The Most Popular Life Insurance Policy: A Comprehensive Ranking
Voting rules: Choose the policy you think is the most popular!
Jun 16, 2023 10:18 (Updated on Dec 5, 2023 08:26)
Are you curious to discover which life insurance policy reigns supreme in the hearts and minds of people just like you? Look no further! We at StrawPoll have gathered thousands of votes and opinions to bring you the ultimate ranking of the most popular life insurance policies out there. From term life to whole life, universal to variable, our comprehensive list covers all the bases to help you make an informed decision. But wait - we haven't forgotten about your valuable input! If you feel there's a policy that deserves a mention or you'd like to cast your vote for your favorite, simply join the conversation and make your voice heard. Dive into our interactive poll and let's unveil the true champion of life insurance policies together!
What Is the Most Popular Life Insurance Policy?
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155votesThis is the most popular and affordable life insurance policy that provides coverage for a specific period of time. It's easy to understand and offers a high coverage amount for a low premium.DescriptionTerm life insurance is a type of life insurance policy that provides coverage for a specific term or period of time. It offers financial protection to the beneficiaries in the event of the insured person's death during the term of the policy.
- Coverage Period: Typically ranges from 5 to 30 years
- Premiums: Lower compared to other types of life insurance policies
- Death Benefit: Paid out to the beneficiaries if the insured person passes away within the term
- Renewability: May allow the policyholder to renew the policy at the end of the term, often at higher premiums
- Convertibility: Some term policies offer the option to convert to a permanent life insurance policy
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238votes
Whole Life Insurance
Elizur WrightThis policy provides coverage for the entire lifetime of the policyholder and has a savings component that grows over time. It's a good choice for those who want lifelong coverage and a cash value component.DescriptionWhole Life Insurance is a type of permanent life insurance that provides coverage for the entire lifetime of the insured. It offers both a death benefit to the beneficiary upon the insured's death and a cash value component that grows over time.- Premiums: Fixed and guaranteed for the life of the policy.
- Coverage: Lifetime coverage until the insured's death.
- Cash Value: Builds up over time at a guaranteed rate of return.
- Dividends: Eligible for receiving dividends, which can be used to increase the cash value or reduce premiums.
- Loan Value: Policyholders can borrow against the accumulated cash value.
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320votes
Universal Life Insurance
W. Harold PetersenThis policy is similar to whole life insurance but offers more flexibility in terms of premium payments and death benefits. It's a good choice for those who want lifelong coverage but also want to adjust their premiums and coverage as needed.DescriptionUniversal life insurance is a type of permanent life insurance that offers flexibility in premium payments and death benefit. It combines a death benefit with a savings component, allowing policyholders to build cash value over time. The policyholder can adjust the death benefit, premium payments, and investment options according to their changing needs.- Premium Payments: Flexible
- Death Benefit: Adjustable
- Cash Value: Accumulates over time
- Investment Options: Choice of investment vehicles
- Policy Loans: Can borrow against cash value
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424votesThis policy allows the policyholder to invest their premiums in various investment options, such as stocks and mutual funds. It's a good choice for those who want to grow their savings while also having life insurance coverage.DescriptionVariable life insurance is a type of permanent life insurance that allows policyholders to invest a portion of their premium payments into various investment options such as stocks, bonds, and mutual funds. The policy's cash value and death benefit can fluctuate based on the performance of the chosen investments.
- Flexibility of Investment: Policyholders have the flexibility to choose and adjust their investment options based on their risk tolerance and investment objectives.
- Cash Value Accumulation: The policy accumulates cash value over time, which can be accessed by the policyholder through policy loans or withdrawals.
- Tax Advantages: The policy offers potential tax advantages, such as tax-deferred growth of cash value and tax-free death benefit payouts.
- Investment Growth Potential: Variable life insurance offers the possibility of higher investment returns compared to other types of life insurance policies.
- Death Benefit: The death benefit can vary based on the performance of the underlying investment options, potentially providing a higher payout to beneficiaries.
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511votesThis policy is offered by employers to their employees as a benefit. It provides coverage for a group of people and is typically more affordable than individual policies.DescriptionGroup Life Insurance is a type of life insurance coverage provided to a group of people, typically employees of a company or members of an organization. It is usually offered as an employee benefit and is designed to provide financial protection to the dependents of the covered individuals in case of their death. The policy terms and conditions are applied uniformly to all members of the group.
- Coverage Amount: The policy offers a predetermined amount of coverage for each insured member, typically based on a multiple of their salary or a fixed amount.
- Group Size: Group Life Insurance can be offered to small groups, such as a few employees in a small business, or large groups consisting of thousands of members.
- Premiums: The premiums for group life insurance are often more affordable compared to individual life insurance policies, as the risk is spread across a larger pool of individuals.
- Underwriting: Group Life Insurance policies often have simplified underwriting processes, with no individual medical examinations required for coverage.
- Employer Contribution: Employers may choose to contribute towards the premium payments, making it an attractive benefit for employees.
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611votes
Accidental Death and Dismemberment Insurance
Various insurance providersThis policy provides coverage in the event of accidental death or dismemberment. It's a good choice for those who want additional coverage to supplement their existing life insurance policy.DescriptionAccidental Death and Dismemberment Insurance is a type of life insurance policy that provides coverage in the event of death or severe injury resulting from an accident. Unlike traditional life insurance policies, AD&D insurance specifically focuses on accidents rather than natural causes of death. It offers financial protection and assistance to beneficiaries or policyholders who experience accidental death, dismemberment, or certain types of injuries due to accidents. The coverage amount varies based on the policy and can be used to cover medical expenses, funeral costs, or provide financial support to the insured's family.- Coverage: Provides coverage for accidental death and dismemberment
- Beneficiaries: Pays benefits to the named beneficiaries or policyholders
- Accidental Death Benefit: Pays a benefit in case of accidental death
- Dismemberment Benefit: Pays a benefit if the insured loses a limb or sight in an accident
- Injury Benefit: Pays a benefit for certain types of injuries resulting from accidents
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72votesThis policy pays off the policyholder's mortgage in the event of their death. It's a good choice for those who want to ensure their family can keep their home if they pass away.DescriptionMortgage Life Insurance is a type of life insurance policy specifically designed to pay off a mortgage loan in the event of the policyholder's death. It provides financial protection for the insured's family by ensuring that the outstanding mortgage balance is cleared, allowing them to remain in the home without the burden of repayments.
- Coverage Amount: The amount of coverage is typically equal to the outstanding mortgage balance.
- Term Length: The policy term is usually matched to the remaining loan term.
- Premiums: Premiums can be level or decreasing over the policy term.
- Beneficiary: The beneficiary is typically the mortgage lender, ensuring funds are directly used to pay off the loan.
- Underwriting: Simplified underwriting process with no medical exams required, in most cases.
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810votesThis policy covers the cost of funeral and burial expenses. It's a good choice for those who want to ensure their loved ones don't have to worry about these costs when they pass away.DescriptionFinal Expense Insurance is a type of life insurance policy that is specifically designed to cover end-of-life expenses, such as funeral costs, medical bills, and outstanding debts. It provides financial protection to the policyholder's family or beneficiaries by ensuring that these expenses are taken care of after their passing. This policy offers a straightforward application process and does not require a medical exam, making it an accessible option for individuals seeking coverage in their later years.
- Coverage Amount: Typically ranges from $5,000 to $50,000
- Age Limit: Usually available for individuals aged 50 to 85
- Premiums: Payments can be made monthly, quarterly, or annually
- No Medical Exam: Does not require a medical examination or extensive health questions
- Guaranteed Acceptance: No one can be turned down due to health conditions
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911votesThis policy doesn't require a medical exam and is guaranteed to be issued to the applicant. It's a good choice for those who have health issues that may make it difficult to get traditional life insurance coverage.DescriptionGuaranteed Issue Life Insurance is a type of life insurance policy that is designed to provide coverage to individuals without requiring a medical exam or health questionnaire. This policy is typically aimed at individuals who may have difficulty obtaining traditional life insurance due to pre-existing health conditions or other factors. It offers a simplified application process and guarantees coverage as long as the premium payments are made.
- No medical exam: No medical examination or health questionnaire is required for application.
- Guaranteed coverage: Coverage is guaranteed as long as premium payments are made.
- Age restrictions: Typically available to individuals within a certain age range, often 50-85 years old.
- Coverage amount: Lower coverage amounts compared to traditional life insurance policies, often ranging from $5,000 to $25,000.
- Premiums: Premiums are usually higher than those for traditional life insurance due to the higher risk associated with no medical underwriting.
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104votesThis policy doesn't require a medical exam but does require the applicant to answer a few health-related questions. It's a good choice for those who want a quick and easy application process but still want some underwriting.DescriptionSimplified Issue Life Insurance is a type of life insurance policy that offers a streamlined application process, with no medical exams required. It is designed to provide quick coverage for individuals who may not qualify for traditional life insurance due to health conditions or other factors.
- Eligibility: Available for individuals aged typically between 18 and 65
- Coverage Amount: Typically ranges from $5,000 to $500,000
- Application Process: Simple and straightforward application with no medical exams
- Health Questions: Applicants are required to answer a few health-related questions
- Premiums: Premiums are generally higher compared to fully underwritten policies
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Discussion
Ranking factors for popular life insurance policy
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Type of policyTerm life, whole life, universal life, and variable life are the main types of life insurance policies. Assess the specific features, benefits, and drawbacks of each type to understand their popularity among consumers.
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AffordabilityCost is a crucial factor in choosing a life insurance policy. Compare the premiums, payment flexibility, and potential cash value growth (if applicable) of the policies to determine their affordability.
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Coverage amountA sufficient coverage amount ensures the policy meets the financial needs of the beneficiaries. Compare the death benefits provided by different policies to gauge their popularity.
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Policy termThe length of the policy is essential, particularly for term life insurance. A popular policy should offer a range of terms to meet diverse customer needs.
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Riders and add-onsThe availability of optional riders and add-ons, such as accidental death benefit, waiver of premium, and long-term care riders, can enhance a policy's benefits and appeal.
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Financial strength of the insurerA strong financial rating indicates the insurance company's ability to fulfill its policy obligations. Check the financial strength ratings assigned by rating agencies like A.M. Best or Standard & Poor's.
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Customer service and claims processThe ease of the application process, the insurer's reputation for handling claims fairly and promptly, and the quality of customer support can impact a policy's popularity.
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Conversion optionsIf a term life policy allows for conversion to a permanent policy without further underwriting, it may be more appealing to consumers.
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Policy loans and withdrawalsThe ability to access cash value in whole life, universal life, or variable life insurance policies through loans or withdrawals can make them more attractive.
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Dividend optionsPolicies that offer dividends, typically in participating whole life or universal life, may be of greater interest to consumers as they can potentially receive a portion of the insurer's profits in the form of dividends.
About this ranking
This is a community-based ranking of the most popular life insurance policy. We do our best to provide fair voting, but it is not intended to be exhaustive. So if you notice something or policy is missing, feel free to help improve the ranking!
Statistics
- 1390 views
- 186 votes
- 10 ranked items
Movers & Shakers
Voting Rules
A participant may cast an up or down vote for each policy once every 24 hours. The rank of each policy is then calculated from the weighted sum of all up and down votes.
More information on most popular life insurance policy
Life insurance policies are an important aspect of financial planning, providing a safety net for loved ones in the event of unexpected circumstances. There are various types of life insurance policies available, each with its own features and benefits. The most popular types of life insurance policies include term life insurance, whole life insurance, and universal life insurance.
Term life insurance provides coverage for a specific period of time, usually ranging from 10 to 30 years. It is often the most affordable option, making it a popular choice for those on a budget. Whole life insurance, on the other hand, offers lifelong coverage and accumulates cash value over time. This type of policy is often more expensive but offers long-term benefits.
Universal life insurance combines the features of both term and whole life insurance, providing flexible coverage and the ability to accumulate cash value. It offers the option to adjust the death benefit and premium payments, making it a popular choice for those seeking more control over their policy.
Choosing the right life insurance policy depends on individual circumstances and needs. Factors such as age, health, and financial goals should be considered when selecting the best policy for you and your loved ones.
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