You may have figured out that you want to buy life insurance but aren’t quite sure of the coverage amount but don’t worry, that’s why we are here!
You may have also heard of a life insurance amount of $250,000 and that isn’t a bad place to start and if this is the coverage amount you want then perfect, you are already a step ahead but if you are not sure then you will know by the end of this article. In this article, we will be discussing whether or not $250k is enough, how to know if it’s enough, best companies for $250,000 and review the application process!
Is $250k enough coverage?
Whether $250,000 is enough or not we cannot tell you because that depends on your personal needs. We are not aware of your specific needs and debts. Of course, if you are really not sure at the end of this article you can always give us a call and we can figure it out together.
When trying to determine if $250,000 is enough coverage just think of all the debt you have including your mortgage and also consider if your spouse needs your income replacement. A quarter million is actually the most popular amount that clients choose. It’s a quarter million and if people aren’t aware of exact numbers but know it isn’t worth having coverage of half a million they usually stick to this amount. This amount is also very popular because that is what is mostly advertised on various media outlets. In situations where you’re a college student or newlywed couple with no kids, this amount of life insurance may be just perfect. However, with our experience anytime there are children or mortgage involved this amount will not get you far.
How to figure out how much coverage you really need?
For the majority of individuals who make around $20,000 per year or are simply looking to cover their $250,000 mortgage, a quarter million dollars of life insurance may be just fine. But if you don’t like to guess then there is a way how you can find this out by completing a needs analysis. A needs analysis takes account of all of the different financial factors to determine the exact amount of life insurance you should have. It will calculate your mortgage, credit card debt, other loans, annual income, college education for kids and any assets that you may have. The goal is to ensure that if anything happens to you that your family will be provided for a very long time with no stone left unturned.
The idea here is to make sure that even though you may pass, your family will live without skipping a beat and being able to afford the lifestyle you have been providing for them. If you don’t want to go through the trouble of getting a needs analysis complete, you can simply go by the rule of thumb and get 10x to 20x your annual salary. Luckily for you, we made it easy and created a needs analysis calculator here.
The last thing you wanna do is slack on life insurance, that is why we stress the importance of finding out how much coverage you should have and securing that amount. Let’s not forget, it can in some instances work out that you don’t need any or much of life insurance. This can happen if you have a lot of assets like real estate, investments or settlement payout. You may also have a large life insurance policy through work. So as you can see it can be a benefit to do a thorough needs analysis either way.
Best companies for $250,000 of life insurance
There are thousands of life insurance companies out there and only select few offer a ton of benefits along with very affordable premiums. You would be amazed to find out that some individuals end up paying 50% to 100% more for life insurance because they decided to go with their local company and didn’t bother to shop around with other companies. At InsureChance, we work with over 60 different life insurance companies which happen to be the best ones in the entire marketplace. So we decided to pick only the best five out of those based on the cost, convenience, company reputation and plan benefits offered for the $250,000 face amount. Let’s look at each of these companies and see what makes them special:
Banner Life
This is the most affordable life insurance company that we know of and that is actually their primary focus. Unlike other carriers, they don’t offer life insurance products that are complicated and promise to make you rich. Instead, this company has captured a market of individuals who want pure protection life insurance for the best possible monthly premium.
A cool thing about them is that if you’re in good health and a non-smoker you can qualify for their Accelerated Underwriting option which allows you to skip the medical exam up to $500,000 of coverage. They also give you underwriting credits so let’s say that you got a standard rate for being obese but have no negative family history, are a non-smoker and don’t have any medical conditions. In that case, they would bump you up to the next best category which would save you money.
If you’re looking for quicker approval and the absolute best rate from a fortune 500 company then Banner Life is for you.
Aig
Mostly known from being one of the companies that needed a bailout in 2008 economic meltdown due to being too big to fail. This giant life insurance company is one of the most competitive carriers financially. They are always showing up top 5 when it comes to their competitive pricing of life insurance. However, what makes them great is not only how big they are or how affordable their life insurance is but how liberal their underwriting is. This is a wonderful company for people with pre-existing medical conditions and past criminal history. Whether you have a chronic illness or a felony, AIG is one of the few companies that will try to give you a shot where others might have simply turned you down.
If you have some pre-existing conditions and want to have an affordable policy then AIG is for you.
Protective
A life insurance company that has over 100 years of history and also the one who acquired the life insurance division of Chase Bank. Like all companies on this list, they have very affordable life insurance plans for both term life and permanent life insurance. What makes this company stand out is that their term life insurance is built on a universal life insurance frame. To make it simple, unlike other term plans that are done once the term expires, their plans can be kept in force years after with a reduced face amount. You can also get credit toward a permanent plan if you decide to convert your term. They offer unmatched flexibility on their term life insurance products.
If you like the idea of your term life policy being able to go on after initial guarantee or would consider converting it then Protective Life is your best bet.
Prudential
This is one of the few companies that usually doesn’t need an introduction since they are one of the largest ones in the entire world. They are not that competitive for $250,000 if you’re under the age of 50 but 50+ they happen to be one of the most affordable companies to choose from. They also have a specialty with having very aggressive underwriting for people with pre-existing conditions, DUI’s and smokeless tobacco. As far as we know they are the only company giving non-smoker rates to e-cigarette users.
If you are over the age of 50 and are looking for a company that will provide affordability then Prudential is your go-to choice.
Sagicor
This company doesn’t have as affordable rates as the ones above but they are just simply too great not to mention. Sagicor offers a true no exam product that allows you to get approved for life insurance within a few days. Not only can you skip the exam but the whole process is done electronically and you will receive your policy right in your inbox. You can secure either term or permanent life insurance up to $500,000 without an exam, a ton of paperwork or 6-week waiting time with a traditional policy.
If you’re a busy bee or hate needles but want life insurance at fair rates then Sagicor is your company.
Application Process for $250,000 life insurance
Whether you decide to go with $250,000 or more of life insurance the application process is going to be the same. So let’s look at some steps involved with what it takes to secure a policy:
* There is a way to get $250,000 with a lot of companies without having to do an exam and being able to apply online. Click here to check out companies that specialize in that.
- Once you pick a company of your choice, you and your agent complete an application together. The key here is to be straightforward and make sure your application is in a good order. (That’s the only step with a no exam carrier like Sagicor)
- The next step is to have a nurse come out to your home to complete your paramedical exam. In this exam, they will check your height/weight, measure blood pressure and get your blood/urine sample.
- When the application and exam are sent to the carrier they will conduct a thorough qualification process to see your overall risk profile. This helps them determine the rate you qualify for and the next step is issuing your policy.
- Once approved you’ll get your policy in the mail and simply have to sign some final requirements. Afterward, you are covered!
Work with us!
As soon as you decide on getting a new policy or upgrading your current one we always recommend that you shop around. If you think about it for a second, you will realize that when you buy a new car you don’t go off your first offer, you look around some more, go to different car dealerships then you come together and think of which car dealership gave you the best deal then you go with them.
Think of life insurance in the same way, these companies will offer you different rates and that’s why you should always shop around because you will get different quotes. Here at InsureChance, we have partnered with over 60 top life insurers to bring you the best rate. If you’re ready to move forward simply request an application online or call us at 1.888.492.1967. Welcome to InsureChance!
