Life insurance works by paying a monthly or annual premium to an insurance company in exchange for a guaranteed death benefit paid to your beneficiaries when you die. The amount, type, and cost depend on your age, health, and coverage needs.
Life insurance is a contract between you and an insurance company. You pay regular premiums, and in return, the company promises to pay a lump sum (the death benefit) to your chosen beneficiaries when you pass away.
You apply by providing personal information, health history, and sometimes completing a medical exam. The insurance company assesses your risk level and offers a premium rate. Once accepted and the first premium is paid, your coverage begins immediately.
Compare rates from top-rated life insurance carriers.
Term life insurance provides coverage for a set period (10-30 years) and is cheaper but expires. Whole life insurance covers you for your entire life, builds cash value, and has level premiums but costs more than term. Read more
A common rule of thumb is 10-15 times your annual income. However, the right amount depends on your debts, family size, future expenses (college, retirement), and existing coverage. Read more
Life insurance death benefits are generally not subject to federal income tax. Your beneficiaries receive the full payout tax-free. However, if the policy is part of a large estate, estate taxes may apply for estates exceeding the federal exemption. Read more
Compare rates from top-rated life insurance carriers.