Pros / Nationwide quoted some of the lowest premiums we saw.
Cons / The company doesn’t offer financial planning services.
Verdict / If price is one of your main concerns, Nationwide is one of the best options to consider.
Besides life insurance, Nationwide offers auto, homeowners and renters insurance. It also has online savings and checking accounts that generate more interest than those at brick-and-mortar banks. Nationwide is rated A+ by A.M. Best, meaning it has the financial stability to pay out claims in the near and distant future.
Life insurance policies are divided into two main types: term and permanent. Term policies are the most common and most affordable – they cover you for a certain number of years, and if you pass away during that time, they pay your beneficiaries a set amount of money. Permanent policies are more expensive and have the same benefit as a term policy. However, they last as long as you make your payments and have a value-building component. A portion of the premium is put in a savings account and earns interest as time passes.
Policy premiums vary depending on your age, health, income, debt and what you need to provide your beneficiaries. To get an idea of how much term and permanent policies cost, we got quotes for a 45-year-old male who smokes and has good health as well as a 33-year-old woman in excellent health. Income and debt were kept the same to minimize other variables. Both policies were for $250,000 with a 20-year term.
Nationwide offered us some of the lowest quotes. Across the companies we reviewed, term policies for the 45-year-old man averaged $144 per month. Nationwide quoted us a $122 monthly rate, which is significantly lower than insurers like MassMutual and Prudential. The average term policy for our 33-year-old woman was $20 a month, and Nationwide hit that number exactly.
The company’s permanent policies had even greater savings. Our male subject was quoted a rate of $424, compared to the average of $488. Our female got a quote of $127 a month, which is significantly lower than the average of $186.
You can get a whole or a universal permanent policy through Nationwide. Whole insurance used to be the standard, but it’s not as flexible as universal life insurance, which lets you adjust the premium and death benefit as well as gives you easy access to the money it accrues. Nationwide doesn’t offer disability income insurance, which is similar to life insurance and provides a benefit if you become disabled.