- 1 Haven Life: Best Overall
- 2 Best for Fast Coverage: Bestow
- 3 Best Rated: Fabric
- 4 Lowest Cost: Ethos
- 5 How to Choose the Best Life Insurance Company for You
- 6 How to Comparison Shop for Life Insurance
- 7 Who Should Shop For Life Insurance Online?
- 8 What If I Get Denied?
Haven Life: Best Overall
Haven Life, with a streamlined application process, quoted as taking less than 30 minutes, allows applicants up to age 59 who qualify to buy up to $1,000,000 in coverage without a medical exam.
For its term life insurance products, while the company’s online application takes slightly more time than others listed here, Haven Life tends to offer extremely competitive rates to make up for the extra action.
In particular, Haven Life offers term life insurance for adults aged 59 and younger for up to $3,000,000. For those in the 60 to 64 age bracket, you can apply for a $1,000,000 term life insurance policy.
→ Read our Haven Life Review here.
Best for Fast Coverage: Bestow
Bestow commits to employing technology to provide competitive life insurance quotes to its customers. It does so by relying on data and not needing medical examinations (as many life insurers require) in a bid to streamline life insurance approval and underwriting.
The company acts as an agency for North American Company, the actual policy provider.
Because Bestow offers an exceptional opportunity to enjoy a convenience-friendly (i.e., from your smartphone) term life insurance policy without having to take a medical examination nor submitting to any lab exams, you can ascertain whether they can help fulfill your needs sooner.
The policies offered by Bestow serve as an excellent option for individuals aged 18-60 looking for 10, 15, 20, 25, 30-year term life insurance. In other words, primarily Gen-Zers, Millennials and Gen-Xers looking to provide coverage for themselves and their dependents easily and quickly.
→ Read our Bestow Review here.
Best Rated: Fabric
Fabric Insurance recently entered the life insurance space by offering both term life insurance policies and accidental death insurance.
Fabric operates as an online-first business and offers a customer service team of insurance agents who have received outstanding reviews for their prompt and professional insurance advice.
Fabric has a core term life insurance product offering called Premium. To remain competitive in the online term life insurance market, Fabric keeps the rates on this product in line with competitors.
Fabric’s term life insurance, Fabric Premium, has available term lengths of 10, 15 or 20 years in length. The insurance policy face values start with a minimum of $100,000 and a maximum of $5,000,000, increasing in increments of $50,000.
Fabric has received the most 5-star reviews from customers on TrustPilot (1,487 out of 1,754 total as of 7/21/2021) of the companies reviewed here.
→ Read our Fabric Review here.
Lowest Cost: Ethos
Ethos represents another new player in the online term life insurance market. The company has received major financial backing from notable names in the financing field like Sequoia Capital and Stanford University.
This diversified and well-backed insurance startup offers just as wide of a variety of term life insurance policies, ranging from 10 years to 30 years.
Like Bestow, Ethos also offers policies without a medical exam up to $1,000,000. Additionally, for those in need of a larger insurance policy to meet their needs, Ethos also offers higher coverage policies for those who wish to submit to a medical exam.
→ Read our Ethos Review here.
How to Choose the Best Life Insurance Company for You
Before examining the policy details, it would make for a smart decision to review the companies offering the policies first. Understand their financial strength and ability to fulfill their financial obligation for the policy, review their customer satisfaction scores, get prices, and review their product offerings.
Understand financial strength and ability to fulfill their obligation
Financial strength remains essential for life insurance companies because you purchase life insurance for a long-term guarantee many years from now.
When it comes time to submit a payment claim down the road, you will want the insurer to exist and have the financial wherewithal to honor those claims against the policy.
- To understand the financial strength of insurers, credit rating agencies review insurers’ financial statements regularly (e.g., Fitch, Standard & Poor’s (S&P), A.M. Best, Moody’s, etc.).
- I would suggest only considering those insurers considered “investment grade” because this demonstrates clear prioritization of maintaining a pristine financial condition.
Review customer satisfaction scores
Naturally, when making an informed purchase decision, you want to read the reviews of other customers who have used a product or service.
Because the other customers’ experiences can help you decide whether you want to do business with a company, you should make it a point to root around for clues about how the company’s brand and reputation fare in the public domain. To learn more about a company’s reputation, consider looking through:
- Scores from J.D. Power. This independent ratings firm publishes customer satisfaction scores for over twenty of the largest life insurers annually.
- Complaints filed against the company with state regulators, the Better Business Bureau (BBB), or any other formal agency assigned to recording such matters.
The cost of coverage varies among companies, therefore, you should compare prices to get the best deal for your circumstances. Some life insurers offer a one-size-fits-all policy which does not necessarily customize to your unique needs and situation.
This could come complete with added insurance riders and endorsements you might not need.
Once you have shopped around and gotten a better understanding of what each policy costs and covers, you can verify the information on the insurance declaration page (DEC page), which details your important policy information.
- Review your personal insurance needs and do not price compare apples-to-oranges policies.
- Identify if the policy covers what you need and not what the insurer wants, thereby right-sizing your insurance needs.
Evaluate product selection
Just because life insurance aims to accomplish one primary goal: transferring the financial risk of death, does not mean numerous flavors of life insurance do not exist.
In fact, some insurers may sell similar policies, while others focus more on certain products, such as whole life insurance or term life insurance or even on certain customers, such as Millennials.
When conducting your life insurance policy search, having general knowledge about the type of life insurance you will want to purchase can go a long way toward filtering many companies from your radar.
You can learn more about the product offerings of the life insurance companies listed by clicking on the links shown below each insurer.
- Filter for the type of life insurance product you need (e.g., whole-life vs. term life).
- Target those companies which cater to each of these products.
How to Comparison Shop for Life Insurance
After walking through the primary concerns above, the next step involves comparison shopping for life insurance. Make no mistake about it, this can be annoying.
Fortunately, with the advent of the internet, one remarkable feature from shopping for life insurance in the past comes from no longer needing to talk to an agent/salesperson to get a quote.
To align their sales pitches more with the increasingly on-demand nature of our society, online life insurance companies have made changes to how we purchase life insurance. Buying life insurance you need to provide financial comfort to your family has never been easier as a result.
Though, with all good developments, some challenges come along with them. For instance, this ease of receiving an online quote has also led to a growing range of options.
Having a wide set of companies to review can pose a daunting task. Luckily, as observed previously, the process for receiving a life insurance quote at most companies has become quick and painless. Regardless, knowing where to shop can still prove a hassle.
Because of this, we have curated a list of top online companies that sell life insurance to save you time and effort. To make this list, the companies included must make shopping for life insurance easy by keeping the process online and quick.
And remember, getting a quote doesn’t cost you anything! Check out our list below!
Who Should Shop For Life Insurance Online?
Many seek to do business online for a good deal of their financial needs these days. Because Millennials and Gen-Xers have grown up in an era of the internet, these generations will represent the most likely candidates to consider shopping for life insurance online.
Therefore, if you find yourself as a Millennial or Gen-Xers, have relatively good health, and know exactly what you need from an insurance plan, then shopping for life insurance online makes sound financial sense.
If you know you want a good deal on a product you need, comparison shopping for life insurance online would make for a wise use of your time. Shop around for the lowest premium for the amount of term life insurance coverage you need.
What If I Get Denied?
In the case you receive a denial for a term life insurance policy, your next best bet would involve reaching out directly to a life insurance agent who can assist with navigating the underwriting process and getting your next-best rate.
Because most of the online life insurance companies outlined here (and not listed) rely on technology to screen their potential customers, you may not fall into their pre-defined criteria. As a result, they will deny you coverage.
Know this does not mean you cannot receive insurance for your needs. Instead, it likely represents a more complex situation than others desired by these companies and you would have better luck working directly with a life insurance agent.
This may also entail going through a medical examination to assess the risks of insuring you.
However, none of this means you cannot receive insurance for your needs.