EXPUNK

Deciding whether to continue with your life insurance policy or cancel it is not just a significant financial choice, it can also have profound emotional implications.

After all, life insurance isn’t just a monetary consideration – it’s about ensuring that your loved ones are protected in case of your untimely demise.

However, sometimes circumstances may lead you to contemplate canceling your life insurance policy. The question then arises: should you, and if so, how do you go about it? Let’s delve deeper.

Understanding Life Insurance Policies: More Than Meets the Eye

First off, to make an informed decision, it’s crucial to understand the two main types of life insurance policies that are on the market.

Term Life Insurance: The Straightforward Option

As its name suggests, term life insurance provides coverage for a specified term, which typically ranges from 10 to 30 years. If you pass away during this term, your designated beneficiaries receive the policy’s death benefit.

This type of insurance is often viewed as the simpler and more affordable option, as it strictly provides coverage without any investment component.

Permanent Life Insurance: Coverage Plus Investment

On the other hand, permanent life insurance policies, such as whole life or universal life insurance, provide coverage for your entire lifetime and include an investment element known as cash value.

This cash value portion grows over time and can be borrowed against or even surrendered for cash, making this type of policy more complex and usually more expensive.

Reasons for Canceling Life Insurance: Making the Tough Call

Several scenarios might lead you to contemplate canceling your life insurance policy.

Financial Reasons: When the Premiums Are Too High

It could be that the premiums have become unaffordable due to changes in your financial circumstances.

As the cost of living increases, especially in the light of rising inflation, as highlighted in a recent FT Adviser report, it’s not uncommon for individuals, especially those over 50, to consider cutting back on their life insurance.

Policy No Longer Needed: When Life Takes a Better Turn

Your reasons for canceling could also be positive. Maybe your children have grown up and become financially independent, or your financial status has improved significantly since you first took out the policy.

Reasons for Canceling Life Insurance

Considerations Before Canceling Your Life Insurance: Weigh Your Options

But before you make the decision to cancel your life insurance policy, there are several factors to consider.

Evaluate Your Current Situation: Checking the Safety Net

Firstly, evaluate your current financial situation. You should be sure that you and your dependents won’t need the safety net that life insurance provides in the future.

Understand Potential Consequences: The Trade-Offs

It’s important to understand the potential consequences of canceling your life insurance. If you cancel your term life insurance, you won’t receive any money back and will be left without coverage.

On the other hand, canceling a permanent life insurance policy might allow you to recover some of the cash value, but could also result in surrender charges, especially if the policy is still in its early years, as pointed out by a Forbes Advisor article.

Alternatives to Canceling: Is There a Middle Ground?

Before canceling your policy outright, it’s worth exploring other options. For instance, you could reduce the death benefit to lower the premiums or even switch to a more affordable term life insurance policy if you currently have a permanent life insurance policy.

How to Cancel Your Life Insurance: Following the Right Steps

If, after considering all the implications and alternatives, you still decide that canceling your life insurance is the best course of action, then here are the steps you need to take.

Steps to Cancel Term Life Insurance: It’s All About Communication

The process for canceling term life insurance is generally straightforward. First, you need to contact your insurance provider and inform them of your intention to cancel the policy. This could be over the phone, via email, or sometimes through an online portal.

Steps to Cancel Permanent Life Insurance: A Bit More Complex

The process of canceling a permanent life insurance policy, on the other hand, could be a bit more complex, particularly because of the cash value component. You may need to complete a policy surrender form or send a written request to your insurance provider.

Life After Canceling Your Life Insurance: Managing Your Risks

The aftermath of canceling your life insurance policy requires careful financial planning. Now that you no longer have the protection that the policy provided, you need to manage the financial risk that the policy once covered.

Managing Financial Risk: New Strategies

This risk management could involve several strategies, from building an emergency fund to investing for your long-term financial goals.

Setting up an Emergency Fund: An Essential Buffer

An emergency fund is an essential financial tool that provides a buffer against sudden expenses or financial emergencies. It ensures that even if unexpected costs arise, you have a financial cushion to rely on.

Investing for Long-term Goals: Playing the Long Game

By investing, you can grow your wealth over time and work towards achieving your financial goals. Whether it’s retirement planning, saving for a home, or investing in your child’s education, having a robust investment strategy can provide financial security in the long run.

Conclusion – Canceling Life Insurance: A Guide

Canceling your life insurance policy is a significant decision that should be made with careful consideration. It’s crucial to weigh the potential risks and benefits, evaluate your current and future financial situation, and explore all available alternatives.

The post Canceling Your Life Insurance Policy: A Comprehensive Guide appeared first on Good Financial Cents®.

Life insurance policies are critical financial planning tools designed to provide financial security for policyholders’ beneficiaries upon their demise. They work by offering a lump-sum payment, known as a death benefit, to beneficiaries after the insured person’s death.

However, some life insurance policies offer an additional feature – the accumulation of cash value over time.

This is a unique feature that allows the policyholder to access a portion of the insurance money during their lifetime. This article will delve further into the types of life insurance policies that generate immediate cash value.

Decoding Cash Value in Life Insurance

The cash value in a life insurance policy is a savings component that grows over time. This feature is inherent in permanent life insurance policies, unlike term life insurance policies that only provide coverage for a predetermined period.

When a policyholder pays premiums towards a permanent life insurance policy, a portion of these payments contributes towards building the cash value.

This cash value grows over time and can be accessed by the policyholder during their lifetime, offering an extra layer of financial security.

Understanding Different Life Insurance Policies

The life insurance market is diverse, offering several types of policies. Some of the main types include term life insurance, whole life insurance, and universal life insurance. Each of these has its unique features, advantages, and suitability for different individuals.

Term Life Insurance

As highlighted by CNBC, term life insurance is designed to offer coverage for a specific period, typically 10, 20, or 30 years. If the policyholder passes away during this term, the insurance company pays a death benefit to the beneficiaries.

However, according to financial experts like Dave Ramsey, it could be the best option for most people because it’s simple and affordable. It’s like an umbrella for a rainy day, shielding your loved ones financially if you pass away during the policy term.

However, term life insurance does not provide any cash value component. It’s often chosen for its affordability and simplicity, focusing solely on providing financial protection in the event of the policyholder’s death during the policy term.

Whole Life Insurance

Whole life insurance, as the name suggests, offers coverage for the insured person’s entire lifetime as long as the premiums are paid. Unlike term life insurance, it combines a death benefit with a cash value component.

A portion of the premiums paid contributes to this cash value, which grows over time. Importantly, this growth is at a guaranteed rate, offering predictability and security for the policyholder. According to The Motley Fool, this type of insurance is often more expensive than term life insurance due to its cash value component and the lifetime coverage it provides.

Universal Life Insurance

Universal life insurance is another type of permanent life insurance policy that combines a death benefit with a cash value component. However, it differentiates itself with its flexibility in premium payments and death benefits. The cash value component in universal life insurance grows based on prevailing market interest rates.

Policyholders can adjust the premium amount and death benefit within certain limits, providing them with a degree of control over the policy’s costs and benefits.

Life Insurance Policies That Generate Immediate Cash Value

Among the various life insurance policy options, it’s the whole life insurance and universal life insurance policies that generate immediate cash value. From the moment these policies are enforced, the cash value starts growing, offering policyholders access to a part of their insurance payout during their lifetime.

Whole Life Insurance and Cash Value

With whole life insurance policies, the cash value grows at a guaranteed rate, offering a predictable savings growth mechanism. The cash value of whole life insurance is built from the premiums paid by the policyholder. This cash value can be borrowed against, offering a valuable source of funds when needed. Alternatively, the policyholder can choose to surrender the policy and receive the accumulated cash value.

Universal Life Insurance and Cash Value

Universal life insurance is a form of permanent life insurance policy that combines the death benefit of term insurance with a cash value component. This type of policy is known for its flexibility, as it allows policyholders to adjust the premium payments and death benefits within certain limits. This flexibility can be instrumental in managing life’s financial uncertainties.

The cash value of universal life insurance grows based on prevailing market interest rates, offering the potential for significant growth during periods of high-interest rates. It’s important to note that while this offers an opportunity for financial gain, it can also present challenges. In periods of low interest rates, the cash value growth can slow down, potentially affecting the policy’s overall value.

Policyholders can access the cash value in a universal life insurance policy through withdrawals or policy loans. This can offer valuable financial flexibility in times of need.

A Word of Caution on Universal Life Insurance

While universal life insurance offers flexibility and potential cash value growth, it’s not without risks. According to the New York Department of Financial Services, policyholders must be cautious about the fluctuating costs and benefits of these policies.

Interest rates can fluctuate, and when they’re low, the cash value of a universal life insurance policy may not grow as expected. This could mean that the policyholder has to pay higher premiums to keep the policy active, especially if the policy costs are being paid from accumulated cash value.

Policyholders should regularly review their universal life insurance policies. If the policy’s cash value is depleting faster than expected, or if the policy costs are increasing, it might be necessary to adjust the premiums or the death benefit to keep the policy in force.

Factors Influencing Cash Value Growth

The growth of cash value in a life insurance policy is subject to several factors. These can vary greatly from policy to policy, and understanding them can help policyholders make an informed decision. The following are some critical factors:

Premium Payments

The amount of premium paid and the frequency of the payments directly impact the growth of the cash value. Regular and timely premium payments can accelerate the accumulation of cash value over time.

Policy Expenses

Insurance policies come with various expenses, such as administrative fees, mortality charges, etc. These charges are typically deducted from the premium payments before the remaining amount is allocated to the cash value component, thus potentially affecting its growth rate.

Interest Rates

The interest rate at which the cash value grows plays a significant role in its accumulation. A higher interest rate leads to a quicker accumulation of cash value, while a lower rate may slow it down. This is particularly relevant for universal life insurance policies where the interest rate is tied to the prevailing market rates.

Benefits of Life Insurance With Immediate Cash Value

Opting for a life insurance policy with immediate cash value can offer several benefits:

• Financial Flexibility: The cash value in these policies can be accessed during the policyholder’s lifetime, providing financial flexibility for various needs such as emergencies, education expenses, or retirement planning.

• Asset Accumulation: The cash value component of the policy acts as an asset that can grow over time. It can serve as a source of additional funds or supplement retirement income.

• Borrowing Options: Policyholders can borrow against the cash value of their life insurance policy. This can be a convenient source of funds without the need for a separate loan application or credit check.

• Tax Advantages: The growth of cash value in a life insurance policy is typically tax-deferred. This means that policyholders can enjoy the growth without immediate tax obligations until they withdraw or surrender the policy.

Considerations When Choosing a Policy

When selecting a life insurance policy with immediate cash value, it’s important to consider the following factors:

• Financial Goals: Determine your financial goals and how the policy aligns with them. Consider whether you prioritize cash value growth, death benefit coverage, or a combination of both.

• Premium Affordability: Evaluate your budget and ensure that the premium payments are affordable in the long run. Remember that missing premium payments can impact the cash value growth and policy coverage.

• Long-Term Planning: Assess your long-term financial plans and how the policy fits into them. Consider factors such as retirement, education expenses, and other financial milestones.

As Life Happens points out, life insurance is valuable at any age. It’s not just for when you’re in your golden years and start worrying about leaving a financial safety net for your loved ones. With policies that offer immediate cash value, you’re getting both protection and a financial resource you can access during your lifetime.

Remember that gem of a piece of advice from Dave Ramsey? He says, “Term life insurance is bought, while whole life insurance is sold.”

This simply means that term life insurance, with its lower cost and straightforward benefits, is generally the go-to choice for most people. However, the whole life insurance policies, with their additional features, are actively promoted by insurance companies.

Keep in mind that in the wild world of insurance, there’s no right or wrong choice, only what works best for you. It’s like trying to choose between a coffee and a milkshake – they both have their perks, but it ultimately depends on your taste (or, in this case, your financial goals).

Are you someone who wants protection with the added benefit of cash value growth, or do you prefer a no-frills approach with just coverage? Can you consistently afford the premium payments to reap the full benefits? How does a policy fit into your long-term plan, considering things like retirement, education expenses, or other financial milestones?

The Bottom Line – Immediate Cash Value

Choosing a life insurance policy with immediate cash value can provide both protection and financial flexibility. Whole life insurance and universal life insurance policies are two types that offer this benefit. Understanding the factors that influence cash value growth and considering personal financial goals are crucial when making a decision. By selecting the right policy, individuals can secure their loved ones’ future while also building a valuable asset.

The post Types of Life Insurance That Generate Immediate Cash Value appeared first on Good Financial Cents®.

Before I started writing in the personal finance space, I spent nearly 8 years working alongside my husband in a funeral home. My husband Greg worked as a mortician, and I was the Director of Family Services. I learned so much about living and dying during my years in the mortuary business, but there’s one that stuck with me — the real-life consequences of not having life insurance. 

I clearly remember speaking with dumbfounded families who couldn’t believe their husband or father (or wife or mother) never had life insurance in place. Some didn’t have enough money to cover final expenses like the funeral bill, and others confided in me they had no idea how they would pay their bills.

This saddened me greatly since I know first-hand how inexpensive life insurance can be — especially if you’re young and healthy. After all, I’m a 40-year-old woman and I currently have two term policies worth $1 million dollars that set me back a grand total of $53 per month. 

Why People Don’t Buy Life Insurance

The main reason consumers don’t buy this important coverage is simple — they get busy and forget. Most of us know we need life insurance in place during our working years, and that’s especially true for those of us with kids. But it’s easy to let life get in the way, and for the purchase of life insurance to wind up on a list of other to-dos that we never get to. 

Not only that, but people don’t want to think about dying. I specifically remember a family I met in the funeral home who just lost a husband and father who wasn’t even 40 years old. In tears, his wife explained that he had told her he was going to buy life insurance dozens of times, but that he hated even dealing with death.

A final reason people don’t buy life insurance is cost. The thing is, term coverage is so cheap that almost anyone can afford it. People just think it’s expensive, so they shy away from taking the next steps. Life insurance is also just another bill to pay, and many can barely keep up with the bills they have.

That’s probably why so few people have enough coverage. Here are some statistics that should scare you:

• Only around 60 percent of Americans had life insurance in 2022, according to LIMRA’s 2022 Insurance Barometer Study

• Among those with life insurance, 1 in 5 people know they do not have enough

• Consumers surveyed tend to overprice life insurance; millennials in particular believe that life insurance costs 5x the actual amount for a policy

Consequences of Not Having Life Insurance

Based on those statistics, not enough people have life insurance and those who do may not have enough coverage to last. But, what can this mean for your family? Here are the main downsides you’ll face when you don’t buy life insurance now before it’s too late:

Your Income Disappears

Income replacement is one of the most compelling reasons to buy life insurance, and that’s especially true if you have kids. You don’t want your income to suddenly disappear, leaving your family in the lurch. However, this is exactly what happens when you die without life insurance. All of a sudden, your family is left trying to cover regular bills and living expenses without your income.

That’s why many experts suggest buying at least 10x your income in term life insurance coverage. This way, your family will have some cash they can use to replace your income while they mourn and get back on their feet.

Your Debts Don’t 

Your income may disappear when you die, but your debts certainly don’t. With that in mind, you should buy life insurance coverage that will cover major debts you have like your home mortgage, your family car loans, and any credit card debt you have.

If you don’t buy life insurance and you die before your time, your family will be left trying to cover all your debts without your help. It’s shameful to leave them in this position — especially when term life insurance coverage can easily be purchased for the price of a dinner out per month. 

Your Family Could Need a GoFundMe to Pay for Your Funeral

During my final years in the funeral industry, GoFundMe came about. I cannot tell you how many families came in to plan their services without any money only to find that, no, the funeral home wouldn’t let them make payments. After that, they’d set up a GoFundMe and solicit donations from family and friends to pay for a service.

This always made me sad, mostly because families shouldn’t have to struggle or fundraise to pay for final expenses. I always thought that, if only their loved one had a small-term life insurance policy, they would have been able to grieve without the added stress.

You Will Not Leave a Legacy

Finally, life insurance offers you the chance to leave a legacy behind. This could mean leaving enough money to pay for college tuition for your children or having a broad enough policy so your spouse or partner never needs to work again, paving the way for them to stay home and nurture your kids. When you have enough life insurance so your family is taken care of, they will never forget it.

The opposite is also true. Many whose loved ones die without life insurance wind up angry and resentful at their partner for leaving them in such a position. I know because I saw it with my own eyes, and I felt their exasperation as they tried to figure out what to do.

Purchase Life Insurance the Painless Way

Here’s the thing: Buying life insurance doesn’t have to be complicated or stressful. I know because I have purchased $1 million in life insurance coverage and because the second policy I bought online didn’t even require a medical exam. 

The purchase of life insurance can be painless and fast if you plan to buy basic term coverage, and it can also be significantly cheaper than you think it would be. These tips can help you get the coverage you need without any added hassle or stress.

1. Shop Around and Compare Quotes Online

First, you should absolutely shop around and compare life insurance quotes online, mostly because this is such an easy task. A range of online life insurance providers including Haven Life and Bestow make it easy to price out a policy in a matter of minutes online. 

To get a quote from Bestow or Haven Life, for example, all you need to supply is your birth date, your height, your weight, and your zip code. You don’t even need to enter your contact information or your email to get a free quote with either company.

You can also check out our guide to the Best Life Insurance Companies of 2023, which lets you read reviews of all the top providers and compare rates from multiple providers in one place. 

Whatever you do, don’t go with the first life insurance company you come across. Make sure you compare policies in terms of their monthly cost, the amount of coverage, and how long it lasts. Then, and only then, can you know you’re getting the best deal.

2. Play Around With Coverage Amounts

You also need to have a general idea of how much coverage you want and need. We mentioned that most experts suggest buying at least 10x your income in life insurance coverage, but it may be prudent to buy more term coverage than you need. After all, there’s no such thing as having too much life insurance in place, but you can definitely not have enough.

If you’re young and you have young kids, you may want a 30-year policy that will provide income replacement for your entire working life. If you’re in your 40s and you plan to retire at 55, on the other hand, you may feel comfortable with a policy that lasts for 15 or 20 years. There is no “right” or “wrong” answer, but these are factors you should consider.

3. Look for Providers That Don’t Require a Medical Exam

According to LIMRA’s 2018 Insurance Barometer Study, half of all consumers say they are “more likely to purchase life insurance if priced without a physical examination.” And, can you blame them? Medical exams require a blood draw, and you have to set aside time in your schedule for them to boot. It’s easy to procrastinate and never buy a policy when a medical exam is required.

Fortunately, many life insurance providers don’t require a medical exam. Instead, they rely on algorithms to determine who is the greatest risk, and who can purchase coverage that begins right away. The second policy I purchased for myself came from Haven Life, and it did not require a medical exam. 

I was in my late 30s when I purchased this policy for $750,000, and I only pay around $27 per month. I applied for this policy online and had coverage the next day, and all without seeing a nurse or facing the dreaded needle prick.

The Bottom Line

Since you took the time to read this piece, you are probably on the verge of buying life insurance. You already know you need it, so don’t let another day go by without coverage. You may not think something could happen to you in the next week or the next few months, but life doesn’t always go as planned. If you’re unlucky, your untimely death may be no exception.

Take the time to get a quote for life insurance, and you’ll never have to wonder what your family would do if you died. Life insurance lets you continue providing for them even after you’ve left this Earth, and there’s nothing more thoughtful and loving than that. 

The post What Are the Consequences of Not Having Life Insurance? appeared first on Good Financial Cents®.

The best home insurance companies offer high-quality coverage that protects against damage to your home’s structure and your property, whether it is caused by lightning, winds, fire, or other covered perils.

Homeowners’ insurance also comes with important liability coverage that can save you financially if someone is injured on your property and decides to sue you for damages.

That said, not all homeowners insurance is created equal, and the best home insurance companies stand out due to the breadth of their policy offerings, the discounts they offer, and their affordable premiums.

To help you find the best home insurance company for your needs and your budget, we compared more than 20 of the top providers based on these factors, as well as third-party rankings from agencies like A.M. Best and J.D. Power.

Our Picks for Best Home Insurance of July 2024

• Lemonade: Best Online Insurance Company

• Liberty Mutual: Best for Customized Coverage

• Progressive: Best for Comparison Shopping

• Hippo: Best for Fast Quotes

• Travelers: Best Green Savings Option

• Farmers: Best for Discounts

• USAA: Best for Military

• Allied: Best for Flexible Coverage

• Erie Insurance: Best Customer Experience

• Amica Mutual: Best for Claims Satisfaction

Best Home Insurance – Company Reviews

These are the best homeowners insurance companies for 2024 based on their coverage options, customer satisfaction scores, available discounts, and more. That said, it’s worth noting that not all of these home insurance companies offer their products nationwide.

Lemonade offers instant home insurance quotes without any hassle, and their rates start at just $25 per month. This insurance company operates online and through its mobile app, which boasts an average rating of 4.6 stars on Google Play and 4.9 out of 5 stars in the App Store.

Because Lemonade uses newer technology, it can provide speedy insurance quotes with just a few clicks of a button. It also promises an incredibly fast claims process with 24/7 customer service. Although the bulk of its insurance claims are handled electronically, Lemonade also offers human customer service agents who can answer questions along the way.

With Lemonade, you have the chance to customize coverage to meet your needs. Its homeowners’ insurance policies can include coverage for your dwelling, other structures, personal belongings, medical payments to others, loss of use, and personal liability.

Liberty Mutual has been in operation since 1912, so the company has more than a century of experience in the insurance space. This provider is also known for letting customers customize policies so they can “pay for only what they need” when it comes to home insurance and other products they provide.

While Liberty Mutual home insurance includes automatic dwelling coverage and personal liability, you have the option to add on items like personal property coverage for replacement cost and water backup and sump pump overflow coverage. Customers can also get a 10% discount for purchasing their policies online. Homebuyers can also get a discount on insurance for their new home.

In business since 1937, Progressive isn’t exactly new in the neighborhood. That said, the company has grown steadily in reputation and market share in recent decades.

We like Progressive because it’s easy to access customer service representatives online or by phone if you prefer. Also, it goes without saying the company has some of the highest grades from independent agencies when it comes to its financial strength.

Also, note that Progressive is one of the only home insurance companies that lets you compare rates across multiple homeowners insurance providers in one place.

Hippo prides itself on its “top-notch customer service,” and they are willing to help you through the claims process. While this company started out offering coverage in only 12 states nationwide, Hippo now offers affordable homeowners insurance in 37 different states. 

Hippo makes it easy to get a free quote for home insurance online, and they say you can save up to 25% off homeowners insurance when compared to their competitors. Hippo also offers a “Hippo Smart” program in some states that lets customers qualify for a discount on insurance premiums when they install eligible home monitoring and security systems.

Originally founded in 1864, Travelers has been in operation for longer than most other home insurance companies in operation today. Based in New York City, Travelers Insurance writes policies throughout the nation, which is an important factor for homeowners shopping for new coverage.

With customers all over the country, a company can also more easily absorb disasters such as hurricanes that create a large volume of claims in a short period of time. Independent insurance rating agencies such as A.M. Best and Moody’s also like Travelers, giving it consistently high marks for stability.

Farmers is another nationwide company that earned its spot in our ranking of best home insurance companies. Based in California, Farmers has been tested, and it continues to excel.

This company provides basic home insurance for your dwelling as well as liability coverage, but you can customize your plan with add-on coverage for things like “green” replacement coverage and identity theft protection. A feature called “declining deductible” also lets you earn $50 toward your deductible each year your policy is in force.

We’re particularly attracted to the discounts you can get by having newer safety features on your home or by living in a newly constructed home. Farmers have also received strong ratings for financial strength from A.M. Best, so you can rest assured your eligible claims will be honored.

Unless you’re on active duty, a veteran, or a family member of a military member or veteran, you won’t have access to USAA’s home insurance rates or customer service. But if you are already a USAA member, you can find some of the best homeowners insurance and customer service on the market. Even with its limited pool of potential policyholders, we think highly enough of this company to add them to our ranking.

Standard & Poor’s and A.M. Best think USAA is top-notch as well, giving USAA their highest ratings for financial stability. Further, USAA received the top ranking for customer satisfaction in J.D. Power’s 2021. U.S. Home Insurance Study, as well as in J.D. Power’s 2021 U.S. Property Claims Satisfaction Study.

Allied Insurance, part of the Nationwide Insurance family, offers solid, flexible coverage at competitive rates. If you prefer getting answers to questions by telephone, you’ll appreciate Allied’s approach to customer service. Also, note that Allied lets you choose from flexible coverage options with the potential to customize your standard home insurance policy to suit your unique needs as well as your budget.

Since policies are backed by Nationwide, which has nine decades of experience, Allied is a reliable and stable partner. If you’re already a Nationwide customer, ask about multi-policy discounts and claim-free discounts.

With one of the lowest customer complaint ratios and an A+ rating from the Better Business Bureau (BBB), Erie has the makings of a great homeowners insurance partner if you live in an area it serves. A.M. Best gives Erie an A+, one of its highest marks, for financial stability, too.

Erie Home Insurance excels at customer service, and its coverage is strong, too. In fact, Erie Insurance earned the 4th highest ranking across all major home insurance companies in J.D. Power’s 2021. U.S. Home Insurance Study.

Amica Mutual may not have the name recognition of some of our other favorites, but it keeps moving up the list because of consistent praise for its customer service and speedy claims process. In fact, Amica Mutual received exceptional ratings from J.D. Power for customer satisfaction and claims satisfaction in 2021. Both of these studies rely on the user experiences of past customers to form their rankings.

Amica gets high marks for its financial stability, too. They may not do much in terms of national advertising and brand management, but people throughout the country continue to hear about this century-old firm.

Home Insurance Guide

Before you invest in a homeowners insurance policy, you should learn more about home insurance products and how they work. You should also arm yourself with information when it comes to insurance claims and what home insurance policies typically cover.

What Does Home Insurance Cover?

Just like auto insurance, homeowners insurance offers a variety of protections for various aspects of your property.

Your homeowners’ insurance should protect:

• Your dwelling, which is a term insurers use for your actual house

• Other buildings on your property, such as a detached garage or storage building

• Your personal property, such as furniture, electronics, and appliances

• Your liability in case someone gets injured on your property

• Your additional living expenses in case damage to your home requires you to move out for a while

These protections seem straightforward enough at first glance, but when buying coverage, you’ll need to make sure you know exactly what is included. Also, note that some home insurance companies include more features as standard in their policies than others. With that in mind, don’t be afraid to customize your homeowners’ insurance with additional coverage options you believe you could benefit from.

What Doesn’t Home Insurance Cover?

Whether you have a named peril policy or an open peril policy can have a direct impact on whether the disaster that destroyed or damaged your home qualifies for insurance coverage.

• Named peril policies cover only damage from the perils listed in your policy, whether they’re natural disasters such as windstorms, fire damage from wildfires, and volcanic eruption, or man-made, such as vandalism and civil unrest.

• Open peril policies cover all damages unless from perils specifically excluded in the policy.

Typically, a named-peril policy costs less because it’s up to the insured to prove property damages resulting from a covered peril. Meanwhile, open peril policies cost more because they can potentially cover a wider range of damages.

The exact inclusions of your homeowners’ insurance coverage depend on the specifics of your policy and the home insurance company you purchase from. However, an array of events are typically excluded from home insurance. These can include:

• Water damage

• Power failure

• Ordinance or law

• Earth movement

• Neglect

• War

• Nuclear hazard

• Intentional loss

• Governmental action

• Loss to property

In many cases, homeowners can buy add-ons or extra coverage that provides more protection in areas that are typically not covered with a traditional homeowners insurance policy. These are also called endorsements.

For example, it’s possible to buy flood insurance and earthquake insurance in many areas of the country. As we mentioned already, an open perils policy can also provide broader insurance protection for your home and property.

How Much Is Home Insurance?

Generally speaking, home insurance is one of the major costs of owning a home outside of the purchase price and property taxes. Homeowners’ insurance rates vary based on information such as the location and size of your home, the materials your home is built from, other structures on the property, the policy limits you require for your coverage, your home insurance deductible, credit score, and more.

Every insurer also has its own discounts, whether for home security devices like burglar alarms, for installing sprinkler systems, or for bundling in other products, such as life insurance or auto insurance.

That said, a 2021 National Association of Insurance Commissioners (NAIC) report states that the national average cost of homeowners insurance worked out to $1,249 per year, or $104.08 per month, at last count.

If you’re curious to find out home insurance costs based on where you live and the property you want to insure, your best bet is shopping around and comparing quotes from at least three of the best home insurance companies. You should plan on shopping around for insurance just like you did when you were wondering how to get approved for a home loan. 

How to Find the Best Home Insurance Coverage

One of the most crucial steps to finding affordable insurance is shopping for quotes. In fact, you should shop for homeowners policy in the same way you shopped around for the best mortgage rates. 

Whether you’re shopping for homeowners coverage, renters insurance, or auto insurance policies, Gabi should be at the top of your list. Gabi is a free platform that provides home and auto insurance shoppers with quick rates from leading providers, showing them just how much they can save on their policies. In a matter of minutes, you get access to up to twenty quotes and the option to switch your policy seamlessly.

While using this platform to compare home insurance policies can help you see how pricing stacks up across multiple providers, there are other details to keep in mind. For example, you’ll want to make a true “apples to apples” comparison across providers to make sure you’re getting the same types of coverage and similar policy limits.

You’ll also want to know whether you are buying named perils coverage or open perils coverage, as well as whether policies are offering replacement cost coverage or actual cash value coverage.

Methodology: How We Found the Best Home Insurance Companies

To find the best homeowners insurance providers, we compared companies based on satisfaction ratings from third-party agencies like J.D. Power and financial strength ratings from A.M. Best. We also looked for home insurance companies that offer broad coverage options that allow customization, as well as companies that offer at least five major discounts that can help customers save on premiums.

Finally, we looked for home insurance companies that offer protection in most states, as well as the ability to get a free home insurance quote online.

Summary of the Best Home Insurance Companies

• Lemonade: Best Online Insurance Company

• Liberty Mutual: Best for Customized Coverage

• Progressive: Best for Comparison Shopping

• Hippo: Best for Fast Quotes

• Travelers: Best Green Savings Option

• Farmers: Best for Discounts

• USAA: Best for Military

• Allied: Best for Flexible Coverage

• Erie Insurance: Best Customer Experience

• Amica Mutual: Best for Claims Satisfaction

Bottom Line – Best Homeowners Insurance Companies of 2024

In 2024, selecting the best homeowners insurance is imperative for safeguarding one’s property and financial interests. Quality home insurance provides coverage for damage from numerous perils and liability in case of accidents on your premises. 

With a plethora of providers in the market, a few shine through due to their comprehensive policy offerings, attractive discounts, and cost-effective premiums. 

Among the standout companies are Lemonade, renowned for its online efficiency; Liberty Mutual, with over a century of trusted service; and Progressive, for its rate comparison feature. 

Others like Hippo, Travelers, Farmers, USAA, Allied, Erie Insurance, and Amica Mutual each bring unique offerings to cater to diverse customer needs. 

However, always ensure you understand the nuances of what’s covered and what’s not, and don’t hesitate to customize your policy based on individual requirements.

The post Best Homeowners Insurance Companies of 2024 appeared first on Good Financial Cents®.

People with pre-existing conditions will find getting life insurance to be more difficult than people with a clean bill of health.  Anyone with severe health complications can find that finding an affordable life insurance policy can be a long and frustrating process

When you buy life insurance online, you are essentially entrusting the value of your life over to a financial institution.

After you become deceased, the insurance will have to pay out a benefit to your beneficiaries.

To ensure they keep their investment for as long as possible, insurance companies will avoid insuring people who have a higher death rate than others who are guaranteed to live a long, healthy life.

If you have any kidney problems, your chances of getting approved for life insurance will be significantly lessened. However, there is a chance to get a reasonably good rate depending on your condition, how long you have had the condition and whether or not it has been fully treated.

If you have any kidney problems, you may have been told that you can get life insurance because of your health, but that isn’t true. In fact, there are still plenty of options for affordable and quality life insurance coverage, even with kidney problems

What Is Kidney Disease?

Kidney disease refers to a group of conditions that affect the kidneys, the two bean-shaped organs located in the lower back that filter waste products from the blood and regulate the balance of fluids and electrolytes in the body.

There are several different types of kidney disease, ranging from acute conditions that develop suddenly and are often reversible, to chronic conditions that progress slowly over time and can eventually lead to kidney failure.

Chronic kidney disease, also known as chronic renal disease, is a common and potentially serious condition that can lead to a variety of health problems if not properly managed.

Here is a table summarizing some common types of kidney disease, their symptoms, and treatment options:

Getting Life Insurance With Kidney Problems Is Difficult, but Not Impossible

You have several options if you have kidney problems. You can find an insurance company who accepts people with kidney problems, get premium financing, or check with guaranteed life insurance companies. If you work for a company that offers life insurance, then group benefits will be a great option for you. They are much easier to qualify for.

Consider Graded Insurance Policies

If that is not an option for you, consider graded benefit life insurance. You will not need a medical exam to apply for this type of insurance. The downside is, it takes up to three years for this insurance to payout.  

These types of plans have a waiting period in place, which means that if you were to pass away within the first two or three years after buying the policy, the insurance company would not pay the face value of the plan.

Guaranteed Insurance Policies Are Another Option

Guaranteed life insurance companies offer no medical exam life insurance. However, the rates may be higher, but you can be guaranteed $10,000 to $25,000 of coverage. You can use several of these to build up the coverage you need.

There are some obvious disadvantages to these guaranteed issue policies that you should be aware of when you’re shopping for life insurance. The first, as we mentioned, is that these policies are more expensive than a plan that requires a medical exam.

The insurance company wants to know what type of health you are in before they accept your policy, without the medical exam, they have less information to base their insurance on. To offset that risk, they are going to charge you much more every month.

Another disadvantage is the low limit on how much coverage you can purchase. Most applicants need more life insurance coverage than these guaranteed issue plans offer. Aside from having a life insurance plan, it’s vital that you have enough coverage for your family if anything were to happen to you.

While there are some disadvantages to these types of plans, they are a great option for anyone that has already been declined for insurance coverage by another company. You health shouldn’t prevent you from getting life insurance.

You Can Also Obtain Premium Financing

This is a way to borrow money from the bank to pay for life insurance if you have impaired risk. The bank guarantees that the premiums will be paid and the insurance company promises the loan will be paid off if the insured dies. The payments for the loan will be fully or partially covered by the bank. If the loan is standard, you will have to make loan payments but those payments will be lower than any premium you would have had to pay. If the loan is non-recourse, then it will be paid off from the insured’s death benefit.

You can also ask your doctor if they will be willing to talk with the underwriting department of your insurance company on your behalf. Your doctor may be able to vouch for your condition with your insurance company. You should also shop around to different insurance companies to see which ones will allow you to get life insurance with kidney problems.

Potential Kidney Diseases That Could Affect Your Life Insurance

There are several different medical conditions that can affect your life insurance coverage.  Each condition will have it’s own unique affect on the cost of insurance.  Here are a few sample conditions:

• Kidney Stones
• Glomerulonephritis
• Proteinuria
• Renal Insufficiency

If you have some sort of kidney disease, here are some questions that we’ll need answered to best get you with the right insurance company and the most affordable life insurance rate.

• Please provide date of first diagnosis with kidney disease.
• Please indicate specific name of the kidney disorder diagnosed by your physician.
• Please provide approximate dates and readings of known blood pressure measurements.

Approximate date, systolic/diastolic reading.

•  Please advise of the following laboratory findings if previously and recently done by your physician:

1. a. Protein in the urine (protein urea)
2. b. Blood in the urine (hematuria)
3. c. Blood urea nitrogen (BUN level)
4. d. Creatinine level.
5. e. Of these, we need to find the date of the most recent test, the level of findings and the normal reference range.

• Does the proposed insured take any medication? If so, list the name of medication, date used, quantity taken and frequency taken.
• Is there any know family history related to kidney or cardiovascular disease?
• If yes, please describe.

Ways To Lower Your Insurance Premiums with Kidney Disease

All of these factors are going to play an important role in how much you pay for your life insurance. The company is going to lo ok at all of these and many more things to calculate how much of a risk you are to insure. The higher the risk, the more you’re going to pay every month for the policy. If you want to get lower premiums, there are several lifestyle changes that you can make to save yourself some money on the coverage.

Improve Your Health

The first is to improve your overall health through diet and exercise. Both of these are going to help you lose weight, lower your blood pressure, lower your heart rate, and much more. The better your health is, the lower your monthly premiums are going to be for your life insurance.

Eliminate Tobacco Use

Another way to increase your chances of being approved for coverage and to get lower rates is to cut any tobacco that you use. If you’re a smoker, that’s going to drastically increase how much you pay for coverage. In fact, it could double your premiums.

Shop Around For Premium Options

Also, make sure to shop around for different premiums based on your age, as one company may offer lower premiums than another. Generally, it really depends on your condition if you are able to get insurance or not. If you are in fairly good health otherwise, then your chances of getting insurance will be much higher.

Benefits of Obtaining Life Insurance with Kidney Problems

Securing life insurance when you have kidney problems offers several essential benefits that can provide peace of mind and financial security for you and your loved ones:

• Financial Protection for Your Family
  Life insurance ensures that your family or beneficiaries receive a financial payout, known as the death benefit, when you pass away. This lump sum can help cover various expenses, such as mortgage payments, daily living costs, outstanding debts, and even future education expenses for your children. It provides a safety net that eases the financial burden on your loved ones during a challenging time.
• Estate Planning and Inheritance
  Life insurance can be a valuable component of your estate planning. It allows you to leave a legacy for your heirs or favorite charitable causes. By designating beneficiaries, you ensure that your assets are distributed according to your wishes, even if you have significant medical conditions like kidney problems.
• Peace of Mind and Reduced Stress
  Knowing that you have life insurance coverage in place can provide you with peace of mind. You can rest assured that your family will have the financial resources they need to maintain their quality of life and achieve their long-term goals. This peace of mind can reduce stress and allow you to focus on managing your kidney condition and enjoying your time with loved ones.

Bottom Line – Life Insurance With Kidney Disease

Life insurance is one of the best purchases that you’ll ever make for your loved ones. If you have any pre-existing health conditions like kidney problems, you may think it’s impossible to find an affordable life insurance plan, but that couldn’t be further from the truth. Don’t wait any longer to get the insurance protection that your family deserves.

FAQs on Life Insurance and Kidney Problems

Research Articles Cited

1. Chronic Kidney Disease in the United States (2021) CKD Is Common Among US Adults. Retrieved from https://www.cdc.gov/kidneydisease/publications-resources/ckd-national-facts.html

The post Life Insurance With Kidney Problems appeared first on Good Financial Cents®.

Shopping for an extended car warranty may not sound very fun, but having this protection can provide considerable peace of mind. After all, the best-extended car warranties can ensure your car gets fixed during a covered breakdown. Best of all, your extended warranty coverage will actually pay for the repairs.

But which extended car warranty company should you purchase coverage from? Because there are quite a few reputable providers in this space, it’s crucial to compare them based on the warranty coverage they offer, their ratings and reviews, and the perks they offer customers.

While we believe Endurance may offer the best extended warranties out there, we went on to compare the top six companies in this space. If you’re in the market for the best-extended car warranty money can buy, read on to learn more.

Most Important Factors for Extended Car Warranties

• While price is a major consideration when comparing extended car warranties, you’ll also need to consider the coverage you’re buying and how it compares to other providers. For example, some extended car warranties offer nearly bumper-to-bumper coverage with maintenance included, whereas others only cover certain components of your vehicle.

• As you compare extended car warranties, you should note that some require waiting periods before you can use your coverage. Make sure you know your plan’s waiting period before you move forward.

• While extended car warranty companies let you enter your information to get a free quote online, you usually need to speak with a customer service agent to get pricing for available plans.

• As you compare extended car warranties, make sure you price out coverage plans from at least three or four providers. Doing so is the best way to ensure you get quality protection for a price you can afford.

The Best Extended Car Warranties of July 2024

Endurance

Endurance is one of the largest providers of vehicle service contracts in the United States, and they are backed by an AM Best “A” rated insurance company. This means you can rest assured your extended car warranty will cover claims as they arise and that you’ll have protection against the costs and stress that typically come with auto breakdowns and other failures.

One major benefit of Endurance is the fact they’re a direct provider of their extended warranty coverage. This means you’ll purchase your plan from Endurance and that they will manage your coverage from quote to claim.

Select Auto Protect

Select Auto Protect has been in operation for over 30 years, and they offer a range of extended car warranty plans that can be used at any ASE-certified repair facility. They offer three main extended warranty plans to choose from — Silver, Gold, and Platinum. Where the basic Silver plan provides coverage for basic vehicle components like your transmission and brake system,  Platinum coverage offers more robust protection for more components, including your heat system, fuel system, and front and back suspension.

One major benefit of Select Auto-Protect is the fact it covers cars of any age, make, or model. This means you can use this provider for older cars you own or for classic cars, and regardless of your vehicle’s mileage.

CarShield

CarShield was originally founded in 2005, and the company has become a major provider of extended car warranties since then. In addition to offering five different extended warranty plans for eligible vehicles, they also offer extended warranty protection specifically for motorcycles and ATVs.

CarShield offers five main extended car warranty plans for cars, which range from a basic “Aluminum” plan to “Diamond” coverage. Where the most basic coverage options only protect some components of your vehicle, Diamond coverage works similarly to the bumper-to-bumper coverage that comes with a new car.

Complete Car Warranty

Complete Car Warranty was only established in 2019, so there are few places to find user testimonials or reviews about the company online. However, we chose them for our ranking based on the fact their plans are highly customizable. For starters, Complete Car Warranty offers five different levels of CarGuard coverage ranging from Powertrain (basic protection) to robust Platinum coverage. However, the provider also offers more plans to choose from within their Matrix and Royal levels.

Each tier of coverage comes with a unique set of covered components, so you can customize your warranty coverage to your exact needs. All plans also come with roadside assistance, and you can have your car repaired at any certified vehicle mechanic nationwide.

Carchex

CarChex has been in operation since 2003, and the company added extended car warranties to its portfolio of offerings in 2004. Since then, the company has grown to become one of the most trusted extended warranty providers in the United States. They are one of the few companies in this space who is accredited by the Better Business Bureau (BBB), where they also boast an A+ rating.

CarChex offers five levels of extended warranty coverage for shoppers to choose from, ranging from basic Bronze protection all the way up to comprehensive Titanium coverage. Their plans also come with the largest selection of covered benefits, which include towing, rental car coverage, gas delivery, trip interruption insurance, and more.

Autopom!

Autopom! is another extended car warranty provider that has an A+ rating with the BBB. This company also offers a wide range of warranty plans with plenty of included benefits. For example, customers get a 30 to 60-day money-back guarantee, 24-hour roadside assistance, and trip interruption reimbursement coverage as standard benefits.

When it comes to the extended warranty coverage this company offers, consumers have four main plans to choose from. Options include Powertrain Plus coverage, which protects only the main components of your car, all the way up to Exclusionary coverage, which is closer to a new car warranty coverage. Most of their plans provide the option to tailor your warranty to your needs.

The Best Extended Car Warranties of 2024

Other Companies We Considered

There are so many extended warranty providers offering plans today that it was hard to select the options for our ranking. The following companies barely missed the cut.

ForeverCar

ForeverCar is an extended car warranty provider that has been in operation since 2015. They offer four levels of extended warranty coverage with included benefits like rental car coverage, 24-7 roadside assistance, and travel expense reimbursement.

Olive

Olive was considered for our ranking based on the fact they are one of the only providers that lets you get a free online quote for extended warranty coverage without speaking to an agent. However, this provider only has three plans to choose from. They also just launched in 2020, so there aren’t many user testimonials or reviews to compare.

How We Found the Best Extended Car Warranties

The extended car warranty companies that made our ranking were found to be the “best” among all providers in this space. While some of our analysis was subjective, we compared each company and selected them based on the following attributes.

Multiple Plans

While some of the extended auto warranty companies we included in our ranking offer more plans than others, we only selected providers who have at least three tiers of extended warranty coverage to choose from. We also looked for companies that offer ways to customize your plan to your needs, whether with additional add-on coverage or a more robust selection of benefits.

Choose Your Own Repair Shop

We only selected companies that let you get your car fixed at a large selection of auto repair shops. Generally speaking, the providers for our ranking allow repairs at all ASE-certified repair shops or with any certified mechanic.

Money-Back Guarantees

Most of the companies on our list offer a 30-day or 60-day money-back guarantee.

Included Benefits

We also looked for extended car warranties that come with included benefits from which consumers can benefit. Perks we looked for include roadside assistance, trip interruption insurance, gas delivery, rental car coverage, and more.

What You Need to Know About Extended Car Warranties

As you compare extended car warranties, there are several factors you need to consider that may be buried in the fine print. Details to look for in your plan include:

• Waiting Periods: Most extended car warranties have a waiting period that applies before you can use your coverage. Make sure you know about the waiting period you’re dealing with, as well as how waiting periods compare across providers.

• Deductibles: You will typically need to pay a deductible to file a claim with your extended warranty company. Make sure the deductible you choose is one you can easily afford.

• Vehicle Limitations: Some vehicle makes and models may not qualify for extended warranty coverage with certain providers.

• Length of Coverage: Finally, note that many companies offer limited coverage for a specific timeline (i.e., 36 months or three years). Make sure you know about potential limitations and what happens next.

• Not Car Insurance: A common misconception is that auto warranties and insurance are the same things. That is not correct. To find out more about auto insurance, see our best auto insurance companies.

The Federal Trade Commission (FTC) also lists some specific “gotchas” to watch out for when choosing an extended car warranty. For example, they point out that few auto service contracts cover all repairs and maintenance and that you should watch out for exclusions and other fine print in your plans.

They also note that service contracts often limit how much they’ll pay for towing or related rental car expenses.

The Bottom Line – Best Extended Car Warranty for 2024

In the quest for peace of mind on the road, extended car warranties have emerged as a popular solution. With numerous options available, discerning which warranty best suits your needs can be challenging. 

Endurance stands out as a top contender, but the market boasts other reliable providers like Select Auto Protect and CarShield, each offering unique features. 

Key considerations when choosing a warranty include understanding waiting periods, ensuring affordable deductibles, acknowledging vehicle limitations, and recognizing the length of coverage. 

Remember, warranties differ from auto insurance; it’s imperative to differentiate the two. Always be vigilant about the fine print to avoid potential pitfalls and ensure a smooth journey ahead.

The post Best Extended Car Warranty for 2024 appeared first on Good Financial Cents®.

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.

Get a Free Quote

• Easy to use online applications
• No medical exams for up to $3M in coverage; just answer some health-related questions
• Adjustable coverage

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.

Get Started with Ladder

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.

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.

Get Started with Ladder

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 do 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.

Get Started with Ladder

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 it offers, 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:

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 over 2,600 customer reviews. 89% of customers have assigned them a 5-star rating, and only 4% 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.

Get Started with Ladder

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.

How We Review Insurance Companies: 

Good Financial Cents systematically reviews U.S. insurance companies, emphasizing policy offerings, customer experiences, and overall reliability.

Our goal is to present a balanced and comprehensive perspective to potential policyholders. Editorial transparency remains a cornerstone of our approach.

We actively collect information from insurance companies and place significant weight on customer feedback. By integrating this feedback with our research, we can offer a well-rounded evaluation.

Each company is then rated based on multiple criteria, resulting in a star rating from one to five.

For a deeper understanding of the criteria we use to rate insurance companies and our evaluation approach, please refer to our editorial guidelines and full disclaimer. 

.wp-review-35601.review-wrapper { font-family: ‘Josefin Sans’, sans-serif; }

Ladder

Product Name: Ladder Life Insurance

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.

• [ Get a Free Quote]

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.

.wp-review-35601.review-wrapper {
box-shadow: 0 0 20px rgba(0, 0, 0, 0.1);
width: 98%;
float: left;
border: none;
background: #ffffff;
margin: 0 1% 30px;
}
.wp-review-35601.review-wrapper .review-desc {
clear: both;
padding: 25px 30px 25px 30px;
line-height: 26px;
}
.wp-review-35601.review-wrapper .review-desc .review-summary-title {
text-transform: uppercase;
}
.wp-review-35601.review-wrapper,
.wp-review-35601 .review-title,
.wp-review-35601 .review-desc p,
.wp-review-35601 .reviewed-item p {
color: #6a788a;
}
.wp-review-35601 .review-links a {
background: #8cc739;
padding: 10px 20px 8px 20px;
box-shadow: none;
border: none;
color: #fff;
border-radius: 50px;
cursor: pointer;
transition: all 0.25s linear;
}
.wp-review-35601 .review-links a:hover {
background: #1f3457;
color: #fff;
box-shadow: none;
}
.wp-review-35601 .review-list li {
padding: 20px 30px;
}
.wp-review-35601 .review-list li:last-child {
border-bottom: 0;
}
.wp-review-35601.wp-review-circle-type .review-list li {
padding: 19px 30px;
}
.wp-review-35601.wp-review-circle-type .review-list .review-circle .review-result-wrapper { height: 32px; }
.wp-review-35601.wp-review-circle-type .review-list .wp-review-user-rating .review-circle .review-result-wrapper {
height: 50px;
}
.wp-review-35601.wp-review-circle-type .wpr-user-features-rating .review-list li {
padding: 10px 30px;
}
.wp-review-35601.wp-review-point-type .review-list li,
.wp-review-35601.wp-review-percentage-type .review-list li {
padding: 24px 30px;
}
.wp-review-35601.wp-review-point-type .review-list li > span,
.wp-review-35601.wp-review-percentage-type .review-list li > span {
display: inline-block;
position: absolute;
z-index: 1;
top: 32px;
left: 45px;
color: #ffffff;
font-size: 14px;
line-height: 1;
text-shadow: 0 1px 1px rgba(0, 0, 0, 0.3);
-webkit-touch-callout: none;
-webkit-user-select: none;
-khtml-user-select: none;
-moz-user-select: none;
-ms-user-select: none;
user-select: none;
}
.wp-review-35601.wp-review-point-type .wpr-user-features-rating .review-list li > span,
.wp-review-35601.wp-review-percentage-type .wpr-user-features-rating .review-list li > span {
color: inherit;
text-shadow: none;
}
.wp-review-35601.wp-review-point-type .wpr-user-features-rating .review-list li .wp-review-input-set + span,
.wp-review-35601.wp-review-percentage-type .wpr-user-features-rating .review-list li .wp-review-input-set + span,
.wp-review-35601.wp-review-point-type .wpr-user-features-rating .review-list li .wp-review-user-rating:hover + span,
.wp-review-35601.wp-review-percentage-type .wpr-user-features-rating .review-list li .wp-review-user-rating:hover + span {
color: #fff;
}
.wp-review-35601 .review-list li:nth-child(even) {
background: #edf2f9;
}
.wp-review-35601 .review-links {
padding: 30px 30px 20px 30px;
}
.wp-review-35601.review-wrapper .review-result-wrapper i {
font-size: 18px;
}
#review.wp-review-35601.review-wrapper .review-pros-cons {
clear: both;
padding: 0;
border-top: 1px solid #edf2f9;
}
#review.wp-review-35601.review-wrapper .review-pros-cons .review-pros,
#review.wp-review-35601.review-wrapper .review-pros-cons .review-cons {
width: 100%;
flex: none;
padding: 0;
}
#review.wp-review-35601.review-wrapper .review-pros-cons .review-pros {
background: #1f3457;
padding: 30px 30px 10px 30px;
color: #fff;
box-sizing: border-box;
}
#review.wp-review-35601.review-wrapper .review-pros-cons .review-cons {
background: #8cc739;
padding: 30px 30px 10px 30px;
color: #fff;
box-sizing: border-box;
}
.wp-review-35601.review-wrapper .mb-5 {
text-transform: uppercase;
}
.wp-review-35601.review-wrapper .mb-5 + p {
line-height: 26px;
}
.wp-review-35601 .user-review-area {
padding: 15px 30px;
border-top: 1px solid;
}
.wp-review-35601 .wp-review-user-rating .review-result-wrapper .review-result {
letter-spacing: -2.35px;
}
.wp-review-35601.review-wrapper .review-title {
letter-spacing: 1px;
font-weight: 700;
padding: 15px 30px;
background: transparent;
}
.wp-review-35601.review-wrapper .review-total-wrapper {
width: 40%;
margin: 0;
padding: 35px 0;
color: #fff;
background: #ffffff;
border-left: 1px solid;
text-align: center;
float: right;
clear: none;
border-top: 1px solid;
}
.wp-review-35601.review-wrapper .review-list {
clear: none;
width: 60%;
float: left;
border-top: 1px solid;
}
.wp-review-35601.review-wrapper .wpr-user-features-rating,
.wp-review-35601.review-wrapper .wpr-user-features-rating .review-list {
width: 100%;
clear: both;
border-top: 1px solid #edf2f9;
}
.wp-review-35601.review-wrapper.wp-review-circle-type .review-total-wrapper {
padding: 20px 0;
}
.wp-review-35601.review-wrapper.wp-review-circle-type .review-total-wrapper .review-circle.review-total {
margin: auto 0;
padding-top: 10px;
width: auto;
height: 100%;
clear: both;
}
.wp-review-35601.review-wrapper.wp-review-circle-type .user-review-area {
padding: 12px 30px;
}
.wp-review-35601.review-wrapper.wp-review-thumbs-type .review-list {
width: 100%;
}
.wp-review-35601.review-wrapper .review-result-wrapper {
border-radius: 25px;
}
.wp-review-35601.review-wrapper .review-percentage .review-result-wrapper,
.wp-review-35601.review-wrapper .review-percentage .review-result,
.wp-review-35601.review-wrapper .review-point .review-result-wrapper,
.wp-review-35601.review-wrapper .review-point .review-result {
height: 26px;
margin-bottom: 0;
background: #f1e3cd;
border-radius: 25px;
}
.wp-review-35601.review-wrapper li .review-point .review-result {
background: #8cc739;
}
.wp-review-35601.review-wrapper li:nth-of-type(2n) .review-point .review-result {
background: #1f3457;
}
.wp-review-35601 .review-total-wrapper .review-point.review-total,
.wp-review-35601 .review-total-wrapper .review-percentage.review-total {
width: 70%;
display: inline-block;
margin: 20px auto 0 auto;
}
.wp-review-35601.review-wrapper .review-total-wrapper .review-total-box {
float: left;
text-align: center;
padding: 0;
color: #6a788a;
line-height: 1.5;
}
.wp-review-35601.review-wrapper .review-total-wrapper .review-total-box h5 {
margin-top: 10px;
color: inherit;
}
.wp-review-35601.review-wrapper.wp-review-point-type .review-total-wrapper .review-total-box,
.wp-review-35601.review-wrapper.wp-review-percentage-type .review-total-wrapper .review-total-box {
width: 100%;
}
.wp-review-35601.review-wrapper .review-star.review-total {
color: #fff;
margin-top: 10px;
}
.wp-review-35601.review-wrapper .user-review-title {
padding: 15px 30px 10px;
margin: 0;
color: inherit;
background: #edf2f9;
border-top: 1px solid;
border-bottom: 1px solid;
}
.wp-review-35601.review-wrapper .user-total-wrapper .user-review-title {
display: inline-block;
color: #6a788a;
text-transform: uppercase;
letter-spacing: 1px;
padding: 0;
border: 0;
background: transparent;
margin-top: 3px;
}
#review.wp-review-35601.review-wrapper.wp-review-circle-type .user-total-wrapper h5.user-review-title {
margin-top: 12px;
}
#review.wp-review-35601.review-wrapper.wp-review-circle-type .user-total-wrapper span.user-review-title {
margin-top: 8px;
}
.wp-review-35601.review-wrapper .reviewed-item {
padding: 30px;
}
.wp-review-35601.review-wrapper.wp-review-circle-type .review-total-wrapper > .review-total-box {
display: block;
}
.wp-review-35601.review-wrapper.wp-review-circle-type .review-total-wrapper > .review-total-box > div { display: none; }
#review.wp-review-35601.review-wrapper .user-review-area .review-percentage,
#review.wp-review-35601.review-wrapper .user-review-area .review-point {
width: 20%;
float: right;
margin-bottom: 5px;
}
.wp-review-35601 .review-embed-code { padding: 10px 30px; }
.wp-review-35601.review-wrapper,
.wp-review-35601 .review-title,
.wp-review-35601 .review-list li,
.wp-review-35601 .review-list li:last-child,
.wp-review-35601.review-wrapper .review-list,
.wp-review-35601 .user-review-area,
.wp-review-35601.review-wrapper .review-total-wrapper,
.wp-review-35601 .reviewed-item,
.wp-review-35601 .review-links,
.wp-review-35601 .wpr-user-features-rating,
.wp-review-35601.review-wrapper .user-review-title {
border-color: #edf2f9;
}
.wp-review-35601 .wpr-rating-accept-btn {
background: #8cc739;
margin: 10px 30px;
width: -moz-calc(100% – 60px);
width: -webkit-calc(100% – 60px);
width: -o-calc(100% – 60px);
width: calc(100% – 60px);
border-radius: 50px;
}
@media screen and (max-width:480px) {
.wp-review-35601.review-wrapper .review-title,
.wp-review-35601.review-wrapper .reviewed-item,
.wp-review-35601.review-wrapper .review-list li,
.wp-review-35601.review-wrapper .review-desc,
.wp-review-35601.review-wrapper .user-review-area,
.wp-review-35601.review-wrapper .review-embed-code { padding: 15px; }
.wp-review-35601.wp-review-circle-type .review-list li {
padding: 15px 15px 0px 15px;
}
.wp-review-35601.review-wrapper .review-pros-cons > div > div { padding: 15px; padding-top: 0; }
.wp-review-35601.review-wrapper .ui-tabs-nav { padding: 0 15px; }
.wp-review-35601.review-wrapper .review-links { padding: 15px 15px 5px; }
.wp-review-35601.review-wrapper .review-list,
.wp-review-35601.review-wrapper .review-total-wrapper { width: 100%; }
.wp-review-35601.review-wrapper .review-total-wrapper { padding: 10px 0; }
.wp-review-35601.review-wrapper .review-total-wrapper .review-total-box h5 { margin-top: 0; }
.wp-review-35601.review-wrapper .review-total-wrapper .review-total-box div { line-height: 1; }
}

{
“@context”: “http://schema.org”,
“@type”: “Review”,
“itemReviewed”: {
“@type”: “Product”,
“name”: “Ladder Life Insurance”,
“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.”,
“image”: “https://www.goodfinancialcents.com/wp-content/uploads/2022/12/Logo_1200x300-Black_Transparent-1-1-300×75.png”,
“url”: “https://www.goodfinancialcents.com/go/ladder/review-wp”,
“review”: {
“@type”: “Review”,
“reviewRating”: {
“@type”: “Rating”,
“ratingValue”: 4.3,
“bestRating”: 5,
“worstRating”: 0
},
“author”: {
“@type”: “Person”,
“name”: “Jeff Rose, CFP®”
},
“reviewBody”: “<p>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.</p>”
}
},
“reviewRating”: {
“@type”: “Rating”,
“ratingValue”: 4.3,
“bestRating”: 5,
“worstRating”: 0
},
“author”: {
“@type”: “Person”,
“name”: “Jeff Rose, CFP®”
},
“reviewBody”: “<p>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.</p>”
}

*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, access www.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.

The post Ladder Life Insurance Review – Term Life Insurance With a Twist appeared first on Good Financial Cents®.

The vast majority of Americans need life insurance. But with so many different insurance policies and providers, how can you find the right life insurance policy for you and your family?

Sproutt Insurance is trying to help by putting a unique spin on the insurance application process.

Sproutt doesn’t sell its own insurance policies – they’re an online marketplace that uses technology to match you with the right insurance provider. In minutes, you can complete a brief application and get a quote from one of their participating life insurance companies.

But is dealing with Sproutt as easy as they make it sound? And is there a benefit to dealing with a marketplace like Sproutt versus going through an individual provider?

I’ll cover this and more in this Sproutt Life Insurance Review.

What Is Sproutt?

Sproutt is an insurance fintech launched in 2018 under the name, Aktibo. They have their headquarters in Hartford, Connecticut, with offices in New York City and Tel Aviv.

Sproutt Life isn’t a direct provider of life insurance but a broker providing an AI-powered online life insurance marketplace.

They offer policies from nearly a dozen insurance companies, a list that includes some of the best-known brands in the industry. Sproutt is available to customers in all 50 states and the District of Columbia.

How Sproutt Works

Sproutt differs from traditional life insurers by using an AI-powered Quality of Life Index (QLI) to assess an individual’s healthy lifestyle behaviors rather than focusing on negative elements.

Sproutt says their self-serve digital process usually requires no medical exam, phone calls, or appointments to obtain life insurance coverage.

Sproutt is free to use, and the company provides live customer support. They have an A+ rating with the Better Business Bureau.

Key Features

• AI-powered online life insurance marketplace.

• Work with almost a dozen insurance companies across all 50 states.

• Quality of Life Index (QLI)takes into account your overall health.

• The QLI matches you with an insurance provider and policy that will be the best overall fit.

• Complete an application within 15 minutes.

• Customer support is available during business hours.

Sproutt Life Insurance Quality of Life Index

The QLI index is at the heart of Sproutt Life Insurance and the key to using their website.

The index uses an algorithm to assess your lifestyle and then provides a personalized set of suggestions, recommendations, and references based on the latest health information available.

The algorithm is called the Guided Artificial Intelligence Assessment (GAIA). To benefit from the index, you’ll need to complete a 15-minute assessment, a process I will cover in more detail further down.

The Index measures five areas of your life – referred to as pillars – to indicate your overall state of health and well-being:

• Movement. In a nutshell, this category assesses the amount of exercise you get.

• Sleep. Used to measure if you are getting an adequate amount of sleep.

• Emotional health. There’s growing evidence of a connection between strong relationships and longevity.

• Nutrition. This category is all about food and diet.

• Balance. It incorporates the other four pillars and also adds an evaluation of your sense of purpose in your life.

Once you’ve completed the QLI Assessment, Sproutt will match you with the best insurance company to fit your profile. This is expected to maximize the likelihood of approval, along with the most favorable premium rate.

Who Is Sproutt Life Insurance Best Suited For?

Sproutt Life Insurance is an excellent choice for applicants who are:

• Under 50 in good or excellent health (they go to age 60).

• In good or excellent health.

• Actively focused on maintaining their health, as determined by the Quality of Life Index Assessment.

• Looking for term life insurance versus whole life.

• Need a life insurance policy quickly.

• Prefer a life insurance policy without the need for a medical exam.

• Prefer the speed and convenience of an all-online application process.

Obtain a Quote from Sproutt Today

Types of Insurance Offered by Sproutt Life Insurance

According to their website, Sproutt offers no-exam life insurance, guaranteed issue life insurance, whole life insurance, critical illness insurance, and universal life insurance – all in addition to term life insurance.

Sproutt’s term life insurance offerings range from 10 years to 3 years. The minimum policy amount is $50,000 but can go as high as $3 million. All other details of the term policies offered are based on the guidelines of the individual insurance companies providing the policies.

As an online life insurance “fintech,” Sproutt undoubtedly targets younger applicants (at least under 60) and in good or excellent health. Though they do offer policies for those who are in less-than-perfect health, it is possible that your application will be denied.

Is Sproutt Life Insurance Legit?

As mentioned, Sproutt has a Better Business Bureau rating of A+ (on a scale of A+ to F). although it is not BBB-accredited.

Though we typically obtain the financial strength rating of insurance companies from A.M. Best, this rating is not available for Sproutt. The company is an online insurance broker and not a direct provider. A.M. Best does not provide financial strength ratings for insurance brokers.  

How Do Customers Rate Sproutt?

Sproutt scores 4.7 out of five stars with Trustpilot. The score is based on 423 reviews, with 89% ranking the company as “excellent” and 8% as “great.”

While the negative reviews were minimal (only 2% 1-star), I did review the comments to see if I could identify recurring themes. Most of the negative reviews were due to a lack of responsiveness and reps not getting back to the clients promptly.

One thing to note, the Sproutt team had responded on Trustpilot to almost all of the negative comments with a promise to follow up.

We could not obtain user ratings from Google Play or The App Store since Sproutt does not have a mobile app.

Sproutt Life Alternatives

When purchasing life insurance, always obtain quotes from multiple companies before making your choice. Even though the products are generally very similar, premiums between different providers can vary considerably.

For a quick comparison to Sproutt Life, I’ve included three companies – Fabric Life, Bestow, Haven Life, and Ladder Life – in a side-by-side comparison.

As you can see from the table, the products offered by each of the four companies closely match one another. One advantage Sproutt Life has is that it is an online life insurance marketplace.

With a single application, you can get quotes from multiple providers – including some of the biggest in the industry.

How to Use Sproutt to Shop for Life Insurance

The application process for Sproutt starts with completing the Quality of Life assessment. It will take about 15 minutes to complete the assessment online.

That process can be accessed from the Quality of Life page, where you can click the green bubble that says “Check your QL Index.”

You’ll be asked to provide the following: your name (you’ll only need to provide your first name), age bracket, gender, and marital status.

Once you provide that information, you’ll be asked the following questions:

• When it comes to taking care of your life, what describes you best? The answers are multiple-choice and will appear as follows:

• Please select your choice of a healthy breakfast.

• For a healthier meal, you should…

• Which of the following is true regarding a sufficient intake of protein:

• Should I eat whole grains?

• To maintain a healthy weight, should I reduce my caloric intake?

• How many hours of physical activity do you do during a normal week?

• What type of activities do you do? (Aga n, you’ll be supplied with a list to choose from.)

• Do you track your physical activities?

• Over the past week, on average, how many steps per day did you take? (determined by a device, like a Fitbit.)

• Do you know how many hours an adult should sleep at night?

• How many hours do you sleep on average?

• Do you use a sleep-tracking device?

• Do you know in which sleep phases the majority of dreams occur?

• Do you know what a circadian rhythm is?

• Do you have trouble falling asleep?

• Do you consume alcoholic beverages to help you fall asleep?

• Do you own a pet?

• Do you sometimes feel that your relationships are not meaningful?

• How many people in your life can you confide in?

• Do you feel hopeless, stressed, or depressed?

• Have you tried stress-reducing techniques such as breathing, meditation, etc.?

• As I get older, things are… much better, somewhat better, same, worse, much worse.

• Do you believe you’ll live past… 60, 70, 80, 90, 120.

Once you’ve completed the questions, the following screen will appear, requiring you to enter your email and submit (the results are blurred, pending receipt of the emailed version):

The next screen will provide your QL Index. I was classified as a “Master,” one of five categories.

Once you click “Check your eligibility,” you’ll be brought to the application process, with your QL Index being part of the recommendations you’ll be provided.

Unfortunately, when I completed the QL Index assessment, Sproutt’s system was undergoing a problem, so I got no immediate life insurance quotes.

But the important takeaway is that up to this point, I only completed the assessment – which is a requirement.

For the application, additional questions will be asked. Those include general questions, like family status, beneficiaries, address, date of birth, a health self-assessment, and other general questions.

Once you complete that information, Sproutt will make a policy recommendation based on the answers to your questions.

Once again, Sproutt Life does not provide the actual policies (it’s an online life insurance marketplace). The participating life insurance companies will offer the policies on the platform.

Once you select the plan you like, the direct provider will likely have additional questions, and you’ll need to complete the application process through that company.

Obtain a Quote from Sproutt Today

How to Save Money on Life Insurance

No matter where you apply for life insurance, there are seven strategies you can use to save money in the process:

• Buy term life insurance vs. whole life. Whole life insurance is far more expensive than the equivalent term coverage. Go with term insurance and get a larger policy at a lower premium.

• Apply when you’re in good health. No single factor will have a greater impact on your premium – or even if you’ll be approved – than the condition of your health. That’s why it’s important to apply when your health is good.

• Maintain good health habits. Exercise regularly, eat a balanced diet, and see your doctor regularly.

• Maintain clean credit and good driving history. Insurance companies also check credit histories and driving records. The cleaner they are, the better your chance at a low premium.

• Choose a shorter term. If you’re going with term insurance, the premiums are lower on shorter terms. For example, a ten-year policy will be less expensive than a 20-year policy.

• Shop around. Never take a policy from the first provider that gives you a quote. Get three or four, then make your choice.

• Don’t wait! Many people put off buying life insurance until “later.” But because age is a major factor in determining premiums – and you’ll never be younger than you are right now – now is the time to apply for coverage.

Obtain a Quote from Sproutt Today

Sproutt Life Insurance Review: Final Thoughts

Sproutt is an excellent choice if you’re beginning your search for life insurance. Because it’s an online life marketplace, you can get quotes from several major insurance companies with a single application.

Live customer support is a value add, given that Sproutt is an all-online platform. And if you’re proactive about your health, Sproutt captures that with their Quality of Life Index. It can help you track your progress and make improvements where needed.

But it’s also important to realize that, as an online life insurance source, Sproutt does focus its business on younger, healthier applicants.

If you’re older or have a significant health condition, you may still be able to get a policy through Sproutt, but you may be better served by working with an independent life insurance broker.

Otherwise, consider Sproutt if you’re looking to buy life insurance.

How We Review Insurance Companies: 

Good Financial Cents systematically reviews U.S. insurance companies, emphasizing policy offerings, customer experiences, and overall reliability.

Our goal is to present a balanced and comprehensive perspective to potential policyholders. Editorial transparency remains a cornerstone of our approach.

We actively collect information from insurance companies and place significant weight on customer feedback. By integrating this feedback with our research, we can offer a well-rounded evaluation.

Each company is then rated based on multiple criteria, resulting in a star rating from one to five.

For a deeper understanding of the criteria we use to rate insurance companies and our evaluation approach, please refer to our editorial guidelines and full disclaimer. 

.wp-review-44825.review-wrapper { font-family: ‘Josefin Sans’, sans-serif; }

Sprout Life Insurance Review

Product Name: Sprout Life Insurance

Product Description: Sprout Life Insurance is a life insurance policy that provides financial coverage to individuals in the event of their death. It can cover funeral costs, medical bills, and other costs associated with end-of-life expenses. It also provides beneficiaries with a lump sum payment that can help them cover living expenses in the wake of their loved one’s passing.

• [ Learn More Here ]

Summary of Sprout Life Insurance

Sprout Life Insurance is a life insurance company that provides coverage options for individuals and families. The company offers both term and permanent life insurance policies, allowing customers to choose the coverage that best fits their needs and budget. In addition to life insurance, Sprout also offers a wellness program that provides discounts on gym memberships and healthy living products, further emphasizing their commitment to the health and well-being of their customers.

• Cost and Fees
  
  
  
  
  

  
  
  
  
  

• Customer Service
  
  
  
  
  

  
  
  
  
  

• User Experience
  
  
  
  
  

  
  
  
  
  

• Product Offerings
  
  
  
  
  

  
  
  
  
  

Overall

4.7

Pros

•  Personalized attention: Sprout Life Insurance may offer more personalized attention and customer service, as they are a smaller company and may have fewer customers to serve.
• Innovative offerings: Sprout Life Insurance may offer innovative life insurance options and added benefits, such as their wellness program, that larger insurance companies may not offer.
• Flexibility: As a smaller company, Sprout Life Insurance may be more flexible and responsive to customer needs, compared to larger insurance companies with more bureaucratic processes.

Cons

• Limited coverage options: Sprout Life Insurance may have limited coverage options compared to larger insurance companies, which may have a wider range of offerings.
• Less financial stability: Sprout Life Insurance may have less financial stability compared to larger insurance companies, which may have more resources and a longer track record.
• Less brand recognition: Sprout Life Insurance may have less brand recognition compared to larger insurance companies, which may have a longer history and more established reputation. 

.wp-review-44825.review-wrapper {
box-shadow: 0 0 20px rgba(0, 0, 0, 0.1);
width: 98%;
float: left;
border: none;
background: #ffffff;
margin: 0 1% 30px;
}
.wp-review-44825.review-wrapper .review-desc {
clear: both;
padding: 25px 30px 25px 30px;
line-height: 26px;
}
.wp-review-44825.review-wrapper .review-desc .review-summary-title {
text-transform: uppercase;
}
.wp-review-44825.review-wrapper,
.wp-review-44825 .review-title,
.wp-review-44825 .review-desc p,
.wp-review-44825 .reviewed-item p {
color: #6a788a;
}
.wp-review-44825 .review-links a {
background: #8cc739;
padding: 10px 20px 8px 20px;
box-shadow: none;
border: none;
color: #fff;
border-radius: 50px;
cursor: pointer;
transition: all 0.25s linear;
}
.wp-review-44825 .review-links a:hover {
background: #1f3457;
color: #fff;
box-shadow: none;
}
.wp-review-44825 .review-list li {
padding: 20px 30px;
}
.wp-review-44825 .review-list li:last-child {
border-bottom: 0;
}
.wp-review-44825.wp-review-circle-type .review-list li {
padding: 19px 30px;
}
.wp-review-44825.wp-review-circle-type .review-list .review-circle .review-result-wrapper { height: 32px; }
.wp-review-44825.wp-review-circle-type .review-list .wp-review-user-rating .review-circle .review-result-wrapper {
height: 50px;
}
.wp-review-44825.wp-review-circle-type .wpr-user-features-rating .review-list li {
padding: 10px 30px;
}
.wp-review-44825.wp-review-point-type .review-list li,
.wp-review-44825.wp-review-percentage-type .review-list li {
padding: 24px 30px;
}
.wp-review-44825.wp-review-point-type .review-list li > span,
.wp-review-44825.wp-review-percentage-type .review-list li > span {
display: inline-block;
position: absolute;
z-index: 1;
top: 32px;
left: 45px;
color: #ffffff;
font-size: 14px;
line-height: 1;
text-shadow: 0 1px 1px rgba(0, 0, 0, 0.3);
-webkit-touch-callout: none;
-webkit-user-select: none;
-khtml-user-select: none;
-moz-user-select: none;
-ms-user-select: none;
user-select: none;
}
.wp-review-44825.wp-review-point-type .wpr-user-features-rating .review-list li > span,
.wp-review-44825.wp-review-percentage-type .wpr-user-features-rating .review-list li > span {
color: inherit;
text-shadow: none;
}
.wp-review-44825.wp-review-point-type .wpr-user-features-rating .review-list li .wp-review-input-set + span,
.wp-review-44825.wp-review-percentage-type .wpr-user-features-rating .review-list li .wp-review-input-set + span,
.wp-review-44825.wp-review-point-type .wpr-user-features-rating .review-list li .wp-review-user-rating:hover + span,
.wp-review-44825.wp-review-percentage-type .wpr-user-features-rating .review-list li .wp-review-user-rating:hover + span {
color: #fff;
}
.wp-review-44825 .review-list li:nth-child(even) {
background: #edf2f9;
}
.wp-review-44825 .review-links {
padding: 30px 30px 20px 30px;
}
.wp-review-44825.review-wrapper .review-result-wrapper i {
font-size: 18px;
}
#review.wp-review-44825.review-wrapper .review-pros-cons {
clear: both;
padding: 0;
border-top: 1px solid #edf2f9;
}
#review.wp-review-44825.review-wrapper .review-pros-cons .review-pros,
#review.wp-review-44825.review-wrapper .review-pros-cons .review-cons {
width: 100%;
flex: none;
padding: 0;
}
#review.wp-review-44825.review-wrapper .review-pros-cons .review-pros {
background: #1f3457;
padding: 30px 30px 10px 30px;
color: #fff;
box-sizing: border-box;
}
#review.wp-review-44825.review-wrapper .review-pros-cons .review-cons {
background: #8cc739;
padding: 30px 30px 10px 30px;
color: #fff;
box-sizing: border-box;
}
.wp-review-44825.review-wrapper .mb-5 {
text-transform: uppercase;
}
.wp-review-44825.review-wrapper .mb-5 + p {
line-height: 26px;
}
.wp-review-44825 .user-review-area {
padding: 15px 30px;
border-top: 1px solid;
}
.wp-review-44825 .wp-review-user-rating .review-result-wrapper .review-result {
letter-spacing: -2.35px;
}
.wp-review-44825.review-wrapper .review-title {
letter-spacing: 1px;
font-weight: 700;
padding: 15px 30px;
background: transparent;
}
.wp-review-44825.review-wrapper .review-total-wrapper {
width: 40%;
margin: 0;
padding: 35px 0;
color: #fff;
background: #ffffff;
border-left: 1px solid;
text-align: center;
float: right;
clear: none;
border-top: 1px solid;
}
.wp-review-44825.review-wrapper .review-list {
clear: none;
width: 60%;
float: left;
border-top: 1px solid;
}
.wp-review-44825.review-wrapper .wpr-user-features-rating,
.wp-review-44825.review-wrapper .wpr-user-features-rating .review-list {
width: 100%;
clear: both;
border-top: 1px solid #edf2f9;
}
.wp-review-44825.review-wrapper.wp-review-circle-type .review-total-wrapper {
padding: 20px 0;
}
.wp-review-44825.review-wrapper.wp-review-circle-type .review-total-wrapper .review-circle.review-total {
margin: auto 0;
padding-top: 10px;
width: auto;
height: 100%;
clear: both;
}
.wp-review-44825.review-wrapper.wp-review-circle-type .user-review-area {
padding: 12px 30px;
}
.wp-review-44825.review-wrapper.wp-review-thumbs-type .review-list {
width: 100%;
}
.wp-review-44825.review-wrapper .review-result-wrapper {
border-radius: 25px;
}
.wp-review-44825.review-wrapper .review-percentage .review-result-wrapper,
.wp-review-44825.review-wrapper .review-percentage .review-result,
.wp-review-44825.review-wrapper .review-point .review-result-wrapper,
.wp-review-44825.review-wrapper .review-point .review-result {
height: 26px;
margin-bottom: 0;
background: #f1e3cd;
border-radius: 25px;
}
.wp-review-44825.review-wrapper li .review-point .review-result {
background: #8cc739;
}
.wp-review-44825.review-wrapper li:nth-of-type(2n) .review-point .review-result {
background: #1f3457;
}
.wp-review-44825 .review-total-wrapper .review-point.review-total,
.wp-review-44825 .review-total-wrapper .review-percentage.review-total {
width: 70%;
display: inline-block;
margin: 20px auto 0 auto;
}
.wp-review-44825.review-wrapper .review-total-wrapper .review-total-box {
float: left;
text-align: center;
padding: 0;
color: #6a788a;
line-height: 1.5;
}
.wp-review-44825.review-wrapper .review-total-wrapper .review-total-box h5 {
margin-top: 10px;
color: inherit;
}
.wp-review-44825.review-wrapper.wp-review-point-type .review-total-wrapper .review-total-box,
.wp-review-44825.review-wrapper.wp-review-percentage-type .review-total-wrapper .review-total-box {
width: 100%;
}
.wp-review-44825.review-wrapper .review-star.review-total {
color: #fff;
margin-top: 10px;
}
.wp-review-44825.review-wrapper .user-review-title {
padding: 15px 30px 10px;
margin: 0;
color: inherit;
background: #edf2f9;
border-top: 1px solid;
border-bottom: 1px solid;
}
.wp-review-44825.review-wrapper .user-total-wrapper .user-review-title {
display: inline-block;
color: #6a788a;
text-transform: uppercase;
letter-spacing: 1px;
padding: 0;
border: 0;
background: transparent;
margin-top: 3px;
}
#review.wp-review-44825.review-wrapper.wp-review-circle-type .user-total-wrapper h5.user-review-title {
margin-top: 12px;
}
#review.wp-review-44825.review-wrapper.wp-review-circle-type .user-total-wrapper span.user-review-title {
margin-top: 8px;
}
.wp-review-44825.review-wrapper .reviewed-item {
padding: 30px;
}
.wp-review-44825.review-wrapper.wp-review-circle-type .review-total-wrapper > .review-total-box {
display: block;
}
.wp-review-44825.review-wrapper.wp-review-circle-type .review-total-wrapper > .review-total-box > div { display: none; }
#review.wp-review-44825.review-wrapper .user-review-area .review-percentage,
#review.wp-review-44825.review-wrapper .user-review-area .review-point {
width: 20%;
float: right;
margin-bottom: 5px;
}
.wp-review-44825 .review-embed-code { padding: 10px 30px; }
.wp-review-44825.review-wrapper,
.wp-review-44825 .review-title,
.wp-review-44825 .review-list li,
.wp-review-44825 .review-list li:last-child,
.wp-review-44825.review-wrapper .review-list,
.wp-review-44825 .user-review-area,
.wp-review-44825.review-wrapper .review-total-wrapper,
.wp-review-44825 .reviewed-item,
.wp-review-44825 .review-links,
.wp-review-44825 .wpr-user-features-rating,
.wp-review-44825.review-wrapper .user-review-title {
border-color: #edf2f9;
}
.wp-review-44825 .wpr-rating-accept-btn {
background: #8cc739;
margin: 10px 30px;
width: -moz-calc(100% – 60px);
width: -webkit-calc(100% – 60px);
width: -o-calc(100% – 60px);
width: calc(100% – 60px);
border-radius: 50px;
}
@media screen and (max-width:480px) {
.wp-review-44825.review-wrapper .review-title,
.wp-review-44825.review-wrapper .reviewed-item,
.wp-review-44825.review-wrapper .review-list li,
.wp-review-44825.review-wrapper .review-desc,
.wp-review-44825.review-wrapper .user-review-area,
.wp-review-44825.review-wrapper .review-embed-code { padding: 15px; }
.wp-review-44825.wp-review-circle-type .review-list li {
padding: 15px 15px 0px 15px;
}
.wp-review-44825.review-wrapper .review-pros-cons > div > div { padding: 15px; padding-top: 0; }
.wp-review-44825.review-wrapper .ui-tabs-nav { padding: 0 15px; }
.wp-review-44825.review-wrapper .review-links { padding: 15px 15px 5px; }
.wp-review-44825.review-wrapper .review-list,
.wp-review-44825.review-wrapper .review-total-wrapper { width: 100%; }
.wp-review-44825.review-wrapper .review-total-wrapper { padding: 10px 0; }
.wp-review-44825.review-wrapper .review-total-wrapper .review-total-box h5 { margin-top: 0; }
.wp-review-44825.review-wrapper .review-total-wrapper .review-total-box div { line-height: 1; }
}

{
“@context”: “http://schema.org”,
“@type”: “Review”,
“itemReviewed”: {
“@type”: “Product”,
“name”: “Sprout Life Insurance”,
“description”: “Sprout Life Insurance is a life insurance policy that provides financial coverage to individuals in the event of their death. It can cover funeral costs, medical bills, and other costs associated with end-of-life expenses. It also provides beneficiaries with a lump sum payment that can help them cover living expenses in the wake of their loved one’s passing.”,
“image”: “https://www.goodfinancialcents.com/wp-content/uploads/2020/05/sproutt-insurance-review-300×78.jpeg”,
“url”: “https://sproutt.com/”,
“review”: {
“@type”: “Review”,
“reviewRating”: {
“@type”: “Rating”,
“ratingValue”: 4.7,
“bestRating”: 5,
“worstRating”: 0
},
“author”: {
“@type”: “Person”,
“name”: “Jeff Rose, CFP®”
},
“reviewBody”: “<p>Sprout Life Insurance is a life insurance company that provides coverage options for individuals and families. The company offers both term and permanent life insurance policies, allowing customers to choose the coverage that best fits their needs and budget. In addition to life insurance, Sprout also offers a wellness program that provides discounts on gym memberships and healthy living products, further emphasizing their commitment to the health and well-being of their customers.</p>”
}
},
“reviewRating”: {
“@type”: “Rating”,
“ratingValue”: 4.7,
“bestRating”: 5,
“worstRating”: 0
},
“author”: {
“@type”: “Person”,
“name”: “Jeff Rose, CFP®”
},
“reviewBody”: “<p>Sprout Life Insurance is a life insurance company that provides coverage options for individuals and families. The company offers both term and permanent life insurance policies, allowing customers to choose the coverage that best fits their needs and budget. In addition to life insurance, Sprout also offers a wellness program that provides discounts on gym memberships and healthy living products, further emphasizing their commitment to the health and well-being of their customers.</p>”
}

The post Sproutt Life Insurance Review: Is it Legit? appeared first on Good Financial Cents®.

When you’re a teenager or a young adult, buying car insurance is rarely fun or affordable. This is true for anyone trying to add coverage to a parent’s existing policy, but it’s even more true for young adults who need to find cheap car insurance on their own.

That said, the best car insurance for young drivers offers quality protection for the entire household without breaking the bank. If you’re looking for the best cheap car insurance for young adults, however, you’ll need to compare policies and plans while also checking for discounts you might qualify for.

In the meantime, you’ll want to see which types of auto insurance you really need and which ones you can go without.

We compared more than 20 of the best auto insurance companies to help you find the best car insurance for young drivers in 2024. If you’re ready to buy a policy or begin comparing all your options, you can stop looking and start your search here.

Our Picks for Best Car Insurance for Younger Drivers

• Nationwide: Best for Teen Drivers

• American Family: Best for Usage-Based Discounts

• Allstate: Best for Good Students

• State Farm: Best for Safe Vehicle Discounts

• Geico: Best Discounts Overall

• USAA: Best for Military

The reviews below can help you learn more about the best car insurance companies that made our ranking, including the policy options and special programs for young drivers they offer.

Nationwide offers an array of coverage options for teenagers and young drivers, as well as discounts that can make coverage considerably more affordable. Young drivers can purchase insurance with liability-only coverage, but they can also opt for collision coverage, comprehensive coverage, and even rental car reimbursement coverage that kicks in when a car is in the shop getting repairs after an accident occurs.

Accident forgiveness is another optional feature for young drivers. This add-on coverage ensures that a teen or young driver’s car insurance premiums won’t surge right away after their first at-fault automobile accident occurs.

Major discounts available from Nationwide for teens and young drivers include:

• Good Student Discount: If you’re a full-time student and a Nationwide customer, you can get a discount on your premiums if you maintain a grade point average of ‘B’ or better.

• Employer-Sponsored Plan Discount: If you work for an employer who participates in a Nationwide discount plan, you can get a break there.

• Multi-Policy Discount: You can also get a discount by bundling your auto insurance with other policies, such as renter’s insurance.

• SmartRide Discount: Nationwide also offers a discount if you meet safe driver criteria as determined by the use of a plug-in device. It’s a usage-based insurance program that enables you to earn a discount for safe driving.

American Family Insurance is another highly-rated insurance company that extends coverage to young drivers and teenagers who are being added to a family plan. This company offers all the basic insurance coverage you would expect, from liability coverage to collision, comprehensive coverage, uninsured and underinsured motorist coverage, and rental car reimbursement. They also offer optional emergency roadside coverage, which can be accessed with ease using the MyAmFam mobile app.

This company also offers a Safe Driver Discount Program for Teens, which monitors your teen’s driving habits with the help of a mobile app. Once a teenager drives at least 3,000 miles with the app on, families can qualify for a 10% discount on their car insurance premiums.

Other notable discounts for young drivers include:

• Away at School Discount: This discount can apply when a young driver is away at college or university and their vehicle remains parked at home.

• Good Student Discount: Students with good grades can pay less for auto insurance premiums overall.

• Multi-Product Discount: Pay less for car insurance premiums when you bundle multiple policies with American Family.

• Young Volunteer Discount: This discount can apply when a driver under the age of 25 completes 40 hours of volunteer work per year for a non-profit.

Allstate is another insurer that is known for its Accident Forgiveness program. While joining this program doesn’t help you lower your premium at first, you won’t see your monthly auto insurance costs surge after your first accident. In the meantime, Allstate also has a Safe Driving Bonus program. If you add this feature to your policy, you get a check in the mail every six months if you don’t have an accident. This is Allstate’s way of incentivizing safe driving habits.

Also, note that Allstate extends good student discounts for drivers who are under the age of 25. This means high school students and teenagers with good grades can help their parents secure lower car insurance rates, but it also means young adults in college can get a discount on their own policies.

Allstate’s best car insurance discounts for young drivers include the following:

• Allstate Drivewise Discount: Young drivers who install a device on their vehicle and let Allstate monitor their driving habits can pay less for auto insurance overall.

• Multi-Policy Discount: A multi-policy discount can apply when young drivers purchase multiple policies from Allstate, such as car insurance bundled with a renter’s insurance policy.

• Responsible Payer Discount: If you pay your premiums on time for an entire year, you can get a responsible payer discount the next year you purchase coverage.

• Smart Student Discount: This discount applies to drivers under the age of 25 who meet one of three options, including getting good grades or completing a teen driver education program.

State Farm offers a program for young drivers under the age of 25, which is called Steer Clear. This program requires drivers to use a mobile app that monitors their driving, and it is only available to young drivers who don’t have any at-fault accidents or moving violations within the last three years. Those who qualify for this program can save up to 20% off their auto insurance premiums when they avoid accidents and drive safely over the long run.

Not only does State Farm make it easy to add a young driver to a household car insurance policy, but they also offer affordable premiums for young drivers who are out on their own. Additionally, this company offers an array of discounts that relate to vehicle safety instead of the age of the driver, including passive restraint discounts and discounts for having an eligible anti-theft device installed on a vehicle.

Other discounts for young drivers offered by State Farm include:

• Drive Safe & Save Discount: This program uses information from your smartphone or your vehicle’s OnStar or SYNC communication service to calculate your discount.

• Defensive Driving Course Discount: Young drivers who complete a defensive driving course can receive 10% to 15% off their annual car insurance premiums.

• Student Away at School Discount: If you are a student under the age of 25 and you are living away from home while enrolled in school, you might qualify for this discount.

• Good Student Discount: This discount can cut your auto insurance premiums by as much as 25%, but you do have to post good grades to qualify.

Geico is one of the most price-competitive auto insurers on the market, and it offers quite a few discounts and programs for young drivers. For starters, this provider offers a family pricing program that lets young drivers get the same policy rates as experienced drivers within the same family. This means young drivers get the chance to establish a good driving record without paying high premiums that are typical for new drivers.

Geico also offers an Accident Forgiveness Program for drivers of all ages. This discount applies to only one member of the family on a single policy, but it helps prevent surging premiums in the event of an at-fault accident.

Other popular discounts from GEICO include the following:

• Good Driver Program: Young drivers can save up to 22% off car insurance premiums with the Five-Year Accident-Free Good Driver Discount.

• Government Employee Discount: This discount is valid with participating employers, yet it’s also available to federal employees. It can reduce your premium by up to 12%.

• Military Discount: Save up to 15% off your premiums if you’re a member of the military.

• Good Student Discount: This discount is available to drivers between the ages of 16 and 24 who are full-time students with a “B” average or better.

If you’re a member of the military or an eligible family member, you may also qualify for auto insurance through USAA. This company is one of the highest-rated insurance companies across the board, and they offer an array of programs and discounts for young drivers and teenage drivers alike.

As an example, USAA offers a program called SafePilot that can help anyone save up to 30% off their car insurance premiums if they complete a safe driving program and live in an eligible state. Families who have a teen on their policy can also help their kids save when they leave the next. In fact, adult children of USAA car insurance customers qualify for a 10% family discount.

Other USAA discounts for young drivers are listed below:

• Driver Training Discount: It’s possible to save on car insurance premiums if you are under the age of 21 and willing to complete a driver training or defensive driving course.

• Safe Driving Discount: You can reduce your premiums by maintaining a good driving record for at least five years.

• Good Student Discount: Young drivers get a discount with good grades at school, and students from ages 16 to 25 may be eligible.

• Family Discount: Pay less for auto insurance when you add a teenager or young adult to an existing family policy.

Car Insurance Guide

Before you settle on a new car insurance policy, you should understand the ins and outs of auto insurance for young drivers. For example, you’ll want to research the different types of car insurance, as well as the average cost of car insurance based on the policy you buy, where you live, and other factors.

How Does Car Insurance for Younger Drivers Work?

Car insurance for young drivers works the same as coverage for anyone else, yet this kind of insurance protection tends to be more expensive overall. The fact is, young drivers have considerably less experience on the road, and they consistently have accidents at a much higher rate as a result. According to the CDC on average 18 teens die every day in fatal car crashes. The Insurance Institute for Highway Safety reports that teens aged 16-19 are 3x more likely to get in a crash compared to those 20 years or older.

To account for this increased level of risk, car insurance companies charge higher premiums for the same types of coverage.

Generally speaking, however, car insurance rates tend to go down once individuals turn at least 25 with a safe driving record. Getting married can also help lower car insurance premiums considerably, as can becoming a homeowner, having a good credit score, and achieving other important life milestones.

As we noted already, the average premium for young drivers varies depending on where you live, whether you remain on a parent’s policy and other factors. However, a recent report from The Zebra shows that some age groups tend to pay much higher premiums overall, including some specific age groups below 25.

According to 2023 figures released in the study, drivers in the “teen” age group pay the most, with a typical 16-year-old driver paying an average of $6,034 per year for their own car insurance policy. Meanwhile, the average annual cost for all teenagers works out to $4,796 annually.

From there, each age group gets a better deal on auto insurance premiums until drivers reach their 60s and prices begin to tick up. The chart below shows the average car insurance premium by age group in 2023:

How to Lower Car Insurance Costs

Whether you decide to lease or buy a car or you’re currently driving an old beater while you wait for the best time to buy a new car, there are plenty of steps you can take to score more affordable car insurance premiums. Some of the best strategies you can use to save money are detailed below:

• Avoid accidents and moving violations. Getting into an accident or getting a ticket (or several) can cause your car insurance rates to surge higher than they already are. To get the cheapest car insurance possible, you’ll need to maintain a safe driving record for the long haul.

• Be willing to take driving courses. You may be able to save money on car insurance if you complete a teen driver education course or a defensive driving course. Make sure to check with your car insurance company to see which of these options can help you score a discount.

• Check for all possible discounts. You may qualify for car insurance discounts you don’t even know about, but you’ll never know unless you check. See whether your insurance company offers vehicle safety discounts, bundled policy discounts, loyalty discounts, or other discounts that can help you save money.

• Get good grades. If you’re a college student and you can maintain a good grade point average, chances are good you can score a discount on your car insurance premiums. For the most part, good grade discounts go to those who can maintain a GPA of 3.0 or better (or equivalent).

• Stay on your parent’s car insurance plan as much as possible. Generally speaking, car insurance rates for young adults are lower when they’re added to an existing policy. With that in mind, it can help to put off buying your own car insurance policy for as long as you can.

These are just some of the auto insurance discounts for students, but there might be others depending on the company you choose for coverage. When you shop around for your auto insurance policy, make sure to ask which discounts you might be eligible for.

How We Found the Best Car Insurance for Younger Drivers

To find the best car insurance companies on the market today, we looked for providers who have an ‘A’ rating or better for financial strength from A.M. Best.

We also looked for companies that offer highly-rated mobile apps, as well as those that advertise special programs and discounts for teen drivers.

Finally, we only considered car insurance companies that have an ‘A’ rating or better with the Better Business Bureau (BBB).

Summary of the Best Car Insurance for Younger Drivers July 2024

• Nationwide: Best for Teen Drivers

• American Family: Best for Usage-Based Discounts

• Allstate: Best for Good Students

• State Farm: Best for Safe Vehicle Discounts

• Geico: Best Discounts Overall

• USAA: Best for Military

The post Best Car Insurance for Young Drivers in 2024 appeared first on Good Financial Cents®.