UPDATED: Jun 23, 2020
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn't influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.
Q: What is the minimum amount of term life insurance I can purchase?
A: Most ‘major’ life insurance companies offer their term life insurance products at a minimum coverage amount of $100,000. A few will go as low as $50,000 (e.g. AIG American General Life Insurance Company and Genworth Life Insurance Company). Premium rates for these smaller coverage amounts tend to be higher per unit than those of larger coverage amounts (a unit equals $1,000 of coverage). Therefore, consumers interested in smaller policies should also review quotes for policies at the $100,000 coverage amount. The premium rates may be similar despite the difference in coverage amounts.
RBC Liberty Life Insurance Company and Garden State Life Insurance Company offer term life insurance coverage amounts as low as $25,000. This nice thing about these small policies is consumers can apply online or by telephone without having to take a paramedical exam. Coverage is usually approved or declined on the spot, and the policy can be paid for and put in force within minutes. This type of term life insurance is commonly referred to as Instant Issue Term or Simplified Issue Term.