Compare life insurance quotes
Pick two or more companies to see rates where you live. Free, no obligation.
Who needs life insurance
You likely need life insurance if someone would struggle financially without you: a spouse or partner, children, aging parents you support, or a co-signer on a loan. Stay-at-home parents need it too, because replacing childcare and household work costs money. Single people with no dependents and no shared debts may need little or none beyond final expenses.
The 2026 Insurance Barometer found only 52% of Americans own life insurance, and about 92 million adults say they need more. Cost is a common reason people delay, yet about three in four people overestimate it; adults under 31 guessed five to six times too high.
The main types of life insurance
| Type | How long it lasts | Cash value? | Best for |
|---|---|---|---|
| Term life | A set period, usually 10–30 years | No | Income replacement while children are young or a mortgage is outstanding |
| Whole life | Lifetime, with fixed premiums | Yes, grows at a guaranteed rate | Lifelong needs, estate planning, special-needs dependents |
| Universal life | Lifetime, with flexible premiums | Yes, interest-sensitive | People wanting permanent cover with more flexibility |
| Guaranteed issue / final expense | Lifetime, small amounts | Small | Older adults who can’t qualify elsewhere |
| Group (workplace) life | While you work there | No | A free or cheap base layer, not usually enough on its own |
Our guide to term vs. whole life insurance explains the trade-offs in detail.
What it costs
NerdWallet’s October 2026 averages for a $500,000, 20-year term policy at preferred health rates:
| Age | Men (yearly) | Women (yearly) |
|---|---|---|
| 30 | $213 | $182 |
| 40 | $321 | $278 |
| 50 | $810 | $636 |
| 60 | $2,335 | $1,640 |
A whole life policy with the same $500,000 death benefit costs about $3,180 a year for a 40-year-old man, roughly ten times the term price. Smokers pay about four to five times as much. See our 2026 life insurance cost guide.
How much cover you need
A quick rule of thumb is ten times your annual income, but a needs-based estimate is better: add up income you want to replace, your mortgage and other debts, future education costs and final expenses, then subtract savings and existing cover. Our coverage calculator guide walks through it.
How to choose an insurer
- Financial strength: life policies can last decades, so choose insurers rated A or better by AM Best.
- Customer satisfaction: Nationwide (701), State Farm (692) and Mutual of Omaha (680) led J.D. Power’s 2026 study.
- Underwriting fit: some insurers are more lenient with specific health conditions or smoking history, which can change your price class.
We compare major insurers in our guide to the best life insurance companies.
All Life insurance guides
Frequently asked questions
What is the cheapest type of life insurance?
Term life. A healthy 30-year-old can buy $500,000 of 20-year cover for about $15 to $18 a month on average.
Is life insurance taxable?
Death benefits paid to a beneficiary are generally not taxable income, according to the IRS. Interest paid on the benefit is taxable.
How much life insurance should I get?
A common starting point is 10 times your income. A needs-based calculation that includes debts, education costs and existing savings is more accurate.
Do I need a medical exam?
Not always. Many insurers offer no-exam policies, especially for younger, healthy applicants, though larger amounts or health issues may still require one.
Is life insurance through work enough?
Usually not. Workplace cover is often one to two times salary and typically ends when you leave the job.
Sources
- NerdWallet – Average life insurance rates (Oct 2026)
- MoneyGeek – Term life insurance rates by age (Sept 2026)
- LIMRA / Life Happens – 2026 Insurance Barometer
- J.D. Power – 2026 U.S. Individual Life Insurance Study
- NerdWallet – Best life insurance companies 2026
- Business Wire – AM Best affirms Nationwide ratings (Nov 2025)
- IRS – Life insurance and disability insurance proceeds
- John Hancock – How much life insurance do you need? (Sept 2026)
- BestMoney – Workplace life insurance coverage gap study
Insurance prices, discounts and rules change often and vary by state. Figures were checked in October 2026; confirm details with the insurer or your state insurance department.