Life insurance particularly for low-income families serves to protect household income. It may not be a specific program or offered by many companies. That notwithstanding, finding life insurance quotes on a budget needs not be difficult.
A low-income family is determined by the amount of money the household earns and the number of family members who live in the same house. The best life insurance for low-income families can come from big insurance companies or it could come from your local provider.
What type of life insurance should I get? Is a question one tends to ask himself before venturing to buy any. One thing to bear in mind is that you need a broker guide to guide you through the options if you do not know what policy to buy or are new to purchasing life insurance.
The basic types of life insurance are – term insurance, which offers the best bang for your buck and it’s the most affordable type of coverage you can buy. And Final expense insurance, which offers a smaller life insurance policy and is used to cover charges of affairs that relate to your death. These final expenses may include final medical bills, burial services, and funeral costs.
There are options to consider if one wants to buy term insurance or final insurance – you buy term insurance if you are looking for mortgage protection, income replacement, in good to average health, and under the age of 50 years old. And you buy final expense life insurance if you are over the age of 50, need something that will last for a lifetime, and are not in the best of health.
It is worthy to note that the cheapest life insurance plan for you and your family is group life insurance. It’s a single policy that covers an entire group like employer-based policies.
Life insurance for low-income individuals is considered an option if the following factors have been considered – age, gender, health, policy type, and death benefits. The aforementioned factors affect your life insurance cost. And some companies are better than others at providing coverage for specific customers.
Here are our top picks for the best life insurance for low-income families:
1. HAVEN LIFE INSURANCE:
Haven life insurance is known for being the best for term life insurance. They offer two types of term insurance policies which are haven term and haven simple.
Haven life is considered one of the best life insurance because of its impressive array of policy terms, along with its coverage amount which ranges from $100,000 to $3 million.
Their haven term services include haven life plus, fitness and sleep tracking apps, etc. Haven Term is meant for applicants who are younger than 64, while Haven Simple is made available only for applicants who are 20 – 55 years old.
Their pros – their haven simple does not require a medical exam, up to $3 million for term coverage, their haven term includes haven plus that comes with perks and discounts.
Their cons – their policies cannot and will not replace another life insurance policy, the required coverage for medical exam is $500,000 or more, and their simplified and haven plus are not made available in some states.
2. STATE FARM:
They are known for their excellent reputation for customer service, along with an outstanding record for financial stability. State farm sells term, whole, and universal life insurance policies. Note that most of its plans require medical exams, and do not have simplified issue options like some other insurance companies.
State Farm has the highest rating possible from AM Best because of their excellent management skills and fewer complaints from customers which are expected for a company of their size.
Pros – top-rank company for their good customer satisfaction, fewer complaints from customers, multiple policy options, and the availability of simplified-issue policies.
Cons – no discount for homeowners or auto insurance, most of their policies require medical exams, their online quotes are not made available for some of their policy options.
3. NEW YORK LIFE INSURANCE:
New York life is the best company for those seeking a permanent life insurance policy. They also provide multiple permanent options, including whole, universal and variable universal life insurance plans.
Its strong reputation comes from its mutual insurance company and the fact that policyholders own part of the company’s share. One may receive dividends depending on the type of policy you have.
For details on its policies and rates, you have to work with an agent because it doesn’t allow customers to get quotes online.
Pros – potential to earn dividends, the company is highly rated, different optional riders can be added to policies, the availability of their multiple terms, whole, and universal life policies.
Cons – customers who want to get quotes must work with an agent, no availability of online quotes.
4. NATIONWIDE LIFE INSURANCE:
Nationwide offers a discount on life insurance rates. This is achieved by bundling the life insurance rates with other types of coverage. Not all life insurance companies do that.
Because of their customer satisfaction and financial stability, they have a strong rating in their writer term, whole life, and universal policies. The fact that their policies are usually purchased through an agent doesn’t stop them from having a major perk over other companies. Their premiums are more affordable if bundled with homeowners and auto insurance.
Nationwide is well-regarded by third parties like AM Best and J.D Power. AM Best rates financial stability while J.D Power scores their customer satisfaction.
They also run multiple insurance plans and optional riders which is one of their many advantages. The issue is that all their policies require medical exams and most of their policies must be purchased through an agent.
5. NORTHWESTERN MUTUAL:
Unlike other insurers, North Western Mutual offers more optional riders which allow you to customize your policy just as you like. Their insurance riders allow you to get coverage for your loved ones and also access your benefits under uncommon circumstances. Their life insurance types include term, whole, universal, and variable universal life insurance.
As the mutual company that it is, it pays dividends to its policyholders. Once your insurance is purchased through the company, you may be eligible for annual dividend payments.
J.D Power rated North West Mutual third out of 21 life insurance companies in the year 2021. Historically, North-Western mutual received fewer complaints than is typical for a company of its size.
Their advantages include a lengthy list of optional riders, policyholders earn dividends, and they are highly rated by third parties. They also have their disadvantage, which are – that their online quote tool is limited, medical exams are required from most of their customers, and also, it is a must to purchase policies through an agent.
Bestow is a perfect choice for individuals, who want to get life insurance coverage but do not want to go through a medical exam. One does not need to visit a doctor to purchase a policy. This is because you can apply and purchase the policy without even a test.
To determine your eligibility for life insurance and rates, your personal information and your answer about your medical history will be used. Based on their claims, you can get a quote and purchase a policy online within minutes. Also, Bestow life insurance is now part of Lemonade’s app and website.
Their customers stand to gain high coverage without a medical exam, quick processing, and online application, their term ranges from 10 to 30 years and offers a 30 day free look period.
Before buying the plan, note that there is no availability of riders, they sell only term insurance, one must be less than 60 years to qualify for coverage, non-availability of policies for residents of New York.
Ethos is among the best insurance provider because it accommodates a wide range of potential applicants, not leaving behind those who have struggled to qualify for insurance in the past. Without an insurance agent, prospective customers can receive a quote within minutes.
Ethos underwriting is of three types – simplified issue, guaranteed issue, and fully underwritten.
For their term issue, Ethos uses either simplified issue or fully underwritten methodology, while the guaranteed issue is for whole life insurance policies.
Be sure to know that their simplified issue requires you to answer questions about your health and medical history only, guaranteed issue policies make it possible you are not denied policies based on your medical history or health, while fully underwritten policies require medical exams and blood work.
Note that their permanent life insurance option is limited, with little or no information about optional riders.
8. POLICY GENIUS:
Policy genius offers one-stop access to both term and whole life policies from different partners. Policy genius has the best comparison tool and a broker. Their provision of one-stop shopping is top-notch. Some policy genius partners include mutual of Omaha, Protective, Banner house, AIG, Pacific life, Principal, etc.
Policy genius is an online market that offers a vast library of educational resources for new customers to life insurance. They also recommend life insurance for people who suffer from depression and diabetes. Their broad range of coverage options like the term or permanent coverage policies made them stand out.
Their agents give personalized assistance if one needs help to choose the right policy or coverage amount.
Their merits include – the availability of multiple types of insurance, according to policy genius, their agents do not work on commission, and quotes from multiple insurers are quickly and easily compared.
Their demerits include – online quotes are not made available for all providers, and getting their final price takes more time.
Ladder offers the best flexible insurance options so far, despite having only term policies for young applicants. Their three-step online application is simple and easy to access, also the policies they offer are very affordable. Customer can cancel their coverage at any time without being charged any cancellation fees
Ladder, unlike other insurers, allows its policyholders to change their coverage amount at any time, the premiums are not left out. This helps policyholders maintain an affordable policy at all times.
Their merits include – they do not run medical for up to $3 million in coverage. Rather than the 10-day free look period, they offer 30 days free look period. Availability of $100,000 to $8 million in term coverage and adjustable term coverage over time.
Ladder also has some demerits which are – optional riders are not available, their plans are limited to young people between the age of 20 to 60, and only term coverage is available.
10. MASS MUTUAL:
Mass mutual being one of the largest U.S life insurance companies offers a broad range of term and permanent life insurance. Also, their policies are sold through their agent across the country. It is owned by its policyholder who receives dividend payments based on the company’s financial performance.
Mass mutual also provides a free life insurance program, MassMutual’s LifeBridge Program, for low-income individuals. To get this insurance program, one has to qualify for it. To get mass mutual life insurance, recipients must be under the age of 18, policyholders must be in good health and salary must be less than $40,000 per year.
As a policyholder in Mass Mutual, you can manage your coverage, change your beneficiaries, request a loan and pay premiums by using the online portal.
Mass Mutual life insurance policies include term and permanent life insurance. They also offer an immediate insurance policy and accept emailed claims. But also note that most of their policies require a life insurance medical exam.
Whether your income is high or low, it is advisable that you get a life insurance policy that you can afford. This is because someone you love depends on it. Compare available quotes in your area and settle for the one that suits your budget plan.
I’m a Technology Stock Analyst, with focus on companies developing cutting-edge techs. Keeping track of cutting-edge techs, companies and stocks is what I do almost everyday. And I love it. Whether it’s artificial intelligence, 5g, or autonomous vehicles; I’m all in.