Hippo Home Insurance Review – Good Financial Cents®

Key takeaways: Hippo offers “modernized” home insurance policies that provide protection for the way homes are used today. The company promises to help you care for your home so you can avoid claims whenever possible. They do this by including complementary smart home devices and advanced home maintenance services. Hippo offers home insurance policies in […]

Source: goodfinancialcents.com

How Much is Pet Insurance? – Good Financial Cents®

Imagine having a beloved dog or cat who becomes gravely ill only to find out the care they require will cost thousands of dollars. This scenario is heartbreaking but also incredibly common. Even worse, many pet owners don’t have the funds to foot the bill. How much can healthcare for pets set you back? According […]

Source: goodfinancialcents.com

Esurance Car Insurance Review – Good Financial Cents®

Key takeaways: Esurance was purchased by rival insurance company Allstate in 2011, yet these two companies still operate independently of one another. While it has been reported that Allstate was planning to drop Esurance in 2019 and then again in 2020, this hasn’t happened yet. Esurance was originally envisioned as a low-cost insurance provider that […]

Source: goodfinancialcents.com

Progressive Auto Insurance Review – Good Financial Cents®

Key takeaways: Progressive is one of the lowest-cost car insurance providers in most states. They offer rideshare coverage for gig workers. Progressive features an easy, online, obligation-free quote system that’s not common among the major car insurance providers. The company provides one of the most extensive lists of discounts, which may get you the lowest […]

Source: goodfinancialcents.com

State Farm Auto Insurance Review

Key takeaways:

  • State Farm is the number one auto insurer in America
  • State Farm offers rideshare insurance, which can be added to a personal auto insurance policy, keeping their customers safe during work and pleasure.
  • State Farm offers programs like the Steer Clear driving course for drivers under the age of 25 as well as Drive Safe and Save, which is a device that awards you for good driving.
  • The company provides a long list of discounts to help get the lowest rates for policies, as well as a mobile app that allows you to shop for insurance, pay bills, and file claims right on their mobile app.

We all know about Jake from State Farm, wearing khakis at three in the morning, and the famous motto, “like a good neighbor, State Farm is there”. Those famous commercials have built a strong following for State Farm, but commercials aren’t the only reason State Farm is the number one company for auto insurance. State Farm offers a large selection of products and services, all sold by the company itself, as well as a wide range of discounts to help you get the best rate.

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About the Company

State Farm is the largest auto insurance provider, based on direct premiums written, with 16.2% of all auto insurance in force in the U.S. The company has more than 83 million accounts, with over $40 billion in direct premiums written.

Although the company offers a large variety of other services, their main product is car insurance. In this review, we’re going to focus on State Farm car insurance, and also spend some time on their home insurance offerings.

State Farm Car Insurance

Basic features of State Farm car insurance are as follows:

  • Availability: All 50 states, plus the District of Columbia
  • Covered vehicles: Autos, classic cars, snowmobiles, motorcycles, RVs, recreational vehicles, ATVs/UTVs, campers, dune buggies, golf carts, trailers, mobile homes, and boats
  • Customer support: 24/7, 365 days a year by phone
  • Claims satisfaction: According to the JD Power 2020 US Auto Claims Satisfaction Study (released in October, 2020), State Farm ranks #6 out of 24 companies providing car insurance nationwide. They score 881 out of a potential 1,000 points, which is above the industry average of 872.
  • Financial strength rating: A++ (Superior)
  • Better Business Bureau ranking: Not Rated

How to Sign Up with State Farm Car Insurance

Signing up for State Farm can be done online or by phone, as well as finding your local State Farm office and getting a quote in person.

Much like other insurance quotes, State Farm’s application requires basic information as well as your driver’s license number or social security number to get a quote. The application will also require either an email address or phone number from the applicant.

If you prefer live contact, State Farm has a network of offices and agents across the country to walk you through the application process.

Unique Features

State Farm is number one for a reason, and although they don’t always have the lowest rates, they do offer a long list of discounts as well as great customer service. Here’s what makes State Farm so great:

  • Large number of discounts: State Farm offers many discounts for any policy.
  • Accident-Free Discount: Discounts can be applied to your policy if you go three or more years without any accidents or claims.
  • Accident forgiveness: Offered to customers who’ve been with the company for 9 years and have no accidents.
  • Drive Safe and Save: A device in your car that allows you to keep track of your driving through the State Farm app, savings vary based on how well you score.

State Farm Auto Insurance Coverage Options

State Farm offers standard auto insurance coverage provisions.

  • Bodily injury and property liability coverage.
  • Collision and comprehensive coverage.
  • Uninsured and underinsured liability coverage.
  • Medical payment and personal injury protection coverage.

Optional coverage provisions include the following:

  • Rental car reimbursement and travel expenses: Your car must be undriveable in order to qualify, and you’ll receive reimbursement for a rental car while your vehicle is in the shop being repaired as well as up to $500 in travel expenses.
  • Rideshare coverage: Extends from your regular auto insurance policy and provides coverage when you’re logged into your ridesharing app and waiting for a trip request or if you’re a driver waiting for a customer.
  • Roadside assistance: Includes towing, lockout service, delivery of gas, oil, battery, or a flat tire change, and up to one hour of mechanical labor at the breakdown site.
  • Drive Safe and Save: Provides a score of how well you drive and discounts your premium based on your score.

NOTE: State Farm does not offer GAP insurance however, they do offer a Payoff Protector. If you have an auto loan through State Farm, the benefit covers the outstanding principal balance if your car is totaled or stolen. Otherwise you will need to obtain gap coverage from the dealer or lender on your vehicle.

State Farm Discounts

State Farm offers one of the most extensive lists of discounts in the auto insurance industry.

Below is a list of the discounts they offer, and the average premium savings you can expect:

  • Passive Restraint: varies (airbags, seatbelts, etc.)
  • Anti-Theft System: varies
  • Drive Safe and Save: up to 30%
  • Drivers Training: varies (under age 21)
  • Good Driver: varies (three or more years accident- and claim-free)
  • Defensive Driving: 10-15%
  • Good Student: 25%
  • Multi-Vehicle: 20%
  • Multi-Policy: 17%
  • Student Away at School: varies (under age 21)
  • Steer Clear: 15% (under age 25)

Sample Premiums

To provide reasonable estimates of State Farm car insurance premiums, the table below presents semi-annual premiums for four drivers under six scenarios each. We’ve obtained these through direct quotes from the State Farm website.

Three quotes are based on liability amounts. Liability limits are expressed in a three-number sequence that looks like XX/XX/XX. The first number in the sequence is the amount of coverage for an injury to one person in an accident that’s determined to be your fault. The second number is the coverage limit for all injured parties in a single accident, while the third is coverage for property damage to other people’s property.

The limits we’ve used in our table are as follows:

1. 30/60/25 (the minimum coverage allowed in Texas)

2. 50/100/50

3. 100/300/100

In addition, the table also presents each liability coverage amount with uninsured and underinsured motorists, as well as collision and comprehensive coverage added to the basic liability policy.

We got quotes for four individual driver profiles, including a 23-year-old male, a 23-year-old female, a 53-year-old male, and a 53-year-old female. All four live in suburban Houston, Texas (Zip Code 77009), and drive a 2018 Toyota Camry 12,000 miles per year. None of the drivers has a moving violation or at-fault accident claim in the previous three years.

For simplicity’s sake, each driver is single, rents their home and has a college degree.

Here are the results:

Coverage / Driver Profile Male, 23 Female, 23 Male, 53 Female, 53
Rate for State Minimum –30/60/25 – Liability Only $434 $360 $273 $274
With Un/Under-insured Motorist and Collision & Comprehensive  $1,083  $922  $685  $685
50/100/50 – Liability Only  $472  $391  $297  $297
With Un/Under-insured Motorist and Collision & Comprehensive  $1,189  $967  $724  $724
100/300/100 – Liability Only  $512  $423  $322  $322
With Un/Under-insured Motorist and Collision & Comprehensive  $1,199  $1,024  $772  $772

NOTES: These are simplified quotes. For example, each driver’s credit history is not considered. Neither are certain optional coverages, like car replacement rental, roadside assistance, or GAP coverage for the payoff of a loan or lease.

Who State Farm Is Best For

Driver profiles and situations will vary, but State Farm may be the right choice for you if any of the following apply:

  • State Farm is the lowest-cost provider in your state for your driver profile.
  • You participate in ridesharing activities.
  • You have multiple drivers and vehicles that will qualify for several volume discounts.
  • You prefer dealing with a live agent, rather than an all-online experience.
  • You need multiple insurance policy types that you want to keep with one company.

State Farm vs. Other Car Insurance Companies

The table below compares State Farm with three of the most popular auto insurance providers in the country: Progressive, Geico, and Allstate. We’ve used side-by-side comparisons of three popular coverage levels, as well as the claims satisfaction and financial strength rating for each company.

Category / Company State Farm Progressive Geico Allstate
Average Annual Premium: State Minimum $500 $516 $464 $756
Average Annual Premium: 50/100/50 with Collision & Comprehensive $1,190 $1,106 $1,006 $1,754
Average Annual Premium: 100/300/100 with Collision & Comprehensive $1,380 $1,346 $1,222 $2,140
J.D. Power Claims Satisfaction Rating 881/1,000 856/1,000 871/1,000 876/1,000
A.M. Best Financial Strength Rating A++ (Superior) A+ (Superior) A++ (Superior) A+ (Superior)

The company that you feel will work best for you will depend on your own driver profile, your state of residence, and the specific needs and preferences you have for your policy.

SOURCE: Average Cost of Car Insurance in 2021 from The Zebra

What To Know About Auto Insurance

You’ll want to make sure that the coverage you carry matches your net worth. Cutting corners on price and coverage can leave you in financial ruin. If you find yourself in an accident, a lower premium may not provide you with enough coverage. Below are some things to look for when shopping around for a premium.

  • Keep sufficient coverage: State minimum may not be enough coverage, especially if you’re a higher risk driver or you drive a newer, more expensive car.
  • Clean credit: Insurers will look to your credit score when it comes to your premium. If you have a higher score, it’s more likely you’ll get a lower rate.
  • Add important coverage options: Although most states require insurance, some people still drive without it, or an insufficient amount of it. Optional provisions like uninsured/underinsured motorists can protect you if you’re in a situation with either type of driver.
  • Deductible: Larger deductibles will lower your rate, but don’t choose a deductible unless you’re sure you can pay it upfront for a claim.
  • Discounts: Most insurers offer discounts, find out from each company about any and all that apply to you.
  • Shop around: Get quotes from several companies to compare coverage and premium.

State Farm Home Insurance

State Farm ranks Number 1 in homeowner’s insurance. Although the company has fewer discounts than other home insurers, they still offer the same types of coverages.

  • Availability: all 50 states

Basic Home Insurance Coverage

State Farm home insurance policies provide the following basic homeowner coverage types:

  • Dwelling: Covers damage to your home as well as loss of your home in the event of an incident.
  • Personal possessions: Protects against damage, theft, and destruction of your personal items.
  • Loss of use: Provides coverage for living expenses, like lodging, if you’re unable to stay in your home.
  • Medical Payments: Covers medical bills for someone injured on your property.
  • Liability: Much like auto insurance, this provision offers protection for bodily injury and property damage against someone that you’re at-fault for.

Home Insurance Discounts

State Farm’s home insurance discounts are similar to those available for car insurance, and include:

  • Bundle home and auto
  • Sprinkler system discount
  • Security device discount
  • Damage resistant roofing material discount

State Farm Home Insurance Ratings & Average Premium

  • Claims satisfaction: Scored 880 out of 1,000 points 2021 US Property Claims Satisfaction Study, ranking #13 among18 companies nationwide.
  • Financial strength rating: A++ (Superior) by A.M. Best.
  • Average homeowner’s insurance premium: $1,296 (SOURCE: The Zebra)

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How to Sign Up with State Farm Home Insurance

Much like a State Farm car insurance quote, you’ll complete the application process for home insurance online. If you prefer, you can call a toll-free number or go to a local office.

Other Services Offered by State Farm

Listed below are the other products and services that State Farm provides.

  • Pet insurance (through Trupanion)
  • Disability (long and short term)
  • Life insurance (term, whole, universal, change policy and beneficiary)
  • Small business insurance (owner, commercial, contractors, workers comp., liability umbrella, bonds)
  • Liability (business, professional, personal)
  • Health insurance (individual, supplemental, Medicare)

If any of the above situations apply to you, you may want to discuss it with a State Farm representative when adding it to your auto insurance policy, or if you already have a policy with them.

The Bottom Line

State Farm covers more than 16% of all drivers in the country, as well as being number one in life insurance and homeowner’s insurance. With such high ratings in customer satisfaction and customer service, it’s hard not to give them a chance. When searching for any kind of insurance, State Farm should be among the companies you look to for a quote.

State Farm FAQs

Is State Farm good car insurance?

State Farm is the biggest auto insurer in the country. Customers are typically drawn to a company by a combination of quality and affordability, so this speaks volumes about State Farm. They offer a wide range of insurance policies, including life, health and business insurance, which makes it easier for consumers to keep all their insurance coverage with the same company.

Is State Farm the cheapest insurance?

State Farm is not always the cheapest, though they are the lowest in some states. But car insurance should never be purchased based on premium alone. You need to evaluate the cost of a policy against the quality of coverage being provided. State Farm comes up strong in those comparisons.

Is State Farm good at paying claims?

State Farm ranks sixth in the nation on customer claims satisfaction, according to the J.D. Power 2020 US Auto Claims Satisfaction Study cited earlier. That’s no small advantage, given the large number of auto insurance companies in the country. You can generally expect a good claims experience with State Farm.

The post State Farm Auto Insurance Review appeared first on Good Financial Cents®.

Source: goodfinancialcents.com

Do I Need Long-Term Care Insurance?

Inscription: long-term care insurance

A 65-year-old person today has nearly a 70% chance of requiring long-term care services at some point, according to the Administration for Community Living (ACL) and the Administration on Aging (AOA). Of that group, 20% will need it for over five years. So, chances are, you may also need this type of service down the line. But how will you pay for it? A long-term care insurance policy is one method to help lessen the bite of care costs. Here’s how.

Consider working with a financial advisor as you prepare for the possibility that you will need to be able to pay for long-term care.

What Is Long-Term Care Insurance?

To put it briefly, long-term care insurance helps cover the costs of long-term care services, such as in an assisted living facility. Other places where a long-term care policy will reimburse you include an adult day care center, a nursing home and your own home.

Generally, eligibility starts when you can no longer perform, independently, two of the six activities of daily living (ADL): mobility, which may include being able to transfer between a wheelchair and bed; bathing or showering; using the lavatory; maintain bladder and bowel control; dressing; and eating. Then you can take advantage of a wide range of aid.

Typical health insurance doesn’t cover these types of costs. And both Medicare and Medicaid have limitations, making them unreliable for the average person’s long-term care.

Even long-term care insurance policies require you to pay for services out of pocket up to a certain amount of time. Afterward, the insurer begins to reimburse you. Policies may pay up to a daily limit, with a maximum lifetime limit as the cap. However, couples may get around that by using a shared care option. With this, you can pool benefits.

The rate you pay for the policy will depend on multiple factors, including your age, marital status, gender, health, coverage level and insurer.

What Does Long-Term Care Insurance Cover?

What type of long-term care long-term insurance covers depends on the policy you buy.

However, these policies are comprehensive and will cover the expenses that Medicare doesn’t. Costs that it pays for include:

  • In-home care
  • Care coordination
  • Assisted living facilities
  • Nursing home care
  • Adult day care services
  • Home modification

They may also include paying for assistance with ADLs, like bathing.

Additionally, it may cover stays in hospice care or respite care. Hospice care is generally short-term and provides emotional and physical support for the terminally ill and their families. In contrast, respite care or temporary care, gives primary caregivers a break by offering care through other facilities or professionals. While these two services address two different needs, policyholders can receive help paying for either.

Keep in mind, though, long-term care coverage doesn’t pay for everything. It’s designed for custodial care, not medical care costs. Certain factors may also affect your eligibility, such as a pre-existing medical condition, such as dementia or Parkinson’s disease.

It’s up to you to decide how much coverage you need and how much you can afford. It’s crucial that you purchase within your budget. But you still want a sufficient amount of benefits to support you while you age.

Reasons to Get Long-Term Care Coverage

Consider the variety of insurance policies you already own. From homeowners to auto to life, you probably have multiple reasons why you purchased them. Likewise, there are several reasons that people see the value in long-term care coverage. Here are some ways it might impact your life for the better.

Preserves your assets

While you can get an estimate, it’s hard to pinpoint the exact price you’ll pay for long-term care. While you can find estimates, such as through the Genworth Cost of Care Survey tool, the guesswork makes it difficult to save enough.

In addition, relying on Medicare or Medicaid could leave you at a financial loss. Medicare won’t help with the costs of permanent and ongoing care. Likewise, Medicaid has its limitations, namely its income guidelines and the level of care needed to qualify.

An insurance policy ensures you don’t have to drain all your savings to be eligible for financial help. And, it takes the financial burden off of your family by safeguarding some of those remaining retirement assets.

Creates care options

Handicapped woman in a wheelchair outside

We all have an ideal future as we age. Purchasing a long-term care insurance policy ensures you have a safety net installed into your financial plan. It can be incredibly costly to pay for long-term care out of pocket. And while Medicaid can help pay for specific costs, such as nursing home care, when you’re out of savings, it won’t pay for everything. For example, it doesn’t always cover assisted living options or home-based care.

Long-term care insurance ensures you can pay for the type of care you want and need when the time comes. You can use it to supplement the savings you already have.

Protects your family

Naturally, most of us would like to stay in our own homes throughout our senior years. But with the likelihood of needing long-term care, that can put a strain on our loved ones. As a result, family members, partners and friends often take on the caregiver role, which can be difficult. According to the American Association of Retired Persons’ (AARP) data, one in three caregivers provides care completely alone. Many of which go unpaid despite caring for recipients with complex support and medical needs.

If you’re considering long-term care insurance, think about the future you see for yourself and your potential caregiver. What does the impact look like on their life? There will be financial and emotional burdens in addition to the work.

By purchasing a policy, you ensure there are some finances to pay for outside help. That takes a weight off of your shoulders and and those of your loved ones as well.

How to Buy Long-Term Care Coverage

The options available to you may vary. Some employers offer their employees the opportunity to buy a long-term care policy through their workplace. Occasionally, this comes at a discounted group rate from their broker. While you may have to answer a few questions about your health to qualify, it may be easier or less expensive than purchasing a policy on your own.

Otherwise, you can buy coverage directly through an agent or insurance company.

If you’re shopping for a policy, remember to get several quotes from varying companies. That way, you can compare your pricing options. Comparison shopping is important, regardless of whether you purchase independently or through work. The discount that may come with an employer’s plan may be nice, but it’s still possible to find competitive rates.

It’s also advisable to work with an independent long-term care insurance agent who can sell products from various carriers. From there, it’s a matter of finding a policy to fit your needs.

Do I Need Long-Term Care Coverage?

Every person’s situation is different. If you have very little funds during your senior years, you may qualify for Medicaid. This option may offer fewer choices, but it does provide funding for low-income individuals. On the other hand, if you have more than enough savings, it might be better to pay out of pocket instead.

However, if you fall between the two ends of the financial spectrum, then long-term care insurance may be worth consideration. It protects your retirement savings from pricey and unexpected medical costs, ensures choice in care and offers you and your family peace of mind.

Additionally, think about the lifestyle you live. For example, if you have no one you can rely on as a caregiver then you likely need the option of a facility. Or, if you’re a woman, you’ll likely live longer and need longer care as a result. On average, women need 3.7 years of care, whereas men only need 2.2, according to the ACL.

The Bottom Line

Happy senior coupleLong-term care is incredibly expensive. Genworth estimates that the median costs for in-home care, assisted living facilities and nursing home facilities all exceed $50,000 per year. As a result, it’s wise to evaluate how you would pay for your potential long-term care needs. A long-term care insurance policy is just one method. While it offers financial and emotional protection, it may still be an additional cost you’re not prepared to pay.

Long-Term Care Planning Tips

  • Long-term care comes with millions of questions. You can address them with an experienced financial advisor. SmartAsset’s free matching tool makes it easy to find a qualified, local professional, too. Simply answer a few questions and in no time you have up to three advisors who can guide you through your process. If you’re ready to tackle financial planning, get started now.
  • Planning for long-term care is crucial to any financial plan. A high percentage of Americans will likely need this vital service at some point. So, review SmartAsset’s guide to creating a financial plan to make sure yours includes that possibility.

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Best Online Life Insurance of 2021

A few decades ago, most life insurance sales took place through an agent, and you definitely had to endure a medical exam for coverage to begin. But since online life insurance has turned the entire process upside down, you can now buy digital life insurance plans without leaving your home. With some providers, you can even get coverage as soon as the next business day.

These benefits and others are part of the reason online life insurance is growing in popularity. According to the Insurance Information Institute (III), the percentage of consumers who preferred online life insurance to in-person sales grew from 17% in 2011 to 29% in 2020. 

If you’re in the market for life insurance and you want to avoid working with an agent who might try high-pressure sales techniques, the best online life insurance companies are worth considering.

To help you in your search, we compared the top companies in this space in terms of their offerings, processes, and ratings for financial strength. The best online life insurance companies include Bestow, Haven Life, Sproutt, and Legal & General Life Insurance, and we review all of them below.

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If you're concerned about your family's wellbeing, Life Insurance can give you some peace of mind.
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Most Important Factors for Online Life Insurance

  • Free online quote: Buying life insurance online means not having to deal with an agent or their high-pressure tactics. With that in mind, we only selected companies that offer free online life insurance quotes for our ranking. 
  • Strong ratings for financial strength: We also looked at providers based on their ratings for financial strength from AM Best. 
  • Potential for no medical exam: Some online life insurance companies use advanced algorithms to approve you for life insurance without a medical exam. 
  • Flexible options: Online life insurance companies tend to offer consumers flexibility in their plans, including the ability to tailor their coverage to their needs.
  • Low premiums: Finally, online life insurance should absolutely have affordable monthly premiums that can fit into any budget. With a free online quote process, they should also make it easy to shop around and compare. 

The 4 Best Online Life Insurance Companies of 2021

To come up with the providers in this ranking, we looked at dozens of companies based on the features listed above. Ultimately, we found that the following four online life insurance providers offer some of the best options, reasonable pricing, and transparency all along.

Bestow made our ranking due to the fact they offer an easy online quote process and no medical exams ever. Haven Life has a similar process and the potential for no medical exams, and their term policies can come in amounts up to $3 million.

We chose Sproutt for our ranking since they offer a robust online insurance marketplace that lets you compare options and pricing all in one place. Finally, Legal & General Life Insurance made the cut due to their low advertised rates. With Legal & General Life Insurance, you can reportedly buy term life insurance coverage for as little as $7 per month. 

In summary, here are the best online life insurance providers of 2021, as well as the categories they stand out in: 

  • Bestow: Best for no medical exam requirement
  • Haven Life: Best for quick coverage
  • Sproutt: Best comparison site
  • Legal & General Life Insurance: Best for affordable premiums

Online Life Insurance Reviews

Our detailed reviews explain more about each of the best life insurance companies and what they have to offer.

Bestow

Bestow is one of the top providers of online life insurance, and it’s easy to see why. This company makes it incredibly easy to get an online quote without providing any personal information, and they offer term life insurance in amounts that range from $50,000 to $1.5 million. 

You also get to tailor your coverage to your needs, with terms available in five-year increments from 10 years to 30 years. Bestow policies also use advanced algorithms to approve you for coverage, so you won’ t have to go through a medical exam. 

Term coverage from Bestow is backed by North American Company for Life and Health Insurance® — an A+ rated insurer. Its policies are also reinsured by highly-rated Munich RE, so you can rest assured your coverage will be there if you need it.

According to Bestow, premiums for its term life insurance coverage start at just $10 per month.

What Holds It Back: Bestow policies are only available to individuals who are ages 18 to 60. This provider might not be a good option if you need life insurance during your golden years. Also, people with a felony conviction aren’t eligible and will need to buy coverage elsewhere.

Finally, it’s worth noting that Bestow policies don’t have any options for riders. If you want to customize your coverage with riders for accidental death, an accelerated death benefit, or any other situation, you’ll need to look for another provider. 

Haven Life

Haven Life made our ranking due to its flexible coverage options, including policies worth up to $3 million. Best of all, you can apply for coverage with Haven Life and begin your policy as soon as the next business day.

This provider offers two different kinds of term life insurance:

  • Haven Simple policies, which are fully digital with no medical exam, and 
  • Haven Term coverage which offers higher limits and may or may not require a medical exam. 

Both types of policies are underwritten by highly-rated insurers, including Mass Mutual and C.M. Life Insurance Company, a subsidiary of MassMutual. Haven Life also offers affordable premiums to those who qualify. According to the insurer, a $250,000, 20-year Haven Term policy starts at just $14.99 per month depending on your age and other factors. 

What Holds It Back: Although Haven Life offers affordable term coverage, its Haven Simple plan with no medical exam does come with limitations. For example, you must be 20 to 55 years old to be eligible, and you can’t live in the following states: CA, DE, SD, ND or NY. Haven Simple policies are only available in five-year, 10-year, or 15-year terms, and the maximum coverage you can buy is $500,000. 

Sproutt

Sproutt Life Insurance is a little different because it’s an insurance marketplace, meaning you can compare plans across multiple insurance providers. This company also focuses on your total health, and it provides life insurance options that are optimized based on your lifestyle and your health-related goals. 

Since Sproutt is an independent broker, however, you’ll have to do some research on the companies that offer you policies once you apply for a quote. That said, this online comparison site lets you compare pricing and policies from multiple providers in one place, including options with and without a medical exam. 

We also like the fact that Sproutt has a 20-day money-back guarantee on all its policies, and the fact that many include an accelerated benefit rider at no cost. You can also convert its term policies to permanent coverage later on. 

What Holds It Back: One big downside of working with Sproutt is the fact that you have to provide an array of personal data to get a free quote, including how often you exercise, what you like to eat, and more. Since this is an insurance marketplace, you should also be aware that Sproutt doesn’t actually issue life insurance policies themselves. 

Legal & General Life Insurance

Legal & General Life Insurance made our ranking due to the low premiums they advertise, which start at $7 per month. You can apply for a free quote online or over the phone with very little personal information. In addition to term life insurance, Legal & General also offers universal life insurance and annuities that provide lifetime income. 

Interestingly, Legal & General lets you apply for up to $10 million in life insurance coverage on its website, and it lets you choose your coverage length from a variety of timelines that last for up to 40 years. This company also boasts an A+ rating for financial strength from AM Best, and it currently has 1.3 million U.S. life insurance customers. 

Although some policies from Legal & General might require a medical exam, it does offer policies with no medical exam to eligible applicants. This is due to its accelerated underwriting process, which lets you apply for life insurance and get coverage within a matter of days or even the same day. 

What Holds It Back: One downside of Legal & General is its wonky free quote tool. You can find out how much you would pay for a life insurance policy online, but you can’t change your quote to compare pricing for different coverage amounts or term lengths. 

If you want to compare pricing among different coverage options, you have to apply for a new life insurance quote each time. 

Other Life Insurance Options to Consider

As you compare life insurance quotes, make sure you’re only looking at companies with excellent financial ratings and a strong online presence. In addition to the companies that made our ranking, we suggest comparing quotes from companies like Ladder, AIG, American National, and National Family Assurance. 

How We Found the Best Online Life Insurance Companies

While there are many companies who offer life insurance online, we looked at several important factors to find the absolute best. The following criteria was considered when compiling our list of the best online life insurance firms. 

Strong Financial Ratings

All the companies that made our ranking have excellent ratings for financial strength with the exception of Sproutt, which is an insurance marketplace that does not offer their own policies. Generally speaking, we looked for companies that have policies underwritten by A+ insurers.

Option for No Medical Exam

While some of the providers that made our ranking may require medical exams for some of their policies, we only included online insurance companies that offer life insurance policies with no exam required. 

Flexible Coverage Options

We also looked for companies that let you tailor your coverage to your needs, including the amount of life insurance you buy and how long you want your policy to last. 

Online Quote

Finally, we only considered online life insurance companies that let you get a quote online and without speaking with an agent. We also looked for companies that offer free quotes without collecting your contact information.

What You Need to Know About Online Life Insurance

Online life insurance is the same as traditional life insurance, although you may find limited coverage options you can apply for with an online provider. For example, term life insurance is typically the only type of life insurance you can get without enduring a medical exam, and you may face coverage caps or limits as well.

If you plan to buy permanent life insurance, including whole life insurance, you will likely need to work with an agent.

Other details you should know about online life insurance:

  • With no medical exam, approval is gauged using advanced algorithms and proprietary data. This means the insurance company will use technology to estimate how much risk you pose as a customer, and they can approve you for a policy based on that information.
  • Many online life insurance companies are actually backed by large, reputable insurers. This should give you peace of mind if you want to make sure you’re buying reliable coverage but you have never heard of the companies in our ranking before.
  • Since online life insurance is available without having to speak with an agent, you’ll need to do some of your own research upfront. For example, you’ll need to decide the amount of life insurance you need and how long you want your plan to last.

Summary: Best Online Life Insurance Providers

Best For How to Apply
Bestow No Medical Exam Ever Apply Online
Haven Life Quick Coverage Apply Online
Sproutt Comparison Site Apply Online
Legal & General Life Insurance Affordable Premiums Apply Online

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