(In some cases, you can get a policy with a $5 million benefit.) The alternative is "expense calculation," which correlates the size of the policy with your present and future financial obligations -- such as a mortgage or college tuition (which currently comes to around $175,000 on average for a private 4-year institution). Get a Quote. A life insurance policy is a contract between you and an insurance provider. Benefits start at $100,000 and go up to $5 million -- but a company representative said on the phone that they're always adding new products and you should speak with a financial advisor about what life insurance product makes the most sense for your situation. A disability rider waives or reduces the monthly premium if the policyholder becomes incapacitated. The six companies highlighted below offer 20-year policies with a $500,000 death benefit for $23 to $32 per month (or $5,520 to $7,200 over the course of the term). It's generally better to err on the side of longer, since the cost and availability of products will change as you get older. The cost of the policy -- and your monthly or annual premium -- is primarily determined by the length of the term and the size of the death benefit, although there are other factors that come into play, such as your health and age, your gender, whether you're a smoker, and where you live. It’s a critical part of any…. Principal offers life insurance plan term lengths of 10, 15, 20, and 30 years, with death benefits ranging from $200,000 to $5,000,000. All the companies profiled here satisfy the minimum requirements for a life insurance company. Northwestern Mutual, Haven, MassMutual and Guardian are the best life insurance companies among those we scored. A life insurance … Power, a low complaint index from the National Association of Insurance Commissioners and an A++ or A+ rating for financial strength from A.M. Best. We delete comments that violate our policy, which we encourage you to read. Once your children can support themselves, your mortgage is paid off and you've saved enough to cover your retirement, you'll have less of a need for life insurance. Guaranteed life insurance policies are easy to get -- even for older or less healthy people, who may not even need to take a medical exam. The best time to buy life insurance is when you are young and healthy. Legal and General wasn't included in JD Power's survey but the life insurance company has been around since 1836 and has an excellent reputation for customer service and affordability. The best time to buy life insurance is when you're young and healthy. When you compare life insurance, you’ll be able to find life insurance quotes for the life cover you're looking for. There are essentially two types of life insurance: basic life insurance and life insurance bundled with a quasi-investment product. Permanent insurance gives you coverage for life as long as you pay the premiums on time. Because there are so many different kinds of life insurance policies, it’s important that you pick the plan that’s going to work best for you and your loved one and the company you choose is among the best rated life insurance companies. Most experts recommend that you buy a policy with a death benefit equal to 10 to 12 times your annual income and a term long enough to cover living expenses and future financial liabilities such as mortgage payments and college tuition. Our analysis prioritized customer service, financial standing and price -- but each of these companies has earned respectable customer service grades from J.D. Whether you’re traveling in the best of times or in uncertain times, a solid travel insurance policy can save you substantial money and frustration. Her writing on insurance and finance has appeared on MSN, The Financial Gym, and end-of-life planning service Cake. What is life insurance? A Life Insurance policy gives you the assurance that your family’s living expenses and education will not suffer, even if you’re no longer there to provide for them financially. Each company has its own approach to classifying customers; some may categorize you as a smoker -- even if you quit three years ago. If you decide whole life insurance is best for your needs, that’s perfectly fine. A 20-year, $500,000 policy for a healthy 35-year-old costs $22.34, compared to an average of $25.80. It ranked 4th in J.D. Be respectful, keep it civil and stay on topic.