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For your loved ones, life insurance can be the difference between maintaining their finances (and lifestyle) and taking several steps back if you weren’t there.

Problem is, millions of dollars in life insurance benefits go unclaimed every year. That’s often because people don’t know they were named as beneficiaries—or may be unaware the deceased had a policy at all.

Here’s what you need to know to find an unclaimed policy, even long after the funeral.

What is an unclaimed life insurance policy?

An unclaimed life insurance policy is one in which a benefit hasn’t been paid out after the policyholder has died. This can happen for various reasons:

• The insurance company doesn’t know that the policyholder died.  Many life insurance policies don’t require monthly premium payments. So, it could take a while for an insurer to realize that a policy has lapsed. Insurers also may not know a policyholder has died until a file is claimed.
• The beneficiary doesn’t know they were named.  When you buy a policy, you must name at least one beneficiary—a person, trust, or estate who will receive funds if the worst should happen to you. Still, policyholders don’t always tell beneficiaries that they’ve been named in the policy. If the insurer can’t locate the beneficiary, the benefit may go unclaimed.
• The beneficiaries are children.  Minors can’t claim life insurance benefits themselves. Instead, the policyowner may have set up a trust or name an adult to act as the child’s guardian. If not, the executor of the estate should put steps in place for children to receive the life insurance payout when they reach adulthood.
• The insurance company changed.  A life insurer could go bankrupt, shut down, or change their name. In these cases, who manages the policy might be unclear. Most companies that close alert customers and transfer policies to another firm.

What information do I need to locate a policy?

You can try to find an unclaimed life insurance policy if you’re a beneficiary, a legal representative, or the executor of someone’s will or estate. Be prepared to provide:

• Name of deceased
• Dates of birth and death
• Death certificate
• Deceased’s Social Security number
• Most recent and former addresses
• Your own ID for verification

Even so, this list is just a starting point. Some insurers may require additional documents or information.

How to find an unclaimed policy?

If you think you might be entitled to a life insurance benefit, you have several options:

Contact the insurance company

If you know which insurer your loved one used, your search may be relatively simple. Check the insurer’s website, or give them a call. If you don’t have a copy of the policy, ask for one. Be ready to provide any information you can about the deceased, including their death certificate and Social Security number.

Talk to the executor or estate attorney

If your loved one had an estate plan, an executor is probably handling their financial affairs. That person may have information on any life insurance policies. If there was no estate plan, you can take other steps, like contacting the deceased’s legal or financial advisors. If you have access to your loved one’s documents, review them. You can also search for unclaimed policies and contact the deceased’s past employers to see if they provided life insurance as an employee benefit.

Contact the deceased’s financial or legal advisors

If your loved one worked with a financial or legal professional, that person may have details on any life insurance policies. These professionals might include a financial planner or other advisor, tax professional, or lawyer.

Either you or the deceased’s executor can contact the financial pro, but you may have to confirm that you’re a beneficiary before they will give you information. For example, you may have to provide proof of your identity and a copy of the deceased’s death certificate.

Review your loved one’s documents

You may have access to the deceased’s paperwork—surviving spouses and adult children often do, for example. If this is the case, review those documents to find any information related to life insurance. Even if you can’t find a copy of the policy itself, you may see premium payments on bank statements or other records. You might also find interest paid from a permanent life insurance policy reported on tax forms.

Search for unclaimed life insurance policies

After a few years (depending on the law in the state where the policyholder last lived), unclaimed insurance policies are turned over to the state. You can look up these policies in a few places, including:

• NAIC Life Policy Locator  Open in new tab
• National Association of Unclaimed Property Administrators  Open in new tab
• MissingMoney.com  Open in new tab

Contact their past employers and organizations

Many workplaces provide a basic level of life insurance as an employee benefit. Also, the deceased may have opted into more coverage at work or through a professional affiliation. So, contact the benefits department(s) where your loved one worked, along with professional groups to which they belonged, and ask if there may be an active policy for them. (Those resources may also be able to help you identify lost retirement accounts  for which you might be a beneficiary.)

How to file a claim for life insurance benefits?

If you’ve never had to claim life insurance benefits before, the process may be unfamiliar. Here’s what to do.

• Get certified copies of the death certificate.  Some insurance companies require certified copies of death certificates instead of regular ones. (Certified copies usually come from a state or county vital records office or health department and have security features to prove they’re official.) When the funeral director offers you certified copies, buy as many as you think you’ll need—and ask for a few more, just in case.
• Call the insurance agent or company.  If your loved one left the information, ask their insurance agent how to claim benefits. If you don’t have the agent’s name but know the company, call its general line to find the appropriate agent.
• Submit your claim.  You may be able to fill out a claim online or mail in a form. You’ll need to provide some basic proof of your identity and certified copies of the death certificate.
• Receive your benefit.  After your paperwork is processed, you’ll need to decide how to receive the funds. For example, you may prefer a lump sum if you want to make a large purchase, like a house. Or you might want regular payouts for a steady stream of income. Typically, a  life insurance payout is not taxable income. But if it goes to someone who wasn’t married to the deceased, it can be considered part of the estate. That, in turn, could trigger estate taxes  Open in new tab .

This process can take some time. You might have to wait as much as a few months—or more—to receive your benefit.

That’s especially so if there’s incomplete information or the policyholder died within the first two years of coverage. This is known as a “contestability period,” during which the insurer can investigate for fraud or inaccuracies in the application. The process can delay payment to a beneficiary until after the investigation is complete.

But the sooner you act, the sooner you’ll get your money.

How long does a beneficiary have to claim life insurance benefits?

Technically, if the coverage has not expired and the policy is fully paid up when the policyholder died, there is no time limit on when you can claim the benefit.

However, after a certain period, the insurance company must turn the funds over to the state where the deceased last lived. The timeline varies by state and type of property. (The National Association of Unclaimed Property Administrators connects Open in new tab to each state’s unclaimed property site, which may detail its rules.) Typically, it takes longer to receive the benefit once it‘s gone to the state than it would have to get the payment from the insurer. If you think your benefit may already have moved to the deceased’s state, contact that state’s comptroller’s office.

If you’re not sure if you’re a beneficiary, check with the state’s unclaimed property site and follow the previous steps for finding a lost policy.

What happens to unclaimed life insurance money?

Individual state laws dictate when and how insurers must turn over unclaimed funds, but the money doesn’t disappear. In fact, some states allow it to earn interest. (In that case, you’d likely owe income tax on interest earned.)

If you think you may be owed life insurance benefits, searching the unclaimed policy databases can help you get what you’re entitled to. And remember that you can prevent this problem in the future by talking to your living loved ones now. No question, talking about death is hard. But the best way to be prepared is to discuss  life insurance  and other estate planning issues with those closest to you. The more details you have, the easier it will be to manage their affairs when they pass away.

Please consult your tax and legal advisors regarding your circumstances.

Author details

Lauren Ward is a Richmond, VA-based writer who has covered personal finance and financial services topics for over 10 years.

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• Locating deceased family member's insurance

Tools for finding life insurance coverage

What to do once you find a life insurance policy.

• Legal and Privacy Considerations

Finding life insurance policy frequently asked questions

How to find a life insurance policy.

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• The NAIC can help locate a deceased loved one's life insurance or annuity information.
• To use this free online service, you'll need the person's death certificate and your email address.
• When you submit information, the NAIC will search insurance and annuity companies on your behalf.
• Compare life insurance online in minutes with Everyday Life Insurance .

Discussing life insurance information with your family or loved ones is important, but it doesn't always happen. After a loved one's passing, you might be unsure of whether they have a life insurance policy. To submit a life insurance claim, however, you'll need to know which life insurance company holds the person's policy. 

A service offered by the National Association of Insurance Commissioners (NAIC) can help anyone who could be a policy beneficiary locate the person's policy. Filling out the NAIC's form online submits the person's information to insurance companies for a record search, and the service can help you locate the person's policy.

The service allows searches both for life insurance policies and annuities, which are insurance plans purchased to provide future retirement income. The NAIC provides this search service for free. 

It's worth noting that this search service shouldn't be your first step in the process. Before submitting a search, the NAIC recommends checking the person's bank statements for any indication of payments towards a policy, checking safe deposit boxes for information, or other financial records if available. If you find information on their policy, this tool won't be necessary — you can then contact the insurance company directly.

If you've checked around and still can't find any information, the policy locator service could help.

Locating deceased family member's insurance

Gathering necessary information.

Before hunting down a life insurance policy, having these items and pieces of information on hand will make the process easier: 

• The deceased's legal first and last name and any former names (e.g., a maiden name)
• The deceased's Social Security number
• The deceased's date of birth
• The deceased's date of death and death certificate
• The deceased's last and former addresses, especially for any long-time residences
• Proof of your identity (e.g., copy of a government-issued driver's license or passport)
• The deceased's financial records (e.g., bank statements and tax returns) 

Contacting insurance companies 

If you know the insurance company your loved one had a policy with, contact their insurance agent or the company. The insurer may require proof you're the beneficiary, so be prepared to provide your driver's license, Social Security number, and the policyholder's death certificate. 

NAIC's Life Insurance Policy Locator Service

If you don't know the insurance company your deceased loved one has a policy with, the NAIC's Life Insurance Policy Locator Service can help with your search. 

 The NAIC's tool sends the information on your loved one to insurance and annuity companies across the US. These companies then search their records to see if there's a policy on file for that person.  

Only people who may be policy beneficiaries or executors of an estate can submit a request to the NAIC. Any information found by the search can only be passed along if the person submitting the request is the policy's beneficiary or is authorized to receive information.

Most of the information needed to complete the form is available on the person's death certificate. If you don't already have this document, you can order one. The process for getting this can vary from state to state, but the funeral home the family worked with or the county's vital records department is a good place to start. 

After getting a death certificate, you can start filling in information on the locator service's form, which can be found on the NAIC's website.

The information you submit will be passed along to insurance companies for a search. If any results are found, the company will contact you directly by email as long as you are a beneficiary or otherwise authorized to receive that information. From there, you can work with the insurance company to collect the benefit. 

It's worth noting, however, that not all companies participate in this service, as insurers participate on a voluntary basis. There's no guarantee that a policy will be found. If you do find information on a policy, you can start the process of submitting a claim directly with the life insurance company.

National Association of Unclaimed Property Office 

Another resource to look into is your state's comptroller's Unclaimed Property Office. If a life insurance company is aware that a policyholder has died but can't locate the beneficiary, it must turn over the death benefit to the state. 

If you know or can guess the state in which the policy was bought, you can visit the state's Unclaimed Property Office using the locator tool provided by the National Association of Unclaimed Property Administrators . 

Filing a claim

Once you've identified the insurance company and retrieved the deceased's policy information, follow these steps to claim a found life insurance policy: 

• Contact the insurance company: The insurer will provide the claims form and instructions. Claim forms may also be available on the insurer's website. 
• Complete the claims forms: The insurer may require the policyholder's information including their name, date and cause of death (located on the death certificate), state of residence, social security number, and policy number. 
• Submit the death certificate: Obtain the policyholder's death certificate from the funeral home or your state's vital statistics office and submit it with your claim form. Note that each beneficiary must complete a claim form and provide the required documentation to receive their portion of the death benefit. 
• Wait for processing: Insurance companies generally disburse policy proceeds within three to five days. However, it may take longer if the insurer suspects that the policyholder's death is excluded from coverage. Feel free to follow up if the process is taking longer than expected. 

Understanding the policy's benefits

Each beneficiary is entitled to their portion of the death benefit as specified by the policy. An attractive feature of a life insurance policy is that beneficiaries don't pay taxes on the proceeds if disbursed in a lump sum. 

However, if you retain the funds in an interest-bearing account, you'll have to pay taxes on the earnings in the account. Similarly, if the beneficiary receives the death benefit as an annuity or receives multiple payments over time, any interest accrued will be subject to taxes as well. 

According to Policygenius, some deaths don't qualify for coverage. If the policyholder dies due to the following restricted causes, this could nullify your right to the death benefit.

• Death due to engaging in a risky habit or activity is excluded from your policy
• Murder by the policy's beneficiary 
• Suicide within the suicide clause period
• Overdose within the contestability period 
• Death during an act of war or terrorism 
• Drug or alcohol use during the contestability period 
• Death while participating in an illegal activity 

Legal and privacy considerations

Insurance companies must abide by privacy laws when disclosing policy details. Insurers may only provide policy information to the following individuals. 

• The closest living relative (e.g., spouse or child) 
• The policy's beneficiary 
• Estate executors and Trustees 

You'll want to consider your dependent's needs, your financial goals, and your budget when comparing life insurance policy options. If you want affordable coverage until your kids become adults or your mortgage is paid off, term life insurance may be the way to go. Alternatively, if you have lifelong dependents or want to grow your policy to leave a larger death benefit or pay for long-term care costs, a permanent life insurance policy is worth considering. 

You'll need the deceased's personal information including their full name, Social Security number, date of birth, former addresses, and policy information (if available). Financial records, such as bank statements or tax returns, may also reveal information about existing life insurance policies. 

Start by checking the deceased's personal records, such as files, paperwork, or financial documents for evidence of an existing life insurance policy. If you know the insurance company, you can call them directly to provide you with available policy information. The state Unclaimed Property Office and the NAIC policy locator service are also tools that can help you track down potential insurance benefits. 

Challenges such as incomplete information and privacy laws make it difficult to locate a missing insurance policy. Overcome these obstacles by gathering as much information as possible, tapping into available resources for help, and seeking legal advice if necessary.

Only the beneficiaries named in the policy or their legal representatives have the right to file a claim on a life insurance policy.

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How to claim an unclaimed life-insurance policy

The average unclaimed life benefit is $2,000.

At least $1 billion in benefits from misplaced or forgotten life-insurance policies are waiting to be claimed by their owners. The odds that you're one of them are 1 in 600, more favorable than your chance of winning $100 on a Powerball ticket. And although you can't expect a million-dollar jackpot—the average unclaimed life benefit is $2,000—some payouts have been as high as $300,000.

The big stash results from a quiet death-benefit dodge. Auditors in California, Florida, New York, and other states found that life insurers were using Social Security's Death Master File to identify annuity owners who had died so that they could stop making payments to them. But they weren't checking it to find deceased policyholders and pay their beneficiaries.

Worse, when premium payments stopped after policyholders died, insurers often used the policies' cash value to continue the payments until the cash was depleted, California's state controller found.

Six major insurers—AIG, Forethought, John Hancock, MetLife, Nationwide, and Prudential—have agreed to search for dead policyholders and beneficiaries more diligently. And other carriers are being investigated.

Searching for a lost policy

Start simple. If an immediate family member or other close relative died more than a few years ago, benefits may have already been turned over to the unclaimed property office of the state where the policy was purchased. Go to missingmoney.com , a website of the National Association of Unclaimed Property Administrators, to search records from 38 states and the Canadian provinces, Puerto Rico, and the District of Columbia. The pull-down menu under Links connects you to a map and addresses for unclaimed-property agencies.

If your name or a potential benefactor's name produces a hit, you'll need to prove your claim. Required documentation, which can vary by state, is detailed in claim forms, and a death certificate might be necessary. If you don't already have that key document, contact the vital records office in the state where your relative died, or go to vitalchek.com , the official document service provider for more than 400 government agencies.

Contact the insurer. If you know or suspect that a particular insurer underwrote the policy, contact that carrier's claim office by phone or online. Not everyone is legally entitled to answers; the deceased's executor and immediate family—spouse, domestic partner, children, grandchildren, siblings, grandparents—have the most legal standing. "But the insurer will know, and if they determine you're a beneficiary, they'll send you a packet to verify your identity so you can collect," says Steven Weisbart, chief economist at the Insurance Information Institute, an industry organization. "If you're not a beneficiary, they're not going to tell you anything."

The more information you have—the approximate date of birth and death, Social Security number, last state of residence, policy number—the better. A Consumer Reports staffer used MetLife's online checking tool (see box at left) to uncover two policies left by her parents. She collected a total of $4,800—more than three times the policies' face value thanks to compounded interest earnings.

Search personal records. If the person died recently and you have the authority, search his or her files for a policy, records of premium payments, or bills from an insurer. Contact the deceased's employers, labor union, or even fraternal order to check for policies. Find and open safe-deposit boxes. Monitor the mail, e-mail, and online banking and bill-payment services for premium invoices or whole-life dividend notices.

Beware of scammers. As part of the settlement with the states, insurers are stepping up their efforts to find people, but so are the bad guys. The Florida Department of Financial Services warns that a bogus "Florida Department of Financial Restitution" has been offering to reunite consumers with unclaimed property and separate them from $600 in up-front fees. The real agency doesn't charge anything, though private companies do legally mine unclaimed-assets files for a percentage, payable if property is found.

If you receive a solicitation purporting to be from an insurer, don't respond to the phone number or website listed in the correspondence. Instead, look up the phone number or Web address for the company's claims department and contact the company that way, advises Anna Alexopoulos, a spokeswoman for the Florida Department of Financial Services.

If you've successfully found lost assets, tell us how you did it by writing to [email protected] .

How to contact insurers

Here's how to reach the six companies that settled with the multistate task force on unclaimed life benefits: AIG: 800-888-2452 Forethought: 800-331-8853 John Hancock MetLife Nationwide: 800-848-6331 Prudential: 800-778-2255

A version of this article appeared in the February 2013 issue of Consumer Reports magazine with the headline "Finding Lost Life-Insurance Policies."

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• Life Insurance

How to Find a Life Insurance Policy

Christy Bieber is a full-time personal finance and legal writer with more than a decade of experience. She has a JD from UCLA as well as a degree in English, Media and Communications with a Certificate in Business Management from the University of Rochester. In addition to writing for The Ascent and The Motley Fool, her work has also been featured regularly on MSN Money, CNBC, and USA Today. She also ghost writes textbooks, serves as a subject matter expert for online course design, and is a former college instructor.

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Robin Hartill, CFP®, is The Ascent’s Head of Product Ratings and has worked for The Motley Fool since 2020. Her work has appeared in various national publications, including Yahoo! Finance, NerdWallet, Investopedia, CNN Underscored, MSNBC, USA Today, and CNET Money. She previously wrote The Penny Hoarder’s syndicated “Dear Penny” personal finance advice column. She is based in St. Petersburg, Florida.

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Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.

Life insurance pays out a death benefit when a policyholder passes away. If your loved one dies, it's important to know whether they had life insurance so you can receive any money you're entitled to. This guide explains how to conduct a life insurance policy search.

How to find a life insurance policy

Here are seven steps to take if you're trying to find out if your loved one had life insurance .

1. Talk to friends

Starting with friends is a good first step if you're a surviving family member.. Ask any close friends of the deceased if they ever mentioned purchasing life insurance.

2. Consult with financial advisors

If your loved one had any financial advisors or attorneys, they would be a good resource for determining whether a life insurance policy exists. Lawyers or financial advisors might have helped the deceased buy insurance. Or they may have provided advice on how much coverage to buy or who to name as a beneficiary.

3. Contact former employers

Often, people get life insurance through work.

Former employers of the deceased may be able to answer questions about whether life insurance was offered to workers. Some workers may not even be aware this is a group workplace benefit they have access to, so even people who are alive may need to verify whether they have coverage and update their life insurance beneficiary .

4. Check safe deposit boxes

Many people keep important paperwork in safe deposit boxes. If your relative had one at a local bank or credit union, this is a good place to look. Search for policy documents, which will include the policy number and detailed information about what coverage was in effect.

5. Look through financial paperwork

To find out if someone has life insurance, looking through their financial paperwork is helpful. They may have a copy of the policy or past statements showing they paid premiums.

Mailed letters could provide updates on the life insurance policy. Or reviewing bank statements could show premiums were paid. If bank statements show payments were made to an insurer, it's possible to contact that life insurance company .

6. Search insurance websites

Many major insurers now have policy locator tools on their websites that allow you to find out if your loved one had life insurance through the company.

There is also a life insurance policy locator on the website of the National Association of Insurance Commissioners . Some states maintain a life insurance database, so check with state insurance department officials as well. Many of these tools require you to enter your loved one's date of birth, date of death, and Social Security number.

7. Look on state unclaimed property websites

If a life insurance company knows that a policyholder has died but can't track down the beneficiary, they’re required to turn over the death benefit to the unclaimed property division of the state where the policy was purchased. The National Association of Unclaimed Property Administrators’ website, unclaimed.org , allows you to search by state.

Who can request information about a life insurance policy?

Life insurers must protect their clients' privacy even after someone has passed away. This can make it more difficult to find out if someone has life insurance.

Still, certain people are able to request a copy of the policy. The person who has been named as executor of the deceased's estate can usually request a copy of a life insurance policy. In some cases, the next of kin may also request a copy. They will likely need documentation to prove their identity and their relationship to the deceased.

How do you find out if you're a beneficiary?

Life insurance companies will generally contact beneficiaries. They will do this if they become aware of the policyholder's death. Some states require life insurers to check the Social Security Administration's Death Master File to see if any policyholders have passed. Things can get complicated, though, if the insurance company can’t locate the beneficiary or if the primary beneficiary has died.

How to get a copy of the life insurance policy

Ideally, the deceased person will have kept a copy of financial paperwork, including a life insurance policy. If so, this is the easiest way to obtain a copy. Unfortunately, in cases where there is a lost life insurance policy, it's more complicated.

Contacting the life insurance company can also be appropriate, as the company should provide policy documents. However, generally the executor of the estate or a court-appointed guardian will need to contact the insurer to obtain this paperwork.

How to file a life insurance claim

To file a life insurance claim:

• Conduct a life insurance policy search to identify policies that are in effect.
• Review life insurance documents to see who has been named as a beneficiary.
• Obtain crucial documents, including a death certificate and insurance claim form.
• Contact the insurer and file a claim using the required forms and providing appropriate documentation.

How long does it take to get a life insurance check?

Life insurance payouts generally must be made within 30 days to 60 days of a valid claim. It can take longer for a life insurance policy to pay out if the claim is contested. The process can also take longer if the insurance company investigates the person's death, which is most likely to happen if they die within two years of purchasing the policy.

It is illegal to obtain life insurance on a person without their consent. The insured person is generally required to provide a signature when the policy is purchased. To buy life insurance on another person, you also need to show an insurable interest in their life, which means you would suffer financially if they died. If someone forges your signature or lies on the application, that would be insurance fraud. The policy would typically not pay out if the insurer discovered the fraud.

To find unclaimed life insurance policies, conduct a life insurance policy search on the website of the National Association of Insurance Commissioners. You can also use unclaimed.org to search state unclaimed property records.

Life insurance policies are not public record. However, there are databases of active insurance policies. Potential beneficiaries can search these databases after someone has died. Conducting a life insurance policy search can help beneficiaries make sure they get paid.

Contacting the insurance company is a good first step to determine if a life insurance policy is still valid. The insurer should provide a copy of the policy and coverage details. The insurer should also provide information about cancellation of coverage.

Life insurers are typically required to make an attempt to contact beneficiaries. If a beneficiary cannot be found, the insurer will eventually turn over the money to the state. State treasurers maintain a database of unclaimed property that anyone can search at unclaimed.org.If you discover unpaid life insurance proceeds that you're entitled to, you can request the money from the state.

We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.

The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.

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• Long-Term Care Rider
• Borrowing From Your Policy
• Cashing in Your Policy
• Cash Surrender Value
• Cash Value vs. Surrender Value
• Life Insurance vs. IRA for Retirement Saving
• How Policy Payouts Work
• Taxes on Life Insurance Premiums
• Life Insurance Policy Loan: Tax Implications
• What Is a Tax-Free 1035 Exchange?
• Is Life Insurance Taxable?

Understanding how life insurance works and how to shop for a policy can help you find the best coverage to meet your family's needs.

Life insurance is a contract between an insurance company and a policy owner in which the insurer guarantees to pay a sum of money to one or more named beneficiaries when the insured person dies. In exchange, the policyholder pays premiums to the insurer during their lifetime. The best life insurance companies have good financial strength, a low number of customer complaints, high customer satisfaction, several policy types available, optional riders, and easy application processes.

Key Takeaways

• Life insurance is a legally binding contract that promises a death benefit to the policy owner when the insured person dies.
• The policyholder must pay a single premium upfront or pay regular premiums over time for the life insurance policy to remain in force,.
• When the insured person dies, the policy’s named beneficiaries will receive the policy’s death benefit.
• Term life insurance policies expire after a certain number of years. Permanent life insurance policies remain active until the insured person dies, stops paying premiums, or surrenders the policy.
• A life insurance policy is only as good as the financial strength of the life insurance company that issues it.

Investopedia / Theresa Chiechi

Types of Life Insurance

Many different types of life insurance are available to meet all sorts of consumer needs and preferences. Depending on the short- or long-term needs of the person to be insured (or their family members), the choice of whether to select temporary or permanent life insurance will be a major consideration.

Term life insurance

Term life insurance is designed to last a certain number of years, then end. You choose the term when you take out the policy. Common terms are 10, 20, or 30 years. The best term life insurance policies balance affordability with long-term financial strength.

Level term, the most common type of term insurance currently being sold, pays the same amount of death benefit throughout the policy's term. Other types of term insurance include:

• Decreasing term life insurance is renewable term life insurance with coverage that decreases over the life of the policy at a predetermined rate.
• Convertible term life insurance allows policyholders to convert a term policy to permanent insurance.
• Renewable term life insurance provides a quote for the year the policy is purchased. Premiums increase annually at renewal. These plans usually provide the least expensive term insurance in the first year.
• Term that lasts until a specific age, such as term-to-65.

Many term life insurance policies allow you to renew the contract on an annual basis once the original term ends. However, since the renewal premiums are based on your current age, the cost can rise steeply each year. A better solution for permanent coverage is to convert your term life insurance policy into a permanent policy. This is not an option on all term life policies, so look for a convertible term policy if this feature is important to you.

Permanent life insurance is more expensive than term, but it stays in force throughout the insured’s entire life unless the policyholder stops paying the premiums or surrenders the policy. Some policies allow for automatic premium loans when a premium payment is overdue.

• Whole life insurance is one type of permanent life insurance where the premium and death benefit generally remain the same each year. It includes a cash value component, which is similar to a savings account. Cash-value life insurance allows the policyholder to use the cash value for many purposes, such as to take out loans or to pay policy premiums.
• Universal life (UL) insurance is another type of permanent life insurance with a cash value component that earns interest. Universal life features flexible premiums. Unlike term and whole life, premiums can be adjusted over time. UL also lets the policyowner choose between level death benefit or increasing death benefit options.
• Indexed universal life (IUL) is a type of universal life insurance that lets the policyholder earn a fixed or equity-indexed rate of return on the cash value component.
• Variable universal life (VUL) insurance allows the policyholder to invest the policy’s cash value in an available separate account . It also has flexible premiums and can be designed with a level or increasing death benefit.

Top-Rated Companies to Compare

When shopping for insurance, you might want to start with our list of the best life insurance companies , some of which are listed below.

Term life insurance differs from permanent life insurance in several ways but tends to best meet the needs of most people looking for affordable life insurance coverage . Term life insurance only lasts for a set period of time and pays a death benefit should the policyholder die before the term has expired. That's in contrast to permanent life insurance, which stays in effect as long as the policyholder pays the premium. Another critical difference involves premiums: term life is generally much less expensive than permanent life because it does not accumulate cash value.

Before you apply for life insurance, you should analyze your financial situation and determine how much money would be required to maintain your beneficiaries’ standard of living or to meet other financial needs for which you’re purchasing a policy. Also, consider how long you'll need coverage to last.

For example, if you are the primary caretaker and have children two and four years old, you would want enough insurance to cover your custodial responsibilities until your children are grown and able to support themselves.

You might research the cost of hiring a nanny and a housekeeper or using commercial child care and cleaning services, then perhaps add money for education. Include any outstanding mortgage and retirement needs for your spouse in your life insurance calculation—especially if the spouse earns significantly less or is a stay-at-home parent. Total what these costs would be over the next 16 or so years, add a little more for inflation, and that’s the death benefit you might want to buy—if you can afford it.

Burial or final expense insurance is a type of permanent life insurance that has a small death benefit. Despite the name, beneficiaries can use the death benefit as they wish.

What Affects Your Life Insurance Premiums and Costs?

Many factors can affect the cost of life insurance premiums . Certain things may be beyond your control, but other criteria can be managed to potentially bring down the cost before (and even after) applying. Your health and age are the most important factors that determine cost, so buying life insurance as soon as you need it is often the best course of action.

After being approved for an insurance policy, if your health improves later and you’ve made positive lifestyle changes, you can ask to be considered for a change in risk class. Even if it is found that you’re in poorer health than at the initial underwriting , your premiums will not go up. If you’re found to be in better health, then you your premiums may decrease. You may also be able to buy additional coverage at a lower rate than you initially did.

Investopedia / Lara Antal

Step 1: Determine How Much You Need

Think about what expenses would need to be covered in the event of your death. Consider things such as mortgage, college tuition, credit cards, and other debts, not to mention funeral expenses. Also, income replacement is a major factor if your spouse or loved ones will need cash flow and are unable to provide it on their own.

There are helpful tools online to calculate the lump sum that can satisfy any potential expenses that would need to be covered.

Step 2: Prepare Your Application

Life insurance applications generally require personal and family medical history and beneficiary information. You may need to take a medical exam and will need to disclose any preexisting medical conditions, history of moving violations, DUIs, and any dangerous hobbies (such as auto racing or skydiving). The following are crucial elements of most life insurance applications:

• Age: This is the most important factor because life expectancy is the biggest determinant of risk for the insurance company.
• Gender: Because women statistically live longer, they generally pay lower rates than males of the same age.
• Smoking: A person who smokes is at risk for many health issues that could shorten life and increase risk-based premiums.
• Health: Medical exams for most policies include screening for health conditions such as heart disease, diabetes, and cancer, plus related medical metrics that can indicate health risks.
• Lifestyle : Dangerous occupations and hobbies can make premiums much more expensive.
• Family medical history: If there is evidence of major disease in your immediate family, your risk of developing certain conditions is much higher.
• Driving record: A history of moving violations or drunk driving can dramatically increase the cost of life insurance premiums.

Standard forms of identification will also be needed before a policy can be written, such as your Social Security card, driver's license, or U.S. passport.

Step 3: Compare Policy Quotes

Once you've assembled all of your necessary information, you can gather multiple life insurance quotes from different providers based on your research. Prices can differ markedly from company to company, so it's important to make the effort to find the best combination of policy, company rating, and premium cost. Because life insurance premiums are something you will likely pay monthly for decades, finding the policy that best fits your needs can save you an enormous amount of money.

Our lineup of the best life insurance companies can give you a jump start on your research. It lists the companies we've found to be the best for different types of needs, based on our research of nearly 100 carriers.

There are many benefits to having life insurance . Below are some of the most important features and protections offered by life insurance policies.

Most people use life insurance to provide money to beneficiaries who would suffer a financial hardship upon the insured’s death. However, for wealthy individuals , the tax advantages of life insurance, including the tax-deferred growth of cash value, tax-free dividends, and tax-free death benefits, can provide additional strategic opportunities.

Avoiding Taxes

The death benefit of a life insurance policy is usually tax-free. It may be subject to estate taxes , but that's why wealthy individuals sometimes buy permanent life insurance within a trust. The trust helps them avoid estate taxes and preserve the value of the estate for their heirs.

Tax avoidance is a law-abiding strategy for minimizing one’s tax liability and should not be confused with tax evasion , which is illegal.

Life insurance provides financial support to surviving dependents or other beneficiaries after the death of an insured policyholder. Here are some examples of people who may need life insurance:

• Parents with minor children. If a parent dies, the loss of their income or caregiving skills could create a financial hardship. Life insurance can make sure the kids will have the financial resources they need until they can support themselves.
• Parents with special-needs adult children. For children who require lifelong care and who will never be self-sufficient, life insurance can make sure their needs will be met after their parents pass away. The death benefit can be used to fund a special needs trust that a fiduciary will manage for the adult child’s benefit.
• Adults who own property together. Married or not, if the death of one adult might mean that the other could no longer afford loan payments, upkeep, and taxes on the property, life insurance may be a good idea. One example would be an engaged couple who take out a joint mortgage to buy their first house.
• Seniors who want to leave money to adult children who provide their care. Many adult children sacrifice time at work to care for an elderly parent who needs help. This help may also include direct financial support. Life insurance can help reimburse the adult child’s costs when the parent passes away.
• Young adults whose parents incurred private student loan debt or cosigned a loan for them. Young adults without dependents rarely need life insurance, but if a parent will be on the hook for a child’s debt after their death, the child may want to carry enough life insurance to pay off that debt.
• Children or young adults who want to lock in low rates. The younger and healthier you are , the lower your insurance premiums. A 20-something adult might buy a policy even without having dependents if they expect to have them in the future.
• Stay-at-home spouses. Stay-at-home spouses should have life insurance as they contribute significant economic value based on the work they do in the home. According to Salary.com, the economic value of a stay-at-home parent would be equivalent to an annual salary of $184,820.
• Wealthy families who expect to owe estate taxes. Life insurance can provide funds to cover the taxes and keep the full value of the estate intact.
• Families who can ’ t afford burial and funeral expenses. A small life insurance policy can provide funds to honor a loved one’s passing.
• Businesses with key employees. If the death of a key employee, such as a CEO, would create a severe financial hardship for a firm, that business may have an insurable interest that will allow it to purchase a key person life insurance policy on that employee.
• Married pensioners. Instead of choosing between a pension payout that offers a spousal benefit and one that doesn’t, pensioners can choose to accept their full pension and use some of the money to buy life insurance to benefit their spouse. This strategy is called pension maximization .
• Those with preexisting medical conditions, such as cancer, diabetes, or smoking. Note, however, that some insurers may deny coverage for such individuals or charge very high rates.

Each policy is unique to the insured and insurer. It’s important to review your policy document to understand what risks your policy covers, how much it will pay your beneficiaries, and under what circumstances.

What to Do Before Buying Life Insurance

Research policy options and company reviews.

Because life insurance policies are a major expense and commitment, it's critical to do proper due diligence to make sure the company you choose has a solid track record and financial strength. That stability matters, given that your heirs may not receive the death benefit until many decades into the future. Investopedia has evaluated scores of companies that offer all different types of insurance and rated the best in numerous categories.

Consider How Much Death Benefit You Need

Life insurance can be a prudent financial tool to hedge your bets and provide protection for your loved ones in case you die while the policy is in force. However, there are situations in which it makes less sense —such if you buy too much or insure people whose income doesn't need to be replaced. So it's important to consider several factors before making a decision.

What expenses couldn't be met if you died? If your spouse has a high income and you don't have any children, maybe it's not warranted. It is still essential to consider the impact of your potential death on a spouse and consider how much financial support they would need to grieve without worrying about returning to work before they’re ready. However, if both spouses' income is necessary to maintain a desired lifestyle or meet financial commitments, then both spouses may need separate life insurance coverage.

Know Why You're Buying Life Insurance

If you're buying a policy on another family member's life, it's important to ask: what are you trying to insure? Children and seniors really don't have any meaningful income to replace, but burial expenses may need to be covered in the event of their death. In addition, a parent may want to protect their child’s future insurability by purchasing a moderate-sized policy while they are young. Doing so allows that parent to ensure that their child has a head start towards protecting their financial future. Parents are typically only allowed to purchase life insurance for their children for up to 25% of the in-force policy on their own lives.

Could investing the money that would be paid in premiums for permanent insurance throughout a policy earn a better return over time elsewhere? As a hedge against uncertainty, consistent saving and investing—for example, self-insuring —might make more sense in some cases if a significant income doesn't need to be replaced or if the policy's investment returns on cash value are overly conservative.

A life insurance policy has two main components—a death benefit and a premium. Term life insurance has both components, while permanent and whole life insurance policies also have a cash value component.

Death Benefit

The death benefit or face value is the amount of money the insurance company guarantees to the beneficiaries identified in the policy when the insured dies. The insured might be a parent and the beneficiaries might be their children, for example. The insured will choose the desired face amount based on the beneficiaries’ estimated future needs. The insurance company will determine whether the purchaser has an insurable interest in the insured's life, The insurer will also decide whether the proposed insured qualifies for the coverage based on the company’s underwriting requirements related to age, health, and any hazardous activities in which the proposed insured participates.

Premiums are the money the policyholder pays for insurance. The insurer must pay the death benefit when the insured dies if the policyholder pays the premiums as required. Premiums are determined in part by how likely it is that the insurer will have to pay the policy’s death benefit based on the insured’s life expectancy . Factors that influence life expectancy include the insured’s age, gender, medical history, occupational hazards, and high-risk hobbies.

Part of the premium also goes toward the insurance company’s operating expenses. Premiums are higher on policies with larger death benefits, for individuals who are at higher risk, and on permanent policies that accumulate cash value.

The cash value of permanent life insurance serves two purposes. It is a savings account that the policyholder can use during the life of the insured, and the cash accumulates on a tax-deferred basis. Some policies have restrictions on withdrawals depending on how the money is to be used. For example, the policyholder might take out a loan against the policy’s cash value and would pay interest on the loan principal. The policyholder can also use the cash value to pay premiums or purchase additional insurance.

Cash value is a living benefit that remains with the insurance company when the insured dies. Any outstanding loans against the cash value will reduce the policy’s death benefit.

Good to Know

The policy owner and the insured are usually the same person, but sometimes they may be different. For example, a business might buy key person insurance on a crucial employee such as a CEO, or an insured might sell their own policy to a third party for cash in a life settlement .

Life Insurance Riders and Policy Changes

Many insurance companies offer policyholders the option to customize their policies to accommodate their needs.  Riders are the most common way policyholders may modify or change their coverage. There are many riders, but availability depends on the provider. The policyholder will typically pay an additional premium for each rider or a fee to exercise the rider, though some policies include certain riders in their base premium.

• The accidental death benefit rider provides additional life insurance coverage in the event the insured’s death is accidental.
• The waiver of premium rider relieves the policyholder of making premium payments if the insured becomes disabled and unable to work.
• The disability income rider pays a monthly income if the policyholder becomes unable to work a certain period of time (usually several months) due to a serious illness or injury.
• Upon diagnosis of terminal illness, the  accelerated death benefit rider allows the insured to collect a portion or all of the death benefit while still living.
• The long-term care rider is a type of accelerated death benefit that can be used to pay for nursing-home, assisted-living, or in-home care when the insured requires help with activities of daily living, such as bathing, eating, and using the toilet.
• A guaranteed insurability rider lets the policyholder buy additional insurance at a later date without a medical review.

Borrowing Money

Most permanent life insurance accumulates cash value that the policyholder can borrow against. Technically, you are borrowing money from the insurance company and using your cash value as collateral. Unlike with other types of loans, the policyholder’s credit score is not a factor. Repayment terms can be flexible, and the loan interest goes back into the policyholder’s cash value account. However, if you don't pay them back, policy loans can reduce your death benefit.

Funding Retirement

Policies with a cash value or investment component can provide a source of retirement income. This opportunity can come with high fees and a lower death benefit, so it may only be a good option for individuals who have maxed out other tax-advantaged savings and investment accounts. The pension maximization strategy described earlier is another way life insurance can fund retirement.

It’s prudent to reevaluate your life insurance needs annually or after significant life events, such as divorce , marriage, the birth or adoption of a child, or major purchases such as a house. You may need to update the policy’s beneficiaries, increase your coverage, or even reduce your coverage.

Insurers evaluate each life insurance applicant on a case-by-case basis. With hundreds of insurers to choose from, almost anyone can find an affordable policy that at least partially meets their needs. In 2023 there were more than 900 life insurance and health companies in the United States, according to the Insurance Information Institute.

On top of that, many life insurance companies sell multiple types and sizes of policies. Some specialize in meeting specific needs, such as policies for people with chronic health conditions. There are also brokers who specialize in life insurance and know what different companies offer. Applicants can work with a broker free of charge to find the insurance they need. This means that almost anyone can get some type of life insurance policy if they look hard enough and are willing to pay a high enough price or accept a perhaps less-than-ideal death benefit.

Insurance is not just for the healthy and wealthy. Since the insurance industry is much broader than many consumers realize, getting life insurance may be possible and affordable even if previous applications have been denied or quotes have been unaffordable. According to industry research firm LIMRA, 51% of Americans had life insurance in 2024, with a fourth of those only carrying insurance purchased through their workplace.

In general, the younger and healthier you are, the easier it will be to qualify for life insurance, while the older and less healthy you are, the harder it will be. Certain lifestyle choices, such as using tobacco or engaging in risky hobbies such as skydiving, also make it harder to qualify or lead to higher rates.

How Does Life Insurance Work?

Life insurance works by providing a death benefit in exchange for paying premiums. One popular type of life insurance—term life insurance—only lasts for a set amount of time, such as 10 or 20 years. Permanent life insurance also features a death benefit but lasts for the life of the policyholder as long as premiums are paid.

You need life insurance if you need to provide security for a spouse, children, or other family members in the event of your death. Life insurance death benefits can help beneficiaries pay off a mortgage, cover college tuition, or help fund retirement. Permanent life insurance also features a cash value component that builds over time.

What Are the Benefits of Life Insurance?

• Payouts are tax-free. Life insurance death benefits are paid as a lump sum and are not subject to federal income tax because they are not considered income for beneficiaries.
• Dependents don't have to worry about living expenses. Most policy calculators recommend a multiple of your gross income equal to seven to 10 years that can cover major expenses such as mortgages and college tuition without the surviving spouse or children having to take out loans.
• Final expenses can be covered. Funeral expenses can be significant and can be avoided with a burial policy, or with standard term or permanent life policies.
• Policies can supplement retirement savings. Permanent life policies such as whole, universal, and variable life insurance can offer cash value in addition to death benefits, which can augment other savings in retirement.

What Factors Affect Your Life Insurance Premiums?

• Age (life insurance is less expensive)
• Gender (female tends to be less expensive)
• Smoking (smoking increases premiums)
• Health (poor health can raise premiums)
• Lifestyle (risky activities can increase premiums)
• Family medical history (chronic illness in relatives can raise premiums)
• Driving record (good drivers save on premiums)

Once you determine how much coverage you need and what type of policy would best fit your needs, there are several options for purchasing life insurance. You can contact a local insurance agent or broker; look for online marketplaces that offer products from several insurers; or contact the insurance company directly to obtain coverage. Look for a company with a financial stability and a reputation for good customer service.

How Do You Qualify for Life Insurance?

To qualify for life insurance, you need to submit an application. Life insurance is available to almost anyone. However, the cost or premium level can vary greatly based on your age, health, and lifestyle. Some types of life insurance don't require medical information; however, no-exam policies generally have much higher premiums and involve an initial waiting period before the death benefit is available.

There are many types of life insurance policies available, each offering a variety of features. Understanding how life insurance works helps you choose the best coverage for you and your family. Once you decide what type of insurance you need and how much coverage makes sense for your situation, compare products from top life insurance companies to determine the best fit.

Insurance Information Institute. " What are the Different Types of Term Life Insurance Policies? "

Insurance Information Institute. " What are the Different Types of Permanent Life Insurance Policies? "

Internal Revenue Service. " Life Insurance & Disability Insurance Proceeds ."

Social Security Administration. " Liens, Adjustments and Recoveries, and Transfers of Assets ."

Salary.com. " How Much Is a Mom Really Worth? The Amount May Surprise You. "

Insurance Information Institute. " How To Assess the Financial Strength of an Insurance Company ."

State Farm. " What Determines the Cost of Life Insurance? "

Insurance Information Institute. " Facts + Statistics: Industry Overview ."

LIMRA. " 2024 Life Insurance Fact Sheet '

Progressive. " How To Buy Life Insurance ."

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Tips for finding a lost life insurance policy

In this article, search the deceased's documents and correspondence., submit a request to the naic life insurance policy locator service., contact the state’s unclaimed property office., be aware of special challenges. , keep in mind fee-based services are available if needed..

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When a loved one passes away, locating a life insurance policy can be a challenging but necessary task. There are some steps you can take to get the information you need.  Here are a few tips to guide your search.

In many cases, evidence of policy and any relevant information

• Search through paper and digital files, bank safe deposit boxes, and other storage spaces for insurance-related documents.
• Check bank statements for checks or automatic drafts to life insurance companies.
• Check the deceased’s mail and email for premium or dividend notices. If policy payments are up-to-date, there will be no notice of premium payments due; however, the company may still send an annual notice regarding the status of the policy or statement of a dividend.
• Review the deceased’s tax returns for the past two years for a record of interest income or expenses paid to life insurance companies. Life insurance companies pay interest on accumulations on permanent policies and chart interest on policy loans.
• Check the application for each life insurance policy you find. This document, typically attached to the policy, will have a list of any other life insurance policies owned at the time of the application.
• Talk to the deceased’s banker, financial adviser, and attorney.

If this search turns up empty, there are still actions you can take.

The National Association of Insurance Commissioners (NAIC) Life Insurance Policy Locator Service,  a free online tool , can assist you in locating life insurance policies. Once a request is received, the NAIC will ask participating companies to search their records to determine whether they have a life insurance policy in the name of the deceased you entered. If they do, the participating company will respond to you if you are the designated beneficiary or are authorized to receive the information. 

Click  here  to use the service. You will need information from the death certificate, including social security number, legal first and last name, date of birth, and date of death. This  video  provides instructions on how to use the service.

When a life insurance company is aware that an insured client has died but cannot find the beneficiary, the company must turn the death benefit over to the state where the policy was purchased as “unclaimed property.” 

If you know (or can guess) the state where the policy was bought, you can search the state’s unclaimed property database. The National Association of Unclaimed Property Administrators has a  search tool  that will take you to your state’s unclaimed property database. 

There may be circumstances that complicate the search for a loved one’s life insurance policy:

• The insurance company changed its name or sold the policy to another company: The NAIC  provides tips  on finding insurance companies that have changed their names, merged with other insurance companies, or sold blocks of policies to other insurance companies.
• The company went bankrupt: Contact the state life and health guaranty association. The National Organization of Life & Health Insurance Guaranty Associations has a  search tool  to find your state guaranty association. Guaranty associations provide a safety net for their state’s policyholders, ensuring continued coverage up to the limits outlined in state law.
• The policy may have been purchased in Canada: Reach out to the  Canadian Ombudservice for Life and Health Insurance  for information.

Sometimes, even despite all the best efforts, finding an insurance policy when a loved one has passed away can seem overwhelming. In these cases, it is helpful to know that MIB , an insurance membership corporation, offers services for a fee. This service may be able to find evidence of life insurance applications but does not indicate whether a life insurance policy was purchased. Additionally, several private companies can assist you with the search for a lost life insurance policy for a fee.

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How to Track Old Insurance Policies

Last Updated: August 11, 2024 References

This article was co-authored by Clinton M. Sandvick, JD, PhD . Clinton M. Sandvick worked as a civil litigator in California for over 7 years. He received his JD from the University of Wisconsin-Madison in 1998 and his PhD in American History from the University of Oregon in 2013. This article has been viewed 65,213 times.

Knowing how to track old insurance policies can mean a windfall of funds for you or your family if you know how to access the information and are the rightful beneficiary. Whether you had a parent or other family member pass away or you have simply misplaced your own insurance policies, you need to be aware of what is required of you to track down the policy information to claim the benefits that are rightfully yours.

Looking Through Personal Information

• You are looking for records of cancelled checks for premium payments, old records of premium payments, or any old tax records that could indicate the name of insurer.
• Be sure to check the mail as well for any incoming information from the insurance company.
• If there was an insurance policy, there will likely be a financial record of it somewhere.

• In addition, contact their previous place of work, as well as former places of work. If they worked in a larger business, you would want to contact the company benefits office. They would know about any workplace coverage, as well as any additional coverage or benefits that were purchased.

• Contact them to see if the policy holder had any other type of policies with that same company. In addition, ask them if they were aware of any other insurers that the policy holder had.
• If you live in a smaller city, you can also try calling all the major insurance companies one-by-one to check. This may be impractical in a larger city with hundreds of providers.It may be worthwhile to call the most prominent providers, however.
• If you live in a large city, call the insurance companies closest to where the policy holder lived, as well as the largest names.
• Identify yourself and your relationship to the decedent.
• Be prepared to show a death certificate for the decedent.

Using Services and Organizations for Help

• These are typically known as policy locator services, and if you are an executor or legal representative of a deceased person with a policy, you can submit your legal information and a death certificate, and the service will contact all the life insurance providers in the state.
• Use the National Association of insurance commissioners website to find out the contact information for your state insurance department. You can then call them to ask about any specific policy locator services.
• If they do not have a policy locator service, ask them for how they can help. At the very least, they can provide a list of insurance providers close to the address of the policy holder.
• They can also let you know about any insurance company mergers.

• MissingMoney.com provides a database of unclaimed property for states, that allows policy holders and beneficiaries to perform an in-depth search of property that is rightfully owned to them, and legally required by law to be turned over to state governments. [5] X Research source

• This is a fee-service, and the fee is $75. Within 10 days, they will produce a report that will provide information of any applications completed by the person of interest, the insurance company, the date of application, and the contact information for the insurer.
• The MIB cannot tell you if a policy was issued. To learn this, you must contact the insurance company yourself using the contact information provided.

• In addition to employers, a lot of fraternal organizations, unions, and professional associations offer life insurance policies to their members. [6] X Research source Check with these organizations and see if they have any records about the deceased's policies.

• If you get a solicitation from an insurer, do not contact them with the number or address provided on the mailing. Instead, look up the insurer online and use the number or address you find on the internet. [8] X Trustworthy Source Consumer Reports Nonprofit organization dedicated to consumer advocacy and product testing Go to source

Expert Q&A

You might also like.

• ↑ https://www.kiplinger.com/article/insurance/t034-c001-s001-how-to-track-down-a-lost-life-insurance-policy.html
• ↑ http://www.naic.org/index_about.htm
• ↑ https://www.missingmoney.com/Main/Index.cfm
• ↑ http://www.insure.com/life-insurance/lost-policies.html
• ↑ http://www.iii.org/article/how-can-i-locate-lost-life-insurance-policy
• ↑ http://www.consumerreports.org/cro/magazine/2013/02/how-to-find-lost-life-insurance-policies/index.htm

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7 Best Life Insurance Companies in August 2024

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

The life insurance market in the U.S. is competitive, made up of a mix of long-standing insurers and newer “insurtechs” that sell policies online. To narrow down our list of the best life insurance companies, we looked at customer complaints data, consumer experience and financial strength. We also assessed the types of policies on offer, and the ways you can buy coverage.

Based on these factors, these are our top life insurance companies for 2024.

NerdWallet's best life insurance companies for August 2024

These are our expert picks for the best life insurance companies. All of the companies listed below scored 5 out of 5 stars. There are hundreds of insurers competing for your business, often selling very similar products, so it’s smart to compare life insurance quotes from a few before making a decision.

Best life insurance companies in 2024: Pros and cons

MassMutual: Best overall

Guardian: Best for applicants with a history of HIV

Northwestern Mutual: Best for consumer experience

New York Life: Best for high coverage amounts

Pacific Life: Best range of permanent life insurance

State Farm: Best for customer satisfaction

AARP: Best for older applicants

Best life insurance company overall: MassMutual

on Nerdwallet

Financial strength rating These ratings indicate an insurer’s ability to pay future claims.

Online purchase This indicates whether the company offers a way to apply for and purchase policies entirely online.

NAIC complaints Ratings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.

Policies offered Term policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.

Wide range of term and permanent life insurance policies.

Supports online claims.

Most policies require a medical exam.

Overview: Massachusetts Mutual Life Insurance Co., or MassMutual, is one of the largest life insurers in the country. Founded in 1851, it offers a wide range of products, from term life to variable universal life insurance — a type of permanent policy with flexible premiums and investment opportunities. MassMutual is a mutual life insurance company , which means it’s owned in part by its policyholders and pays out dividends to qualifying members. Its 2024 dividend payout is set to be the highest yet at almost $2.2 billion [0] MassMutual . MassMutual Announces Record Policyowner Dividend Payout . Accessed Aug 13, 2024. View all sources .

» Read the full review: MassMutual life insurance

↑ Back to top

Best life insurance company for health conditions: Guardian

Guardian life.

Drew significantly fewer complaints to state regulators than expected for a company its size.

Offers unique coverage options, such as survivorship insurance and policies for HIV-positive applicants.

Minimal policy details on the site.

Overview: Guardian was founded in 1860 and has paid life insurance dividends to its eligible policyholders since 1868. The company is set to pay out $1.4 billion in dividends in 2024, the largest sum in the company’s history [0] Guardian . Guardian announces $1.398 billion dividend allocation . Accessed Aug 13, 2024. View all sources . The insurer stands out for its lenient underwriting standards and is known for making life insurance accessible for people living with certain health conditions, like HIV .

The insurer drew fewer complaints to state regulators than expected for a company its size. Aside from life insurance, Guardian also sells a range of products including dental, vision and cancer insurance.

» Read the full review: Guardian life insurance

Best life insurance company for customer experience: Northwestern Mutual

Northwestern Mutual

Far fewer complaints to state regulators than expected for a company its size.

Highly rated for customer satisfaction in J.D. Power study.

• Consistently pays a dividend to eligible customers, which is common among mutual life insurance companies.

Company website doesn’t give specifics about coverage amounts or riders.

Limited riders available.

Overview: Founded in 1857, Northwestern Mutual is the largest seller of individual life insurance in the United States, according to the latest data from S&P Global Market Intelligence. Universal life policyholders have flexible payment and coverage options, while term life customers have the opportunity to convert their policy to permanent coverage without taking a medical exam.

The company is set to pay $7.3 billion in dividends to qualifying policyholders in 2024 [0] Northwestern Mutual . Northwestern Mutual to Deliver Record-Setting $7.3 Billion in Dividends to Policyowners . Accessed Aug 13, 2024. View all sources . Northwestern Mutual received fewer complaints to state regulators than expected for a company of its size, making it a trustworthy choice for shoppers.

» Read the full review: Northwestern Mutual life insurance

Best life insurance company for flexibility: New York Life

New York Life

Ranks above average in J.D. Power’s latest customer satisfaction study for life insurance.

Drew fewer complaints to state regulators than typically expected for a company of its size.

Quotes aren't available online.

Overview: New York Life is a mutual company, which means it’s owned by its policyholders. As such, you may be eligible to vote in board elections if you’ve held a permanent policy for more than a year and earn dividends — the insurer is set to pay out $2.2 billion in 2024 [0] New York Life . New York Life Declares Company-Record $2.2 Billion Dividend for 2024 . Accessed Aug 13, 2024. View all sources .

The company is one of the largest life insurance companies in the U.S. and drew fewer complaints to state regulators than expected for a company of its size. It ranked above average in J.D. Power’s 2023 customer satisfaction study for life insurance [0] J.D. Power . 2023 Individual Life Insurance Customer Satisfaction Study . Accessed Aug 13, 2024. View all sources . One of its whole life policies includes a flexible payment option, allowing you to pay off your premiums early.

» Read the full review: New York Life insurance

Best company for permanent life insurance: Pacific Life

Pacific Life

Drew significantly fewer complaints than expected to state regulators for a company of its size.

Offers a variety of term and permanent policies with many riders to choose from.

Select policies are not available in New York.

Quotes are not available online.

Overview: Pacific Life has been in business for more than 150 years, and has drawn significantly fewer complaints than expected for a company of its size over the past three years. It has a stellar lineup of permanent life insurance policies, including a competitive indexed universal life insurance policy. These policies typically grow investments based on stock market indexes like the S&P 500. They also have a guaranteed floor, which means your life insurance cash value won’t fall below a certain value if the stock market dives.

» Read the full review: Pacific Life insurance

Best life insurance company for customer satisfaction: State Farm

Drew fewer life insurance complaints to state regulators than expected for a company of its size.

Ranked first in J.D. Power’s latest customer satisfaction study for life insurance.

Broad range of term products, including instant answer life insurance.

Life insurance policies not available in Massachusetts.

Some restrictions for Android smartphones when accessing policy details through online portal.

Overview: When you think of State Farm, you probably think of its auto insurance products. But it also offers a decent range of life insurance policies, including return-of-premium life insurance — if you outlive the term, you get a refund of the premiums you paid into the policy. State Farm also offers a single premium option for its whole life policy and a final expense policy that can help cover funeral costs.

State Farm ranked first out of 22 companies in J.D. Power’s 2023 U.S. Life Insurance Study for customer satisfaction, and has consistently topped this list in recent years — pointing to its positive reputation among policyholders [0] J.D. Power . 2023 Individual Life Insurance Customer Satisfaction Study . Accessed Aug 13, 2024. View all sources .

» Read the full review: State Farm life insurance

Best life insurance company for older applicants: AARP

No medical exams required.

Fewer than the expected number of complaints to state regulators.

Anyone age 50 and up can get access through AARP membership.

Term life insurance premiums rise every five years.

Overview: AARP’s Life Insurance Program offers coverage to its members in all 50 states and Washington, D.C. The policies are underwritten by New York Life, one of the biggest life insurance companies in the U.S.

Members can apply for a term or whole life policy by answering a few health questions, with no life insurance medical exam required. AARP also sells a guaranteed issue whole life policy via New York Life, which bypasses both the questionnaire and medical exam for eligible applicants.

» Read the full review: AARP life insurance

Best term life insurance companies in August 2024

Term life insurance provides temporary coverage for a set number of years, usually one to 30. It’s the cheapest and most popular type of coverage, and insurers can stand out in the market for offering competitive prices, riders and more.

Best whole life insurance companies in August 2024

Whole life insurance typically lasts your entire life. As a type of permanent life insurance, it also builds cash value over time. We’ve compared whole life companies based on factors like coverage flexibility and the potential to earn dividends.

Best no medical exam life insurance companies in August 2024

With no medical exam life insurance , the application process is streamlined. Depending on the policy you choose, you might have to answer some questions about your health and lifestyle, though some policies skip both the exam and questionnaire.

Shopping for coverage? How to choose the best life insurance company

Follow these four steps to find the best life insurance company for your family.

1. Look at customer satisfaction scores

Other customers’ experiences can help you decide whether you want to do business with a company. You can get clues about an insurer’s reputation through complaints filed with state regulators, which are visible on the National Association of Insurance Commissioners website. All of the companies listed above have had fewer complaints to state regulators than expected for insurers of their size, according to three years’ worth of data from the NAIC.

2. Consider financial strength

It’s especially important to look into life insurance companies’ financial strength because you’ll want a company that can pay claims many years down the road. NerdWallet’s insurance reviews use weighted averages of financial strength ratings. For additional information about life insurance companies, try a ratings agency like AM Best . We recommend looking at insurers with an AM Best rating of A- or better.

3. Evaluate the policy options

Term and permanent are the two main types of life insurance .

Term life insurance lasts a set number of years and is typically sufficient for most families.

Permanent life insurance lasts your entire life and often includes an investment component. Under the umbrella of permanent life insurance, there are several different types of policies, such as whole life insurance and universal life insurance .

4. Get prices from a handful of companies

The cost of coverage varies among companies, so it’s smart to compare life insurance quotes from multiple insurers.

Although many companies sell similar policies, some focus on certain products — such as whole life — or on particular customers, such as seniors who need life insurance . You can narrow down your options by focusing on the companies that specialize in the type of insurance you’re looking for.

More about top-rated life insurance companies

Looking for a specific type of life insurance policy? Check out NerdWallet’s top picks across these categories:

Best burial life insurance companies .

Best life insurance for seniors .

Best instant life insurance .

Best return-of-premium life insurance .

Best life insurance for children .

Best accidental death and dismemberment insurance .

How we ranked the top life insurers

NerdWallet’s life insurance ratings are based on consumer experience, complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and weighted averages of financial strength ratings, which indicate a company’s ability to pay future claims. Within the consumer experience category, we consider ease of communication and website transparency, which looks at the depth of policy details available online. To calculate each insurer’s rating, we adjusted the scores to a curved 5-point scale.

These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines .

In our life insurance reviews, our editorial team considers the customer and the insurer. These are some of the factors we take into account:

Policies offered. There are many types of life insurance on the market, and they fall into three key categories:

Term life insurance offers temporary coverage and a guaranteed payout if the policyholder dies during the term.

Permanent life insurance typically lasts a lifetime and builds cash value that can be borrowed against in the future.

No-exam life insurance issues coverage without the need for a medical exam.

Financial strength. We use AM Best ratings to confirm an insurer’s long-term financial stability and ability to pay claims. For life insurance, NerdWallet typically recommends considering insurers with ratings of A- or higher. Here’s the breakdown:

Exceptional: A+, A++.

Strong: A-, A.

Moderate: B, B+.

Complaints. These ratings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. The best life insurance companies have fewer than the expected number of complaints.

Buy online. This indicates whether an insurer allows you to apply for and buy a policy completely online.

Dive deeper: Ratings methodology for life insurance

The average cost of life insurance is $26 a month, according to Covr Financial Technologies. This is based on a healthy, nonsmoking 40-year-old buying a 20-year, $500,000 term life policy. Life insurance rates vary between policies and insurers, so it's important to compare life insurance quotes from a handful of companies to make sure you're getting the best possible price for the coverage you need.

There are two main types of life insurance . Term life insurance offers temporary coverage for a set period of time, like 10, 20 or 30 years, and pays out if you die within that time frame. Permanent life insurance typically lasts your entire life. It also has a cash value component that grows over time, and once it reaches a certain level, you can begin to take out loans against your policy.

If you want to skip the life insurance medical exam , you can still buy life insurance, though your options may be more limited. Some types of no-medical-exam life insurance may still require you to answer questions about your health and lifestyle, while others bypass both the questionnaire and medical exam.

The cheapest life insurance companies can vary based on your age, gender, smoking status and the type of coverage you want. It's worth comparing quotes from multiple companies to get the most competitive rate.

average cost of life insurance

is $26 a month, according to Covr Financial Technologies. This is based on a healthy, nonsmoking 40-year-old buying a 20-year, $500,000 term life policy. Life insurance rates vary between policies and insurers, so it's important to

compare life insurance quotes

from a handful of companies to make sure you're getting the best possible price for the coverage you need.

There are two main

types of life insurance

. Term life insurance offers temporary coverage for a set period of time, like 10, 20 or 30 years, and pays out if you die within that time frame. Permanent life insurance typically lasts your entire life. It also has a

cash value component

that grows over time, and once it reaches a certain level, you can begin to take out loans against your policy.

If you want to skip the

life insurance medical exam

, you can still buy life insurance, though your options may be more limited. Some types of

no-medical-exam life insurance

may still require you to answer questions about your health and lifestyle, while others bypass both the questionnaire and medical exam.

cheapest life insurance companies

can vary based on your age, gender, smoking status and the type of coverage you want. It's worth comparing quotes from multiple companies to get the most competitive rate.

On a similar note...

Compare term life insurance rates

Get free quotes from top companies.

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Insurance to Improve Quality of Life: Understanding and Addressing Barriers to the Financial Inclusion of Insurance

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• Life Insurance
• Best No-Exam Life Insurance

6 Best No-Exam Life Insurance Of August 2024

Updated: Aug 1, 2024, 4:48am

The best no-exam life insurance companies are Pacific Life, Protective and Symetra , based on our analysis of policy features and costs.

To find the best no-exam life insurance, we analyzed term life insurance policies with a no-exam option.

These policies are often ideal if you’re young and healthy because they don’t require a medical exam and can be a relatively low-cost way to get life insurance.

• Best Life Insurance
• Best Cheap Life Insurance
• Best Term Life Insurance
• Best Whole Life Insurance
• Best Senior Life Insurance
• Compare Life Insurance Quotes

Summary: Comparing the Best No-Exam Life Insurance

What is no medical exam life insurance, types of no-exam life insurance underwriting, how much does no-exam life insurance cost, is no-exam life insurance worth it, pros and cons of no-exam life insurance, methodology: how we ranked the best no-exam life insurers, no-exam life insurance frequently asked questions (faqs).

Pacific Life, Protective and Symetra top our list of the best no-exam life insurance companies.

How We Chose the Best No Medical Exam Life Insurance

Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers. We use data-driven methodologies to evaluate insurance companies so all companies are measured equally. You can read more about our editorial guidelines and the methodology for the ratings below.

• 13 no-exam life insurance policies analyzed
• 1,633 life insurance rates compared
• 102 years of insurance experience on the editorial team

BEST COST FOR $1 MILLION OF COVERAGE

Pacific life.

Policy scored

PL Promise Term

Eligible ages for no-exam policies

Maximum face amount for no-exam

Life insurance buyers looking for a high amount of coverage with no exam should consider Pacific Life. We found it has low rates across the board for a variety of buyer ages and coverage amounts, and especially low rates for $1 million in coverage. A no-exam policy is possible for up to $3 million.

• Low average term life insurance cost among the companies we analyzed. Offers especially low rates for $1 million term life insurance.
• The policy is guaranteed renewable until age 95.

More: Pacific Life Insurance Review

• No options for electronic signature or electronic document delivery.
• If you choose to convert the term life policy, you’re limited to a universal life policy.

Pacific Life Level Term Length Choices:

10, 15, 20, 25 or 30 years

Pacific Life Term Life Insurance Rates

Rates are based on 30-year-old buyers in excellent health and 20-year policies.

Life Insurance Riders Available

• Accelerated death benefit rider
• Children’s term life insurance rider
• Disability waiver of premium rider

GREAT FOR LONG LEVEL TERM LENGTHS

Classic Choice Term

$1 million ($500,000 for ages 46-60)

Protective’s Classic Choice term life policy stands out in our analysis of no-exam policies for offering long level term lengths of 35 and 40 years. Many competitors offer 30 years as the longest term option.

• Low term life rates for a range of buyer ages and policy amounts.
• Electronic policy delivery and e-signature are available.
• Choice of up to 8 permanent life insurance policies if you choose to convert the term life.

More: Protective Life Insurance Review

• Low maximum coverage amount of $1 million for no-exam life insurance compared to top competitors.
• Tight restrictions on using the accelerated death benefit: You can access only 60% or $1 million (whichever is less) of your death benefit if you become terminally ill. To use the option you must have a life expectancy of no more than six months, while many competitors let you use the benefit at 12 months or less.

Protective Level Term Length Choices

10, 15, 20, 25, 30, 35 and 40 years

Protective Term Life Insurance Rates

• Children’s term life rider
• Accidental death rider
• Waiver of premium rider
• Income provider option for endorsement rider

BEST FOR TERM LIFE RATES

Symetra has the cheapest average term life insurance rates among the companies we analyzed, making it a top pick for buyers looking for cost-competitive no-exam life insurance.

• Can be purchased online and with instant approval if you’re young and healthy.
• Can be renewed until age 95 (at a higher renewal rate each year after the level period ends).
• Company lacks a long track record of demonstrating financial strength because it’s relatively young (founded in 1957).
• The accelerated death benefit money available if you’re terminally ill is only up to $500,000 (or 75% of your death benefit, whichever is lower).
• Conversion can only be to a universal life insurance policy.

Symetra Level Term Length Choices

10, 15, 20, or 30 years

Symetra Term Life Insurance Rates

• Accidental death benefit rider

GREAT FOR CHOICES OF TERM LENGTHS

Corebridge financial.

Select-a-Term

Corebridge’s Select-a-Term policy stands out in our analysis for the ability to customize a level term length for any number of years between 10 and 35 years, such as 22 years.

• Very low term life insurance rates.
• A life expectancy of 24 months or less is required to use the accelerated death benefit—many competitors require 12 months or less.

More: Corebridge Financial Life Insurance Review

• Relatively low maximum no-exam coverage amount of $1 million.
• High customer complaint level.

Corebridge Level Term Length Choices

Any term length between 10 to 35 years

Corebridge Term Life Insurance Rates

• Child life insurance rider

Legal & General America/Banner Life

$2 million (could be lower depending on age)

Legal & General America’s OPTerm is notable for its 40-year level term option. Most competitors offer level terms up to 30 years.

• Very competitive term life rates.
• You can convert the policy to permanent life until age 70.
• Low maximum age of 50 to be eligible for a no-exam option.
• Policy not renewable after the level term period ends.
• The maximum accelerated death benefit available is only $500,000 or 75% of your death benefits, whichever is less.

Legal & General America’s Level Term Length Choices

Legal & General America’s Term Life Insurance Rates

• Additional term insurance rider
• Children’s life insurance rider

BEST FOR OLDER BUYERS

Transamerica.

Trendsetter Super

$2 million ($1 million for ages 46-55)

We like Transamerica’s Trendsetter Super policy because it offers the best term life insurance rates for healthy buyers in their 50s among the companies in our analysis.

If you’re interested in buying robust living benefits with a life insurance policy, check out Transamerica’s Trendsetter LB policy. With this term life policy, you can access money from your own death benefit if you develop a critical or chronic condition that qualifies.

• Can convert the policy to permanent life insurance until age 75, which is older than many other insurers allow.

More: Transamerica Life Insurance Review

• Rates are good but not the lowest among the companies we analyzed (except for buyers in their 50s).
• Higher-than-average level of complaints because of issues such as claim handling delays, lack of response, denial of claims and billing issues.

Transamerica Level Term Length Choices

Transamerica Term Life Insurance Rates

• Income protection option rider

No-exam life insurance is exactly what it sounds like: Life insurance that does not require a life insurance medical exam . Any type of life insurance may include a no-exam option.

The typical medical exam required by life insurance policies includes a series of questions related to your health and medical history, followed by a paramedical professional recording information like your blood pressure, weight and height. You will likely be asked to provide blood and urine specimens for testing. Depending on your age and health, you may be required to do some additional testing, such as an electrocardiogram (EKG).

No-exam life insurance is best suited for life insurance buyers who are in excellent health and who are younger (typically 50s and under). If your health or age disqualify you from a no-exam policy, that doesn’t necessarily mean the company will turn you away. Instead, they might offer to do a more traditional underwriting process with a life insurance medical exam.

So if you apply for no-exam life insurance, be prepared for the possibility that the company may end up wanting more details and an exam.

Underwriting is the process an insurance company uses to review applications and decide whether to approve them, and at what rate for the buyer. Some types of life insurance underwriting are faster because they use less information about the applicant or they collect information electronically from third-party sources.

Accelerated Underwriting Life Insurance

Accelerated underwriting is a process where the life insurance company gathers information about you electronically and algorithms help assess what your life insurance quote should be. Accelerated underwriting policies offer the convenience of no exam and can be priced as competitively as a policy that requires an exam.

The insurance companies in our analysis offer accelerated underwriting. A no-exam life insurance application doesn’t mean that the insurer knows nothing about your medical history. You’ll generally need to fill out a lengthy questionnaire with health questions, and the insurer will likely gather health-related information about you from third-party services.

The life insurance companies in our analysis are typically pulling your prescription drug history, motor vehicle report and information about you from the MIB Group , which collects data from your past applications for individual life and health insurance.

Simplified Issue Life Insurance

Simplified issue life insurance is a streamlined approach to underwriting. These applications typically ask some health and lifestyle questions and do not require medical exams. Your answers to the application questions could disqualify you from buying a policy. The life insurance company will generally supplement information about you with data from third-party sources. The cost of simplified issue policies tends to be higher than fully underwritten policies because the insurer has minimal information about you.

Guaranteed Issue Life Insurance

Guaranteed issue life insurance policies offer coverage with no medical exam and no questions. You can’t be turned down. Guaranteed issue life insurance is intended mainly for those in poor health who want only a minimal amount of coverage—usually to cover funeral expenses or to leave a small inheritance to family members. These policies usually have low maximum coverage amounts and a graded death benefit , meaning they won’t pay out the full amount if you pass away in the first few years of owning the policy.

Guaranteed issue policies are generally the most expensive way to buy life insurance because the insurance company has no health information about you.

We did not include guaranteed issue life insurance in our analysis of the best no-exam life insurance.

The average monthly cost for a $500,000 no-exam term life insurance policy for a buyer age 40 is $17 for a 10-year term, $26 for a 20-year term and $42 for a 30-year term. That’s $206 to $510 per year, depending on the term length.

No-exam life insurance costs will mirror regular life insurance costs for companies that offer accelerated underwriting. There are multiple factors that affect life insurance rates , including your age, gender, health and whether or not you smoke. Cost also depends on the type of underwriting used, such as accelerated underwriting or guaranteed issue.

We analyzed life insurance costs for buyers in excellent health who will qualify for no-exam policies.

Average Monthly No-Exam Term Life Insurance Cost by Age

No-Exam Life Insurance Rates by Company

EXPERT TIPS

How to Choose the Best No-Exam Life Insurance For You

Ashlee Valentine

Insurance Editor

Insurance Managing Editor

Michelle Megna

Insurance Lead Editor

Penny Gusner

Insurance Senior Writer

Calculate How Much Life Insurance You Need

A no-exam life insurance policy may not be able to provide the full coverage amount you need due to coverage caps, especially if you’re looking to cover many years.

Before you start getting life insurance quotes, I recommend calculating how much life insurance you need . A no-exam policy alone may not be able to provide sufficient coverage.

Assess Your Chances Before You Apply

I know that getting life insurance without a long application process is appealing, but don’t jump into a no-exam life insurance application without understanding your chances of getting approved. Many no-exam policies require very good or excellent health for approval. A denial goes on your insurance record and could hinder future applications.

Don’t be surprised if you end up doing a more traditional application process, including a life insurance medical exam , if you have some health issues.

Look Beyond the Cost

Of course you don’t want to overpay for life insurance, but I suggest researching more than cost. There are coverage options that can be very valuable long after you buy the policy, such as the option to convert term life to permanent life insurance . Also, I would look at whether there’s an accelerated death benefit , which gives you access to money from your own death benefit if you become terminally ill.

Have a Plan in Case of a Rejection

If the company rejects you for no-exam life insurance because of your health, I recommend continuing your search. If you need life insurance, you likely have other routes.

• Be prepared to go through a more traditional underwriting process that involves a life insurance medical exam.
• Work with an experienced life insurance agent who can identify insurers known to be more friendly to your specific health conditions.
• An experienced life insurance agent can shop around your application anonymously so that you don’t risk another rejection.

If you are in good health and are a non-smoker, a no-exam life insurance policy can be a convenient choice if you want quick, low-hassle and competitively priced coverage. No-exam life insurance is also a solid option for young people who want quick coverage without jumping through a lot of application hoops.

“Individuals most likely to be accepted for no-exam life insurance are those who have provided more accurate information upfront, are seeking death benefit amounts that are a couple million dollars or less and who have few chronic medical conditions,” says Fred Tavan, chief pricing officer of Legal & General America.

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Alternative to No-Exam Life Insurance

If you can’t qualify for a no-exam policy, a “fully underwritten” application process can still yield a good price for excellent coverage. Fully underwritten life insurance policy generally takes the longest to approve because it often involves waiting for results from a medical exam and getting your records from doctors’ offices. It also requires you to complete a lengthy questionnaire about your health, family health history, travel plans outside the U.S., and more.

However, a fully underwritten life insurance policy can be the cheapest way to buy life insurance, even if you have some health issues.

We scored companies based on these measurements:

• Cost (80% of score) : We averaged the no-exam life insurance rates for males and females in excellent health at ages 30, 40 and 50, coverage of $250,00, $500,000 and $1 million, and term length of 10, 20 and 30 years. Source: Forbes Advisor research.
• Term life conversion (20% of score) : Policies with an option to convert to a permanent policy earned points. Conversion is a good option to have in place if you decide you want a longer policy, especially if your health has declined since you purchased the term life policy and you don’t want to shop for new life insurance. Source: AccuQuote .
• Maximum face amount for a no-exam policy (5% of score) : Companies offering a no-exam for coverage of $2 million and up earned points. Note that maximum no-exam coverage can sometimes become lower if you apply at a higher age. Source: Pinney Insurance .
• Maximum age to qualify for a no-exam policy (5% of score) : Companies offering no-exam life insurance to buyers age 60 and older earned points. Source: Pinney Insurance .

Get Forbes Advisor’s ratings of the best insurance companies and helpful information on how to find the best travel, auto, home, health, life, pet, and small business coverage for your needs.

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How long does a no-exam life insurance policy last?

Some no-exam life insurance policies are term life insurance policies that lock in your rate for the duration of the specified term. For example, if you have a 20-year no-exam term life insurance policy, your rate does not change for 20 years. You can usually renew the policy for a higher premium at the end of the initial term.

Other no-exam life insurance policies are permanent life insurance policies that can remain in force throughout the lifetime of the insured.

Why are coverage amounts often limited for no-exam life insurance?

Because life insurance companies lack some details about your health without a medical exam, their risk is higher when selling a no-exam policy. No-exam life insurance coverage amounts are often limited in order to reduce risk for the life insurer.

How much life insurance can I get with no medical exam?

Most companies we analyzed offer term life insurance maximums between $1 million and $3 million for those who qualify.

Buyers of guaranteed issue life insurance, for which you can’t be turned down, will find lower coverage maximums, such as $25,000. Coverage maximums will vary depending on the insurer, type of no-exam policy and your age.

Can you add riders to no-exam life insurance policies?

The life insurance riders available to add to your no-exam policy will depend on the insurer and the policy type. Some common riders you’ll see offered with no-exam policies are the accelerated death benefit rider, accidental death rider, child term life rider and disability waiver of premium rider.

Next Up In Life Insurance

• Best Long-Term Care Insurance
• Best Burial Insurance
• Is Life Insurance Worth It?
• How Does Life Insurance Work
• Is Life Insurance Taxable?

Ashlee is an insurance editor, journalist and business professional with an MBA and more than 17 years of hands-on experience in both business and personal finance. She is passionate about empowering others to protect life's most important assets. When Ashlee isn't spreading insurance knowledge or solving television murder mysteries, she enjoys spending time with her family (including the furry and feathery ones) on their farm in Kentucky.

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There is no vested right to any benefit under this plan.

Although FDIC intends to maintain the FDIC Life Insurance Program and associated coverage, upon appropriate negotiations with the exclusive representative of its bargaining unit employees, it reserves the right to terminate, suspend, amend, change the level of benefits and type of benefits, or modify the plan at any time without notice or reason.

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Last Updated: December 6, 2023

Ways to fit life insurance into your financial plan: insights from an expert

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Life insurance is more than just a safety net for your loved ones; it’s a powerful tool that could significantly enhance your financial health. Whether you’re looking to secure your family’s future or create a robust financial plan, understanding the role of life insurance is crucial.

I’m Ashlyn Brooks, a personal finance and insurance writer with nearly a decade of experience. Navigating the world of finance wasn’t always easy for me. Growing up, financial literacy wasn’t a common topic, so I had to learn the hard way how to manage money effectively. These experiences fueled my passion for making financial concepts accessible and relatable to everyone.

Life insurance can be perplexing for many people. To get an expert’s opinion on how life insurance can fit into the average American’s financial plan, I turned to Tony Steuer, CLU, LA, CPFFE, an accomplished author, podcaster and financial preparedness advocate, and a member of Bankrate’s expert review board. Steuer’s journey began at his first job, where he noticed a common problem: many people didn’t understand the financial products they were purchasing and lacked healthy money habits. This realization drove him to focus on financial education and best practices.

Steuer recognizes the challenges everyday people face. He states, “Organizing and planning your financial life can be overwhelming, especially with advice coming from all directions.” In order to take control of finances and feel empowered, he acknowledges that people need straightforward approaches and minimal insurance jargon.

In this article, we’ll explore how to use life insurance and how it can be a cornerstone of your financial strategy, offering practical insights from Steuer to illustrate the role insurance can play in financial planning.

What is financial planning?

Financial planning is essential for everyone, regardless of their financial situation. It’s not just for the wealthy or those struggling financially. Everyone can benefit from having a structured plan to manage their finances effectively. Financial planning involves creating a roadmap to achieve your financial goals and secure your financial future.

Here are a few basic, although essential, areas of financial planning:

• Budgeting: Managing income and expenses to ensure you live within your means.
• Saving: Setting aside funds for future needs and emergencies.
• Investing: Growing wealth through various investment vehicles.
• Insurance: Protecting against unforeseen risks with appropriate insurance policies.
• Retirement planning: Ensuring you have enough resources to maintain your lifestyle in retirement.
• Estate planning: Preparing for the distribution of assets after death.

Financial planning isn’t just about having a plan; it’s about making informed decisions to improve your financial health. According to Bankrate’s recent Financial Independence Survey , 61 percent of parents with adult children are currently sacrificing, or have sacrificed, their financial stability to help their kids, often risking their own retirement savings or emergency funds. This underscores the importance of having a financial plan that balances current needs with future security.

The survey also revealed that 49 percent of adults aged 23 or older who say they currently receive or have received ongoing financial assistance from their parents received help with housing. Additionally, 48 percent of those adults received assistance with everyday expenses like groceries and utilities. This trend highlights the need for improved financial literacy and planning, especially among younger generations who face significant financial challenges due to high living costs and economic pressures.

By understanding and implementing key areas of financial planning, you can help create a secure financial future for yourself and your family. One critical aspect of a comprehensive financial plan is life insurance , which can play a pivotal role in safeguarding your financial health.

What role does life insurance play in financial planning?

Life insurance is often seen merely as a means to provide for loved ones after death, but its role in financial planning is much broader. By leveraging tax benefits, supporting long-term care needs, ensuring debt protection and enhancing retirement planning, life insurance could significantly impact your overall financial health. Let’s dive into the invaluable insights Tony Steuer provides about how life insurance can be integrated into a comprehensive financial plan.

Leveraging tax advantages

Imagine a young family aiming to secure their financial future. They purchase a life insurance policy not only for protection but also for its tax benefits. The death benefit from this policy is received tax-free, ensuring financial support without additional tax burdens. Additionally, the policy’s cash value grows tax-deferred, offering a potential source of funds for future expenses like college tuition or emergencies without immediate tax implications.

Steuer explains that the death benefit from a life insurance policy is typically not subject to income tax, and the cash value grows on a tax-deferred basis. This means no income tax is due on the cash value until it is withdrawn. You can generally withdraw up to your cost basis (the sum of premiums paid) without paying income taxes. Any amount above the cost basis is taxed as ordinary income. Additionally, borrowing from the policy does not incur income tax, but you will pay interest on the borrowed amount. If the policy lapses with an outstanding loan, income tax will be due on the amount that exceeds your cost basis .

Supporting long-term care needs

Consider a couple in their 50s as they plan for retirement. They may worry about potential long-term care costs that could deplete their savings. By choosing a hybrid life insurance policy with long-term care benefits, they can have peace of mind knowing they are protected. This policy not only offers a death benefit to their beneficiaries but also ensures they have coverage for any future care needs without jeopardizing their retirement nest egg. This way, they can enjoy their retirement years with the assurance that they are prepared for any health-related expenses.

Steuer suggests that if you have no need for life insurance, it is better to purchase a standalone long-term care insurance policy. However, if you need both, consider a hybrid policy that provides a death benefit, cash value and long-term care benefits or a permanent life insurance policy with a long-term care rider. It’s crucial to compare both types to determine what best fits your needs.

Ensuring mortgage and debt protection

A young family just bought their dream home with a substantial mortgage. To protect against the risk of losing their home if one of the parents unexpectedly passes away, they secure a life insurance policy . This policy ensures that if the unthinkable happens, the death benefit can be used to pay off the mortgage. This can help provide peace of mind and financial stability, allowing the surviving family members to stay in their home without the added burden of mortgage payments.

Steuer emphasizes that the death benefit from a life insurance policy can be used to either pay off the mortgage or cover monthly mortgage payments. It is important to evaluate whether paying off the mortgage in one fell swoop is the best option for your family’s financial situation or to use that money elsewhere. There aren’t any restrictions as to how a beneficiary can use death benefit proceeds.

Enhancing retirement planning

A couple, Jane and Mike, are empty nesters making plans for their retirement years. They have already maxed out their contributions to traditional retirement accounts. To further secure their financial future, they decide to purchase a permanent life insurance policy with a cash value component . Over the years, the cash value grows, and by the time they retire, they have built up a substantial amount.

Their children are financially independent, so besides leaving a small amount for funeral expenses, Mike and Jane can take advantage of their life insurance policies by accessing the built-up cash value for themselves through policy loans. They can use these funds to supplement their retirement income, ensuring they have enough to travel, enjoy hobbies and cover unexpected expenses, making their retirement years truly golden.

While policy loans plus accrued interest need to be paid back at some point, it’s not required for policy owners to pay this while they are alive. They can choose to let the balance grow and allow the insurer to deduct it from the death benefit before their adult children, the policy beneficiaries, receive payouts.

Policyholders can also make withdrawals from some permanent life insurance policies, such as Universal Life, Variable Universal Life and Equity Indexed Universal Life. Policy withdrawals are distributions from the policy and are not paid back. Policy withdrawals generally reduce the death benefit on a dollar-for-dollar basis. For example, a withdrawal of $50,000 will reduce the death benefit by $50,000. Because policy withdrawals are distributions, they do not accrue interest.

Steuer explains that the cash value in a life insurance policy is not subject to income taxes since premiums are usually paid with after-tax dollars. However, he cautions that managing distributions is crucial, as any cash withdrawn or borrowed will reduce the death benefit, and excessive policy loans can erode the policy.

A deeper understanding

To provide more clarity, Steuer offered a deeper dive into one specific type of policy: Equity Indexed Universal Life (EIUL) insurance policies. This is a permanent policy with cash value potential that is popular in the market right now. Here’s how it works in simpler terms:

• Tied to stock market index: These policies link your earnings to a stock market index, like the S&P 500, but with certain limits.
• Earnings cap: Even if the index earns a high return, say 15 percent, your policy might have a cap that limits your earnings to 10 percent.
• Participation rate: Additionally, there is a participation rate, which might be 80 percent. Steuer explains, “This means you only get 80 percent of the capped return. So, if the cap is 10 percent, your actual earning rate would be 8 percent (which is 80 percent of the 10 percent cap).”
• Guaranteed floor: The upside of these policies is that they also have a “floor,” meaning your earnings won’t go below a certain level, often 0 percent, even if the market performs poorly. This way, you won’t lose money due to market downturns, but your potential gains are also limited by the cap and participation rate.

By understanding these components, it can help you make informed decisions about how life insurance can fit into your retirement planning and overall financial strategy. The structured growth potential and protection against market downturns offered by EIUL policies could provide a balanced approach to accumulating retirement funds while ensuring that you have a safety net in place.

It’s important to keep in mind that all life insurance policies will include a charge for the cost of insurance and administrative expenses.

How to incorporate life insurance into your financial plan

Life insurance is more than just a safety net for your loved ones; it’s a versatile tool that can play a pivotal role in your overall financial strategy. Incorporating life insurance into your financial plan can help you achieve a range of financial goals, from securing your family’s future to enhancing your retirement. Let’s explore how to integrate life insurance effectively.

Aligning life insurance with financial goals

To maximize the benefits of life insurance, it’s helpful to align it with your broader financial goals. This involves setting priorities and ensuring your life insurance complements other aspects of your financial strategy.

1. Identify your financial goals:

• Ensure family financial security in the event of your death.
• Save for major expenses like college tuition or a new car .
• Build an emergency fund for unexpected costs.

2. Create a cash flow statement :

• Understanding your income and expenses helps allocate funds wisely.
• Prioritize savings and insurance before discretionary spending.

3. Balance premiums with other priorities:

• Allocate funds to top goals like savings and insurance before spending on leisure activities.
• Adjust lifestyle choices to ensure financial security.

Selecting the right policy

Choosing the right life insurance policy is an important step in ensuring it aligns with your long-term financial goals. Different types of policies offer varying benefits, so it’s beneficial to match the policy type with your specific needs.

1. Determine your need:

• Assess whether you need life insurance to cover temporary needs (like paying off a mortgage) or permanent needs (like providing for a child with special needs).

2. Evaluate policy types:

• Term insurance is ideal for temporary needs, providing coverage for a specific number of years (10–30 years).
• Permanent insurance, such as whole life insurance , is suitable for lifelong needs (maximum coverage age ranging from 95 to 121). It offers a death benefit and accumulates cash value over time.

3. Regularly review your policy:

• Review your life insurance policy annually or after major life events to make sure it continues to meet your needs.
• Monitor performance and adjust premiums as necessary to maintain coverage.

Looking towards the future

The life insurance industry is evolving, with new trends and technological advancements that could further integrate life insurance into comprehensive financial planning.

1. Technological Advancements:

• Accurate risk selection and pricing: Modern technology aids in selecting and pricing risks more accurately. Steuer notes, “Technology helps companies price risks more accurately, benefiting everyone in the long term with appropriate premiums.”
• Enhanced policy owner service: AI can improve service by monitoring policy performance and addressing issues proactively. Steuer explains, “AI could help monitor policies that will have issues such as under-performance.”

2. Changing Perceptions:

• Focus on risk protection: Steuer states, “A key change will be when life insurance is regarded primarily as a risk protection product rather than an investment or asset class.”
• Foundation of financial plans: Consumers should view life insurance as a foundational element of their financial plan, akin to homeowner’s insurance. As Steuer mentions, “With a homeowner’s insurance policy, the policy owner is perfectly happy if no claim is paid and there is no expectation of getting anything back.”

What Steuer means by the homeowners insurance comparison is that when you buy homeowner’s insurance, you’re paying for peace of mind. You don’t hope for your house to catch fire or suffer damage just to get a payout. Instead, you’re content paying the premiums because you know you’re protected against potential disasters. Similarly, life insurance should be viewed as a way to protect your family’s financial future. You might never want to “use” it, but having it ensures that your loved ones are secure if the worst happens.

By understanding these aspects and aligning your life insurance with your financial goals, you can effectively incorporate life insurance into your financial plan, ensuring comprehensive financial security and peace of mind.

Bottom line

Life insurance and risk protection are foundational to a sound financial plan, yet they are often overlooked. This oversight can stem from a lack of understanding or the daunting nature of insurance discussions. However, integrating life insurance into your financial strategy can be beneficial for comprehensive risk management.

Steuer emphasizes that life insurance should not be viewed in isolation but as an integral part of overall financial planning. “People need to think about the risks they have and then protect against them,” he states. This proactive approach ensures that your family’s financial future is secure, even in unforeseen circumstances.

One common issue is the misconception that everyone needs life insurance, leading some to purchase policies prematurely. Steuer explains, “The theory is that they should buy it when young and healthy. However, this ignores the fact that some people will never have a need for life insurance. The key shift will be when people change the way they think about life insurance. They often think about the product first, rather than their needs.”

Incorporating life insurance into your broader financial plan is more than just a financial decision — it’s a commitment to your loved ones and their future. Regular reviews and adjustments ensure that your coverage evolves with your changing needs, providing a sense of security and peace of mind. Imagine the reassurance of knowing that, no matter what life throws your way, your family will be protected and supported.

This proactive approach to financial planning isn’t just about safeguarding assets, it’s about fostering a legacy of care and responsibility. By making life insurance a central part of your financial strategy, you can help make sure that your family’s future is secure and that their dreams remain within reach.

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