be used in a variety of ways and has a few tax considerations to keep in mind. You may borrow against it, use it to pay premiums or make tax-free withdrawals, within policy limits. Withdrawals over the amount of the cash value may be considered taxable income and will reduce the death benefit amount that goes to your beneficiaries. Your beneficiaries will also not be able to access this cash value when you pass away, as it can only be used while you are alive.
Knowing how to leverage the cash value can be a useful tool. When you borrow against the cash value amount, you will not have to undergo a lengthy approval process from a bank or lender, and you will likely enjoy a lower interest rate. Borrowing against the cash value account may be the right fit for individuals in a pinch who want a loan with an easy approval process. Additionally, a loan against the cash value is not reported to credit bureaus, meaning it does not impact your credit score. Just remember that any amount that remains unpaid when you pass will likely be deducted from the death benefit total.
Best whole life insurance
Many regional and national life insurance companies offer whole life policies, so choosing the right one will require some research. Bankrate’s list of the best whole life insurance companies may be a great place to start your search. To determine this list, our insurance experts chose these providers based on the following considerations: customer satisfaction rankings from J.D. Power’s 2021 U.S. Individual Life Insurance Study, financial strength scores from AM Best, reported complaints from the National Association of Insurance Commissioners (NAIC), available coverage options and digital policy management tools.
The cost of whole life insurance
Generally, whole life insurance is more expensive than the same amount of term life insurance coverage. This is because whole life insurance policies are guaranteed to be paid out, as long as the policy remains in force and premiums are paid. As such, whole life policies might also come with a lower potential death benefit compared to a term policy.
However, whole life premiums remain stable and the policy comes with a cash value account, which policyholders can leverage for other financial needs. Your specific whole life insurance policy cost is determined by multiple factors, including the amount of coverage you choose, your age and your relative health.
Learn more: Affordable life insurance companies
Is whole life insurance worth it?
Some people may prefer whole life insurance because it remains in effect for the insured’s entire life and because the cash value component adds additional financial flexibility. However, these financial components also contribute to a higher rate compared to premiums associated with a term life insurance policy. Whether or not whole life insurance is worth it to you depends on your financial situation, budget and long-term goals.
On the other end of the spectrum, many people prefer the shorter-term coverage that comes with a term life policy. For instance, if you only want coverage for a limited amount of time — such as when your children are in school or while you still owe on a mortgage — you may want to apply for a term life insurance policy just for the period of time when the financial protection is most critical. Term policies are typically much more affordable, as a payout is significantly less likely to occur. If deciding between term life vs. permanent life insurance, knowing what your immediate and long-term needs are, budget and purpose for life insurance can help you make a choice.
Frequently asked questions
A whole life insurance policy comes with a cash value account that can be invested, but since it is considered low-risk the cash value is usually minimal. Whole life insurance policies are designed to provide loved ones with a death benefit after your passing, rather than to act as an investment vehicle. While the investment component of insurance can be a nice added perk to a whole life insurance policy, other forms of investment may generate higher returns. A financial advisor can help you determine whether or not a whole life policy is right for your situation, taking into account its investment component.
How much life insurance you need typically depends on your situation and the goals you have for your policy. You may also want to keep in mind your individual financial obligations when determining the amount of life insurance you need. For instance, if you have personal debt, a mortgage, or upcoming college tuition payments for your children, you may want to factor in those expenses. If you financially support someone into adulthood, such as a special needs family member, you may want to factor their living expenses into your life insurance coverage, as well. Typically, a licensed agent or certified financial professional can guide you in estimating how much life insurance you need, or you can use Bankrate’s life insurance calculator as a starting point.
You may have less need for life insurance coverage if you’re single and have no dependents, since this likely means that you have less people who would be financially at-risk if you were to pass away. However, some policyholders choose to purchase life insurance to pay for their funeral expenses, or to leave money to a favorite organization or charity.
This is one reason single people may choose to obtain a term policy, which can typically be converted to a whole life policy ahead of the policy’s expiration when you may marry or have dependents in the picture. Obtaining a policy when you are young and in relatively good health may help you secure good rates for such a time when insurance becomes more critical.
Because life insurance is such a vital purchase, you want to ensure that you’re making the best decision for you and your family. There are several different types of life insurance that you have to choose from, but the most popular option is term life insurance. Buying life insurance doesn’t have to be a long and painful process, we can make it quick and easy.
If you’re shopping for term life insurance, the two most important factors to your policy are how much coverage you need and how long your term should be. In this article, we’ll go in depth on how long you should buy term life insurance coverage.
While most consumers focus all their time on the amount of coverage, the length of the policy is also an incredibly important factor most consumers don’t put much thought into.
Since term life insurance doesn’t last forever, the premiums are much, much cheaper. Term policies are the best option if you’re looking for affordable life insurance coverage for your loved ones. However, how long should you have term life insurance for?
Good question! It’s depends on your situation. Probably not the answer you’re looking for, but we’ll guide you through the thought process below.
The Thought Process for My Term Life Insurance Policy
Lets start with my thought process when I purchased a term life insurance policy.
Last year, my wife and I purchased 20-year term policies when we had our first child. The logic was that we wouldn’t need life insurance once the kids were grown, out of college and could fend for themselves if something happened to us.
We both already had 30 year term insurance for income protection which would get us near retirement. This new 20 year term policy was “earmarked” to take care of the kids and make sure either of us wouldn’t have to work and can give our child any opportunity they wanted.
The point of our example is that determining how long of a term to sign up for can be just as difficult as determining how much coverage you need. We’ll add and possibly replace coverage as our needs change.
That’s the thing. Your life insurance program should be reviewed every few years or when big changes happen in your life. So when you purchase that cheap term life insurance policy, remember that it will probably be different in the future.
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2 Tips For Determining How Long To Buy Term Life Insurance
So here are the 2 biggest things to consider when deciding how long your term life insurance coverage should last:
1. Consider the Purpose of the Coverage
My #1 tip is to consider WHY you’re buying this coverage to determine how long you should buy your life insurance.
Like our example above, the purpose of the coverage should be your main deciding factor. If you’re buying to protect your children, then buy coverage until they can earn their own living.
If you’re considering coverage for your family to protect your income, you’ll want to buy coverage until you hit retirement age, or at least near retirement age. That doesn’t mean that once you’ve reached retirement that you’ll no longer need life insurance. You will still have to evaluate your specific situation and determine your life insurance needs from there.
If you’ve buying coverage to cover your mortgage, choose a term length that equals the amount of time left on your note. This is one of the most important factors to consider. If you were to pass away, your family would be left paying for the mortgage, which can put serious financial strain on a grieving family. Having the proper length of life insurance will prevent this and give them the money they need to pay off those expenses.
The purpose of coverage should always lead to your desired term length.
2. Consider the Cost of Coverage
Once you determine how long you need the coverage, make sure you’re comfortable with the premiums. The longer the term length, the more expensive your premiums will be. The best way to determine cost is by utilizing instant life insurance quotes on this site. You can ballpark the cost of term life insurance at different term lengths. In most cases, term life insurance is much more affordable than most applicants think. It’s a great way to get your family the life insurance protection they deserve without breaking your bank.
Also, as attractive as no medical exam life insurance can be, make sure you can afford it. Bypassing the medical exam can make life insurance more expensive. If you can afford it, it’s a quick and easy way to purchase coverage and we highly recommend it. If you can’t, opt for the medical exam.
ANY health issues you have can increase your premiums and will force you re-think the term length you’re considering. If this is the case, opt for a shorter term length and re-visit purchasing a longer term length in the future when you’re health issues are under control.
If you do have poor health, or any serious health complications, don’t automatically assume that you don’t qualify for a term life insurance plan, or that the premiums will be too expensive. There are dozens of insurance companies that specialize in insuring high-risk patients with health problems. Our agents can help connect you with the perfect insurance company that is going to view your application favorably, which can be the difference in being denied for coverage, or finding an affordable policy.
Bottom Line
Working through the purpose of coverage, factoring in your term life insurance rates and the best life insurance companies in order to meet your needs, should make you confident in your decision of how long you should buy your term life insurance policy.
Remember that your life insurance needs will be changing throughout the years. It’s not uncommon to own multiple policies to meet your needs as they change. Everyone goes through major life changes that impact their life insurance needs.
You should always review your policies every few years, or when you have major events to see if your policy is still giving you the protection you need. Since the earlier you buy coverage, the less expensive it is – you usually keep your policies when you buy more coverage down the road.
If you’d like to discuss how long you should buy term life insurance, please don’t hesitate to contact us. We can answer any questions about you have about term life insurance and ensure that you and your loved ones are getting the best possible plan.
Our agents at Life Insurance by Jeff are independent agents, which means that we don’t represent one single company. Instead, we represent dozens of highly rated companies from across the Untied States.
Working with one of our agents during the life insurance process can help you save both time and money on your policy. We can give you quotes from best-rated policies from dozens of companies, no calling and answering the same questions.
You never know what’s going to happen to you tomorrow. You can’t predict the future, but you can always protect your loved ones against the worst. Don’t wait any longer to purchase a life insurance policy that will provide for your family, regardless of what happens to you.
Depending on your age, your insurance needs change. As an applicant who is 51 years of age, your needs vary tremendously from that of someone who is younger. There are multiple factors that need to be considered before deciding on which life insurance to settle on.
If this is your second time buying a life insurance policy, you may notice that its’ very different from the last time that you purchased a plan, but it’s no less important at age 51. Life insurance is the single most essential investment you’ll buy for your family, but there are a lot of people in their 50s that avoid buying life insurance coverage.
Determine Your Needs
As a 51 year old you are most likely starting to hunker down on your retirement, your children have most likely left the house, and your home is hopefully close to being paid off. If might even be the case that you have grandchildren at this stage of life. With all of these potential factors in your life it is not surprising that life insurance may not be a top priority. The fact of the matter is that it is still extremely important.
Before you buy an insurance plan, you need to calculate how much life insurance you need, and there are several things you need to account for. The first is your debt. As we mentioned, your house should be close to being paid off, but that isn’t going to be your only debt, or maybe you still have a lot left on your mortgage. All of your debts and unpaid expenses would be passed on to your family if you passed on. You’ll also need to account for any funeral costs or possible medical expenses you could rack up.
You’ll also need to think about your annual salary. Your kids have already moved out, or are close to it, but what about your spouse? Does he/she depend on your income? Would anyone else experience financial suffering? If so, you’ll need to account for replacing your salary.
What Cost Can You Expect at Age 51?
Assuming you are a non-smoker and can achieve a Preferred Plus rate, you are in a good spot to receive top notch insurance at a reasonable rate. The going rate for a 10 year term is $15.26 whereas the going rate for a 20 year term is $25.20. Both of these rates are for a man who is seeking $100,000 of coverage and assumedly good health. Here are some quotes for $250,000:
Sex
10 Year
20 Year
30 Year
Male
Protective – $26.73/month
SBLI – $46.93/month
Banner – $79.84/month
Female
Protective – $22.35/month
SBLI – $35.24/month
Banner – $59.94/month
You may still be of the mindset that you will not need life insurance for the foreseeable future, but there is no telling what health problems you can be faced with in this stage of life. Your body unfortunately starts to deteriorate whether you like it or not, and being proactive and prepared is the best defense against this.
There are several things that you can do to help you get the lowest rates possible. The first is to quit smoking. The sample quotes above are from a non-smoking applicant, if you’re a smoker, you can expect those rates to double, or even triple depending on the company.
Additionally, you’ll need to get in the best shape possible. Starting a good diet and getting regular exercise is an excellent way to lower your blood pressures, lose some weight, and lower your cholesterol. They aren’t quick or easy changes, but committing yourself to a healthier life can save you hundreds.
We give every applicant the same piece of advice, compare plans. With 6,000 insurance carriers, there are plenty of options. Working with an independent agency (like ourselves), is like working with over 50 different highly rated companies. You could spend days calling insurance companies yourself, or you can let us do the work for you. Independent agents not only save you time, but save you money by connecting you with the perfect insurance company to fit your needs.
What Type of Insurance Does a 51 Year Old Need?
There are dozens of options, but as a 51-year-old applicant, not all of them are suitable. The two main kinds are term and whole, but in whole life insurance is going to be drastically more expensive at this age. We suggest people 50 and above buy a term plan.
There are several different types of life insurance that you’ll have to compare. You’ll need to weigh the pros and cons before you make a choice. It’s vital that you pick the perfect policy type to fit your insurance needs.
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What is Term Life Insurance?
At age 51, perhaps the best type of insurance to consider is term life insurance. Not only is it affordable, but it oftentimes covers you for a wide variety of situations and provides you with the peace of mind that is so appealing with insurance.
Term insurance is the most common. It’s simple and it’s cheap, what’s not to love. These plans are temporary coverage, and you can buy them to match your life insurance needs.
Getting the Best Rates
The key to getting the best rates for anyone looking to get over 50 life insurance is to shop around. Instead of you having to go from company to company or website to website, an independent agent will shop all of the available plans and companies in your area.
Looking for a way to provide your loved ones with long-term financial protection? A universal life insurance policy might be worth considering.
This type of life insurance can provide coverage for as long as the policyholder is alive, and some policies also accrue cash value. Generally, when the policyholder dies, their beneficiaries receive a tax-free death benefit in the amount specified by the policy.
Below is a helpful look at universal life insurance, including a discussion of how it usually works and how it differs from other common kinds of life insurance.
Universal vs. Term Life Insurance
There are two main types of life insurance: permanent life and term life.
Universal life insurance, sometimes called adjustable life, is a kind of permanent life insurance. Policies last for a person’s entire lifetime and can be adjusted at any point if your circumstances or needs change. Typically, you can control such things as the amount of your death benefit, your premium amount, and where your cash value is invested.
Commonly, universal life insurance policies build cash value because the insurer invests a portion of your premiums over time. That money can be for a variety of purposes. You can borrow against it, use it to pay for premiums, withdraw up to a certain amount tax-free, or consider it a safety net.
Term life insurance works a bit differently. Policies provide coverage for a predetermined period of time, or “terms,” which often last between 10 and 30 years. If the policyholder dies within the term, their beneficiaries will receive the policy’s covered value, or “death benefit.” There is no payout if the policyholder dies after the term has expired. Monthly payments are often fixed, and there is no cash value.
By and large, term life insurance tends to be significantly less expensive than universal life insurance. This is due to several reasons, including the fact that term life coverage is temporary, and no cash value accrues during the policy’s term.
Pros of Universal Life Insurance
So, what are the advantages of a universal life insurance policy? For some people, the cash value component of a policy can be an appealing way to help build a nest egg and secure insurance coverage for beneficiaries.
Universal life also tends to be more flexible, allowing policyholders the option to use available funds or save them up for beneficiaries. Premiums can be paid out of the accumulated cash value when needed or desired, though note that doing so reduces the overall cash value of the policy.
Here’s another benefit: Because a universal life insurance policy is permanent, holders don’t need to worry about expiration dates or spend time finding a new policy after an old one expires.
Cons of Universal Life Insurance
Although universal life insurance has its benefits, there are some drawbacks. For instance, premiums are typically higher than term life and tend to increase based on the amount of the death benefit. Also, the returns your policy earns can be unpredictable. That’s because the interest rate varies on these policies, changing along with fluctuating market conditions. The gains of one year may not predict the potential earnings (or losses) of the next. Some policies have built-in floors and caps for the rate of return. For example, a policy invested in a given index might be guaranteed 0% to 12%. If the index posts a loss, the investment will stay the same. Conversely if the index goes up 20%, the insured would only gain 12%.
Here’s something else to consider: Although a universal life insurance policyholder can borrow against their policy’s cash value insurance, interest must be paid on what’s taken out. And when the amount of cash available in a given policy is tapped out, an insurance provider may decide to cancel the policy altogether.
In addition, if a payment is not made on time and the accrued cash value can no longer cover due payments, the policy may be terminated, and there is no payout. However, some companies offer customers a 30-day grace period for missed payments.
What Type of Policy Is Right For Me?
Life insurance policies, no matter the type, have a common goal: to provide loved ones with an added layer of financial security after the policyholder dies. Beneficiaries can use payouts to cover major expenses, such as housing, medical bills, educational costs, child care, and/or other financial needs. In some instances, beneficiaries may use payouts to pay unsettled estate taxes or bills.
When deciding what type of policy to purchase, shoppers might want to calculate how much money is needed to adequately protect their designated beneficiaries. That figure should account for things like your loved one’s needs, any outstanding debts you may have, and other financial responsibilities.
Other variables, such as age, marital status, number of dependents, and expected family income, may also affect which sort of life insurance policy a person may need or be eligible for.
To find out which life insurance policies or rates you may qualify for, request a quote from various insurance providers or agents, either by phone or through their website. You may be asked to provide additional information, such as your income, age, and health.
Recommended: How Much Is Life Insurance?
Should I Get a Life Insurance Agent?
There can be benefits to contacting an agent. Insurance agents are trained in the ins and outs of life insurance. They can explain the difference between term life insurance and whole life insurance policies and walk you through the extra riders (i.e., supplemental coverage) that can be added to standard plans and other fine print. If you’re new to buying life insurance, having that kind of information available can make the decision-making process easier.
When to Buy a Life Insurance Policy
When you decide to buy a life insurance policy depends on a number of factors, including your income and whether you have outstanding debt that your loved ones will end up having to pay after you die.
Generally speaking, the earlier you can purchase a policy, the better. That’s because life insurance is typically priced in part according to a person’s age and overall health. This means the younger and healthier you are when you buy a policy, the more affordable your monthly payments tend to be. Generally speaking, whatever rate you qualify for is locked in when the policy is issued.
What if you have a life insurance plan through their employer? In some cases, those policies offer less generous coverage than plans available on the market — at times, just one to two times the employee’s annual salary. While such policies can provide a quick influx of cash in the event you die, it’s often unlikely to be enough to provide ongoing financial support for those left behind. Plus, not all employer-sponsored life insurance policies are transferable, which means you could lose it if you quit.
If you need more consistent or robust coverage, it may make sense to explore a supplemental policy to more fully protect your family.
Recommended: 8 Popular Types of Life Insurance for Any Age
The Takeaway
Universal life insurance can provide long-term coverage as long as the policyholder is alive, and after they die, pays beneficiaries a set amount of money. This type of insurance is flexible — often, policyholders can control the premium and death benefit amount — and builds cash value over time. Term life insurance, on the other hand, provides coverage for a set amount of time, such as 10 or 20 years, and there’s no cash value attached to the policy. However, term life is usually less expensive than universal life. If you’re new to life insurance, consider enlisting the help of an agent to make sense of your options.
Ready to start shopping for life insurance? SoFi has partnered with Ladder 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.
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.
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. SOPT0523002
If you’re looking for an affordable term life insurance policy that you can obtain quickly, you need to check out Ladder. Their streamlined online application can have you approved in a matter of minutes. And according to Ladder, many applications are approved without a medical exam requirement. Learn more in our Ladder review.
If you’re looking for an affordable term life insurance policy that you can obtain quickly, you need to check out Ladder. Their streamlined online application can have you approved in a matter of minutes. And according to Ladder, many applications are approved without a medical exam requirement.
In this Ladder review, I’ll let you know what types of policies they offer, key features, who is eligible, and how much you can expect to pay.
Easy to use online applications
No medical exams for up to $3M in coverage; just answer some health-related questions
Adjustable coverage
Table of Contents
Introducing Ladder Insurance
Ladder is a California-based online life insurance provider offering coverage through established life insurance companies. Founded in 2015 and launched in 2017, Ladder’s insurance partners include Allianz Life Insurance Company of New York, Fidelity Security Life Insurance Company®, and its affiliate, Ladder Life Insurance Company.
While the entire application process is online, you can get help from licensed insurance professionals, if needed, who are happy to help.
How Ladder Term Life Insurance Works
Ladder only offers term life insurance policies. Ladder’s mission is to offer affordable policies with speed and ease. Term life insurance best fits that product type.
When applying with Ladder, you should be aware the company does not offer policy riders. These optional additional coverage provisions provide more benefits but at a higher premium. That higher premium is the reason why Ladder doesn’t offer them.
Ladder’s most unique feature is that it allows you to increase or decrease your coverage as needed.
Laddering Up/Laddering Down
The name Ladder hints at its most unique feature – the ability to increase or decrease your coverage as needed. The process is known as ‘laddering up’ or ‘laddering down.’ Existing policyholders can increase their death benefit amount as their needs change, subject to underwriting and approval.
Conversely, if your coverage needs decline, you can reduce the death benefit. In short, Ladder Life puts you in charge of the policy’s face amount and the premium you’ll pay. You can request a change to your coverage by visiting the Ladder account page.
Laddering your policy, up or down, is completely free. And you can ladder your policy as often as you like. Naturally, the premium will increase if you ladder up the policy amount. And if you ladder down the death benefit, the premium will decrease.
Term Length Options
Ladder offers terms ranging from 10 to 30 years, the maximum term you can qualify for, regardless of age. That said, your age at the time of application may reduce the maximum term for which you qualify. The maximum issue age is 60.
Ladder uses a simple calculation to determine the maximum term length of a policy. Your current age, plus the term length, cannot exceed 70. For example, if you’re 40, the longest term is 30 years (40+30 = 70.) If you’re 50, the longest term is 20 years (50+20 = 70.)
Ladder policies are underwritten based on your nearest birthday. For example, if you will be 45 in four months, your age will be considered 45 years, not 44.
Policies are renewable for up to 5 years after the guaranteed level premium term. The new premium will be based on your age at renewal and, therefore, higher, but this is how term life insurance renewals work.
Ladder Pricing
Like all life insurance policies, Ladder policy premiums depend on a combination of factors. Those include your age at the time of application, health condition, occupation, hobbies and pastimes, and even geographic location.
We requested information for a non-smoking 40-year-old male in excellent health with no family history of major illnesses, and we received the following quotes for $1 million in coverage:
10 years – $37.50 per month
15 years – $47.70 per month
20 years – $61.80 per month
25 years – $96.90 per month
30 years – $114.30 per month
We then requested a policy for a non-smoking 40-year-old female in excellent health with no family history of major illnesses, and we received the following quotes for $1 million in coverage:
10 years – $35.40 per month
15 years – $46.80 per month
20 years – $52.50 per month
25 years – $77.10 per month
30 years – $88.50 per month
The monthly premiums for men are slightly higher than for women, which is common throughout the life insurance industry. This owes to the fact that women statistically live longer than men by several years.
The premium rate increases with the term of the policy because the longer the term, the greater the likelihood the company will ultimately pay the death benefit.
Ladder Maximum Coverage Limits
Ladder coverage limits range from a minimum of $100,000 to a maximum of $8 million (up to $3 million in CA). If you apply for $3 million or less, you won’t have to take a medical exam, just answer health questions. Applicants applying for benefits greater than $3 million may need to submit to a medical exam.
Policies offered through Ladder have a single death benefit payout, which is paid in a lump sum to the beneficiaries upon the death of the insured. Unlike some life insurance companies, there is no option to distribute benefits in installments or through any other payout method.
As mentioned, Ladder does not offer common life insurance riders, so you won’t have the ability to add provisions, such as a spousal rider, an accelerated death benefit (living benefits), double indemnity (increased death benefit for death caused by an accident), or a conversion provision that enables you to convert the term policy to a permanent, whole life policy before the term expires.
Ladder Coverage Eligibility
Ladder offers coverage for those between the ages of 20 and 60. If you are over 60, you’ll need to make an application elsewhere. Each application is for a single individual, so there is no capability to apply jointly with your spouse or to add your children. Each person will need to complete a separate application.
Policies are available only to US citizens and lawful permanent resident aliens who have lived in the US for at least two years. Ladder offers policies in all 50 states, as well as the District of Columbia.
Ladder Application Process
The application process takes place online, which helps Ladder keep premiums low.
You can apply for coverage in as little as 5 minutes. You will not be required to complete a medical exam for coverage up to $3 million.
But for coverage above $3 million, the approval decision may be delayed several weeks.
Ladder Underwriting
When completing the application, Ladder will request basic information, like your name and email address. In making the underwriting decision, they’ll also request the following information:
Your height and weight
The last time you used tobacco or nicotine products
Your date of birth
Whether a biological parent or sibling has been diagnosed by a physician with diabetes, cancer, heart disease, Huntington’s Disease, or Lynch Syndrome before the age of 60?
Your annual household income
How many children you have
Your remaining mortgage balance
Your answers to these and other questions will determine your eligibility for life insurance coverage, as well as the premium you’ll pay for the policy.
Is Ladder Legit?
Ladder Life is a legitimate term life insurance services provider, offering policies in all 50 US states. The following information indicates its financial strength and how it’s perceived within the insurance industry and by its customers.
Financial Strength
Since Ladder is not the direct issuer of the policies they offer, the company is not rated for financial strength by A.M. Best, the industry’s most well-recognized insurance company rating agency.
But the ratings for two of Ladder’s issuing companies are as follows:
Allianz Life Insurance Company of New York, A+ (Superior)*
Fidelity Security Life Insurance Company, A (Excellent)*
Since each of the companies is rated “A” or higher by A.M. Best, each is highly likely to have the financial strength to pay the policy death benefit, if necessary.
Ladder’s third issuing company is its affiliate, Ladder Life Insurance Company. Ladder Life Insurance Company has earned a Financial Stability Rating® (FSR) of A (Exceptional) from Demotech, Inc. FSRs are a leading indicator of financial stability, providing an objective baseline of future solvency. The most current FSRs must be verified by visiting www.demotech.com
Third-Party Ratings
In addition to financial strength ratings by A.M. Best, we’ve also considered the credit rating of each of the three providers behind Ladder. The credit rating indicates the company’s ability to meet its financial obligations and continue operations as a going concern.
The news here is as good as it is with the financial strength ratings. The table below shows the credit ratings of two of the companies from two major corporate credit evaluation agencies:
Insurance Company / Rating Service
Moody’s
Standard & Poor’s
Allianz Life Insurance Company of New York
A1 (5th of 21 ratings)
AA (3rd of 21 ratings)
Fidelity Security Life Insurance Company®
N/A
N/A
Customer Service Ratings
Perhaps the best indicator of Ladder’s reputation as a life insurance services provider is to look at the ratings provided by the people who deal most closely with Ladder – its customers. Ladder has an Excellent Trustpilot score of 4.8/5, based on almost 2400 customer reviews. 89% of customers have assigned them a 5-star rating, and only 5 % rated them three stars or fewer.
We could not locate a rating for Ladder with the Better Business Bureau. However, the BBB has an “A+” (highest) rating for Fidelity Security Life Insurance Company® and has been agency accredited since 1990. There is, however, no BBB rating for Allianz Life Insurance Company of New York, perhaps because the company is an affiliated organization.
How We Evaluated Ladder Life Insurance
We’ve evaluated Ladder based on the policy terms offered, the dollar amount of the death benefits, and the premiums’ cost. We’ve also taken into account applicant eligibility, as well as the apparent underwriting criteria the company uses.
We’ve also considered third-party information about the company, including its financial strength and reputation. Finally, we considered factors that make Ladder Life unique regarding what niche they fill in the insurance industry.
Ladder Pros and Cons
There’s a lot to like about Ladder, but it does lack some key features people look for when shopping for life insurance. Whether or not that matters to you will depend on what you want in a life insurance policy. Here’s our list of Ladder’s pros and cons.
Pros
Affordable term life insurance
Complete your entire application online
Good chance of no medical exam (if you’re in good health)
High maximum coverage of $8MM
Ladder up or down to change your existing insurance coverage
Excellent Trustpilot rating from Ladder Life customers
Cons
Is Ladder a Good Company?
Ladder is one of the best online life insurance companies for term insurance. While they don’t offer as many coverage options as other providers (term life only, no riders), they provide straightforward term coverage that’s affordable and easy to apply for. You can complete the entire process online, and if you’re in good health, you likely won’t require a medical exam.
Ladder partners with top-notch insurance companies and can boast very high customer ratings. And their Ladder Up/Down features only add to Ladder’s convenience.
Of course, if you fall outside Ladder’s qualifying criteria, i.e., over 60, want universal or whole life insurance, or require specialized coverage via insurance riders, then Ladder is not for you.
The bottom line is if you meet Ladder’s age requirements and are of good health, it’s one of the best places to get term life insurance – which is what the vast majority of American adults need.
FAQs on Ladder Life Insurance
Is Ladder a real life insurance company?
Ladder is a “real” life insurance company that provides online term life insurance. It was founded in 2015 and is headquartered in San Francisco, California. The company offers a range of term life insurance products that can be customized to meet the specific needs of individual customers.
Ladder’s insurance policies are underwritten by companies including Fidelity Security Life Insurance Company® and Allianz Life Insurance Company of New York, both of which are leading life insurance companies. Ladder’s website allows customers to easily apply for and purchase life insurance online, and the company also offers support through its customer service team.
Does Ladder pay out on their insurance policies?
Yes, life insurance policies sold through Ladder pay out in the event of the policyholder’s death, as long as the policy is in effect and the death is covered under the terms of the policy. Life insurance policies are designed to provide financial protection for the policyholder’s loved ones in the event of the policyholder’s death.
Is buying life insurance online safe?
Buying life insurance online can be safe as long as you take certain precautions. Here are some tips to help you ensure that your online life insurance purchase is safe:
1. Do your research: Make sure you understand the different types of life insurance policies available and what each one covers. This will help you make an informed decision about which policy is right for you.
2. Compare quotes: It’s a good idea to compare quotes from multiple insurance companies before you make a purchase. This will help you find the best rate for the coverage you need.
3. Check the company’s reputation: Do some research on the insurance company you are considering purchasing from. Look for reviews and ratings from independent sources, such as the Better Business Bureau.
4. Understand the policy terms: Make sure you fully understand the policy terms before making a purchase. Pay attention to details such as the policy’s length, coverage amount, and any exclusions or limitations.
5. Protect your personal information: Be careful when providing personal information online, especially when it comes to financial information. Make sure the website you use is secure, and protect your personal information by using a strong password and avoiding sharing it with others.
How much life insurance do I need?
Here’s what you need to know on determining how much life insurance you need include:
Your financial obligations: Consider the financial obligations you have, such as a mortgage, car loans, credit card debt, and other expenses. You’ll want enough life insurance to cover these obligations in the event of your death.
Your income: If you have dependents, you may want to have enough life insurance to replace your income in the event of your death. This can help your loved ones maintain their standard of living.
Your assets: If you have significant assets, such as a business or property, you want to have enough life insurance to cover the value of these assets in the event of your death.
Your future financial goals: Consider your future financial goals, such as paying for your children’s education or saving for retirement. You want to have enough life insurance to help your loved ones achieve these goals even if you are not there to contribute.
Product Description: Ladder is a life insurance services provider that offers term life insurance policies to consumers. It was founded in 2015 and is headquartered in Palo Alto, CA.
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Summary
Ladder offers term life insurance coverage of between $100K to $8M with no medical exams for coverage up to $3M (just answer health-related questions). Adjust coverage anytime.
Cost and Fees
Customer Service
User Experience
Product Offerings
Overall
4.3
Pros
Offers adjustable term life insurance ranging from 10 to 30 years in 5-year increments.
The company has a user-friendly website and offers a range of online tools and resources to help consumers understand and compare different life insurance options.
Offers no medical exam coverage up to $3M, which may be a good option for individuals who are unable or unwilling to undergo a medical exam as part of the application process.
Cons
No-exam life insurance policies are typically more expensive than traditional life insurance policies
May not be the best option for individuals with pre-existing health conditions or other risk factors
Do not offer riders on their insurance policies such as: Accidental death and dismemberment (AD&D) rider, waiver of premium rider, or return of premium rider.
*Allianz Life Insurance Company of New York has been rated A+ (Superior) affirmed October 2021 and Fidelity Security Life Insurance Company® has been rated A (Excellent) based on an analysis of financial position and operating performance, by A.M. Best Company, an independent analyst of the insurance industry. For the latest rating, accesswww.ambest.com.
Ladder Insurance Services, LLC (CA license # 0K22568; AR license # 3000140372) offers term life insurance policies: (i) in California, on behalf of its affiliate, Ladder Life Insurance Company, Menlo Park, CA (policy form # P-LL100CA); (ii) in New York, on behalf of Allianz Life Insurance Company of New York, New York, NY (policy form # MN-26); and (iii) Fidelity Security Life Insurance Company®, Kansas City, MO (policy form # ICC17-M-1069, M-1069 and policy # TL-146) in the District of Columbia and all states except New York and California. Only Allianz Life Insurance Company of New York is authorized to issue life insurance in the state of New York. Insurance policy prices, coverages, features, terms, benefits, exclusions, limitations and available discounts vary among these insurers and are subject to qualifications. Each insurer is solely responsible for any claims and has financial responsibility for its own products.