What is life insurance?
Purchasing life insurance allows you to provide a safety net for your loved ones in case you pass away. A life insurance policy is a contract stating that, as long as your premium is paid and the policy is active when you die, your beneficiaries can receive a death benefit payout to be used however they like — for final expenses, paying off outstanding debt, and even everyday costs.
Types of life insurance
Explore the types of life insurance we offer through eFinancial. Term life policies provide coverage if you pass away within a set number of years, while permanent policies such as whole life, universal life, and final expense provide coverage for your entire life.
Which life insurance policy is right for me?
In terms of coverage, some experts recommend carrying life insurance that's 10 to 15 times your annual income, if you can afford to do so. If you're trying to decide between a term or permanent life policy, this guide can help you decide:
- Consider a 1-year term if you're just starting out with life insurance or you want to fill a temporary gap in coverage before getting a policy with a longer term.
- Consider a 10-year term if you're looking to supplement another policy, you're close to retiring, or your finances are tight but you want to provide your family some protection in case you pass away.
- Consider a 20-year term if you've started a family or plan to soon, to provide a financial safeguard for your children until they're adults.
- Consider a 30-year term if you want to provide your loved ones with a safety net until you retire, or if you have a child with special needs who will rely on your care even after they become an adult. Also, if you have a mortgage, this may be the right option for you.
- Consider a permanent policy such as whole life if you prefer coverage well into retirement, as well as the option to withdraw or borrow against your policy's built-up cash value.
Coverage options begin at $5,000 and go up to $2 million or more. Generally, the younger and healthier you are, the more affordable your rates can be — starting at just $14 per month through eFinancial.*
eFinancial works with highly rated life insurance companies to help bring you competitive rates and a variety of simplified life insurance options, such as RAPIDecision® Life — giving you the possibility to purchase life insurance with no exam.
Keep in mind that permanent life policies generally cost more than term life policies. And the longer a term life policy lasts, the more you'll pay. Learn more about how much life insurance costs.
Learn more about life insurance
Have additional questions? Progressive Answers is your resource for all things life insurance. See all life insurance tips and resources.