[{"data":1,"prerenderedAt":2744},["Reactive",2],{"/":3},{"data":4,"headers":2717,"perPage":2743,"total":921},{"stories":5,"cv":2714,"rels":2715,"links":2716},[6,776,1959],{"name":7,"created_at":8,"published_at":9,"updated_at":10,"id":11,"uuid":12,"content":13,"slug":766,"full_slug":767,"sort_by_date":69,"position":768,"tag_list":769,"is_startpage":28,"parent_id":770,"meta_data":69,"group_id":771,"first_published_at":772,"release_id":69,"lang":773,"path":774,"alternates":775,"default_full_slug":69,"translated_slugs":69},"Does Credit Score Affect Car Insurance?","2025-04-07T18:30:23.044Z","2025-12-26T13:44:59.193Z","2025-12-26T13:44:59.266Z",651798161,"5fa3b7df-270c-4450-9cf2-1a6e969bf719",{"seo":14,"_uid":20,"hero":21,"author":30,"category":31,"featured":28,"imageAlt":18,"component":32,"blogContents":33,"canonicalTag":763,"publishedDate":764,"_editable":765},{"_uid":15,"title":16,"plugin":17,"og_image":18,"og_title":18,"description":19,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"77316249-bb90-485a-9a34-facfdf611141","Does Credit Score Affect Car Insurance? | Navient Marketplace","seo_metatags","","Your credit score can impact your car insurance rate. Learn how credit-based insurance scores work, and what you can do about it.","39f3568e-f888-4c3e-816f-3647f7efec59",[22],{"id":18,"_uid":23,"image":24,"intro":19,"classes":18,"_editable":25,"blogTitle":7,"component":26,"imageLink":27,"blendImage":28,"backgroundColor":29},"ee81b4ff-6c03-4123-98ae-73405dea4592","//a.storyblok.com/f/110029/4800x3200/737bc2c543/does-credit-score-affect-car-insurance.png","\u003C!--#storyblok#{\"name\": \"NriBlogHero\", \"space\": \"157494\", \"uid\": \"ee81b4ff-6c03-4123-98ae-73405dea4592\", \"id\": \"651798161\"}-->","NriBlogHero","/images/does-credit-score-affect-car-insurance.png",false,"#F6F2F7","grace-guido","Insurance","NriBlogPost",[34],{"_uid":35,"color":36,"richText":37,"_editable":761,"component":762},"67b1c1a7-fbb7-4c3c-a267-87dc959687fb","#444444",{"type":38,"content":39},"doc",[40,55,82,89,101,117,126,133,184,185,192,213,222,229,307,308,315,324,351,372,379,424,425,432,441,448,455,476,485,506,599,608,615,723,732,752],{"type":41,"content":42},"paragraph",[43],{"text":44,"type":45,"marks":46},"Navient may receive compensation when you click on links associated with this Navient Marketplace. Navient is not being compensated for any application, quotation, or the purchase of any financial products.","text",[47,51],{"type":48,"attrs":49},"styled",{"class":50},"footer-text",{"type":52,"attrs":53},"textStyle",{"color":54},"rgb(0, 0, 0)",{"type":41,"content":56},[57,62,77],{"text":58,"type":45,"marks":59},"Car insurance can be a considerable expense, and you may be wondering how your credit score can impact your car insurance rate. On average, a driver with bad credit will ",[60],{"type":52,"attrs":61},{"color":54},{"text":63,"type":45,"marks":64},"pay 71% more",[65,72,75],{"type":66,"attrs":67},"link",{"href":68,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.carinsurance.com/worst-states-for-drivers-with-bad-credit",null,"_blank","url",{"type":52,"attrs":73},{"color":74},"rgb(17, 85, 204)",{"type":76},"underline",{"text":78,"type":45,"marks":79}," than a driver with good credit. That can come out to about $1,000 more annually. ",[80],{"type":52,"attrs":81},{"color":54},{"type":41,"content":83},[84],{"text":85,"type":45,"marks":86},"In addition to your credit history, several factors contribute to your rate, including your age, driving habits, and car type. ",[87],{"type":52,"attrs":88},{"color":54},{"type":90,"attrs":91,"content":93},"heading",{"level":92},2,[94],{"text":95,"type":45,"marks":96},"How Does Credit Score Affect Insurance Rates? ",[97,99],{"type":98},"bold",{"type":52,"attrs":100},{"color":54},{"type":41,"content":102},[103,112],{"text":104,"type":45,"marks":105},"90% of auto insurance companies",[106,109,111],{"type":66,"attrs":107},{"href":108,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://lawecommons.luc.edu/cgi/viewcontent.cgi?referer=&httpsredir=1&article=1169&context=lclr",{"type":52,"attrs":110},{"color":74},{"type":76},{"text":113,"type":45,"marks":114}," consider a driver’s credit history when determining insurance rates. Drivers with good credit are much more likely to receive a better insurance rate than drivers with poor credit. It can be the difference of hundreds of dollars a month. ",[115],{"type":52,"attrs":116},{"color":54},{"type":90,"attrs":118,"content":119},{"level":92},[120],{"text":121,"type":45,"marks":122},"How Is Your Credit Score Calculated? ",[123,124],{"type":98},{"type":52,"attrs":125},{"color":54},{"type":41,"content":127},[128],{"text":129,"type":45,"marks":130},"A number of factors determine your FICO credit score: ",[131],{"type":52,"attrs":132},{"color":54},{"type":134,"attrs":135,"content":137},"ordered_list",{"order":136},1,[138,148,157,166,175],{"type":139,"content":140},"list_item",[141],{"type":41,"content":142},[143],{"text":144,"type":45,"marks":145},"Payment history: 35%",[146],{"type":52,"attrs":147},{"color":54},{"type":139,"content":149},[150],{"type":41,"content":151},[152],{"text":153,"type":45,"marks":154},"Debt owed: 30%",[155],{"type":52,"attrs":156},{"color":54},{"type":139,"content":158},[159],{"type":41,"content":160},[161],{"text":162,"type":45,"marks":163},"Length of credit history: 15%",[164],{"type":52,"attrs":165},{"color":54},{"type":139,"content":167},[168],{"type":41,"content":169},[170],{"text":171,"type":45,"marks":172},"Types of credit used: 10%",[173],{"type":52,"attrs":174},{"color":54},{"type":139,"content":176},[177],{"type":41,"content":178},[179],{"text":180,"type":45,"marks":181},"New credit: 10%",[182],{"type":52,"attrs":183},{"color":54},{"type":41},{"type":41,"content":186},[187],{"text":188,"type":45,"marks":189},"Credit scores range from 300 to 850. A higher credit score indicates a better credit history. With a higher credit score, you can expect lower rates on credit and better chances of credit approval. ",[190],{"type":52,"attrs":191},{"color":54},{"type":41,"content":193},[194,199,208],{"text":195,"type":45,"marks":196},"You can ",[197],{"type":52,"attrs":198},{"color":54},{"text":200,"type":45,"marks":201},"check your credit report",[202,205,207],{"type":66,"attrs":203},{"href":204,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.annualcreditreport.com/index.action",{"type":52,"attrs":206},{"color":74},{"type":76},{"text":209,"type":45,"marks":210}," once a year from each of the three credit bureaus for free. ",[211],{"type":52,"attrs":212},{"color":54},{"type":90,"attrs":214,"content":215},{"level":92},[216],{"text":217,"type":45,"marks":218},"How To Improve Your Credit Score",[219,220],{"type":98},{"type":52,"attrs":221},{"color":54},{"type":41,"content":223},[224],{"text":225,"type":45,"marks":226},"Improving your credit score can make a major difference if you are looking for ways to reduce your auto insurance rate. Here are some ways to improve your credit score over time: ",[227],{"type":52,"attrs":228},{"color":54},{"type":134,"attrs":230,"content":231},{"order":136},[232,242,252,278,297],{"type":139,"content":233},[234],{"type":41,"content":235},[236],{"text":237,"type":45,"marks":238},"Make all credit payments on time",[239,240],{"type":98},{"type":52,"attrs":241},{"color":54},{"type":139,"content":243},[244],{"type":41,"content":245},[246],{"text":247,"type":45,"marks":248},"Pay off all late payments as soon as possible ",[249,250],{"type":98},{"type":52,"attrs":251},{"color":54},{"type":139,"content":253},[254],{"type":41,"content":255},[256,262,272],{"text":257,"type":45,"marks":258},"Lower your ",[259,260],{"type":98},{"type":52,"attrs":261},{"color":54},{"text":263,"type":45,"marks":264},"debt-to-income ratio",[265,268,269,271],{"type":66,"attrs":266},{"href":267,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-to-income-ratio-en-1791/",{"type":98},{"type":52,"attrs":270},{"color":74},{"type":76},{"text":273,"type":45,"marks":274}," by paying off current debt",[275,276],{"type":98},{"type":52,"attrs":277},{"color":54},{"type":139,"content":279},[280],{"type":41,"content":281},[282,291],{"text":283,"type":45,"marks":284},"Check your credit report",[285,287,288,290],{"type":66,"attrs":286},{"href":204,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":98},{"type":52,"attrs":289},{"color":74},{"type":76},{"text":292,"type":45,"marks":293}," to ensure all credit information is accurate",[294,295],{"type":98},{"type":52,"attrs":296},{"color":54},{"type":139,"content":298},[299],{"type":41,"content":300},[301],{"text":302,"type":45,"marks":303},"Refrain from taking on additional debt",[304,305],{"type":98},{"type":52,"attrs":306},{"color":54},{"type":41},{"type":41,"content":309},[310],{"text":311,"type":45,"marks":312},"Improving your credit score can seem like a daunting and time-consuming task. However, it will be worth it in the long run. You can potentially lower your auto insurance rate and improve loan terms and rates across all credit types. ",[313],{"type":52,"attrs":314},{"color":54},{"type":90,"attrs":316,"content":317},{"level":92},[318],{"text":319,"type":45,"marks":320},"Credit Score vs. Credit-Based Insurance Score",[321,322],{"type":98},{"type":52,"attrs":323},{"color":54},{"type":41,"content":325},[326,331,340,345],{"text":327,"type":45,"marks":328},"In most states, car insurance companies will calculate a ",[329],{"type":52,"attrs":330},{"color":54},{"text":332,"type":45,"marks":333},"credit-based auto insurance score",[334,337,339],{"type":66,"attrs":335},{"href":336,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://disb.dc.gov/page/how-insurance-company-can-use-your-credit-score-determine-your-premium",{"type":52,"attrs":338},{"color":74},{"type":76},{"text":341,"type":45,"marks":342}," using your credit history. In states where it is a legal practice, ",[343],{"type":52,"attrs":344},{"color":54},{"text":346,"type":45,"marks":347},"your credit-based auto insurance score will be a factor used to determine your rates. ",[348,349],{"type":98},{"type":52,"attrs":350},{"color":54},{"type":41,"content":352},[353,358,367],{"text":354,"type":45,"marks":355},"A ",[356],{"type":52,"attrs":357},{"color":54},{"text":359,"type":45,"marks":360},"commonly cited Federal Trade Commission study",[361,364,366],{"type":66,"attrs":362},{"href":363,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.ftc.gov/sites/default/files/documents/reports/credit-based-insurance-scores-impacts-consumers-automobile-insurance-report-congress-federal-trade/p044804facta_report_credit-based_insurance_scores.pdf",{"type":52,"attrs":365},{"color":74},{"type":76},{"text":368,"type":45,"marks":369}," shows the correlation between credit and the likelihood that a driver will file for insurance claims. Since drivers with better credit are statistically less likely to file a claim, they will receive better auto insurance rates than drivers with lower credit scores. ",[370],{"type":52,"attrs":371},{"color":54},{"type":41,"content":373},[374],{"text":375,"type":45,"marks":376},"Your credit-based auto insurance score is calculated differently than your credit score. Here is how insurers calculate your credit-based auto insurance score: ",[377],{"type":52,"attrs":378},{"color":54},{"type":134,"attrs":380,"content":381},{"order":136},[382,391,399,407,415],{"type":139,"content":383},[384],{"type":41,"content":385},[386],{"text":387,"type":45,"marks":388},"Payment history: 40%",[389],{"type":52,"attrs":390},{"color":54},{"type":139,"content":392},[393],{"type":41,"content":394},[395],{"text":153,"type":45,"marks":396},[397],{"type":52,"attrs":398},{"color":54},{"type":139,"content":400},[401],{"type":41,"content":402},[403],{"text":162,"type":45,"marks":404},[405],{"type":52,"attrs":406},{"color":54},{"type":139,"content":408},[409],{"type":41,"content":410},[411],{"text":180,"type":45,"marks":412},[413],{"type":52,"attrs":414},{"color":54},{"type":139,"content":416},[417],{"type":41,"content":418},[419],{"text":420,"type":45,"marks":421},"Types of credit used: 5%",[422],{"type":52,"attrs":423},{"color":54},{"type":41},{"type":41,"content":426},[427],{"text":428,"type":45,"marks":429},"There are states that prohibit the use of credit in determining car insurance rates. California, Michigan, Hawaii, and Massachusetts have made this practice illegal. However, in all other states, your credit-based auto insurance score and credit history can be used as a factor in determining your rate. ",[430],{"type":52,"attrs":431},{"color":54},{"type":90,"attrs":433,"content":434},{"level":92},[435],{"text":436,"type":45,"marks":437},"How Getting A Car Insurance Quote Will Impact Your Credit Score",[438,439],{"type":98},{"type":52,"attrs":440},{"color":54},{"type":41,"content":442},[443],{"text":444,"type":45,"marks":445},"Insurance quotes will not hurt your credit score. Insurers will check your credit during the process of determining your insurance quote, but it will be a soft pull.",[446],{"type":52,"attrs":447},{"color":54},{"type":41,"content":449},[450],{"text":451,"type":45,"marks":452},"A soft pull does not show up on your credit report or hurt your credit score. A hard pull, however, will hurt your credit score if you have many within a short period of time. The hard pull will impact your credit because you are actively applying for credit, whereas a soft pull is used for preapproved offers. ",[453],{"type":52,"attrs":454},{"color":54},{"type":41,"content":456},[457,462,471],{"text":458,"type":45,"marks":459},"Before getting a quote or applying for insurance, understand whether a ",[460],{"type":52,"attrs":461},{"color":54},{"text":463,"type":45,"marks":464},"soft or hard credit pull",[465,468,470],{"type":66,"attrs":466},{"href":467,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.sba.gov/blog/credit-inquiries-what-you-should-know-about-hard-soft-pulls",{"type":52,"attrs":469},{"color":74},{"type":76},{"text":472,"type":45,"marks":473}," is required. ",[474],{"type":52,"attrs":475},{"color":54},{"type":90,"attrs":477,"content":478},{"level":92},[479],{"text":480,"type":45,"marks":481},"Other Factors That Determine Your Auto Insurance Rate",[482,483],{"type":98},{"type":52,"attrs":484},{"color":54},{"type":41,"content":486},[487,492,501],{"text":488,"type":45,"marks":489},"Besides your credit-based auto insurance score, there are ",[490],{"type":52,"attrs":491},{"color":54},{"text":493,"type":45,"marks":494},"several other factors",[495,498,500],{"type":66,"attrs":496},{"href":497,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.opic.texas.gov/news/car-insurance-rate/",{"type":52,"attrs":499},{"color":74},{"type":76},{"text":502,"type":45,"marks":503}," that impact your insurance rate: ",[504],{"type":52,"attrs":505},{"color":54},{"type":507,"content":508},"bullet_list",[509,524,539,554,569,584],{"type":139,"content":510},[511],{"type":41,"content":512},[513,519],{"text":514,"type":45,"marks":515},"Driving record: ",[516,517],{"type":98},{"type":52,"attrs":518},{"color":54},{"text":520,"type":45,"marks":521},"Your driving history will greatly impact auto insurance rates. A clean record with no accidents or traffic violations will likely result in lower rates. ",[522],{"type":52,"attrs":523},{"color":54},{"type":139,"content":525},[526],{"type":41,"content":527},[528,534],{"text":529,"type":45,"marks":530},"Demographics: ",[531,532],{"type":98},{"type":52,"attrs":533},{"color":54},{"text":535,"type":45,"marks":536},"Age, gender, and marital status may impact your insurance rates. Younger and less experienced drivers will have higher insurance rates because they are considered to be a greater risk.",[537],{"type":52,"attrs":538},{"color":54},{"type":139,"content":540},[541],{"type":41,"content":542},[543,549],{"text":544,"type":45,"marks":545},"Where you live: ",[546,547],{"type":98},{"type":52,"attrs":548},{"color":54},{"text":550,"type":45,"marks":551},"Residing in a location with higher traffic or frequent accidents may raise your rates. ",[552],{"type":52,"attrs":553},{"color":54},{"type":139,"content":555},[556],{"type":41,"content":557},[558,564],{"text":559,"type":45,"marks":560},"Vehicle type: ",[561,562],{"type":98},{"type":52,"attrs":563},{"color":54},{"text":565,"type":45,"marks":566},"Make, model, year, and safety features of your car will be considered. More expensive vehicles may have higher insurance premiums. ",[567],{"type":52,"attrs":568},{"color":54},{"type":139,"content":570},[571],{"type":41,"content":572},[573,579],{"text":574,"type":45,"marks":575},"Usage: ",[576,577],{"type":98},{"type":52,"attrs":578},{"color":54},{"text":580,"type":45,"marks":581},"The purpose of your vehicle, whether for personal, commuting, or business reasons, can impact your rate. ",[582],{"type":52,"attrs":583},{"color":54},{"type":139,"content":585},[586],{"type":41,"content":587},[588,594],{"text":589,"type":45,"marks":590},"Type of insurance, coverage options, and deductibles: ",[591,592],{"type":98},{"type":52,"attrs":593},{"color":54},{"text":595,"type":45,"marks":596},"These factors are specific to the insurance plan. ",[597],{"type":52,"attrs":598},{"color":54},{"type":90,"attrs":600,"content":601},{"level":92},[602],{"text":603,"type":45,"marks":604},"How To Get A Better Deal On Your Car Insurance",[605,606],{"type":98},{"type":52,"attrs":607},{"color":54},{"type":41,"content":609},[610],{"text":611,"type":45,"marks":612},"If you are working on improving your credit score to get a more favorable insurance rate, there are some other steps you can take in the meantime: ",[613],{"type":52,"attrs":614},{"color":54},{"type":134,"attrs":616,"content":618},{"order":617},{"order":136},[619,648,663,678,693,708],{"type":139,"content":620},[621],{"type":41,"content":622},[623,629,634,643],{"text":624,"type":45,"marks":625},"Shop around for a better rate: ",[626,627],{"type":98},{"type":52,"attrs":628},{"color":54},{"text":630,"type":45,"marks":631},"You may be able to find a better deal on your car insurance. ",[632],{"type":52,"attrs":633},{"color":54},{"text":635,"type":45,"marks":636},"Use Navient Marketplace",[637,640,642],{"type":66,"attrs":638},{"href":639,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://marketplace.navient.com/",{"type":52,"attrs":641},{"color":74},{"type":76},{"text":644,"type":45,"marks":645}," to compare offers from insurance companies. ",[646],{"type":52,"attrs":647},{"color":54},{"type":139,"content":649},[650],{"type":41,"content":651},[652,658],{"text":653,"type":45,"marks":654},"Contact your insurance agent: ",[655,656],{"type":98},{"type":52,"attrs":657},{"color":54},{"text":659,"type":45,"marks":660},"Speak with your agent to see if there is anything you can do to lower your current rate. ",[661],{"type":52,"attrs":662},{"color":54},{"type":139,"content":664},[665],{"type":41,"content":666},[667,673],{"text":668,"type":45,"marks":669},"Practice responsible driving:",[670,671],{"type":98},{"type":52,"attrs":672},{"color":54},{"text":674,"type":45,"marks":675}," A clean driving record makes a driver less likely to file an insurance claim. You may qualify for discounts for going a certain number of years without any accidents or traffic tickets. ",[676],{"type":52,"attrs":677},{"color":54},{"type":139,"content":679},[680],{"type":41,"content":681},[682,688],{"text":683,"type":45,"marks":684},"Consider your car choice: ",[685,686],{"type":98},{"type":52,"attrs":687},{"color":54},{"text":689,"type":45,"marks":690},"If you are in the market for a new car, the type of car you get will impact your insurance rate. Some vehicles are more expensive to repair or more prone to theft. Before choosing a new car, check with your insurance company to see how that may change your rate. ",[691],{"type":52,"attrs":692},{"color":54},{"type":139,"content":694},[695],{"type":41,"content":696},[697,703],{"text":698,"type":45,"marks":699},"Get rid of unnecessary coverage:",[700,701],{"type":98},{"type":52,"attrs":702},{"color":54},{"text":704,"type":45,"marks":705}," Examine your insurance pricing and policy to see if you can cut down on unnecessary coverage such as comprehensive and collision coverage on older cars. ",[706],{"type":52,"attrs":707},{"color":54},{"type":139,"content":709},[710],{"type":41,"content":711},[712,718],{"text":713,"type":45,"marks":714},"Get a usage-based insurance (UBI) policy: ",[715,716],{"type":98},{"type":52,"attrs":717},{"color":54},{"text":719,"type":45,"marks":720},"UBI plans more accurately assess your risk and can lower your monthly payments. If you are a responsible driver and can cut back on driving, this type of plan may benefit you. ",[721],{"type":52,"attrs":722},{"color":54},{"type":90,"attrs":724,"content":725},{"level":92},[726],{"text":727,"type":45,"marks":728},"Compare Auto Insurance Offers",[729,730],{"type":98},{"type":52,"attrs":731},{"color":54},{"type":41,"content":733},[734,739,747],{"text":735,"type":45,"marks":736},"Navient Marketplace makes it easy to see auto insurance offers from top insurers. ",[737],{"type":52,"attrs":738},{"color":54},{"text":740,"type":45,"marks":741},"Compare auto insurance offers",[742,744,746],{"type":66,"attrs":743},{"href":639,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":745},{"color":74},{"type":76},{"text":748,"type":45,"marks":749}," on Navient Marketplace today! ",[750],{"type":52,"attrs":751},{"color":54},{"type":41,"content":753},[754],{"text":755,"type":45,"marks":756},"Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.",[757,759],{"type":48,"attrs":758},{"class":50},{"type":52,"attrs":760},{"color":54},"\u003C!--#storyblok#{\"name\": \"BlogText\", \"space\": \"157494\", \"uid\": \"67b1c1a7-fbb7-4c3c-a267-87dc959687fb\", \"id\": \"651798161\"}-->","BlogText","https://www.marketplace.navient.com/blog/does-credit-score-affect-car-insurance/","Updated: September 20, 2023","\u003C!--#storyblok#{\"name\": \"NriBlogPost\", \"space\": \"157494\", \"uid\": \"39f3568e-f888-4c3e-816f-3647f7efec59\", \"id\": \"651798161\"}-->","does-credit-score-affect-car-insurance","navient_marketplace/blog/does-credit-score-affect-car-insurance",-500,[],651751493,"db6c0fc2-18bf-4cc9-9d4e-298208cac91c","2023-09-26T16:17:12.664Z","default","blog/does-credit-score-affect-car-insurance/",[],{"name":777,"created_at":778,"published_at":779,"updated_at":780,"id":781,"uuid":782,"content":783,"slug":1952,"full_slug":1953,"sort_by_date":69,"position":1954,"tag_list":1955,"is_startpage":28,"parent_id":770,"meta_data":69,"group_id":1956,"first_published_at":1957,"release_id":69,"lang":773,"path":69,"alternates":1958,"default_full_slug":69,"translated_slugs":69},"Benefits and Disadvantages of Term Life Insurance","2025-04-07T18:31:36.056Z","2025-12-26T13:45:15.635Z","2025-12-26T13:45:15.676Z",651798208,"8e911b48-50ac-49a8-8b4e-6957c8d70513",{"seo":784,"_uid":788,"body":789,"author":815,"category":31,"featured":28,"component":1949,"canonicalTag":1950,"_editable":1951},{"_uid":785,"title":786,"plugin":17,"og_image":18,"og_title":18,"description":787,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"6e279110-4da0-48c0-8e96-3269c04f3ee5","Benefits and Disadvantages of Term Life Insurance - Navient Marketplace","What are the benefits of term life insurance? Affordable, flexible, and tax-free. Learn the rest here, along with disadvantages and alternatives.","24614723-3c23-4d4f-990b-c49a1b45edce",[790,818,1924],{"id":791,"_uid":792,"image":793,"intro":794,"author":795,"classes":796,"category":18,"featured":28,"blogTitle":777,"component":813,"imageLink":814,"blendImage":28,"authorRoute":815,"publishedDate":816,"backgroundColor":29,"_editable":817},"blog-hero","02557530-adb9-49fb-9319-277497a70cb8","//a.storyblok.com/f/110029/800x471/227172a6b5/benefits-of-term-life-insurance.png","Term life insurance is both flexible and budget-friendly. Here’s how to determine whether or not it’s the right fit for you.","Curt Kirby",[797],{"_uid":798,"component":799,"titleColor":800,"dateClasses":801,"titleClasses":802,"authorClasses":803,"subtitleColor":804,"titleMaxWidth":805,"subtitleClasses":806,"dateMobileClasses":807,"titleMobileClasses":808,"authorMobileClasses":809,"featuredMobileClasses":810,"subtitleMobileClasses":811,"_editable":812},"6bc0d925-925b-40e2-8cb5-ac30d0086187","BlogHeroStyle","#470A68","text-subtitle-2 mt-7 accent--text text--darken-2","text-h4 mt-6 font-weight-bold","text-size-sub-1 mt-7 accent--text text--darken-4","#75478E","600","text-h6 mt-n6 blog-post-subtitle","text-size-caption mt-4 accent--text text--darken-2","text-size-button-3 font-weight-bold","text-size-sub-1 mt-4 accent--text text--darken-4","text-size-sub-1 accent--text","text-size-sub-1 mt-n9 pt-5","\u003C!--#storyblok#{\"name\": \"BlogHeroStyle\", \"space\": \"157494\", \"uid\": \"6bc0d925-925b-40e2-8cb5-ac30d0086187\", \"id\": \"651798208\"}-->","BlogHero","/images/benefits-of-term-life-insurance.png","curt-kirby","Updated: April 27, 2023","\u003C!--#storyblok#{\"name\": \"BlogHero\", \"space\": \"157494\", \"uid\": \"02557530-adb9-49fb-9319-277497a70cb8\", \"id\": \"651798208\"}-->",{"_uid":819,"bloks":820,"classes":1920,"component":1921,"mobileClasses":18,"containerContent":1922,"_editable":1923},"222843d6-4c0d-4ac3-aa5f-7f579c49c5fe",[821],{"_uid":822,"bloks":823,"classes":18,"justify":1463,"component":1918,"mobileClasses":18,"_editable":1919},"0737a92f-e416-438d-b8db-1c0e86499923",[824,1466,1515,1627],{"lg":825,"md":825,"sm":826,"_uid":827,"cols":826,"bloks":828,"alignSelf":1463,"component":1464,"_editable":1465},"7","12","c286affa-ee04-4348-8508-6e9f77932903",[829],{"_uid":830,"color":36,"classes":831,"content":18,"richText":832,"component":1456,"mobileClasses":1457,"enableRichText":1458,"richTextMobile":1459,"_editable":1462},"a64c4df0-154e-4c12-b867-678d292709f4","blog-post-text blog-post-headers",{"type":38,"content":833},[834,843,850,859,875,882,889,898,919,928,935,942,950,957,965,986,993,1001,1008,1016,1037,1045,1052,1061,1068,1076,1083,1091,1112,1120,1127,1135,1148,1156,1163,1172,1193,1206,1219,1246,1259,1268,1289,1365,1374,1394],{"type":41,"content":835},[836],{"text":44,"type":45,"marks":837},[838,840],{"type":48,"attrs":839},{"class":50},{"type":52,"attrs":841},{"color":842},"#000000",{"type":41,"content":844},[845],{"text":846,"type":45,"marks":847},"When you have loved ones depending on you for their livelihoods, life insurance can provide invaluable peace of mind. However, not everyone can afford the high premiums and committing contracts of traditional life insurance. Term life insurance, on the other hand, is both flexible and budget-friendly. If you’re looking for immediate, short-term coverage — either because you only need to cover your dependents for a certain number of years, or because you expect your financial situation to change — term life might be your solution. Here’s how to determine whether or not it’s the right fit for you. ",[848],{"type":52,"attrs":849},{"color":842},{"type":90,"attrs":851,"content":852},{"level":92},[853],{"text":854,"type":45,"marks":855},"What is term life insurance?",[856,857],{"type":98},{"type":52,"attrs":858},{"color":842},{"type":41,"content":860},[861,870],{"text":862,"type":45,"marks":863},"Term life insurance",[864,867,869],{"type":66,"attrs":865},{"href":866,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.nerdwallet.com/article/insurance/what-is-term-life-insurance",{"type":52,"attrs":868},{"color":842},{"type":76},{"text":871,"type":45,"marks":872}," is a type of coverage that helps protect against the financial hardship that can be caused by the sudden death of a breadwinner. In exchange for monthly payments, providers pay out a set amount in the event of your untimely passing.",[873],{"type":52,"attrs":874},{"color":69},{"type":41,"content":876},[877],{"text":878,"type":45,"marks":879},"What makes term life insurance unique is that it has an expiration date. With whole life insurance, you keep paying your premiums for your entire life, but with term life insurance, you only pay premiums up until a predetermined end date. At that point, your term coverage ends. ",[880],{"type":52,"attrs":881},{"color":842},{"type":41,"content":883},[884],{"text":885,"type":45,"marks":886},"Since most people only need life insurance coverage until they reach retirement age or their dependents are old enough to take care of themselves, they’ll stop paying premiums once they reach that milestone. After that, most people move on to other types of insurance, such as permanent or universal life insurance. ",[887],{"type":52,"attrs":888},{"color":69},{"type":90,"attrs":890,"content":891},{"level":92},[892],{"text":893,"type":45,"marks":894},"The benefits of term life insurance ",[895,896],{"type":98},{"type":52,"attrs":897},{"color":842},{"type":41,"content":899},[900,905,914],{"text":901,"type":45,"marks":902},"From flexible payment terms to lower premiums, term ",[903],{"type":52,"attrs":904},{"color":842},{"text":906,"type":45,"marks":907},"life insurance has plenty of perks",[908,911,913],{"type":66,"attrs":909},{"href":910,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.newyorklife.com/articles/six-reasons-to-buy-life-insurance",{"type":52,"attrs":912},{"color":69},{"type":76},{"text":915,"type":45,"marks":916},". Here are a few of the benefits to consider. ",[917],{"type":52,"attrs":918},{"color":69},{"type":90,"attrs":920,"content":922},{"level":921},3,[923],{"text":924,"type":45,"marks":925},"More coverage options available ",[926],{"type":52,"attrs":927},{"color":842},{"type":41,"content":929},[930],{"text":931,"type":45,"marks":932},"Unlike a whole life policy, term coverage is temporary. This means you can take out a policy for almost any period of time you wish. Most insurance providers offer policy terms ranging from 5 to 30 years. So, a couple with young children, for example, may want to take out a policy with a 20- or 30-year term, which will cover the kids until they’re out of the house (and/or out of college). ",[933],{"type":52,"attrs":934},{"color":842},{"type":41,"content":936},[937],{"text":938,"type":45,"marks":939},"Conversely, a newly married person with student debt might want to take a shorter policy — maybe a 10-year term — to protect their partner in case they pass away before paying off their loans. With term life insurance, you can choose whichever term suits your needs. ",[940],{"type":52,"attrs":941},{"color":842},{"type":90,"attrs":943,"content":944},{"level":921},[945],{"text":946,"type":45,"marks":947},"Flexible payment options",[948],{"type":52,"attrs":949},{"color":842},{"type":41,"content":951},[952],{"text":953,"type":45,"marks":954},"Some term life insurance providers offer multiple payment options. Policyholders can elect to make their premium payments monthly, quarterly, semi-annually, or even annually. This allows you to select a payment schedule that best suits your budgeting style. (Whole life insurance policies, on the other hand, typically follow a monthly schedule with set payment amounts.)",[955],{"type":52,"attrs":956},{"color":842},{"type":90,"attrs":958,"content":959},{"level":921},[960],{"text":961,"type":45,"marks":962},"Generally cheaper",[963],{"type":52,"attrs":964},{"color":842},{"type":41,"content":966},[967,972,981],{"text":968,"type":45,"marks":969},"Because term life coverage is only issued for a specific length of time, ",[970],{"type":52,"attrs":971},{"color":842},{"text":973,"type":45,"marks":974},"it is less costly",[975,978,980],{"type":66,"attrs":976},{"href":977,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.policygenius.com/life-insurance/term-vs-whole-life-insurance/",{"type":52,"attrs":979},{"color":69},{"type":76},{"text":982,"type":45,"marks":983}," than whole life insurance. That makes it a great choice for younger families who aren’t interested in permanent life insurance. ",[984],{"type":52,"attrs":985},{"color":69},{"type":41,"content":987},[988],{"text":989,"type":45,"marks":990},"For example, a 35-year-old nonsmoker in good health, can get a 20-year term policy with $500,000 in coverage for around $30 per month. The same candidate would likely pay more than $500 per month for a whole life insurance policy with the same coverage.",[991],{"type":52,"attrs":992},{"color":842},{"type":90,"attrs":994,"content":995},{"level":921},[996],{"text":997,"type":45,"marks":998},"Certain plans are renewable",[999],{"type":52,"attrs":1000},{"color":842},{"type":41,"content":1002},[1003],{"text":1004,"type":45,"marks":1005},"Some companies allow policyholders to renew their term life policy at the end of the term. This gives you the flexibility to end the contract or continue as you wish — all without the fuss of reapplying. Renewal may come with a slight premium increase, especially if you’ve gone up an age bracket since you took out your last policy. However, because you have an existing relationship with your insurance company, you likely won’t need to take a new medical exam.",[1006],{"type":52,"attrs":1007},{"color":842},{"type":90,"attrs":1009,"content":1010},{"level":921},[1011],{"text":1012,"type":45,"marks":1013},"Tax-free death benefit",[1014],{"type":52,"attrs":1015},{"color":842},{"type":41,"content":1017},[1018,1023,1032],{"text":1019,"type":45,"marks":1020},"If you pass away before your term length is up, the insurance company will send your beneficiary a lump sum payout called a “death benefit” or “disbursement.” Term life insurance ",[1021],{"type":52,"attrs":1022},{"color":842},{"text":1024,"type":45,"marks":1025},"disbursements are tax-free",[1026,1029,1031],{"type":66,"attrs":1027},{"href":1028,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.irs.gov/help/ita/are-the-life-insurance-proceeds-i-received-taxable",{"type":52,"attrs":1030},{"color":69},{"type":76},{"text":1033,"type":45,"marks":1034},", so your beneficiary will receive the total amount without any withholdings. This is in contrast to certain whole life plans, which can accrue value over time. In this case, any interest you made on that value will be taxed before the disbursements reach the beneficiary.",[1035],{"type":52,"attrs":1036},{"color":69},{"type":90,"attrs":1038,"content":1039},{"level":921},[1040],{"text":1041,"type":45,"marks":1042},"Easy to cancel",[1043],{"type":52,"attrs":1044},{"color":842},{"type":41,"content":1046},[1047],{"text":1048,"type":45,"marks":1049},"Most term life insurance policies allow you to cancel at any time without having to pay cancellation fees or any other penalties. So, if your financial situation changes mid-way through your term, you can easily back out of your agreement or pivot to a new plan that better suits your needs.",[1050],{"type":52,"attrs":1051},{"color":842},{"type":90,"attrs":1053,"content":1054},{"level":92},[1055],{"text":1056,"type":45,"marks":1057},"The disadvantages of term life insurance ",[1058,1059],{"type":98},{"type":52,"attrs":1060},{"color":842},{"type":41,"content":1062},[1063],{"text":1064,"type":45,"marks":1065},"While it can have a ton of benefits, term life insurance may not be the best choice for everyone. Here are a few potential drawbacks to consider before you take out a policy. ",[1066],{"type":52,"attrs":1067},{"color":842},{"type":90,"attrs":1069,"content":1070},{"level":921},[1071],{"text":1072,"type":45,"marks":1073},"When you renew, your premiums are based on your current health.",[1074],{"type":52,"attrs":1075},{"color":842},{"type":41,"content":1077},[1078],{"text":1079,"type":45,"marks":1080},"Unlike whole life insurance — which locks you into a predetermined rate for your entire life — your term life policy will be based upon your health at the start of each term. So, even if you choose to renew your term life insurance, your new policy won’t necessarily be an exact continuation of your old policy. If you develop health issues during a term or between terms, you could see a significant rate hike if you take out a new one.",[1081],{"type":52,"attrs":1082},{"color":842},{"type":90,"attrs":1084,"content":1085},{"level":921},[1086],{"text":1087,"type":45,"marks":1088},"Term life insurance doesn’t have a cash value component, so there’s no investment aspect. You also can’t take out loans against it.",[1089],{"type":52,"attrs":1090},{"color":842},{"type":41,"content":1092},[1093,1098,1107],{"text":1094,"type":45,"marks":1095},"With many types of whole life insurance, your policy will build value as you pay into it. That means you can treat a whole life policy as an investment. You can make money on it via interest, and you can ",[1096],{"type":52,"attrs":1097},{"color":842},{"text":1099,"type":45,"marks":1100},"access those funds",[1101,1104,1106],{"type":66,"attrs":1102},{"href":1103,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.guardianlife.com/life-insurance/withdraw",{"type":52,"attrs":1105},{"color":69},{"type":76},{"text":1108,"type":45,"marks":1109}," while you’re still alive. In a term life agreement, however, your policy will not build cash value. You can’t make interest on the money you pay into it, and the amount of coverage won’t grow over time.   ",[1110],{"type":52,"attrs":1111},{"color":69},{"type":90,"attrs":1113,"content":1114},{"level":921},[1115],{"text":1116,"type":45,"marks":1117},"You can’t surrender your policy for cash value if you no longer want it.",[1118],{"type":52,"attrs":1119},{"color":842},{"type":41,"content":1121},[1122],{"text":1123,"type":45,"marks":1124},"If you cancel a whole life insurance plan prematurely, you may be able to receive a percentage of the funds that have accrued during the active policy period. However, term life insurance policies don’t have a cash value component to them. So, if you cancel your agreement, you won’t receive any cash back. ",[1125],{"type":52,"attrs":1126},{"color":842},{"type":90,"attrs":1128,"content":1129},{"level":921},[1130],{"text":1131,"type":45,"marks":1132},"Term life doesn’t cover pre-existing conditions.",[1133],{"type":52,"attrs":1134},{"color":842},{"type":41,"content":1136},[1137,1142],{"text":1138,"type":45,"marks":1139},"If you have pre-existing medical conditions, you may not qualify for term coverage. To find out, you can check the insurance provider’s list of exclusions before you apply. If you have a pre-existing condition, you may want to look for a “guaranteed-issue” policy, but be prepared to pay much higher premiums. ",[1140],{"type":52,"attrs":1141},{"color":842},{"text":1143,"type":45,"marks":1144},"  ",[1145,1146],{"type":98},{"type":52,"attrs":1147},{"color":69},{"type":90,"attrs":1149,"content":1150},{"level":921},[1151],{"text":1152,"type":45,"marks":1153},"If you die outside of the term, you won’t receive a death benefit.",[1154],{"type":52,"attrs":1155},{"color":842},{"type":41,"content":1157},[1158],{"text":1159,"type":45,"marks":1160},"Term life policies have specific, rigid term lengths. If your death occurs outside these parameters, you will not receive a death benefit. If you reach the end of the term, it is important to renew your policy quickly to avoid any lapse in coverage.",[1161],{"type":52,"attrs":1162},{"color":842},{"type":90,"attrs":1164,"content":1165},{"level":92},[1166],{"text":1167,"type":45,"marks":1168},"Types of term life insurance",[1169,1170],{"type":98},{"type":52,"attrs":1171},{"color":842},{"type":41,"content":1173},[1174,1179,1188],{"text":1175,"type":45,"marks":1176},"Before you shop around with different life insurance companies, first educate yourself on the ",[1177],{"type":52,"attrs":1178},{"color":842},{"text":1180,"type":45,"marks":1181},"different kinds of policies",[1182,1185,1187],{"type":66,"attrs":1183},{"href":1184,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.guardianlife.com/life-insurance/how-term-life-works",{"type":52,"attrs":1186},{"color":69},{"type":76},{"text":1189,"type":45,"marks":1190}," available. Different policies carry different term lengths and payment structures. Here’s how to figure out which life insurance option is best for you.",[1191],{"type":52,"attrs":1192},{"color":69},{"type":41,"content":1194},[1195,1201],{"text":1196,"type":45,"marks":1197},"Level premium",[1198,1199],{"type":98},{"type":52,"attrs":1200},{"color":842},{"text":1202,"type":45,"marks":1203},": Also referred to as “level term,” this is one of the more common types of term life insurance. With this kind of coverage, your premium will remain the same for the duration of the policy. That can make these types of policies easier to work into your regular budget, since your rate won’t change over time. ",[1204],{"type":52,"attrs":1205},{"color":69},{"type":41,"content":1207},[1208,1214],{"text":1209,"type":45,"marks":1210},"Yearly renewable term",[1211,1212],{"type":98},{"type":52,"attrs":1213},{"color":842},{"text":1215,"type":45,"marks":1216},": A yearly or annual renewable-term policy covers you for a year at a time. This type of life insurance coverage gives you the option to renew your policy every 12 months without a medical exam. However, each renewal comes with a premium increase. Yearly renewable term policies can look tempting because they start out with lower premiums than level term policies do. However, they often end up more expensive in the long run because of the annual premium increases. ",[1217],{"type":52,"attrs":1218},{"color":69},{"type":41,"content":1220},[1221,1227,1232,1241],{"text":1222,"type":45,"marks":1223},"Return of premium",[1224,1225],{"type":98},{"type":52,"attrs":1226},{"color":842},{"text":1228,"type":45,"marks":1229},": With this type of term policy, you will receive a payout of all or a portion of your premiums if you live to the end of the policy term. However, you can expect premiums to be much higher (two to four times higher) than they would be with a level term policy. Additionally, if you ",[1230],{"type":52,"attrs":1231},{"color":69},{"text":1233,"type":45,"marks":1234},"allow the policy to lapse",[1235,1238,1240],{"type":66,"attrs":1236},{"href":1237,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.policygenius.com/life-insurance/what-is-a-life-insurance-policy-lapse/",{"type":52,"attrs":1239},{"color":69},{"type":76},{"text":1242,"type":45,"marks":1243},", you may only receive back a portion of the premiums, if anything at all.",[1244],{"type":52,"attrs":1245},{"color":69},{"type":41,"content":1247},[1248,1254],{"text":1249,"type":45,"marks":1250},"Guaranteed issue",[1251,1252],{"type":98},{"type":52,"attrs":1253},{"color":842},{"text":1255,"type":45,"marks":1256},": As the name indicates, you cannot be turned down for this type of life insurance. You won’t have to take a medical exam, and the insurance provider typically asks very few — if any — health questions. Because this type of policy is available to riskier candidates, it typically comes with higher premiums and provides less coverage than other policy types. Additionally, most brokers won’t pay the full death benefit unless the insured lives for two or three years after the policy is created. So, if a policyholder passes away suddenly within those first years  — even from natural causes — their beneficiaries may not get the funds they need. ",[1257],{"type":52,"attrs":1258},{"color":69},{"type":90,"attrs":1260,"content":1261},{"level":92},[1262],{"text":1263,"type":45,"marks":1264},"How much does term life insurance cost?",[1265,1266],{"type":98},{"type":52,"attrs":1267},{"color":842},{"type":41,"content":1269},[1270,1275,1284],{"text":1271,"type":45,"marks":1272},"Term life insurance is usually less expensive than whole life insurance. Because term life insurance only lasts for a specific number of years, it isn’t uncommon to see term life premiums ",[1273],{"type":52,"attrs":1274},{"color":842},{"text":1276,"type":45,"marks":1277},"five to fifteen times lower",[1278,1281,1283],{"type":66,"attrs":1279},{"href":1280,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.investopedia.com/term-life-vs-whole-life-5075430",{"type":52,"attrs":1282},{"color":69},{"type":76},{"text":1285,"type":45,"marks":1286}," than whole life policies with the same coverage amount. However, there’s still some variability within term policies. To find a good price, you need to understand what factors determine the cost. These include:",[1287],{"type":52,"attrs":1288},{"color":69},{"type":507,"content":1290},[1291,1306,1321,1350],{"type":139,"content":1292},[1293],{"type":41,"content":1294},[1295,1301],{"text":1296,"type":45,"marks":1297},"Your health",[1298,1299],{"type":98},{"type":52,"attrs":1300},{"color":842},{"text":1302,"type":45,"marks":1303},": Your health is one of the biggest factors insurance providers use to determine your premiums. Because healthier people are at lower risk of dying, insurance providers tend to offer them lower premiums. To evaluate your health, insurance agents will ask you about your medical history and health habits and may request a medical exam. Family history — especially related to cancer, diabetes, alcohol dependence, or heart disease — may also impact the way issuers determine your personal health risk. ",[1304],{"type":52,"attrs":1305},{"color":69},{"type":139,"content":1307},[1308],{"type":41,"content":1309},[1310,1316],{"text":1311,"type":45,"marks":1312},"Your age",[1313,1314],{"type":98},{"type":52,"attrs":1315},{"color":69},{"text":1317,"type":45,"marks":1318},": Age also affects the underwriting for your loan policy. The older you are, the more likely it is that an insurer will have to pay out on your policy, so insurance providers almost always charge older policyholders higher premiums. This is why it can be advantageous to take out a policy when you’re still young. ",[1319],{"type":52,"attrs":1320},{"color":69},{"type":139,"content":1322},[1323],{"type":41,"content":1324},[1325,1331,1336,1345],{"text":1326,"type":45,"marks":1327},"Your coverage amount",[1328,1329],{"type":98},{"type":52,"attrs":1330},{"color":69},{"text":1332,"type":45,"marks":1333},": Your coverage amount — i.e., the payout you’ll receive in the event of death — will also determine how high your premiums are. ",[1334],{"type":52,"attrs":1335},{"color":69},{"text":1337,"type":45,"marks":1338},"Average coverage amounts",[1339,1342,1344],{"type":66,"attrs":1340},{"href":1341,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.guardianlife.com/life-insurance/rates",{"type":52,"attrs":1343},{"color":69},{"type":76},{"text":1346,"type":45,"marks":1347}," range from $250,000 to $1,000,000. The higher your coverage amount, the higher your premium payments will be.  ",[1348],{"type":52,"attrs":1349},{"color":69},{"type":139,"content":1351},[1352],{"type":41,"content":1353},[1354,1360],{"text":1355,"type":45,"marks":1356},"Your term length: ",[1357,1358],{"type":98},{"type":52,"attrs":1359},{"color":69},{"text":1361,"type":45,"marks":1362},"Typical term life insurance policies range from 10 to 30 years. If you select a policy with a longer term length, you’ll be paying into the plan for longer. Because of this, your individual premiums will be lower.",[1363],{"type":52,"attrs":1364},{"color":69},{"type":90,"attrs":1366,"content":1367},{"level":92},[1368],{"text":1369,"type":45,"marks":1370},"How much life insurance coverage do I need? ",[1371,1372],{"type":98},{"type":52,"attrs":1373},{"color":842},{"type":41,"content":1375},[1376,1381,1389],{"text":1377,"type":45,"marks":1378},"Determining ",[1379],{"type":52,"attrs":1380},{"color":842},{"text":1382,"type":45,"marks":1383},"how much life insurance",[1384,1386,1388],{"type":66,"attrs":1385},{"href":1184,"uuid":69,"anchor":69,"target":69,"linktype":71},{"type":52,"attrs":1387},{"color":69},{"type":76},{"text":1390,"type":45,"marks":1391}," you need depends on your personal situation and timeline. There are a few methods you can use to figure out what you need:",[1392],{"type":52,"attrs":1393},{"color":69},{"type":507,"content":1395},[1396,1411,1426,1441],{"type":139,"content":1397},[1398],{"type":41,"content":1399},[1400,1406],{"text":1401,"type":45,"marks":1402},"Multiply your salary by 10: ",[1403,1404],{"type":98},{"type":52,"attrs":1405},{"color":842},{"text":1407,"type":45,"marks":1408},"This is one of the simplest ways to determine a good life insurance threshold. However, if you have children, this method may not account for added expenses such as college tuition.",[1409],{"type":52,"attrs":1410},{"color":69},{"type":139,"content":1412},[1413],{"type":41,"content":1414},[1415,1421],{"text":1416,"type":45,"marks":1417},"Multiply your salary by 10, then add college costs: ",[1418,1419],{"type":98},{"type":52,"attrs":1420},{"color":69},{"text":1422,"type":45,"marks":1423},"Adding $100,000 to $150,000 per child for college expenses (on top of the salary multiplier) can give your kids some extra financial cushion and help them afford a college education.",[1424],{"type":52,"attrs":1425},{"color":69},{"type":139,"content":1427},[1428],{"type":41,"content":1429},[1430,1436],{"text":1431,"type":45,"marks":1432},"Use the DIME formula: ",[1433,1434],{"type":98},{"type":52,"attrs":1435},{"color":69},{"text":1437,"type":45,"marks":1438},"The debt, income, mortgage, and education (DIME) method accounts for additional financial obligations. With this method, you first determine the amount you expect to pay annually toward your mortgage, debt payments, and any tuition. Then, add these on top of your salary multiplier to calculate your total coverage. ",[1439],{"type":52,"attrs":1440},{"color":69},{"type":139,"content":1442},[1443],{"type":41,"content":1444},[1445,1451],{"text":1446,"type":45,"marks":1447},"Calculate your lifetime earning potential:",[1448,1449],{"type":98},{"type":52,"attrs":1450},{"color":69},{"text":1452,"type":45,"marks":1453}," This method considers what you’re making now, as well as what you expect to make down the road. This calculation changes based on age, but you can get a rough illustration in the table below:",[1454],{"type":52,"attrs":1455},{"color":69},"Typography","mx-7 blog-post-text blog-post-headers",true,{"type":38,"content":1460},[1461],{"type":41},"\u003C!--#storyblok#{\"name\": \"Typography\", \"space\": \"157494\", \"uid\": \"a64c4df0-154e-4c12-b867-678d292709f4\", \"id\": \"651798208\"}-->","start","Column","\u003C!--#storyblok#{\"name\": \"Column\", \"space\": \"157494\", \"uid\": \"c286affa-ee04-4348-8508-6e9f77932903\", \"id\": \"651798208\"}-->",{"lg":1467,"md":18,"sm":1467,"_uid":1468,"cols":1467,"bloks":1469,"alignSelf":1463,"component":1464,"_editable":1514},"5","5277645c-7102-4a2e-9059-77ece298cfd1",[1470],{"id":1471,"_uid":1472,"fixed":1458,"title":1473,"classes":1479,"maxWidth":18,"subtitle":1480,"component":1483,"titleClasses":1484,"mobileClasses":1485,"backgroundColor":1486,"subtitleClasses":1487,"checkYourRateBtn":1488,"_editable":1513},"fixedblogcta","56f93595-4560-4a1d-addd-e6b8575e2ad3",{"type":38,"content":1474},[1475],{"type":41,"content":1476},[1477],{"text":1478,"type":45},"Search and compare to get a low rate and save.","blog-cta",{"type":38,"content":1481},[1482],{"type":41},"BlogCTA","text-size-h3 font-weight-bold text-align-center marketplace-cta-width","d-none","#FFFFFF","text-size-subtitle",[1489],{"url":1490,"_uid":1493,"icon":1494,"text":1496,"color":1497,"sizing":1498,"classes":1508,"rounded":28,"outlined":28,"component":1509,"textColor":1486,"hoverBgColor":1486,"mobileClasses":1510,"hoverTextColor":1497,"navigationType":1511,"_editable":1512},{"id":18,"url":1491,"linktype":71,"fieldtype":1492,"cached_url":1491},"https://www.leaplife.com/partner/navientlifeinsurance/life-insurance/","multilink","b85a45b7-57da-4e6f-b680-ef9da79ce85d",{"id":69,"alt":69,"name":18,"focus":69,"title":69,"filename":69,"copyright":69,"fieldtype":1495},"asset","Check It Out","#3b6fd4",[1499],{"_uid":1500,"width":1501,"height":1502,"fontSize":1503,"component":1504,"mobileWidth":1505,"mobileHeight":1502,"fontSizeMobile":1506,"_editable":1507},"1431aed2-aef3-4868-8695-d3db1b068b18","188px","56px","24px","buttonSizing","230px","20px","\u003C!--#storyblok#{\"name\": \"buttonSizing\", \"space\": \"157494\", \"uid\": \"1431aed2-aef3-4868-8695-d3db1b068b18\", \"id\": \"651798208\"}-->","letter-spacing-normal text-transform-none text-size-button-1 font-weight-bold mt-n5","CheckYourRateBtn","text-size-button-1 text-transform-none letter-spacing-normal mt-n3",[],"\u003C!--#storyblok#{\"name\": \"CheckYourRateBtn\", \"space\": \"157494\", \"uid\": \"b85a45b7-57da-4e6f-b680-ef9da79ce85d\", \"id\": \"651798208\"}-->","\u003C!--#storyblok#{\"name\": \"BlogCTA\", \"space\": \"157494\", \"uid\": \"56f93595-4560-4a1d-addd-e6b8575e2ad3\", \"id\": \"651798208\"}-->","\u003C!--#storyblok#{\"name\": \"Column\", \"space\": \"157494\", \"uid\": \"5277645c-7102-4a2e-9059-77ece298cfd1\", \"id\": \"651798208\"}-->",{"lg":825,"md":825,"sm":826,"_uid":1516,"cols":826,"bloks":1517,"classes":1625,"alignSelf":1609,"component":1464,"_editable":1626},"e229c45d-68a1-4dee-8aad-9b0bc6074feb",[1518],{"_uid":1519,"table":1520,"component":1607,"tableWidth":1608,"rowCellAlign":1609,"footerContent":1610,"includeFooter":1458,"footerRichText":1611,"headerCellAlign":1609,"_editable":1624},"a325b247-a33b-48e8-bd2f-9fea86e97f63",{"tbody":1521,"thead":1596,"fieldtype":1606},[1522,1536,1548,1560,1572,1584],{"_uid":1523,"body":1524,"component":1534,"_editable":1535},"e33c689f-1e2e-4a30-9570-2121fb0dbfc7",[1525,1530],{"_uid":1526,"value":1527,"component":1528,"_editable":1529},"4ff79c24-b433-425a-aaf7-3e624f8f52a2","18-40","_table_col","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"4ff79c24-b433-425a-aaf7-3e624f8f52a2\", \"id\": \"651798208\"}-->",{"_uid":1531,"value":1532,"component":1528,"_editable":1533},"7c1df32d-9954-4ce8-bb64-dcf17cf88eb4","30 times income","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"7c1df32d-9954-4ce8-bb64-dcf17cf88eb4\", \"id\": \"651798208\"}-->","_table_row","\u003C!--#storyblok#{\"name\": \"_table_row\", \"space\": \"157494\", \"uid\": \"e33c689f-1e2e-4a30-9570-2121fb0dbfc7\", \"id\": \"651798208\"}-->",{"_uid":1537,"body":1538,"component":1534,"_editable":1547},"c4e3ad99-f201-4837-bd27-f5575bd95f42",[1539,1543],{"_uid":1540,"value":1541,"component":1528,"_editable":1542},"6b315c1e-1d5c-47d8-81a0-e0225c600eaa","41-50","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"6b315c1e-1d5c-47d8-81a0-e0225c600eaa\", \"id\": \"651798208\"}-->",{"_uid":1544,"value":1545,"component":1528,"_editable":1546},"aee77fdd-d97d-46f9-98ab-770dd6d791a7","20 times income","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"aee77fdd-d97d-46f9-98ab-770dd6d791a7\", \"id\": \"651798208\"}-->","\u003C!--#storyblok#{\"name\": \"_table_row\", \"space\": \"157494\", \"uid\": \"c4e3ad99-f201-4837-bd27-f5575bd95f42\", \"id\": \"651798208\"}-->",{"_uid":1549,"body":1550,"component":1534,"_editable":1559},"fe9ab8b8-f7e8-41f8-b8c0-f162263d86e3",[1551,1555],{"_uid":1552,"value":1553,"component":1528,"_editable":1554},"5fd1142f-3be2-4528-97aa-d3e5f7b2a8aa","51-60","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"5fd1142f-3be2-4528-97aa-d3e5f7b2a8aa\", \"id\": \"651798208\"}-->",{"_uid":1556,"value":1557,"component":1528,"_editable":1558},"eef4d04c-b14f-4da9-9761-d1b73d333847","15 times income","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"eef4d04c-b14f-4da9-9761-d1b73d333847\", \"id\": \"651798208\"}-->","\u003C!--#storyblok#{\"name\": \"_table_row\", \"space\": \"157494\", \"uid\": \"fe9ab8b8-f7e8-41f8-b8c0-f162263d86e3\", \"id\": \"651798208\"}-->",{"_uid":1561,"body":1562,"component":1534,"_editable":1571},"4dc8e557-36d7-4f79-b09b-cee72ff9ace5",[1563,1567],{"_uid":1564,"value":1565,"component":1528,"_editable":1566},"1ae8583e-7dc9-437f-bba2-991a4d995361","61-65","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"1ae8583e-7dc9-437f-bba2-991a4d995361\", \"id\": \"651798208\"}-->",{"_uid":1568,"value":1569,"component":1528,"_editable":1570},"f4ad43ea-4d42-4a87-9374-720dc461cf64","10 times income","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"f4ad43ea-4d42-4a87-9374-720dc461cf64\", \"id\": \"651798208\"}-->","\u003C!--#storyblok#{\"name\": \"_table_row\", \"space\": \"157494\", \"uid\": \"4dc8e557-36d7-4f79-b09b-cee72ff9ace5\", \"id\": \"651798208\"}-->",{"_uid":1573,"body":1574,"component":1534,"_editable":1583},"1f6555dd-c46d-41f6-9242-5f1b489b6b8d",[1575,1579],{"_uid":1576,"value":1577,"component":1528,"_editable":1578},"c6fd72cd-d891-4a1a-9626-527635a8b68e","66-70","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"c6fd72cd-d891-4a1a-9626-527635a8b68e\", \"id\": \"651798208\"}-->",{"_uid":1580,"value":1581,"component":1528,"_editable":1582},"18357d7e-e5f4-4ce8-920a-82b05f0f25f9","1 times net worth","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"18357d7e-e5f4-4ce8-920a-82b05f0f25f9\", \"id\": \"651798208\"}-->","\u003C!--#storyblok#{\"name\": \"_table_row\", \"space\": \"157494\", \"uid\": \"1f6555dd-c46d-41f6-9242-5f1b489b6b8d\", \"id\": \"651798208\"}-->",{"_uid":1585,"body":1586,"component":1534,"_editable":1595},"b73f70fa-529c-4572-bd36-aa7eaa81c02b",[1587,1591],{"_uid":1588,"value":1589,"component":1528,"_editable":1590},"3e30046c-9315-4cf7-95b8-5593b427b2ab","71-75","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"3e30046c-9315-4cf7-95b8-5593b427b2ab\", \"id\": \"651798208\"}-->",{"_uid":1592,"value":1593,"component":1528,"_editable":1594},"cfd17eef-16b9-4e34-bac2-d9159f5dce05","0.5 times net worth","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"cfd17eef-16b9-4e34-bac2-d9159f5dce05\", \"id\": \"651798208\"}-->","\u003C!--#storyblok#{\"name\": \"_table_row\", \"space\": \"157494\", \"uid\": \"b73f70fa-529c-4572-bd36-aa7eaa81c02b\", \"id\": \"651798208\"}-->",[1597,1602],{"_uid":1598,"value":1599,"component":1600,"_editable":1601},"47e96c34-437b-41cf-af5e-f15013974fdc","Age","_table_head","\u003C!--#storyblok#{\"name\": \"_table_head\", \"space\": \"157494\", \"uid\": \"47e96c34-437b-41cf-af5e-f15013974fdc\", \"id\": \"651798208\"}-->",{"_uid":1603,"value":1604,"component":1600,"_editable":1605},"77f6841e-e966-47e8-9a99-ed0d6226872f","Maximum Life Insurance","\u003C!--#storyblok#{\"name\": \"_table_head\", \"space\": \"157494\", \"uid\": \"77f6841e-e966-47e8-9a99-ed0d6226872f\", \"id\": \"651798208\"}-->","table","TableComponent","350px","center","Source: Guardian",{"type":38,"content":1612},[1613],{"type":41,"content":1614},[1615,1617],{"text":1616,"type":45},"Source: ",{"text":1618,"type":45,"marks":1619},"Guardian",[1620],{"type":66,"attrs":1621},{"href":1622,"uuid":69,"anchor":69,"custom":1623,"target":70,"linktype":71},"https://www.guardianlife.com/life-insurance/how-term-life-works#How%20much","[object Object]","\u003C!--#storyblok#{\"name\": \"TableComponent\", \"space\": \"157494\", \"uid\": \"a325b247-a33b-48e8-bd2f-9fea86e97f63\", \"id\": \"651798208\"}-->","center-content","\u003C!--#storyblok#{\"name\": \"Column\", \"space\": \"157494\", \"uid\": \"e229c45d-68a1-4dee-8aad-9b0bc6074feb\", \"id\": \"651798208\"}-->",{"lg":825,"md":825,"sm":826,"_uid":1628,"cols":826,"bloks":1629,"alignSelf":1463,"component":1464,"_editable":1917},"2bd54e19-1519-4581-a3cd-36b567949c3a",[1630],{"_uid":1631,"color":36,"classes":831,"content":18,"richText":1632,"component":1456,"mobileClasses":1457,"enableRichText":1458,"richTextMobile":1913,"_editable":1916},"1c7bce69-59db-42fa-bf55-3b2916c6425c",{"type":38,"content":1633},[1634,1643,1650,1729,1738,1745,1753,1787,1795,1816,1824,1845,1853,1860,1869,1876,1896,1904],{"type":90,"attrs":1635,"content":1636},{"level":92},[1637],{"text":1638,"type":45,"marks":1639},"How getting term life insurance works",[1640,1641],{"type":98},{"type":52,"attrs":1642},{"color":842},{"type":41,"content":1644},[1645],{"text":1646,"type":45,"marks":1647},"Essentially, a term life insurance policy is a contract between the policyholder and the insurance company. The specific term (typically 10 to 30 years) dictates how long that contract will last. Here’s how to go about finding a policy:",[1648],{"type":52,"attrs":1649},{"color":842},{"type":134,"attrs":1651,"content":1653},{"order":1652},{"order":136},[1654,1669,1684,1699,1714],{"type":139,"content":1655},[1656],{"type":41,"content":1657},[1658,1664],{"text":1659,"type":45,"marks":1660},"Start shopping around:",[1661,1662],{"type":98},{"type":52,"attrs":1663},{"color":842},{"text":1665,"type":45,"marks":1666}," Shop around between multiple providers to see what kinds of life insurance rates they can offer you. Some may require you to fill out a form or questionnaire before they can give you a life insurance quote.",[1667],{"type":52,"attrs":1668},{"color":69},{"type":139,"content":1670},[1671],{"type":41,"content":1672},[1673,1679],{"text":1674,"type":45,"marks":1675},"Compare life insurance quotes: ",[1676,1677],{"type":98},{"type":52,"attrs":1678},{"color":69},{"text":1680,"type":45,"marks":1681},"When you’ve checked with a handful of providers, you can then compare quotes and choose the company that will give you the best deal.",[1682],{"type":52,"attrs":1683},{"color":69},{"type":139,"content":1685},[1686],{"type":41,"content":1687},[1688,1694],{"text":1689,"type":45,"marks":1690},"Fill out an application:",[1691,1692],{"type":98},{"type":52,"attrs":1693},{"color":69},{"text":1695,"type":45,"marks":1696}," When you’ve made your final choice, you’ll then fill out a formal application. During this process, the insurance company will find out more about you. Insurance agents may request medical records or schedule a medical exam to assess your health. They may also want to know more about your occupation and hobbies. Someone who works as a lumberjack will certainly carry more occupational risk than someone who works as an accountant, for example. Likewise, if your hobbies include dangerous sports like riding motorcycles or scuba diving, you may see higher rates.",[1697],{"type":52,"attrs":1698},{"color":69},{"type":139,"content":1700},[1701],{"type":41,"content":1702},[1703,1709],{"text":1704,"type":45,"marks":1705},"Choose your policy details: ",[1706,1707],{"type":98},{"type":52,"attrs":1708},{"color":69},{"text":1710,"type":45,"marks":1711},"Now you’ll choose your term length and amount of coverage. These numbers will depend on your age, income, and specific needs.",[1712],{"type":52,"attrs":1713},{"color":69},{"type":139,"content":1715},[1716],{"type":41,"content":1717},[1718,1724],{"text":1719,"type":45,"marks":1720},"Name your beneficiaries: ",[1721,1722],{"type":98},{"type":52,"attrs":1723},{"color":69},{"text":1725,"type":45,"marks":1726},"Beneficiaries are the individuals who will receive the payout if you pass away before the end of the term window. Usually these are the same people you list as dependents on your taxes, but they don’t have to be. You can either choose a single person — such as a spouse, sibling, or child — or you can choose to divide the death benefit between several beneficiaries. ",[1727],{"type":52,"attrs":1728},{"color":69},{"type":90,"attrs":1730,"content":1731},{"level":92},[1732],{"text":1733,"type":45,"marks":1734},"Other types of life insurance",[1735,1736],{"type":98},{"type":52,"attrs":1737},{"color":842},{"type":41,"content":1739},[1740],{"text":1741,"type":45,"marks":1742},"There are many different types of life insurance. Here are a few of the alternatives to term life insurance:",[1743],{"type":52,"attrs":1744},{"color":842},{"type":90,"attrs":1746,"content":1747},{"level":921},[1748],{"text":1749,"type":45,"marks":1750},"Whole life ",[1751],{"type":52,"attrs":1752},{"color":842},{"type":41,"content":1754},[1755,1759,1768,1773,1778,1782],{"text":354,"type":45,"marks":1756},[1757],{"type":52,"attrs":1758},{"color":842},{"text":1760,"type":45,"marks":1761},"whole life insurance",[1762,1765,1767],{"type":66,"attrs":1763},{"href":1764,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.guardianlife.com/life-insurance/whole-life/how-it-works",{"type":52,"attrs":1766},{"color":69},{"type":76},{"text":1769,"type":45,"marks":1770}," policy carries lifetime coverage as long as you make your payments. Although the payment amounts remain the same for life, they are typically more expensive than term life insurance premiums — even on a policy that provides the same amount of coverage. ",[1771],{"type":52,"attrs":1772},{"color":69},{"type":1774,"marks":1775},"hard_break",[1776],{"type":52,"attrs":1777},{"color":69},{"type":1774,"marks":1779},[1780],{"type":52,"attrs":1781},{"color":69},{"text":1783,"type":45,"marks":1784},"Unlike term life, whole life policies can accumulate cash over time, and you can borrow the funds as needed. However, if those funds go unrepaid, the policy’s value and death benefit will decrease accordingly. ",[1785],{"type":52,"attrs":1786},{"color":69},{"type":90,"attrs":1788,"content":1789},{"level":921},[1790],{"text":1791,"type":45,"marks":1792},"Universal life",[1793],{"type":52,"attrs":1794},{"color":842},{"type":41,"content":1796},[1797,1802,1811],{"text":1798,"type":45,"marks":1799},"Universal life insurance is similar to whole life insurance in that they both provide lifetime protection while building cash value. However, a universal life policy ",[1800],{"type":52,"attrs":1801},{"color":842},{"text":1803,"type":45,"marks":1804},"is more flexible",[1805,1808,1810],{"type":66,"attrs":1806},{"href":1807,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.guardianlife.com/life-insurance/universal-life",{"type":52,"attrs":1809},{"color":69},{"type":76},{"text":1812,"type":45,"marks":1813}," in that you have the option to raise or lower your premium as needed. This can make it less expensive than whole life insurance. However, if you make lower payments for too long, this can negatively impact the policy’s death benefit and cash growth potential.  ",[1814],{"type":52,"attrs":1815},{"color":69},{"type":90,"attrs":1817,"content":1818},{"level":921},[1819],{"text":1820,"type":45,"marks":1821},"Variable life",[1822],{"type":52,"attrs":1823},{"color":842},{"type":41,"content":1825},[1826,1831,1840],{"text":1827,"type":45,"marks":1828},"Variable life insurance is another type of permanent life insurance: as long as you pay your premiums, you’re covered for your entire life. However, ",[1829],{"type":52,"attrs":1830},{"color":842},{"text":1832,"type":45,"marks":1833},"variable life policies",[1834,1837,1839],{"type":66,"attrs":1835},{"href":1836,"uuid":69,"anchor":69,"target":70,"linktype":71},"https://www.valuepenguin.com/life-insurance/variable-life-insurance",{"type":52,"attrs":1838},{"color":69},{"type":76},{"text":1841,"type":45,"marks":1842}," are unique in that they give you the option to reinvest any accumulated cash value. You may choose to reinvest the money into stocks, bonds, or an index. Because the cash is invested, variable life policies can be riskier and may carry higher fees than other types of life insurance. ",[1843],{"type":52,"attrs":1844},{"color":69},{"type":90,"attrs":1846,"content":1847},{"level":921},[1848],{"text":1849,"type":45,"marks":1850},"Indexed universal life",[1851],{"type":52,"attrs":1852},{"color":842},{"type":41,"content":1854},[1855],{"text":1856,"type":45,"marks":1857},"Indexed universal life insurance is a permanent life insurance policy that pays interest based on the fluctuation of the stock market. Unlike variable life insurance, you can’t invest your cash value into stocks or bonds. Instead, you’re tied to a specific stock market index. That means your funds will be subject to the volatility of the stock market as a whole. (However, there is usually a floor or cap to minimize the impact of large swings.) ",[1858],{"type":52,"attrs":1859},{"color":842},{"type":90,"attrs":1861,"content":1862},{"level":92},[1863],{"text":1864,"type":45,"marks":1865},"Explore term life insurance on Navient Marketplace",[1866,1867],{"type":98},{"type":52,"attrs":1868},{"color":842},{"type":41,"content":1870},[1871],{"text":1872,"type":45,"marks":1873},"If you’re the sole or primary breadwinner in your family, term life insurance can be an affordable way to protect your dependents against financial destitution. With term coverage, you can elect to be covered for a specific period of time and cancel your policy any time you wish. This makes it one of the most flexible options for life insurance on the market.",[1874],{"type":52,"attrs":1875},{"color":842},{"type":41,"content":1877},[1878,1883,1891],{"text":1879,"type":45,"marks":1880},"If you’re ready to shop for term policies — or just get a feel for what life insurance products are available to you — head over to ",[1881],{"type":52,"attrs":1882},{"color":69},{"text":1884,"type":45,"marks":1885},"Navient Marketplace",[1886,1888,1890],{"type":66,"attrs":1887},{"href":639,"uuid":69,"anchor":69,"target":70,"linktype":71},{"type":52,"attrs":1889},{"color":69},{"type":76},{"text":1892,"type":45,"marks":1893},". This comprehensive platform makes it easy to compare different providers. Click through, browse your options, and find the one that meets your life insurance needs. ",[1894],{"type":52,"attrs":1895},{"color":69},{"type":41,"content":1897},[1898],{"text":755,"type":45,"marks":1899},[1900,1902],{"type":48,"attrs":1901},{"class":50},{"type":52,"attrs":1903},{"color":842},{"type":41,"content":1905},[1906],{"text":1907,"type":45,"marks":1908},"Information in this blog, including the rates advertised, are current as of 04/27/2023 and subject to change. ",[1909,1911],{"type":48,"attrs":1910},{"class":50},{"type":52,"attrs":1912},{"color":842},{"type":38,"content":1914},[1915],{"type":41},"\u003C!--#storyblok#{\"name\": \"Typography\", \"space\": \"157494\", \"uid\": \"1c7bce69-59db-42fa-bf55-3b2916c6425c\", \"id\": \"651798208\"}-->","\u003C!--#storyblok#{\"name\": \"Column\", \"space\": \"157494\", \"uid\": \"2bd54e19-1519-4581-a3cd-36b567949c3a\", \"id\": \"651798208\"}-->","Row","\u003C!--#storyblok#{\"name\": \"Row\", \"space\": \"157494\", \"uid\": \"0737a92f-e416-438d-b8db-1c0e86499923\", \"id\": \"651798208\"}-->","blog-post-container mt-16","Container",[],"\u003C!--#storyblok#{\"name\": \"Container\", \"space\": \"157494\", \"uid\": \"222843d6-4c0d-4ac3-aa5f-7f579c49c5fe\", \"id\": \"651798208\"}-->",{"id":18,"lg":18,"md":18,"sm":18,"_uid":1925,"cols":18,"height":18,"classes":1926,"columns":1927,"justify":18,"maxWidth":1943,"component":1944,"colClasses":1945,"rowClasses":18,"mobileClasses":1946,"backgroundColor":18,"backgroundImage":1947,"containerClasses":18,"useBackgroundImage":28,"_editable":1948},"33d3a06b-b58c-487e-92e7-fc588a9c1c78","mb-7",[1928],{"_uid":1929,"component":1930,"backToTopBtn":1931,"_editable":1942},"c390fb05-75db-44ae-af73-2bbd7c809b57","BackToTop",[1932],{"url":1933,"_uid":1935,"icon":1936,"text":1937,"color":800,"event":18,"sizing":1938,"classes":1939,"rounded":28,"outlined":28,"component":1940,"textColor":1486,"hoverBgColor":1486,"mobileClasses":18,"hoverTextColor":1497,"navigationType":18,"_editable":1941},{"id":18,"url":18,"linktype":1934,"fieldtype":1492,"cached_url":18},"story","d87937d9-6d46-4da0-813d-437561563b18",{"id":69,"alt":69,"name":18,"focus":69,"title":69,"filename":18,"copyright":69,"fieldtype":1495},"back to top",[],"letter-spacing-normal text-transform-none text-size-sub-1","Button","\u003C!--#storyblok#{\"name\": \"Button\", \"space\": \"157494\", \"uid\": \"d87937d9-6d46-4da0-813d-437561563b18\", \"id\": \"651798208\"}-->","\u003C!--#storyblok#{\"name\": \"BackToTop\", \"space\": \"157494\", \"uid\": \"c390fb05-75db-44ae-af73-2bbd7c809b57\", \"id\": \"651798208\"}-->","1240px","Grid","pl-0","ml-7",{"id":69,"alt":69,"name":18,"focus":69,"title":69,"filename":18,"copyright":69,"fieldtype":1495},"\u003C!--#storyblok#{\"name\": \"Grid\", \"space\": \"157494\", \"uid\": \"33d3a06b-b58c-487e-92e7-fc588a9c1c78\", \"id\": \"651798208\"}-->","BlogPost","https://www.marketplace.navient.com/blog/benefits-of-term-life-insurance/","\u003C!--#storyblok#{\"name\": \"BlogPost\", \"space\": \"157494\", \"uid\": \"24614723-3c23-4d4f-990b-c49a1b45edce\", \"id\": \"651798208\"}-->","benefits-of-term-life-insurance","navient_marketplace/blog/benefits-of-term-life-insurance",40,[],"3be6acdb-2e95-491d-9b06-ec5d63099498","2023-05-10T18:29:46.407Z",[],{"name":1960,"created_at":1961,"published_at":1962,"updated_at":1963,"id":1964,"uuid":1965,"content":1966,"slug":2706,"full_slug":2707,"sort_by_date":69,"position":2708,"tag_list":2709,"is_startpage":28,"parent_id":770,"meta_data":69,"group_id":2710,"first_published_at":2711,"release_id":69,"lang":773,"path":2712,"alternates":2713,"default_full_slug":69,"translated_slugs":69},"Is Term Life Insurance Worth It? ","2025-04-07T18:31:47.032Z","2025-12-26T13:45:17.144Z","2025-12-26T13:45:17.175Z",651798215,"fe49dba6-d386-4467-93e8-783e6aaf8970",{"seo":1967,"_uid":788,"body":1970,"author":1979,"category":31,"featured":28,"component":1949,"canonicalTag":2704,"_editable":2705},{"_uid":785,"title":1968,"plugin":17,"og_image":18,"og_title":18,"description":1969,"twitter_image":18,"twitter_title":18,"og_description":18,"twitter_description":18},"Is Term Life Insurance Worth It? - Navient Marketplace","Is term life insurance worth it? Here's how to tell, plus alternatives if term life isn't right for you.",[1971,1982,2692],{"id":791,"_uid":792,"image":1972,"intro":1973,"author":1974,"classes":1975,"category":18,"featured":28,"blogTitle":1960,"component":813,"imageLink":1978,"blendImage":28,"authorRoute":1979,"publishedDate":1980,"backgroundColor":29,"_editable":1981},"//a.storyblok.com/f/110029/800x600/e7cef91e10/is-term-life-insurance-worth-it.png","Some readers might wonder: is term life insurance worth it? Here’s how to decide if it’s the right fit for you.","Monica Milone",[1976],{"_uid":798,"component":799,"titleColor":800,"dateClasses":801,"titleClasses":802,"authorClasses":803,"subtitleColor":804,"titleMaxWidth":805,"subtitleClasses":806,"dateMobileClasses":807,"titleMobileClasses":808,"authorMobileClasses":809,"featuredMobileClasses":810,"subtitleMobileClasses":811,"_editable":1977},"\u003C!--#storyblok#{\"name\": \"BlogHeroStyle\", \"space\": \"157494\", \"uid\": \"6bc0d925-925b-40e2-8cb5-ac30d0086187\", \"id\": \"651798215\"}-->","/images/is-term-life-insurance-worth-it.png","monica-milone","Updated: February 16, 2023","\u003C!--#storyblok#{\"name\": \"BlogHero\", \"space\": \"157494\", \"uid\": \"02557530-adb9-49fb-9319-277497a70cb8\", \"id\": \"651798215\"}-->",{"_uid":819,"bloks":1983,"classes":1920,"component":1921,"mobileClasses":18,"containerContent":2690,"_editable":2691},[1984],{"_uid":822,"bloks":1985,"classes":18,"justify":1463,"component":1918,"mobileClasses":18,"_editable":2689},[1986,2360,2386,2465],{"lg":825,"md":825,"sm":826,"_uid":827,"cols":826,"bloks":1987,"alignSelf":1463,"component":1464,"_editable":2359},[1988],{"_uid":830,"color":36,"classes":831,"content":18,"richText":1989,"component":1456,"mobileClasses":1457,"enableRichText":1458,"richTextMobile":2355,"_editable":2358},{"type":38,"content":1990},[1991,1995,1999,2005,2016,2020,2099,2106,2110,2123,2127,2172,2176,2219,2226,2236,2310,2317,2321,2344,2351],{"type":41,"content":1992},[1993],{"text":1994,"type":45},"Life is unpredictable. While no one likes to dwell on death, it’s important to have the right life insurance policy to protect your loved ones should the unthinkable occur.",{"type":41,"content":1996},[1997],{"text":1998,"type":45},"The good news is that you can give yourself and your beneficiaries peace of mind at a relatively low cost. While standard whole life insurance often comes with high premiums, term life insurance can present an affordable alternative. Since this kind of insurance only covers you for a certain number of years before you have to renew, some readers might wonder: is term life insurance worth it? Here’s how to decide if it’s the right fit for you.",{"type":90,"attrs":2000,"content":2001},{"level":92},[2002],{"text":854,"type":45,"marks":2003},[2004],{"type":98},{"type":41,"content":2006},[2007,2009,2014],{"text":2008,"type":45},"Term life insurance is a type of life insurance that provides coverage for a fixed period of time. The policyholder pays premiums to the insurance company during this period, and if the insured dies within that time frame, their beneficiaries receive a lump sum payment. Term life insurance policies are usually available for 5- to 30-year terms. While the cost of the premiums will depend on the amount of coverage, term life insurance is generally less expensive than ",{"text":1760,"type":45,"marks":2010},[2011],{"type":66,"attrs":2012},{"href":2013,"uuid":69,"anchor":69,"custom":1623,"target":70,"linktype":71},"https://www.usnews.com/insurance/life-insurance/whole-life-insurance",{"text":2015,"type":45},".",{"type":41,"content":2017},[2018],{"text":2019,"type":45},"There are three main term life insurance options to choose from.",{"type":134,"attrs":2021,"content":2023},{"order":2022},{"order":136},[2024,2052,2080],{"type":139,"content":2025},[2026],{"type":41,"content":2027},[2028,2032,2034,2041,2043,2050],{"text":2029,"type":45,"marks":2030},"Decreasing Term Plan:",[2031],{"type":98},{"text":2033,"type":45}," Under this plan, your “",{"text":2035,"type":45,"marks":2036},"death benefit",[2037],{"type":66,"attrs":2038},{"href":2039,"uuid":69,"anchor":69,"custom":2040,"target":70,"linktype":71},"https://www.forbes.com/advisor/life-insurance/death-benefits/",{},{"text":2042,"type":45},"” — or the disbursement your loved ones will receive when you pass away — decreases monthly or annually at a predetermined rate throughout the policy term. While the death benefit will diminish over time, your premium won’t change. For that reason, ",{"text":2044,"type":45,"marks":2045},"decreasing term plans",[2046],{"type":66,"attrs":2047},{"href":2048,"uuid":69,"anchor":69,"custom":2049,"target":70,"linktype":71},"https://www.bankrate.com/insurance/life-insurance/decreasing-term-insurance/",{},{"text":2051,"type":45}," are potentially less affordable than other options. However, they can make sense if your beneficiaries are currently making loan or mortgage payments that you know will decrease over the course of the policy term.",{"type":139,"content":2053},[2054],{"type":41,"content":2055},[2056,2060,2062,2069,2071,2078],{"text":2057,"type":45,"marks":2058},"Annual Renewable Plan:",[2059],{"type":98},{"text":2061,"type":45}," This option allows you to renew your policy on a year-to-year basis without having to reapply or ",{"text":2063,"type":45,"marks":2064},"take a medical exam",[2065],{"type":66,"attrs":2066},{"href":2067,"uuid":69,"anchor":69,"custom":2068,"target":70,"linktype":71},"https://www.forbes.com/advisor/life-insurance/medical-exam/",{},{"text":2070,"type":45},". However, your premium will increase each year while the amount of coverage remains the same. These plans can only be renewed up to a certain age, which varies by carrier. (Most insurance companies provide coverage for 18- to 65-year-olds. However, many will ",{"text":2072,"type":45,"marks":2073},"cover individuals up to age 85",[2074],{"type":66,"attrs":2075},{"href":2076,"uuid":69,"anchor":69,"custom":2077,"target":70,"linktype":71},"https://www.retireguide.com/life-insurance/buy/over-65/",{},{"text":2079,"type":45},".) An annual renewable plan may be best if you have beneficiaries with short-term debts that you know will be paid off within a few years.",{"type":139,"content":2081},[2082],{"type":41,"content":2083},[2084,2088,2090,2097],{"text":2085,"type":45,"marks":2086},"Level Term Plan:",[2087],{"type":98},{"text":2089,"type":45}," With a ",{"text":2091,"type":45,"marks":2092},"level term plan",[2093],{"type":66,"attrs":2094},{"href":2095,"uuid":69,"anchor":69,"custom":2096,"target":70,"linktype":71},"https://www.iii.org/article/what-are-different-types-term-life-insurance-policies",{},{"text":2098,"type":45},", both your premium and death benefit stay the same for the duration of your policy. Though this option may start out with higher premiums than you’d see on an annual renewable or decreasing term plan, it provides more consistent financial protection. Level term insurance is a good option for someone looking to cover their family's immediate expenses as well as any future expenses.",{"type":90,"attrs":2100,"content":2101},{"level":92},[2102],{"text":2103,"type":45,"marks":2104},"Term life insurance vs. whole life insurance",[2105],{"type":98},{"type":41,"content":2107},[2108],{"text":2109,"type":45},"Not all life insurance policies are created equal. Whole life insurance covers your family for your entire life. Term life insurance, on the other hand, offers more limited coverage, and you have to decide how long you anticipate needing the coverage for. The death benefit will be paid to your beneficiaries only if you die before the term is up.",{"type":41,"content":2111},[2112,2114,2121],{"text":2113,"type":45},"The other key difference between term and whole life insurance is the price. Whole life insurance is substantially more expensive than term insurance. In some cases, the annual premiums can be ",{"text":2115,"type":45,"marks":2116},"five to ten times",[2117],{"type":66,"attrs":2118},{"href":2119,"uuid":69,"anchor":69,"custom":2120,"target":70,"linktype":71},"https://www.forbes.com/advisor/life-insurance/comparing-term-life-vs-whole-life-insurance/",{},{"text":2122,"type":45}," more expensive. This makes whole life insurance cost-prohibitive for many Americans.",{"type":41,"content":2124},[2125],{"text":2126,"type":45},"Term life insurance might be a good option if you:",{"type":507,"content":2128},[2129,2139,2148,2157],{"type":139,"content":2130},[2131],{"type":41,"content":2132},[2133],{"text":2134,"type":45,"marks":2135},"Are looking for an affordable way to protect your family financially",[2136],{"type":48,"attrs":2137},{"class":2138},"no-margin-bottom",{"type":139,"content":2140},[2141],{"type":41,"content":2142},[2143],{"text":2144,"type":45,"marks":2145},"Need coverage for your dependents for a finite period of time",[2146],{"type":48,"attrs":2147},{"class":2138},{"type":139,"content":2149},[2150],{"type":41,"content":2151},[2152],{"text":2153,"type":45,"marks":2154},"Are seeking coverage to help your partner pay a mortgage and other monthly bills that have an expiration date",[2155],{"type":48,"attrs":2156},{"class":2138},{"type":139,"content":2158},[2159],{"type":41,"content":2160},[2161,2163,2170],{"text":2162,"type":45},"Think you might want permanent life insurance in the future but can’t afford it right now. (Many term life policies can be ",{"text":2164,"type":45,"marks":2165},"converted to whole life coverage",[2166],{"type":66,"attrs":2167},{"href":2168,"uuid":69,"anchor":69,"custom":2169,"target":70,"linktype":71},"https://www.forbes.com/advisor/life-insurance/convert-term-life-to-permanent-life-insurance/",{},{"text":2171,"type":45},", though the deadline for conversion varies by policy.)",{"type":41,"content":2173},[2174],{"text":2175,"type":45},"Whole life insurance might be a good option if you:",{"type":507,"content":2177},[2178,2187,2196,2205],{"type":139,"content":2179},[2180],{"type":41,"content":2181},[2182],{"text":2183,"type":45,"marks":2184},"Want lifetime coverage starting now",[2185],{"type":48,"attrs":2186},{"class":2138},{"type":139,"content":2188},[2189],{"type":41,"content":2190},[2191],{"text":2192,"type":45,"marks":2193},"Can afford a higher premium",[2194],{"type":48,"attrs":2195},{"class":2138},{"type":139,"content":2197},[2198],{"type":41,"content":2199},[2200],{"text":2201,"type":45,"marks":2202},"Have a lifelong dependent, like a child with disabilities",[2203],{"type":48,"attrs":2204},{"class":2138},{"type":139,"content":2206},[2207],{"type":41,"content":2208},[2209,2211,2217],{"text":2210,"type":45},"Want a life insurance with a ",{"text":2212,"type":45,"marks":2213},"cash value component",[2214],{"type":66,"attrs":2215},{"href":2216,"uuid":69,"anchor":69,"custom":1623,"target":70,"linktype":71},"https://www.forbes.com/advisor/life-insurance/cash-value-life-insurance/",{"text":2218,"type":45}," (a savings account that you can withdraw from or borrow against while you are still alive)",{"type":90,"attrs":2220,"content":2221},{"level":92},[2222],{"text":2223,"type":45,"marks":2224},"The benefits of term life insurance",[2225],{"type":98},{"type":41,"content":2227},[2228,2234],{"text":862,"type":45,"marks":2229},[2230],{"type":66,"attrs":2231},{"href":2232,"uuid":69,"anchor":69,"custom":2233,"target":70,"linktype":71},"https://www.moneygeek.com/insurance/life/term-life-insurance/",{},{"text":2235,"type":45}," is an excellent option for many families and individuals. Here are some of the benefits.",{"type":507,"content":2237},[2238,2250,2262,2274,2286,2298],{"type":139,"content":2239},[2240],{"type":41,"content":2241},[2242,2244,2248],{"text":2243,"type":45},"Term life insurance is ",{"text":2245,"type":45,"marks":2246},"more affordable ",[2247],{"type":98},{"text":2249,"type":45},"than other types of life insurance plans — often one-fifth the cost of whole life insurance.",{"type":139,"content":2251},[2252],{"type":41,"content":2253},[2254,2256,2260],{"text":2255,"type":45},"Term life insurance is straightforward and",{"text":2257,"type":45,"marks":2258}," easy to understand",[2259],{"type":98},{"text":2261,"type":45},": it simply provides a death benefit if you die within the paid policy term.",{"type":139,"content":2263},[2264],{"type":41,"content":2265},[2266,2268,2272],{"text":2267,"type":45},"It’s easy to add ",{"text":2269,"type":45,"marks":2270},"more coverage",[2271],{"type":98},{"text":2273,"type":45},". Most carriers let you easily up the coverage for your term by up to 10 times without incurring a huge premium increase.",{"type":139,"content":2275},[2276],{"type":41,"content":2277},[2278,2280,2284],{"text":2279,"type":45},"If you die during your policy term, your beneficiary or beneficiaries will receive a lump sum from the life insurance company. Just like with whole life insurance, the death benefit disbursement will be ",{"text":2281,"type":45,"marks":2282},"tax-free. ",[2283],{"type":98},{"text":2285,"type":45},"That means the recipient(s) can keep the full amount to use as needed.",{"type":139,"content":2287},[2288],{"type":41,"content":2289},[2290,2292,2296],{"text":2291,"type":45},"If you decide to cancel your term policy while it’s active, you can do so ",{"text":2293,"type":45,"marks":2294},"without incurring fees or penalties",[2295],{"type":98},{"text":2297,"type":45},". That can make it feel like less of a financial commitment than whole life insurance.",{"type":139,"content":2299},[2300],{"type":41,"content":2301},[2302,2304,2308],{"text":2303,"type":45},"Term life insurance policies are ",{"text":2305,"type":45,"marks":2306},"flexible",[2307],{"type":98},{"text":2309,"type":45},", offering many policy and payment options. You can choose to pay your premiums monthly, quarterly, biannually, or annually. You can also choose how long you need coverage; most life insurance companies offer terms anywhere from five to 30 years in length.",{"type":90,"attrs":2311,"content":2312},{"level":92},[2313],{"text":2314,"type":45,"marks":2315},"The disadvantages of term life insurance",[2316],{"type":98},{"type":41,"content":2318},[2319],{"text":2320,"type":45},"Though term life insurance is more affordable than whole life insurance — and offers more flexible coverage — it does come with some downsides.",{"type":507,"content":2322},[2323,2329],{"type":139,"content":2324},[2325],{"type":41,"content":2326},[2327],{"text":2328,"type":45},"Term life insurance has no cash value component. Unlike whole life policies (which come with a tax-deferred savings account), there is no way to invest any part of your term insurance premiums. All funds are put toward your death benefit; you can’t manage or grow them over time. This means that if you don't end up using your term insurance’s death benefit, then all those funds go straight down the drain.",{"type":139,"content":2330},[2331],{"type":41,"content":2332},[2333,2335,2342],{"text":2334,"type":45},"Term life insurance does not ",{"text":2336,"type":45,"marks":2337},"cover pre-existing conditions",[2338],{"type":66,"attrs":2339},{"href":2340,"uuid":69,"anchor":69,"custom":2341,"target":70,"linktype":71},"https://www.bankrate.com/insurance/life-insurance/pre-existing-conditions/",{},{"text":2343,"type":45}," or long-term care costs. That includes conditions like diabetes or cancer. So, if these were already present before you purchased coverage, then they'll never be covered by that plan — and neither will any future occurrences thereof. The same is true of long-term care coverage: if a beneficiary needs help taking care of themselves due to old age but hasn't purchased supplemental long-term care insurance before the need arises, then they're out of luck.",{"type":90,"attrs":2345,"content":2346},{"level":92},[2347],{"text":2348,"type":45,"marks":2349},"Who should consider term life insurance?",[2350],{"type":98},{"type":41,"content":2352},[2353],{"text":2354,"type":45},"Anyone looking to support their family's financial wellbeing should consider term life insurance. It is an affordable way to protect your loved ones in the event of a tragedy.",{"type":38,"content":2356},[2357],{"type":41},"\u003C!--#storyblok#{\"name\": \"Typography\", \"space\": \"157494\", \"uid\": \"a64c4df0-154e-4c12-b867-678d292709f4\", \"id\": \"651798215\"}-->","\u003C!--#storyblok#{\"name\": \"Column\", \"space\": \"157494\", \"uid\": \"c286affa-ee04-4348-8508-6e9f77932903\", \"id\": \"651798215\"}-->",{"lg":1467,"md":18,"sm":1467,"_uid":2361,"cols":1467,"bloks":2362,"alignSelf":1463,"component":1464,"_editable":2385},"d7d3de2b-23e3-4c1e-b2ee-b081a5e85602",[2363],{"id":1471,"_uid":2364,"fixed":1458,"title":2365,"classes":1479,"maxWidth":18,"subtitle":2370,"component":1483,"titleClasses":1484,"mobileClasses":1485,"backgroundColor":1486,"subtitleClasses":1487,"checkYourRateBtn":2373,"_editable":2384},"c36bfdfa-35a4-462e-8162-d99ba3bf5870",{"type":38,"content":2366},[2367],{"type":41,"content":2368},[2369],{"text":1478,"type":45},{"type":38,"content":2371},[2372],{"type":41},[2374],{"url":2375,"_uid":2376,"icon":2377,"text":1496,"color":1497,"sizing":2378,"classes":1508,"rounded":28,"outlined":28,"component":1509,"textColor":1486,"hoverBgColor":1486,"mobileClasses":1510,"hoverTextColor":1497,"navigationType":2382,"_editable":2383},{"id":18,"url":1491,"linktype":71,"fieldtype":1492,"cached_url":1491},"f63d0282-3e1b-43f5-b8a8-7e170de6e499",{"id":69,"alt":69,"name":18,"focus":69,"title":69,"filename":69,"copyright":69,"fieldtype":1495},[2379],{"_uid":2380,"width":1501,"height":1502,"fontSize":1503,"component":1504,"mobileWidth":1505,"mobileHeight":1502,"fontSizeMobile":1506,"_editable":2381},"79c54504-09e8-4459-98e4-da98f16d575f","\u003C!--#storyblok#{\"name\": \"buttonSizing\", \"space\": \"157494\", \"uid\": \"79c54504-09e8-4459-98e4-da98f16d575f\", \"id\": \"651798215\"}-->",[],"\u003C!--#storyblok#{\"name\": \"CheckYourRateBtn\", \"space\": \"157494\", \"uid\": \"f63d0282-3e1b-43f5-b8a8-7e170de6e499\", \"id\": \"651798215\"}-->","\u003C!--#storyblok#{\"name\": \"BlogCTA\", \"space\": \"157494\", \"uid\": \"c36bfdfa-35a4-462e-8162-d99ba3bf5870\", \"id\": \"651798215\"}-->","\u003C!--#storyblok#{\"name\": \"Column\", \"space\": \"157494\", \"uid\": \"d7d3de2b-23e3-4c1e-b2ee-b081a5e85602\", \"id\": \"651798215\"}-->",{"lg":825,"md":825,"sm":826,"_uid":2387,"cols":826,"bloks":2388,"alignSelf":1463,"component":1464,"_editable":2464},"69f69cbc-1524-44b1-ab35-8db70a5c9bab",[2389],{"_uid":2390,"table":2391,"component":1607,"tableWidth":2462,"rowCellAlign":1463,"footerContent":18,"includeFooter":28,"headerCellAlign":1463,"_editable":2463},"f74ae5fb-f90f-4e6e-a3c3-3138a3b86808",{"tbody":2392,"thead":2453,"fieldtype":1606},[2393,2405,2417,2429,2441],{"_uid":2394,"body":2395,"component":1534,"_editable":2404},"6d9768af-e4bb-4ce2-ab79-68744b68ecbe",[2396,2400],{"_uid":2397,"value":2398,"component":1528,"_editable":2399},"71756d2a-9cc0-42f3-8649-e39fe53a0496","Young Couples","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"71756d2a-9cc0-42f3-8649-e39fe53a0496\", \"id\": \"651798215\"}-->",{"_uid":2401,"value":2402,"component":1528,"_editable":2403},"6139eba4-8afd-4c65-a1b5-786cb0323fc5","Insurance may be the last thing on newlyweds’ minds, but this is actually the ideal time to buy term life coverage. The younger and healthier you are, the better your rates will be. A term life insurance payout can be used to replace lost income, pay down debts (including mortgage, car, and student loans), and cover future financial needs like childcare and education costs. ","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"6139eba4-8afd-4c65-a1b5-786cb0323fc5\", \"id\": \"651798215\"}-->","\u003C!--#storyblok#{\"name\": \"_table_row\", \"space\": \"157494\", \"uid\": \"6d9768af-e4bb-4ce2-ab79-68744b68ecbe\", \"id\": \"651798215\"}-->",{"_uid":2406,"body":2407,"component":1534,"_editable":2416},"4b32a122-fff0-4a9b-a6d3-e3c1b3437485",[2408,2412],{"_uid":2409,"value":2410,"component":1528,"_editable":2411},"e91ff31e-9560-40d4-8a4d-047eeff26247","Sole Financial Providers","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"e91ff31e-9560-40d4-8a4d-047eeff26247\", \"id\": \"651798215\"}-->",{"_uid":2413,"value":2414,"component":1528,"_editable":2415},"681975cc-e3e6-41d5-94ec-f79f28b1d7d2","The loss of a single-income provider can be devastating to a family. Term life coverage can help the surviving family members replace the lost income, giving them time to stay home with children rather than going back to the workforce. Proceeds can also be used for everyday expenses, current and future childcare, and education costs.","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"681975cc-e3e6-41d5-94ec-f79f28b1d7d2\", \"id\": \"651798215\"}-->","\u003C!--#storyblok#{\"name\": \"_table_row\", \"space\": \"157494\", \"uid\": \"4b32a122-fff0-4a9b-a6d3-e3c1b3437485\", \"id\": \"651798215\"}-->",{"_uid":2418,"body":2419,"component":1534,"_editable":2428},"4be29729-d358-4dff-89a8-d28822f50a3c",[2420,2424],{"_uid":2421,"value":2422,"component":1528,"_editable":2423},"508b5f0d-b4e2-48b2-9dff-f37d9299eb33","Individuals with Sizable Debt","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"508b5f0d-b4e2-48b2-9dff-f37d9299eb33\", \"id\": \"651798215\"}-->",{"_uid":2425,"value":2426,"component":1528,"_editable":2427},"58c6e473-448e-458f-98d8-160c6f91dce6","If you have significant debt, your designated beneficiary can use your death benefit proceeds to pay major expenses like a mortgage or student loan. This can save them from having to take on that debt themselves. The death benefit can also be used to replace income or provide financial support to surviving family members. ","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"58c6e473-448e-458f-98d8-160c6f91dce6\", \"id\": \"651798215\"}-->","\u003C!--#storyblok#{\"name\": \"_table_row\", \"space\": \"157494\", \"uid\": \"4be29729-d358-4dff-89a8-d28822f50a3c\", \"id\": \"651798215\"}-->",{"_uid":2430,"body":2431,"component":1534,"_editable":2440},"00d6ba6c-105c-4112-bc18-1a667cccceec",[2432,2436],{"_uid":2433,"value":2434,"component":1528,"_editable":2435},"7c8f8a7f-6526-4c0c-a583-cdcd966bfe80","Stay-at-Home Parents","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"7c8f8a7f-6526-4c0c-a583-cdcd966bfe80\", \"id\": \"651798215\"}-->",{"_uid":2437,"value":2438,"component":1528,"_editable":2439},"a6d15a29-2346-48a9-89ff-d50e3a1e9d4c","Term life insurance can provide stay-at-home parents with added peace of mind. The benefit can be used as an income supplement or to pay for childcare or other expenses, like housing, healthcare, or property taxes. ","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"a6d15a29-2346-48a9-89ff-d50e3a1e9d4c\", \"id\": \"651798215\"}-->","\u003C!--#storyblok#{\"name\": \"_table_row\", \"space\": \"157494\", \"uid\": \"00d6ba6c-105c-4112-bc18-1a667cccceec\", \"id\": \"651798215\"}-->",{"_uid":2442,"body":2443,"component":1534,"_editable":2452},"19769c04-74f1-41a2-93ed-dfdfd47d7041",[2444,2448],{"_uid":2445,"value":2446,"component":1528,"_editable":2447},"87acca3e-eb89-48bf-bcc3-668686f4d6c0","Business Owners","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"87acca3e-eb89-48bf-bcc3-668686f4d6c0\", \"id\": \"651798215\"}-->",{"_uid":2449,"value":2450,"component":1528,"_editable":2451},"8d418620-c611-4452-9d02-218539972814","Term life coverage can also provide financial security for your business interests. Your death benefit can be used to pay off debts, expenses, and outstanding taxes in case you pass away. (The exact details are usually spelled out in a buy-sell agreement contract, which is especially important if ownership or shares in the company are to be transferred to another person in the event of the policyholder’s death.) Business owners with valuable employees can also take out term life insurance on those employees. This is often called “key man insurance.” In this scenario, the business owner pays for the policy, and the company is the beneficiary, receiving the death benefit if the key employee dies.","\u003C!--#storyblok#{\"name\": \"_table_col\", \"space\": \"157494\", \"uid\": \"8d418620-c611-4452-9d02-218539972814\", \"id\": \"651798215\"}-->","\u003C!--#storyblok#{\"name\": \"_table_row\", \"space\": \"157494\", \"uid\": \"19769c04-74f1-41a2-93ed-dfdfd47d7041\", \"id\": \"651798215\"}-->",[2454,2458],{"_uid":2455,"value":2456,"component":1600,"_editable":2457},"1b89559f-ec6f-473b-abf1-5a3777c25cdc","Customer Type","\u003C!--#storyblok#{\"name\": \"_table_head\", \"space\": \"157494\", \"uid\": \"1b89559f-ec6f-473b-abf1-5a3777c25cdc\", \"id\": \"651798215\"}-->",{"_uid":2459,"value":2460,"component":1600,"_editable":2461},"ef60bc02-bd99-45dc-b8a9-6e0ac3aafc3e","Benefits","\u003C!--#storyblok#{\"name\": \"_table_head\", \"space\": \"157494\", \"uid\": \"ef60bc02-bd99-45dc-b8a9-6e0ac3aafc3e\", \"id\": \"651798215\"}-->","100%","\u003C!--#storyblok#{\"name\": \"TableComponent\", \"space\": \"157494\", \"uid\": \"f74ae5fb-f90f-4e6e-a3c3-3138a3b86808\", \"id\": \"651798215\"}-->","\u003C!--#storyblok#{\"name\": \"Column\", \"space\": \"157494\", \"uid\": \"69f69cbc-1524-44b1-ab35-8db70a5c9bab\", \"id\": \"651798215\"}-->",{"lg":825,"md":825,"sm":826,"_uid":2466,"cols":826,"bloks":2467,"alignSelf":1463,"component":1464,"_editable":2688},"b3fee08a-02f4-44a7-9f6d-ca6f72cf1d3e",[2468],{"_uid":2469,"color":36,"classes":831,"content":18,"richText":2470,"component":1456,"mobileClasses":1457,"enableRichText":1458,"richTextMobile":2684,"_editable":2687},"91a26953-a69d-496e-a5f9-64b8adbc7c50",{"type":38,"content":2471},[2472,2479,2483,2487,2494,2498,2504,2516,2523,2527,2534,2538,2543,2553,2588,2593,2601,2606,2624,2629,2633,2638,2651,2658,2662,2678],{"type":90,"attrs":2473,"content":2474},{"level":92},[2475],{"text":2476,"type":45,"marks":2477},"Who probably doesn't need term life insurance?",[2478],{"type":98},{"type":41,"content":2480},[2481],{"text":2482,"type":45},"If you don't have dependents, then the rate of return on your premiums may not be worth it. Consider the cost of paying the premium versus the benefits your beneficiary will receive if something happens to you. For example, if your family doesn't need your life insurance payout because they're financially secure, and your term life insurance premiums may cause you a significant burden, it may not be worth taking out an individual policy.",{"type":41,"content":2484},[2485],{"text":2486,"type":45},"Another group who may not want a term policy is young people without dependents who are at peak health. If this describes your situation, then there's probably no need for life insurance coverage at this time. Instead of paying premiums, it may be better to save your money and allocate it to a different investment vehicle for the time being.",{"type":90,"attrs":2488,"content":2489},{"level":92},[2490],{"text":2491,"type":45,"marks":2492},"How long will I need term life insurance for?",[2493],{"type":98},{"type":41,"content":2495},[2496],{"text":2497,"type":45},"The length of time you’ll need life insurance depends on your age, health, and family situation. If you're young and healthy, a 15- or 20-year term might be sufficient to cover a mortgage and other debts for your family members if something happened to you. If your savings are tied up in other assets — including individual retirement accounts (IRAs), 401(k)s, or stock investments that may continue to grow over time — you may want to consider a longer-term policy. This may be necessary to meet all of your dependents’ future financial needs while they have no income. The term length will also depend on how much income is needed each year, as well as what kind of lifestyle your dependents want to maintain without having to work more than is necessary.",{"type":90,"attrs":2499,"content":2500},{"level":92},[2501],{"text":1263,"type":45,"marks":2502},[2503],{"type":98},{"type":41,"content":2505},[2506,2508,2515],{"text":2507,"type":45},"Life insurance premiums vary widely depending on a number of factors. These include your age, medical history, term length, and the total amount of coverage. Usually, the bigger your benefit, the higher the premium will be. Premiums can be paid monthly, quarterly, or annually depending on what type of policy you choose. Premiums may also vary according to your state’s particular regulations. The best way to get an idea of what term life insurance would cost for you is to request a ",{"text":2509,"type":45,"marks":2510},"free estimate online",[2511],{"type":66,"attrs":2512},{"href":2513,"uuid":69,"anchor":69,"custom":2514,"target":70,"linktype":71},"https://www.leaplife.com/partner/navientlifeinsurance/life-insurance",{},{"text":2015,"type":45},{"type":90,"attrs":2517,"content":2518},{"level":92},[2519],{"text":2520,"type":45,"marks":2521},"How are claims paid out?",[2522],{"type":98},{"type":41,"content":2524},[2525],{"text":2526,"type":45},"In the event of a policyholder’s death, claims are paid out by the life insurance company. The company is regulated by state law, as well as by federal law and organizations such as the NAIC (National Association of Insurance Commissioners). In most cases, if you die before your policy expires, your beneficiaries receive a death benefit. This can be paid directly to them or used to cover your outstanding debts so that they don’t have to worry about them after your passing.",{"type":90,"attrs":2528,"content":2529},{"level":92},[2530],{"text":2531,"type":45,"marks":2532},"Alternatives to term life insurance",[2533],{"type":98},{"type":41,"content":2535},[2536],{"text":2537,"type":45},"Aside from term life insurance and whole life insurance, there are several other life insurance alternatives to choose from. (As a reminder, whole life insurance provides permanent coverage. It comes with a fixed death benefit and level premiums, and it provides a cash value account that can grow over time, tax-deferred.)",{"type":90,"attrs":2539,"content":2540},{"level":921},[2541],{"text":2542,"type":45},"Universal life insurance",{"type":41,"content":2544},[2545,2551],{"text":2542,"type":45,"marks":2546},[2547],{"type":66,"attrs":2548},{"href":2549,"uuid":69,"anchor":69,"custom":2550,"target":70,"linktype":71},"https://www.usnews.com/insurance/life-insurance/universal-life-insurance",{},{"text":2552,"type":45}," is a type of permanent life insurance (similar to traditional whole life insurance). With a universal life policy, the insured person is covered for the duration of their life as long as they pay premiums and fulfill other eligibility requirements. These plans are a great option if you want part of your policy to function as a savings account. Unlike whole life insurance, the premiums and death benefit are flexible rather than fixed. This type of coverage may also come with more fees than whole life insurance. There are a few additional features:",{"type":507,"content":2554},[2555,2564,2573,2582],{"type":139,"content":2556},[2557],{"type":41,"content":2558},[2559],{"text":2560,"type":45,"marks":2561},"You can withdraw money or borrow against the policy's cash value.",[2562],{"type":48,"attrs":2563},{"class":2138},{"type":139,"content":2565},[2566],{"type":41,"content":2567},[2568],{"text":2569,"type":45,"marks":2570},"You can earn interest on the cash value component of your policy.",[2571],{"type":48,"attrs":2572},{"class":2138},{"type":139,"content":2574},[2575],{"type":41,"content":2576},[2577],{"text":2578,"type":45,"marks":2579},"You have some flexibility with your premiums.",[2580],{"type":48,"attrs":2581},{"class":2138},{"type":139,"content":2583},[2584],{"type":41,"content":2585},[2586],{"text":2587,"type":45},"You can adjust the death benefit — however, you may be required to take a medical exam to do so.",{"type":90,"attrs":2589,"content":2590},{"level":921},[2591],{"text":2592,"type":45},"Variable life insurance",{"type":41,"content":2594},[2595,2597,2598,2599],{"text":2596,"type":45},"Variable life insurance is a type of coverage that provides more flexibility than other types of life insurance and gives policyholders more say in their premium investments. Unlike whole life insurance, the policyholder must take an active role in deciding on investment options. If you don’t have solid investing knowledge already, this may feel like a big decision.",{"type":1774},{"type":1774},{"text":2600,"type":45},"When you purchase this type of policy, you’ll receive a prospectus laying out all your investment options. The most common way to invest your premiums is in mutual funds. You may also be able to invest in index funds, equities, bonds, or money market funds.",{"type":90,"attrs":2602,"content":2603},{"level":921},[2604],{"text":2605,"type":45},"Indexed universal life insurance",{"type":41,"content":2607},[2608,2614,2616,2617,2618,2620,2621,2622],{"text":2605,"type":45,"marks":2609},[2610],{"type":66,"attrs":2611},{"href":2612,"uuid":69,"anchor":69,"custom":2613,"target":70,"linktype":71},"https://www.investopedia.com/articles/personal-finance/012416/pros-and-cons-indexed-universal-life-insurance.asp",{},{"text":2615,"type":45}," allows you to adjust your premiums to maximize your cash policy’s cash value. This is a type of permanent coverage, which means it lasts your entire life and includes a cash value account that typically grows tax-deferred.",{"type":1774},{"type":1774},{"text":2619,"type":45},"Unlike other types of universal life insurance, an indexed policy ties your cash value account to a specific stock index, such as the S&P 500 or Dow Jones Industrial Average. ",{"type":1774},{"type":1774},{"text":2623,"type":45},"Unlike whole life insurance, an indexed policy offers flexible premiums and death benefits. That can provide more potential to grow your money. However, this type of policy can be risky, as the stock market has been known to fluctuate wildly.",{"type":90,"attrs":2625,"content":2626},{"level":921},[2627],{"text":2628,"type":45},"Guaranteed life insurance",{"type":41,"content":2630},[2631],{"text":2632,"type":45},"Guaranteed life insurance is a type of whole life insurance that allows policyholders to get coverage without taking a health exam. If someone with significant health concerns isn’t accepted by other insurance policies, guaranteed life insurance can be a good option. However, keep in mind that guaranteed life insurance policies require higher premium payments. Because these policies are riskier for life insurance companies, they charge higher rates and provide a smaller death benefit.",{"type":90,"attrs":2634,"content":2635},{"level":921},[2636],{"text":2637,"type":45},"Final expense life insurance",{"type":41,"content":2639},[2640,2642,2649],{"text":2641,"type":45},"While many life insurance options include funeral expenses, ",{"text":2643,"type":45,"marks":2644},"final expense insurance",[2645],{"type":66,"attrs":2646},{"href":2647,"uuid":69,"anchor":69,"custom":2648,"target":70,"linktype":71},"https://www.funeralbasics.org/myth-fact-truth-final-expense-plans/",{},{"text":2650,"type":45}," covers only funeral expenses and other end-of-life costs. Final expense coverage is usually guaranteed (i.e., there’s no required medical exam). However, the premiums are generally expensive despite the limited coverage.",{"type":90,"attrs":2652,"content":2653},{"level":92},[2654],{"text":2655,"type":45,"marks":2656},"Explore term life insurance with Navient Marketplace",[2657],{"type":98},{"type":41,"content":2659},[2660],{"text":2661,"type":45},"There are key differences between term and whole life insurance policies that boil down to cost, coverage, and cash value benefits. The best option for you will vary depending on your family circumstances and budget.",{"type":41,"content":2663},[2664,2666,2672,2674,2675,2676],{"text":2665,"type":45},"Once you’ve decided which type of life insurance is right for you, it’s time to start looking at your options. If you’re ready to start shopping for life insurance plans, head to the",{"text":2667,"type":45,"marks":2668}," Marketplace by Navient",[2669],{"type":66,"attrs":2670},{"href":639,"uuid":69,"anchor":69,"custom":2671,"target":70,"linktype":71},{},{"text":2673,"type":45}," to get free life insurance quotes. It’s a robust platform that can help you compare and contrast some of the best life insurance companies on the market. And, of course, consider speaking to your life insurance agent to get more guidance. ",{"type":1774},{"type":1774},{"text":2677,"type":45},"Life insurance doesn’t have to be complicated. 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