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Get Life Insurance coverage in Colorado

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“I can’t wait to shop for life insurance!” said, well, nobody. Life insurance is kind of like paying taxes and going to the dentist. It’s one of those things that (while not particularly pleasant in the moment) can help you and your loved ones avoid problems later in life. With that end in mind, we’ve gathered some information that we hope will help you make the best choice for you.  

Get Life Insurance in Colorado
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The Best Life Insurance in Colorado:

Life Insurance in Colorado: Fast Facts

Here’s where Colorado stands in terms of life expectancy for its residents, and where the state ranks nationally in each of those areas.  Additionally, we’ve listed the percent of the national adult population that owned life insurance in 2019.

  • Colorado life expectancy for males: 78.1 years
  • Colorado life expectancy for females: 82.3 years
  • Percentage of adult population with life insurance in 2019: 57%
  • State rank for life expectancy: 5th for males, 13th for females

How Does Life Insurance Work?

There are different types of life insurance vehicles and they all do basically the same thing. You agree to pay the insurer a certain amount of money as a premium. In return, the insurer agrees to pay a sum of money (the “death benefit”) to whomever you’ve named as the beneficiary of the policy when you die.

3 Reasons to Buy Life Insurance

There are no hard-and-fast rules for when a person should have life insurance, but here are 3 common scenarios when purchasing a policy might make sense.

  • You have dependents. If you have a family that would be severely impacted by the loss of your income, a life insurance policy would cover that shortfall.
  • You need a way to pay for final expenses. Even if nobody is dependent on your income, a small policy to cover your funeral expenses can be a relatively inexpensive way to spare your loved ones the burden of paying for your funeral.
  • You need a way to pay off debt. If you die carrying a lot of debt (mortgage, credit cards, etc.), those debts can impact your estate and be a burden that is passed on to your heirs.  A life insurance policy can be used to settle those debts, relieving them of that burden during an already trying time.

What You Can Expect to Pay

Here’s what you can expect to pay per month for a couple of different policy values, based on gender, age and tobacco use.  

Gender Age Smoker Coverage Amount Length of Coverage Estimated Monthly Premium
Female 30 No $500,000 20 years $16.68
Female 30 Yes $500,000 20 years $55.56
Male 30 No $500,000 20 years $19.49
Male 30 Yes $500,000 20 years $68.81
Female 45 No $750,000 30 years $89.06
Male 45 No $750,000 30 years $116.70

Learn more about estimated costs for life insurance in Colorado at different ages and estimated payouts.  

Whole Life vs. Term Life

The 2 most common types of life insurance are term life and whole life.  

Whole life: Whole life policies, a type of permanent insurance, last a lifetime. As long as the premiums are paid, the policy remains in effect. This type of insurance includes an investment component. A portion of each premium is put into an investment account and accumulates cash value that may be borrowed against or withdrawn by the policyholder. It’s important to note, however, that these funds are separate from the death benefit portion of the policy and will not be paid to the beneficiaries after your death. If they are not withdrawn prior to death, they will be forfeited back to the insurance company.

You purchase a $500,000 whole life policy, for example, with a monthly premium of $750. As long as you continue paying your premium the policy remains in effect, and it will also build a cash value component over time. Let’s say at 10 years the cash value has grown to $30,000, and you decide you want to remodel your kitchen. You can withdraw that cash, and there is no impact on the death benefit amount. Your beneficiaries will still receive $500,000. Remember that if you don’t withdraw that money prior to your death, it will not be added to the amount the insurance company pays out.    

Term life: Term life is exactly like it sounds — a policy that remains in effect for a set period of time and has no value after the term expires. The death benefit is only paid if you die during the term covered by the policy. There is no cash value, and because most buyers outlive their policies, term insurance is far cheaper than whole life.

So, let’s say that on your 30th birthday you buy a $500,000 policy with a 20-year term. You’re in good health, and the premiums are well within your budget. If you die within those 20 years, the full benefit will be paid. However, if you die just one day past your 50th birthday, your beneficiaries will receive nothing. The contract between you and the insurance company has ended. The insurance term has passed.

5 Best Life Insurance Companies in Colorado

The life insurance market is loaded with choices, with a language all its own. Life insurance is also a product that reminds you you’re mortal and that your loved ones go on after you. We know it’s not easy, so we’ve compiled this list of the 5 best life insurance companies in Colorado.  

1. Best for Colorado Residents Ages 21-55: Bestow Life

Bestow Life, a relatively new company, established itself in 2016 and offers only term life insurance. Bestow Life aims to make life insurance easy, inexpensive and quick. Its online application takes just a few minutes and policies start at just $5 per month.  

You can get life insurance without putting the purchaser through a time-consuming visit to the doctor for an exam. You simply answer some health and lifestyle questions and receive your response in minutes. Bestow is fairly new and it’s partnered with North American Company for Life and Health Insurance, a company that’s been in business since 1896. It’s also earned an A+ rating from AM Best. This is insurance buying in a very simple, straightforward, no-nonsense form and the low premiums are super competitive in that niche.

2. Best for Value: Banner Life Insurance

Banner Life Insurance is not a household name but offers term life monthly premiums starting at under $10 per month. It offers a great deal if you’re a value-conscious insurance shopper. You’ll find both term and universal policies and other investment and insurance options.

It’s under the Legal and General Group umbrella, a company with more than $1.3 trillion in managed assets and an A+ AM Best rating. Its underwriting differs substantially from other companies because it’s more lenient in its list of health conditions that could boost costs. We know that value is a major factor in the search for life insurance. We think Banner offers great bang for the buck, but it’s not the only low-cost insurer. You can find other inexpensive life insurance options. 

3. Best for Range of Options: State Farm

Everybody knows State Farm. It’s been in business for nearly 100 years, so it may have been your parents’ insurance company and your grandparents’ as well. State Farm offers a one-stop shop for your insurance needs —  life insurance, auto, homeowners, health and disability insurance, and others.

Combine that with its A++ AM Best rating and its ready availability both in brick-and-mortar retail stores and online, plus it’s available to service all your needs. Finally, if you’re shopping for the best life insurance for a senior, it ranks highly in that market as well.

4. Best for Customer Satisfaction: Northwestern Mutual

Northwestern Mutual leads the pack for customer satisfaction, with a J.D. Power rating of 812 out of 850. It earned the J.D. Power Award for 2019. Combine that with an AM Best rating of A++, its highest rating, and you have an insurance company worth taking a look at.

It offers term, whole and universal life, as well as other specialized insurance and investment vehicles. Northwestern Mutual is a good company to put on your short list as you shop for a life insurance policy.

5. Best for Social Responsibility: Allianz Life Insurance Company

Allianz integrates environmental, social and governance (ESG) factors into its insurance and investment businesses. You might decide whether to invest with a certain company, so if these things are important to you, Allianz might deserve consideration. Allianz offers term and permanent life insurance, and its A+ AM Best rating offers a good option if you’re looking for a socially conscious insurance company.

Choose the Best Life Insurance in Colorado

You might see an endless array of companies and options in Colorado but with a little patience and research you can find a policy that’s within your budget and that offers the coverage you need. You, better than anyone, know what level of protection is right for your family, and the resources are out there to help you find it.

Still need more information? Check out the best life insurance, an article that contains a wealth of information on the attributes of companies and types of policies. It’s another great resource available to you as you start your search.

Frequently Asked Questions

1) Q: What are the advantages of term life insurance?

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1) Q: What are the advantages of term life insurance?

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Benzinga Staff

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A term life policy allows you to purchase coverage at a guaranteed premium for a limited amount of time. This structure makes term life an affordable choice to protect your family if you have a financial commitment that won’t last forever, like a mortgage or the cost of raising kids. A 20-year term life insurance policy is the most popular life insurance policy purchased to protect loved ones if the unexpected happens. Get a quote here from top providers.

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2) Q: What are the advantages of whole life insurance?

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2) Q: What are the advantages of whole life insurance?

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Benzinga Staff

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Whole life insurance, along with universal life insurance and some other variants, is designed to provide coverage for your entire life. This differs from a term policy that offers guaranteed premiums for a limited time. Permanent life insurance has a savings or investment element that helps the policy to build cash value, making it an asset that can be borrowed against or even sold if you no longer need the policy.

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3) Q: Is life insurance taxable?

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3) Q: Is life insurance taxable?

asked

Benzinga Staff

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In most cases, the death benefit paid to life insurance beneficiaries is tax-free. However, if the policy premiums were taken as a deductible business expense, there may be a tax liability. There is also the possibility that a life insurance payout can change the way an estate is taxed.

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