List of the best Life Insurance in the World is easy to Claim
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What is Life Insurance? Benefits of Life Insurance?
Term life insurance, also known as pure life insurance, is a type of life insurance that guarantees payment of a stated death benefit if the covered person dies during a specified term. Once the term expires, the policyholder can either renew it for another term, convert the policy to permanent coverage, or allow the term life insurance policy to terminate.
When you buy a term life insurance policy, the insurance company determines the premiums based on the value of the policy (the payout amount) as well as your age, gender, and health. In some cases, a medical exam may be required. The insurance company may also inquire about your driving record, current medications, smoking status, occupation, hobbies, and family history. If you die during the term of the policy, the insurer will pay the face value of the policy to your beneficiaries. This cash benefit — which is, in most cases, not taxable — may be used by beneficiaries to settle your healthcare and funeral costs, consumer debt, or mortgage debt among other things. However, if the policy expires before your death, there is no payout. You may be able to renew a term policy at its expiration, but the premiums will be recalculated for your age at the time of renewal. Term life policies have no value other than the guaranteed death benefit. There is no savings component as found in a whole life insurance product.
Example of Term Life Insurance
Thirty-year-old George wants to protect his family in the unlikely event of his early death. He buys a $ 500,000 10-year term life insurance policy with a premium of $ 50 per month. If George dies within the 10-year term, the policy will pay George’s beneficiary $ 500,000. If he dies after he turns 40, when the policy has expired, his beneficiary will receive no benefit. If he renews the policy, the premiums will be higher than with his initial policy because they will be based on his age of 40 instead of 30. If George is diagnosed with a terminal illness during the first policy term, he likely will not be eligible to renew once that policy expires. Some policies do offer guaranteed re-insurability (without proof of insurability), but such features, when available, tend to make the policy cost more.
Types of Term Life Insurance
There are several different types of term life insurance; the best option will depend on your individual circumstances.
1. Level term, or level-premium, policies
These provide coverage for a specified period ranging from 10 to 30 years. Both the death benefit and premium are fixed. Because actuaries must account for the increasing costs of insurance over the life of the policy’s effectiveness, the premium is comparatively higher than yearly renewable term life insurance.
2. Yearly renewable term (YRT) Policies
Yearly renewable term (YRT) policies have no specified term, but can be renewed each year without providing evidence of insurability. The premiums change from year to year; as the insured person ages, the premiums increase. Although there is no specified term, premiums can become prohibitively expensive as individuals age, making the policy an unattractive choice for many.
3. Decreasing terms policies
These policies have a death benefit that declines each year, according to a predetermined schedule. The policyholder pays a fixed, premium level for the duration of the policy. Decreasing term policies are often used in concert with a mortgage to match the coverage with the declining principal of the home loan.
Benefits of Life Insurance
1. Life Insurance Payouts Are Tax-Free
If you have a life insurance policy and die while your coverage is in effect, your beneficiaries will receive a lump sum death benefit. Life insurance payouts aren’t considered income for tax purposes, and your beneficiaries don’t have to report the money when they file their tax returns.
2. Your Dependents won’t Have to Worry About Living Costs
Many experts recommend having life insurance that’s equal to seven to 10 times your annual income. If you have a policy (or policies) of that size, the people who depend on your income shouldn’t have to worry about their living expenses or other major costs. For example, your insurance policy could cover the cost of your children’s college education, and they won’t need to take out student loans.
3. Life Insurance Can Cover Final Expenses
The national median cost of a funeral that includes a viewing and a burial was $ 7,640 as of 2019.4 Since many Americans do not have enough savings to cover even a $ 400 emergency expense, having to pay for a funeral can be a substantial financial burden. 5 If you have a life insurance policy, your beneficiaries can use the money to pay for your burial expenses without having to dip into their own savings or use credit. Some insurers offer final expense policies. These policies have low coverage amounts and relatively inexpensive monthly premiums.
4. You Can Get Coverage for Chronic and Terminal Illnesses
Many life insurance companies offer endorsements, also known as riders, that you can add to your policy to enhance or adjust your coverage. An accelerated benefits rider allows you to access some or all of your death benefit in certain circumstances. Under some policies, for example, if you are diagnosed with a terminal illness and are expected to live less than 12 months, you can use your death benefit while you’re still living to pay for your care or other expenses.
5. Policies Can Supplement Your Retirement Savings
If you purchase a whole, universal, or variable life insurance policy, it can accumulate cash value in addition to providing death benefits. As the cash value builds up over time, you can use it to pay expenses, such as buying a car or making a down payment on a home. You can also tap into it if you need to during your retirement years.
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To begin the claims process:
Get several copies of the death certificate.
Call your insurance agent. He or she can help you fill out the necessary forms and act as an intermediary with the insurance company. (Don’t keep life insurance policies in your safe deposit box. In most states, safe deposit boxes are sealed temporarily upon the death of the owner, which can delay the settlement.) If you don’t have an insurance agent, or don ‘t know who the deceased’s agent was, contact the company directly.
Submit a certified copy of the death certificate from the funeral director with the policy claim. Once the claim is submitted, a settlement should be issued to you shortly. Once a life insurance claim is submitted, you must determine how the proceeds will be distributed. These are some of the options available:
Lump sum — You receive the entire death benefit in a single amount.
Specific income provision — The company pays you both principal and interest on a predetermined schedule.
Life income option — You receive a guaranteed income for life. The amount of income depends on the death benefit, your gender and your age at the time of the insured’s death.
Interest income option — The company holds the proceeds and pays you interest on them. The death benefit remains intact and goes to a secondary beneficiary upon your death.
Prudential was chosen as the best life insurance company overall based on the company history of more than 140 years, the broad selection of policies available, and excellent ratings for financial strength.
You can get an instant quote for term life insurance coverage online
Prudential has excellent ratings for financial strength, as well as a long company history
Multiple riders can be added to your policy
You need to speak with an agent to get a quote for permanent life insurance coverage and you cannot get a quote online
Prudential Financial has been in business for more than 140 years, which bodes well for its reliability. The Prudential Insurance Company of America also boasts an A+ rating with AM Best, as well as an AA- rating with Standard & Poor’s in terms of its financial strength.1
Prudential offers term life insurance coverage, universal life insurance, indexed universal life insurance, and variable universal life insurance, and you can add riders to your policy that include an accidental death benefit, a living needs benefit, and a children’s protection rider.
You’ll need to speak with an agent to get a quote for whole life insurance policies, but Prudential does let you apply for an instant online quote for term life insurance. To learn more about life insurance from Prudential, have a look at our full review.
We chose State Farm as the best company for instant issue policies based on the fact you can apply online and get term life coverage without a medical exam or any hoops to jump through. State Farm’s excellent ratings and long history also helped it gain a spot in our ranking.
State Farm extends some term policies without a medical exam, and you can get an instant answer
You can get free quotes for term life insurance coverage online
State Farm has excellent ratings for financial strength and customer satisfaction
State Farm is not licensed to offer life insurance in Massachusetts
State Farm is another insurance company with a long and storied history. Founded in 1922 by a retired farmer, State Farm has grown from humble beginnings to offer a broad range of insurance products today. At the moment, State Farm comes in at number 36 on the Fortune 500 list of largest companies.2 This company also boasts an A++ rating for financial strength from AM Best, which is the highest rating possible.3
Also, note that State Farm secured the highest ranking in the J.D. Power 2020 U.S. Life Insurance Study, which compared the experiences of life insurance and annuity customers nationwide.4
When it comes to the life insurance products it offers, State Farm lets consumers purchase term life insurance coverage, whole life insurance, and universal life insurance. State Farm also makes it easy to enter your information and get a free quote online for term life.
State Farm extends instant answer term life insurance coverage you can apply for online, and these policies can be purchased with no medical exam. You do have to answer health questions in your application, however.
How much does life insurance with State Farm cost? Request a quote online or speak to an agent to find out. Also, you can check out our full review of State Farm life insurance below.
Transamerica offers very affordable term life insurance coverage and has a long history of financial strength and reliability, which helps the company stand out as the best value in life insurance in our review.
Premiums for term life insurance coverage represent a significant value
Strong ratings for financial strength
You need to speak with an agent in order to get a quote
While Transamerica may not be a household name, this company has been around since 1904 and boasts solid ratings for financial strength, including an A rating with AM Best and an A+ rating with S&P Global.56 Transamerica scored well below average in the J.D. Power 2020 U.S. Life Insurance Study, though, with only 734 points out of 1,000 possible.4
Transamerica also offers a broad selection of life insurance coverage including term policies, whole life insurance, universal life insurance, index universal life insurance, and final expense life insurance.
Transamerica has you speak to an agent in order to get a quote for its life insurance policies. Its premiums for term coverage tend to be an excellent value. To learn more about Transamerica Life Insurance check out our full review below.
While Northwestern Mutual is known for quality overall, its whole life insurance policies are especially popular. The company paid out a record $6.2 billion in dividends on these policies throughout 2020.7 Not only do its policies tend to pay generous dividends, but you get the benefit of working with a financial advisor who can help guide you on the best whole life insurance for your needs.
Northwestern Mutual has excellent ratings for quality and financial strength
You can purchase term life, whole life, or universal life insurance coverage
You need to work with a Northwestern Mutual financial advisor to get a quote
Northwestern Mutual has been in business for more than 160 years, and it has solid ratings that show its commitment to offering quality products and services. Not only does Northwestern Mutual boast an A++ rating from AM Best and an AA+ rating from S&P Global, but it also earned high marks for customer satisfaction in the J.D. Power 2020 U.S. Life Insurance Study.48
Northwestern Mutual offers term life insurance coverage, whole life insurance coverage, and universal life insurance coverage. However, due to the fact it employs financial advisors who oversee your full financial picture, you will need to go through a complete financial review to get a quote.
This means you’ll need to work with one of Northwestern Mutual’s financial advisors and provide more information on your finances and your life. This can be a major benefit if you need some help with comprehensive financial planning and want to make your whole life insurance a part of your overall financial picture.
New York Life boasts excellent ratings for financial strength, as well as flexible term life insurance policies that you can convert to permanent insurance in the future—and the company makes it easy to tailor your term life coverage for your own specific needs.
Company has excellent financial ratings
A long history of 175 years
Four main types of life insurance coverage are available
You can’t get a quote for life insurance online with this provider
You’ll need to speak with a financial advisor before you consider their coverage options
New York Life has been in business for 175 years, which is a testament to its reliability in the market. This company also reports very solid ratings for financial strength, including an A++ rating from AM Best and an AA+ rating from Standard & Poor’s.9 Further, New York Life sits in the sixth spot in the J.D. Power 2020 U.S. Life Insurance Study, which compared more than 20 companies based on customer service satisfaction and other factors.4
New York Life offers four main types of life insurance coverage—term life insurance, whole life, universal life, and variable universal life. It also offers an array of helpful life insurance resources on its website, as well as charts that can help you compare its policies and offerings.
We chose New York Life as best for term life coverage based on the fact it offers term life insurance that can convert to permanent life later on. It also offers customizable add-ons for disability or terminal illness, which you can utilize in order to build the type of coverage that best fits your needs.
Unfortunately, New York Life does not offer free quotes online. Instead, it asks you to enter your information in a form, after which a financial professional will speak with you to go over your full financial picture.
Mutual of Omaha offers term and whole life insurance policies with no medical exam for applicants who qualify. This means you may be able to fill out a health questionnaire from the comfort of your home, with no invasive health exam, and get coverage when you pay your first month’s premiums.
The company boasts excellent ratings for financial strength
Mutual of Omaha makes it easy to get a quote online
You can apply for term coverage without a medical exam
You have to apply to find out if you can get coverage without a medical exam
Originally founded in 1909, Mutual of Omaha has grown tremendously over the years and is now a provider of life insurance, long-term care insurance, annuities, investments, and more. In terms of financial strength, Mutual of Omaha has an A+ rating with AM Best and an A+ rating with S&P Global.10 Also, Mutual of Omaha secured the fifth spot in the J.D. Power 2020 U.S. Life Insurance Study with 789 points out of a possible 1,000.4
Mutual of Omaha offers a selection of life insurance policies to choose from including term life insurance, whole life, universal life, children’s whole life insurance, and accidental death insurance. You have the option to speak with an agent in your area if you prefer, but Mutual of Omaha also lets you get a free quote or apply for any of its policies online. Mutual of Omaha also offers term and whole life coverage options with no medical exam, although not all applicants will qualify.
How much does its coverage cost? Request a quote or speak with an agent to find out. For more information, check out our full review of Mutual of Omaha.
USAA auto and home insurance and banking products are only available for military members and veterans, but it’s life insurance products are available to the public. USAA boasts excellent ratings for financial strength, and it offers an array of riders you can add to your policy to bolster your benefits. Finally, USAA focuses primarily on military members, so it understands the lifestyle and risks and can make the underwriting process easier as a result.
USAA makes it easy to get quotes for life insurance online
You can purchase term coverage or permanent life insurance depending on your needs
Excellent ratings for financial strength
USAA Life Insurance products are available to the public
Premiums may be higher than some competing companies offer, so make sure to shop around
USAA is a provider of insurance and banking products for U.S. military members and veterans. Founded in 1922, the company has grown from humble beginnings to become a provider of life insurance, auto insurance, checking and savings accounts, and many other products military members need in their lives.
Currently, USAA has just less than 13 million members, and the life insurance component of the company boasts excellent ratings. These include an A++ rating from AM Best as well as an AA+ rating from Standard & Poor’s.11
When it comes to life insurance coverage, USAA offers term life insurance coverage for up to 30 years as well as permanent life insurance products that last a lifetime. It also makes it possible to get a free quote for both term and permanent coverage online, which means it is more transparent on pricing than many of its competitors.
USAA also offers some premium rider options to its customers, including a term life event rider that lets you increase coverage by $100,000 without a medical exam. Other available riders include a military severe injury rider, a future insurability rider, an accelerated death benefit rider, and the ability to add coverage for a spouse and children.
One detail to note about USAA is the fact that you have to be a member to apply for its auto and home insurance and bank products, and that membership requires some level of military service or veteran status. With that in mind, USAA life insurance products do not require membership and are available to the public.
Prices for policies vary, so if you’re eligible for USAA get a quote and see what it would charge you. To learn more, check out our full review below.