Progressive's Term Life Insurance: What You Need To Know

Progressive offers term life insurance, which provides coverage for a set time period, typically 10, 15, 20, or 30 years. Term life insurance is an affordable option for those who want to give their loved ones financial security if they pass away unexpectedly. It is also a good choice for those who only need coverage for a certain number of years, such as during the years they plan to support loved ones financially. The cost of a term life insurance policy depends on various factors, including age, gender, health, and lifestyle choices. Progressive's website provides a life insurance calculator to help individuals determine the right amount of coverage for their needs.

How much does term life insurance cost?

Term life insurance is often chosen by people who want to support their loved ones financially in case of their unexpected death. It is considered a temporary policy, as it only covers a set period, such as 10, 20, or 30 years. If the policyholder outlives the selected term, the policy expires with no payout.

The cost of term life insurance depends on several factors, but it is generally considered an affordable option. The average cost of a term life insurance premium is around $160 a year, but it can be as low as $16 per month for $250,000 of coverage. The length of the term selected will impact the cost, with a 10-year term policy being less expensive than a 25-year policy.

Age and gender are two of the biggest factors influencing the cost of term life insurance. Younger people tend to pay less than older people as they are less likely to have health problems. Men also tend to pay more than women because they have shorter lifespans and are more likely to have dangerous jobs or lifestyles.

Health is another important factor, with the healthier individuals getting more affordable policies. Tobacco use, risky hobbies, and certain occupations can also increase the cost of term life insurance.

The amount of coverage is another factor that affects the cost. A policy with a higher death benefit will generally be more expensive. For example, a $50,000 policy for a healthy 25-year-old woman may cost approximately $14 a month, while a 55-year-old woman may pay around $60 a month for the same amount.

Term life insurance is typically more affordable than permanent life insurance, which lasts a lifetime and includes a cash value component. The cost of term life insurance can also vary depending on the insurer, so it is a good idea to compare quotes from multiple companies.

What is the difference between term and whole life insurance?

Life insurance is a financial safety net for your loved ones in case you pass away. There are five main types of life insurance: term life insurance, whole life insurance, universal life insurance, variable life insurance, and final expense life insurance. Term and whole life insurance are the two most common types of life insurance.

Term life insurance provides coverage for a set time period, typically 10, 15, 20, or 30 years. It is an affordable and simple option for those who only want protection for a limited time, such as the years they plan to financially support loved ones. Term life insurance has lower costs than whole life insurance because it only covers a set time period. It also offers more coverage due to its low cost, making it ideal for young families. The death benefit of a term policy can be used by beneficiaries however they choose, and is usually tax-free. Term life insurance also offers guaranteed protection and premium, with a fixed and guaranteed death benefit and premium amount.

Whole life insurance, on the other hand, provides coverage for an entire lifetime. It tends to have higher premiums than term life insurance but never expires. Whole life insurance includes a savings component, or cash value, that grows in value over time. This cash value can be used to pay premiums or borrowed against in the form of a loan. The death benefit payout of whole life insurance is guaranteed as long as premiums are paid, and the premiums remain the same throughout the policyholder's life.

In summary, the main differences between term and whole life insurance lie in cost, coverage length, cash value, and complexity. Term life insurance is more affordable and straightforward, with fixed premiums and a death benefit, but it expires. Whole life insurance is more expensive and complex, with a changing death benefit if there is an outstanding loan against the policy's cash value, but it provides lifelong coverage and builds cash value over time. The choice between the two depends on specific needs and financial situations.

What are the benefits of term life insurance?

Term life insurance is a good option for those looking to provide financial security for their loved ones for a specific period of time. Here are some of the benefits of term life insurance:

Affordable coverage

Term life insurance is known for being a cost-effective way to get life insurance coverage. It is often significantly cheaper than whole life insurance policies because it only covers you for a set period, typically 10, 15, 20, or 30 years. This means that you can get a higher sum assured at a lower premium, providing greater financial security for your loved ones at a more affordable price.

Flexibility

The flexibility of term life insurance makes it a good option for those with changing needs. You can choose the term length that suits your situation, whether you're covering short-term debts, a mortgage, or supporting your family financially. Term life insurance is also a good option if you only need temporary coverage, such as when you're between jobs or not ready for a long-term policy. Additionally, in some states, Progressive Life Insurance Company offers a "flexible term" policy that lets you increase or decrease your coverage amount without reapplying.

Simple and easy to understand

Term life insurance is straightforward and simple to understand. It does not have an investment component, so you pay the premiums, and your life is covered for a fixed duration. This simplicity also makes it easy to shop for and compare different policies.

Tax benefits

Term life insurance plans often come with tax benefits. In some countries, the premium you pay for a term insurance plan is tax-deductible, and the payouts are also tax-exempt.

Additional riders

Term insurance plans often offer additional riders that you can choose to enhance the basic benefits. For example, you can add a rider for critical illness coverage or accidental death and dismemberment coverage, providing additional protection for you and your family.

Who is term life insurance suitable for?

Term life insurance is suitable for people who want coverage for a specific number of years. It is geared toward those who want to support their loved ones financially for a set period of time, such as the duration of a mortgage or until children are old enough to support themselves. It is also a good option for those who want to provide financial security for their family at an affordable rate.

Term life insurance is often chosen by people who want to ensure their loved ones are supported financially if they pass away unexpectedly. It is a popular choice for people with spouses, partners, or children who are financially dependent on them. It can also be a good option for those who are paying off debt, such as a mortgage, or for those who want to cover the costs of raising a family.

The length of coverage provided by term life insurance can vary, with common options including one-year, 10-year, 15-year, 20-year, and 30-year terms. The shorter one-year term life insurance is suitable for those who want to try out life insurance or only need temporary coverage, such as those who are between jobs.

Term life insurance is also a good option for those who want to lock in a rate for the entire term, making budgeting and planning easier. It is generally more affordable than permanent life insurance, as it only covers a set number of years. This makes it a suitable option for those who want to provide financial protection for their loved ones without breaking the bank.

Overall, term life insurance is suitable for individuals who want to ensure their loved ones are financially secure for a specific period, such as during the duration of a mortgage or until children become financially independent. It offers affordable coverage for a set number of years, making it a popular choice for those who want to provide financial protection for their families.

How do I get a quote for term life insurance?

Progressive offers term life insurance, which provides coverage for a set time period, typically 10, 15, 20, or 30 years. To get a quote for term life insurance, you can follow these steps:

Determine the Type of Life Insurance You Need:

Before getting a quote, it's important to understand the different types of life insurance available and choose the one that best suits your needs. Term life insurance is suitable for those who need coverage for a specific number of years, while whole life insurance is designed for lifelong coverage. Progressive offers both term and whole life insurance options.

Assess Your Coverage Needs:

Consider your current income, debts, ongoing expenses, and financial goals to determine how much coverage you need. You can use Progressive's life insurance calculator to get a more precise estimate of your coverage needs.

Gather Required Information:

To obtain a life insurance quote, you will typically need to provide personal information such as your age, gender, medical history, basic health information (height, weight, medications, etc.), and income level. Have this information readily available when requesting a quote.

Contact Progressive:

You can get a free life insurance quote from Progressive online or by calling their customer service line at 1-866-912-2477. Their website also offers resources and tools to help you compare different types of life insurance policies and make an informed decision.

Compare Quotes and Choose a Policy:

Once you have your quote from Progressive, you can compare it with quotes from other insurance providers to find the best rate and coverage for your needs. Consider factors such as the policy type, coverage amount, and insurer reputation when making your decision.

It's important to note that life insurance rates can vary based on age, health, and other factors, so it's recommended to get quotes from multiple providers and review the policy details carefully before making a decision.

Frequently asked questions