Best Online Life Insurance Companies
A good online life insurance policy can protect your family in minutes. Take a look at the most trustworthy companies to buy from.
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| © CreditDonkey |
A life insurance policy can protect your loved ones if something happens to you.
But applying with old-school providers could take weeks (or months).
Luckily, there's a better option:
Online life insurance companies let you apply in just 10 minutes, usually without a medical exam. And getting a quote is totally free.
Below, learn the top companies and brokers that offer online life insurance, including rates, perks and downsides.
- Bestow: No medical exam
- Haven Life: Competitive rates
- Fabric: Free estate planning tools
- Ladder: Adjustable coverage
- Policygenius : Most policy options
- Quotacy: Best customer support
- Sproutt: Lower rates for healthy lifestyle
- Ethos: High-coverage policies
- Esurance: Most whole + term options
- Prudential: Best for health issues
The Best Online Life Insurance
Shopping for life insurance doesn't have to be so overwhelming. Below, you'll find the best life insurance available online that you can apply for at home.
| Companies | Coverage Amount | Eligible Age Range | Types of Policies |
|---|---|---|---|
| Bestow | $100,000 - $1.5M | 18 - 60 | 10, 15, 20, 25, 30 years |
| Haven Life (Haven Term) | Up to $3M | Up to 64 | 10, 15, 20, 25, 30 years |
| Haven Life (Haven Simple) | Up to $1M | 20 - 55 | 5, 10, 15, 20 years |
| Fabric | $100,000 - $5M | 21 - 70 | 10, 15, 20, 25, 30 years |
| Ladder | $100,000 - $8M | 20 - 60 | 10, 15, 20, 25, 30 years |
| Policygenius (Term) | $100,000 - $10M | 18 - 50 | 10, 15, 20, 25, 30, 40 years |
| Policygenius (Whole) | $2,000 - $40,000 | 45 - 85 | Whole life (permanent) |
| Quotacy | $50,000 - $65M | 18 - 75 | 10, 15, 20, 25, 30, 40 years and Whole life | Sproutt | $50,000 - $3M | 18 - 60 | 10, 15, 20, 25, 30 years and Whole life | Ethos (Term) | $20,000 - $2M | 20 - 65 | 10, 15, 20, 30 years | Ethos (Whole) | $1,000 - $30,000 | 66 - 85 | Whole life (permanent) |
No Medical Exam: Bestow
Bestow's selling point is their no-exam term life insurance. No matter your health condition, a medical exam is not required. If you don't qualify for coverage, they'll simply deny your application. No scheduling appointments, no waiting for results.
Bestow puts the entire underwriting process in the hands of their algorithm. It considers your prescription and credit history, driving records, and various lifestyle questions to calculate your risk. Once it's done, it either offers you coverage or denies your application.
Bestow policies are issued by Bestow Life Insurance Company or North American Company of Health and Life Insurance, which has a financial strength rating of A+ from A.M. Best.
Features and Rates
- 10-, 15-, 20-, 25-, and 30-year term life insurance
- Available in all states except NY
- Application 100% online, no exams ever
- Customer satisfaction: Higher than average
- $100K - 1.5 million in coverage
- Starts at $11/month
- View rates >>
Pick Bestow if: You absolutely do not want to take a medical exam.
Get Quote
- Plans from $50,000 - $1,000,000
- Premiums from $8/mo
- 100% Online. Get a Quote in Seconds and Coverage in Minutes.
No-exam policies were unheard of not too long ago. Keep reading to see how other companies are reinventing the underwriting process.
Competitive rates: Haven Life
Haven Life offers only term life insurance with death benefits up to $3M. Getting a quote takes minutes, but they can also help if you're still unsure of how much coverage you need. Their calculator considers your income, family, and debt to give you a custom recommendation.
The online application takes about 20 minutes and if you're relatively healthy, you can qualify for coverage without an exam. They also stand out for their "Plus" coverage, which comes with benefits like Trust & Will planning and secure online storage of important family documents.[1]
Features and Rates
- 5-, 10-, 15-, 20-, 25-, and 30-year term life insurance
- No exams for some applicants
- Customer satisfaction: Much higher than average
- Up to $3M in coverage
- Starts at $8/month
Pick Haven Life if: You want a small online company with big-company security.
Get a Quote
- Up to $3 million in affordable term coverage
- 100% no obligation quote
Free estate planning tools: Fabric
Like Haven Life, Fabric offers a quick online application and, for some qualifying applicants, coverage without an exam.
Unlike many companies that sell term life insurance online, Fabric gives you the option to convert to a whole life policy at the end of your term (though it may require another round of underwriting).
Those applying for policies up to $1.5 million may qualify for instant, no-exam coverage. However, larger face amounts (up to $5M) require a medical exam.
Fabric also offers a free online tool to assist in writing your will that lets you sync up your family's finances. Fabric policies are issued by Western-Southern Life Assurance Company, which has a financial strength rating of A+ from A.M. Best.
Features and Rates
- 10-, 15-, 20-, 25-, and 30-year term life insurance
- Not available in NY
- Mobile app and tool for will-writing
- Customer satisfaction: Much higher than average
- Up to $5M in coverage
- No phone calls from insurance agents
Pick Fabric if: You want the option to convert your term policy to a whole policy.
Online life insurance companies can get you covered in as little as 10 minutes. The traditional life insurance application process takes about 4-6 weeks.
Policy conversion is just one of many options you have. See how insurance aggregators are designed to find your perfect coverage.
Adjustable Coverage: Ladder
Although Ladder is a relatively new company, their policies are issued by reputable life insurance carriers. Ladder offers a few more terms than most online life insurance options (10, 15, 20, 25, and 30 years) and is available to applicants aged 20-60. Coverage amounts range from $100K-$8M.
Applicants seeking $3M in coverage or less will go through the process without needing a medical exam, they'll just need to answer a few health questions. Ladder may require an exam if you're applying for more than $3M in coverage and they need additional information before approving or denying you.
The biggest selling point for Ladder is their selection of coverage adjustment tools. Even after your policy has been secured and is underway, you can decrease or apply to increase your coverage with their ladder up and ladder down tools.
Features and Rates
- 10-, 15-, 20-, 25-, and 30-year term life insurance
- Easily adjust coverage online
- Customer satisfaction: Higher than average
- $100K - $8M in coverage
- Starts at $5/month
Pick Ladder if: You want adjustable coverage.
Ladder: Get Started
Want a birds-eye view of your policy options? See how to get all the life insurance quotes you want in one place below.
Most Policy Options: Policygenius
Policygenius isn't actually a life insurance company—instead, they're a life insurance aggregator. This means they compare life insurance quotes and policy options from multiple insurance companies. When you choose a policy from another insurance company, you'll apply and only deal with Policygenius.
Because they can offer life insurance quotes and policies from multiple companies, Policygenius gives you the most options to choose from. You can opt for a whole or term life policy (among others) and get coverage of up to $10M.
A downside of Policygenius is that they don't work with many niche insurance carriers. If you have more health conditions or need more specific life insurance options, you may need to look elsewhere.
Features and Rates
- Insurance aggregator
- Term, whole, universal, and variable policies, plus more
- Available in every state
- Customer satisfaction: Much higher than average
- $50K - $10M in coverage
- Starts as $15/month
Pick Policygenius if: You want lots of options to choose from.
Best Customer Support: Quotacy
Like Policygenius, Quotacy is another online insurance aggregator that offers life insurance policies from a wide variety of companies. Their life insurance agents shop and negotiate rates for you.
While Quotacy offers multiple types of life insurance, you can only apply for term insurance online if you're looking for a term policy (for all others, you must call them). Term policies are available in lengths of 10 to 40 years, with coverage from $50K to $65M.
They also offer free educational content to help you become a more informed policyholder. If you still have questions, you can contact Quotacy's independent agents for objective advice.
Features and Rates
- Insurance aggregator
- Term, whole, final expense, policies
- Available in every state
- Ages 18-75 are eligible
- Customer satisfaction: Much higher than average
- $50K - $65M in coverage
- Starts at $10/month
Pick Quotacy if: You need more assistance when applying
Quotacy: Get a Quote
If you're hoping to avoid an exam, take a look at the next section for more about no-exam policies.
Lower rates for healthy lifestyle: Sproutt
Sproutt aims to simplify the process of buying and applying for life insurance. They're not technically a life insurance company—instead, they compare life insurance offerings from big insurers, including AIG, Sagicor Life, Principal, and SBLI, and connect you with them when it's time to buy.
However, the only policies that allow for a completely online application are the no-medical-exam policies, which include guaranteed issue, simplified issue, and graded death benefit policies. Other types of life insurance may require a more formal application.
- Guaranteed Issue: No term, no expiration date policy; you have coverage as long as you pay for it.
- Simplified Issue: Geared toward people only of moderate health risk; requires detailed medical questionnaire.
- Graded Death Benefit: The payout increases the longer you are alive.
Most insurance aggregators ask the same set of questions to determine which is the best life insurance for you.
Sproutt stands out for their own Quality of Life Index, a group of 5 specific factors (movement, sleep, emotional health, nutrition, and balance) that helps Sproutt better understand your mental and physical well-being.[3]
Features and Rates
- Insurance aggregator
- More options, but only a few are available online
- Available in all states
- Customer satisfaction: Higher than average
- $50K to $10M in coverage
- Free quotes only for no-exam policies
Pick Sproutt if: You prefer more holistic life insurance underwriting.
Sproutt: Get a Quote
If you need a more sizeable payout, the last company on our list might be able to help.
High-Coverage Policies: Ethos
Ethos is an online term life insurance company that offers decent insurance rates and a hassle-free application. Applying with Ethos takes place entirely online, and most people who qualify for their life insurance don't need to take an exam.
Even compared to other online term life companies, Ethos offers more term lengths (up to 30 years) and higher coverage limits (up to $2M). However, this might explain their slightly higher premiums.
Ethos says their policies are available for as little as $1 per day, though it's fairly pricey considering similar companies offer coverage for $5 per month.
Features and Rates
- 10-, 15-, 20-, and 30-year term policies
- Not available in NY
- Customer service: Better than average
- $20K - $2M in coverage
- Higher premiums (starts at $30/day)
Pick Ethos if: You want an online-only term policy with high coverage.
Life insurance companies typically don't allow monthly payments to be put on a credit card. Some companies, however, will permit credit cards for your initial payment only. After that, most people pay their monthly premiums with a debit card or via automatic bank transfer.
Most Whole & Term Life Options: Esurance
Esurance was one of the first companies to offer insurance products online. And while they do sell life insurance, the policies they sell are underwritten and priced by third-party carriers. Esurance sorts through multiple carriers to give you the most affordable price.
Esurance offers multiple types of term and whole life policies. Their term life policies include level term, decreasing term, and annual renewable term.
Their whole life policy offerings are more robust, including universal, variable, indexed universal, and a variable-universal hybrid. All accumulate cash value over time.
Features and Rates
- Variety of term and whole life policies
- Not available in all 50 states
- Owned by Allstate
- Customer service: Average
- Exam may be required
- Starts at $12/month
Pick Esurance if: You want multiple term and whole life policies to choose from.
Best for Health Issues: Prudential
Prudential is among the largest life insurance providers on the market today, their main offerings being term and universal life policies. SimplyTerm, a term life insurance policy, is their only online offering and can offer coverage up to $500K for 10, 20 or 30 years.
Prudential's biggest selling point is their flexible underwriting for those with health conditions. Unlike other life insurance companies, Prudential offers very competitive insurance rates for diabetics, and those with high cholesterol, high blood pressure, prior nicotine use, and sleep apnea.
Prudential has an A+ rating from A.M. Best and a J.D. Power rating of 784 out of 1,000.
Features and Rates
- Term and universal life policies
- Long-standing company
- Available in all 50 states (with few policy exceptions)
- Customer service: Average
- Up to $500K in coverage
- Starts at $28/month
Pick Prudential if: You have health conditions and struggle to find affordable rates.
Online Life Insurance Alternatives
Online life insurance isn't the best fit for everyone. If you'd rather work with a larger, more traditional company, consider one of these well-known providers with proven track records.
Liberty Mutual offers term life and whole life policies. Term life insurance is available with level premiums for 10, 15, 20, or 30 years. A medical exam is most likely required, unless you opt for a Simplified Issue policy.
Liberty Mutual has an A.M. Best rating of A and a J.D. Power rating of 788 out of 1,000.
John Hancock is a life insurance broker offering term life, permanent life, and Guaranteed Issue whole life policies. Term life insurance is available in terms of 10, 15, 20, and 30 years and can be converted to permanent life.
John Hancock has an A.M. Best rating of A+ and a J.D. Power rating of 739 out of 1,000.
New York Life is a mutual insurance company, meaning it pays dividends to its policyholders and is not publicly traded. They offer Yearly Convertible Term and Level Premium Convertible Term, as well as multiple types of whole life policies.
New York Life has an A.M. Best rating of A++ and a J.D. Power rating of 770 out of 1,000.
Northwestern Mutual offers term, whole, and universal policy options with flexible premium payment options. Their Whole Life policies can be issued up to age 85. Some even combine elements of whole and term life insurance that builds cash value and provides coverage for a specific term.
Northwestern Mutual has an A.M. Best rating of A++ and a J.D. Power rating of 810 out of 1,000.
Mutual of Omaha offers both medically and non-medically underwritten term and whole policies for customers ages 18-85, as well as banking products. Their Fit Underwriting Credit program allows policyholders in excellent health to potentially earn lower premiums.
Mutual of Omaha has an A.M. Best rating of A+ and a J.D. Power rating of 795 out of 1,000.
State Farm, best known for their auto insurance policies, offers a wide variety of insurance products, including term, whole, and universal life insurance policies. Some policies, such as their Instant Answer Term, don't require a medical exam and can offer coverage in minutes.
State Farm has an A++ financial rating from A.M. Best and a J.D. Power rating of 808 out of 1,000.
J.D. Power assigns the insurance companies a number out of 1,000 that measures overall customer satisfaction. To get that number, J.D. Power considers a company's application process, communication, interaction with customers, product offerings, price, and statements. The closer the number is to 1,000, the better.
Online Life Insurance vs. Traditional: What's the Difference?
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Rest assured, there is little to no difference between a life insurance policy from a traditional company and one from an online company. In fact, the differences are mostly limited to the application process.
Online life insurance offers (or can potentially offer):
- A shorter application
- Quicker underwriting (done partly by algorithm)
- Little to no contact with captive life insurance agents (less up-selling)
- Coverage with no medical exam
- Instant coverage approval
After the policy is secured, your experience with an online life insurance company will be the same as a traditional company. They'll provide the support, assistance, and information you need.
How to Apply for Life Insurance Online
When it comes time to apply for life insurance coverage, the overall process is fairly quick. Here's what you can expect:
- Visit the company's or broker's website, and get a quote first.
- Begin the online application, which asks about your:
- Finances
- Location (including zip code)
- Health status, and any existing health problems
- Lifestyle, and any potentially dangerous hobbies (e.g., rock climbing, skydiving)
- Family health history
- Finances
- The company then evaluates your information and proceeds in one of two ways:
- In some cases, you may need to provide additional info or complete a brief medical exam before getting a final decision.
- In other cases, you may be approved instantly.
- In some cases, you may need to provide additional info or complete a brief medical exam before getting a final decision.
- Health history information
- Credit score and/or credit history
- Driver's license, plus your driving record
- Your salary information
- Social Security Number
- Beneficiary's Social Security Number
What Experts Say
CreditDonkey assembled a panel of industry experts to answer readers' most pressing questions:
- What are risky hobbies that spike life insurance rates?
- What should people look for in a life insurance policy?
- Is it safe to buy insurance online?
- How are life insurance premiums affected by an individual's health coverage?
- Are the average premium prices from online-only life insurers different from those from traditional insurers?
Here's what they said:
Frequently Asked Questions
Who is online life insurance best for?
Healthy middle-aged or young adults are in the best position to get the main perks of online life insurance: a quick application and immediate approval with no medical exam.
Older adults with health problems may be better off with a more traditional life insurance broker that can offer more coverage options.
What happens if I get denied?
If you've been denied for an online life insurance policy, consider applying with brokers who can give you more options:
- Policygenius
- Quotacy
- Sproutt
If you're having trouble with online insurance brokers or are part of a demographic that struggles to get coverage, you may need to take your search offline.
Which is better: term life insurance or whole life insurance?
Term and whole life insurance differ mainly in how long they provide coverage. Generally, term is more affordable, though whole life accumulates cash value as the years go on.
Term life insurance is usually the better choice. The affordable rates make it easier to budget for. Plus, the cash value component of whole life grows at a rate slower than many other investments.
How much life insurance do I need?
There are a lot of ways to calculate your coverage needs, but we think the best method is as follows:
Coverage Amount = (Coverage Years × Annual Income) + (Debt + Expenses) - (Liquid Assets + Savings)
What is a life insurance death benefit used for?
What your death benefit covers is up to you and your beneficiaries to decide. Typically, it provides income replacement and protects your loved ones' most important financial obligations.
These can include things like college tuition, mortgage payments, retirement savings, student loans, or even a safety net for a small business. Many people also plan to cover their own funeral expenses and estate taxes, which can be especially expensive for your family members.
Does credit card debt go away when you die?
Credit card debt does not go away when you die. Instead, the assets you leave behind are totaled and applied to your credit card debt.
Family members may also be required to pay off your credit card debt if:
- They co-signed for a loan or credit card with you
- They jointly owned a business or property with you
- They live in CA, AZ, ID, LA, NV, NM, TX, WA, or WI
- Their state requires paying off debt to resolve the estate
Bottom Line
If you want a full life insurance policy in minutes, online life insurance is definitely the way to go.
Depending on your coverage needs, you can apply online with a specific company or with online brokers that compare multiple life insurance quotes and companies at once.
Wherever you begin your search for the best life insurance, it's always smart to shop around and get multiple quotes. If getting quotes is quicker than the average YouTube ad, what do you have to lose?
References
- ^ "Haven Life Plus": Haven Life, 2021.
- ^ "Term life insurance quotes without personal information": Quotacy, 2020.
- ^ "Quality of Life Index": Sproutt, 2021.
Holly Zorbas is a assistant editor at CreditDonkey, a credit card comparison and reviews website. Write to Holly Zorbas at holly.zorbas@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.
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