When it comes to life insurance, Clark always recommends keeping it simple—and simple means level term life insurance.
Not familiar with level term life insurance? It only pays a death benefit and doesn’t pretend to be an investment like a universal or variable life policy. Term life insurance does one job and one job only: It offers income replacement for your survivors in the event of your death.
Ladder is a new entrant to the online life insurance marketplace
There’s a new startup called Ladder that aims to simplify the process of shopping online for term life insurance.
Ladder cuts out commissioned sales agents so you can apply for insurance online and not have to worry about annoying follow-up calls and emails trying to solicit your business.
It only takes about 10 minutes to complete the application process and get a quote.
Since the insurance policy not tied to your job, it’s completely portable and you can take it with you when you change jobs.
Here’s another nice feature of Ladder: You don’t have to submit blood or urine tests because Ladder uses third-party data sources, like listings of prescription-drug histories, to assess your risk level.
Unfortunately, Ladder is only available for California residents at this time. But expansion plans are in the works and you can enter your email to be alerted when Ladder gets to your state.
Ladder is far from the only player in the online insurance marketplace. HealthIQ, HavenLife.com, Quotacy.com, PolicyGenius.com, 1stOptionInsurance.com, Insure.com, AccuQuote.com and QualityTermLife.com are all other options for you to shop with.
Meanwhile, if you’ve got questions about term life insurance, we’ve got answers!
Can I actually afford life insurance?
Yes! One non-profit insurance industry group says that a healthy 30-year-old man can get a $250,000 level-term policy for 20 years at a cost of less than $13 a month.
That’s around $150 a year…and the price never goes up with a level-term policy!
How much coverage should I buy?
When it comes to the question of how much you should buy, people can get crazy with all kinds of complicated formulas. Clark says that you should buy six to 10 times your annual income.
Should I get it through work?
This is a popular option for a lot of people. But it’s often better to qualify on your own and go through medical underwriting so you can buy a policy independent of your employer.
The reality is most of us don’t stay at the same place forever and you may not have a right to take that insurance with you.
Do I really need it?
Does somebody depend on you? Do you have young kids or a spouse or significant other that depends on you financially? Then you need life insurance!
And don’t forget about stay-at-home spouses. Should a stay-at-home spouse pass away, the remaining parent would have to suddenly pay for childcare and everything else a stay-at-home parent does on a day-to-day basis. That’s why it’s essential the parent at home have a policy too.
Don’t have any one who financially depends on you? That’s the only time you don’t need a policy.
Read more: Why millennials need life insurance