Purchasing a life insurance policy gives your loved ones security after you pass away, covering necessary expenses and protecting them from financial hardship. Our partners at ConsumerAffairs researched the best life insurance in Kansas City to help with your financial planning.
Everyone deserves to make thoughtful, informed purchase decisions. The local guides provided on this website are free for consumers. KSHB may receive compensation from our partners. Learn more.
A life insurance policy provides a predetermined amount of money to your beneficiaries to help support them after your passing. Life insurance can also serve as an inheritance for your loved ones or act as a charitable contribution in your name.
Life insurance is often purchased by people in Kansas City who support other family members and want to ensure their family is provided for after the insured person has passed away.
Life insurance can help your family cover:
Funeral and medical bills
Debt and essential expenses (mortgage payments or college funds)
There are two main types of life insurance available in Kansas City: term life and whole life. There are a variety of factors that determine which is best for you, including the length of the policy and the amount you’re able to pay in premiums.
Term life insurance
Term life insurance provides coverage for a length of time agreed on in the contract. It only protects your dependents if you die within your policy term; once the policy term ends, all premiums and benefits end. Most policies maintain the same payout and premium throughout the term.
With this insurance, you should add up your costs and choose a term that best fits your needs. For example, if you have two children who will be attending college, you’ll want to ensure your policy will last long enough to cover those costs.
Whole life insurance
Unlike term life insurance, whole life insurance has an investment component (tax-deferred cash value) that grows while your policy is in place. With this policy, you can borrow against the account or surrender it for payout.
These are often more expensive but guarantee a return on investment. Whole life insurance is usually a better idea for those who purchase life insurance early in life because of the length of time it takes to build a cash value and the potential for lower premiums.
Here’s a further breakdown:
Purchased for a specific time period (typically 5-, 10-, 15-, or 30-year terms)
Covers you for your entire life
Death benefit/payout if death occurs during term
Death benefit and cash value accumulation
Varies, but usually has higher premiums
Flexible & affordable
Benefits never expire
Could outlive policy/could need to renew policy when in poor health, leading to a higher cost
Another option is universal life insurance—a type of whole life insurance that is more flexible and has lower premiums. With this policy, a portion of your monthly premium goes toward the death benefit, and the rest is invested. Universal life insurance can be riskier because the return on investment depends on the market.
To decide which plan is best for you, talk to a financial planner or an insurance agent who can assess your needs and help you with a strategic plan that will provide your family with financial security.
Because of the importance and high values of life insurance policies, it’s important to work with reputable companies. Large firms such as State Farm, MetLife and Prudential Financial are financially stable companies with an extensive array of life insurance options.
You should look at the company’s reviews and financial strength as well as the Missouri Department of Insurance’s Consumer Complaint Report before choosing a company. A.M. Best is one of the leading companies to rate financial strength—Northwestern Mutual, Guardian Life and MassMutual are just a few companies that maintain an A++ rating with A.M. Best.
The cost of life insurance in Kansas City
Insurance companies look at many factors when determining the price of a life insurance policy, including the insured person’s:
Personal/family medical history
The type of insurance, length of term and benefit amount will also impact the cost of your life insurance premiums.
While price can be a deciding factor, opting for less coverage at a lower cost may not best fit your needs. Life insurance is a long-term solution, not a short-term investment, so look at your overall financial situation to decide what coverage is right for you and your family. You can save money by determining how much coverage you need and then comparing offers from different life insurance companies.
Policygenius is an independent insurance broker that walks customers through the life insurance purchasing process. The company’s online tool allows you to compare coverage and quotes from more than a dozen companies side by side. Policygenius is dedicated to transparency and lists the pros and cons of each insurer.
EverQuote is a fast, free online service that comes with no obligations. The company allows you to fill out an online quote request to receive rates from a variety of companies. The company also has experts who help you choose a policy. Kansas City customers rate the company highly for its straightforward application process.
Kansas City Life Insurance Company
Kansas City Life was founded in 1895 and has expanded to 48 states. The company offers a wide variety of life insurance solutions and has an A rating from A.M. Best. Kansas City customers say the company has excellent service and that they appreciate its convenient location in the heart of Downtown KC.
Tony Guy is a local agent for State Farm Insurance, one of the most trusted names in the life insurance industry. State Farm offers discounts for bundling different types of insurance policies and has a wide variety of life insurance policies for customers. Kansas City reviewers praise this branch for its excellent customer service.
Our partners independently research and analyze the companies mentioned in our guides and work with subject matter experts to add valuable information that helps consumers make smart purchase decisions. Our partners will not include companies on these guides that do not meet specific quality standards. The compensation we receive from our partners may impact how and where companies appear on our site, including the order in which they appear.
Our partners independently research companies, and use editorial discretion to award companies with special recognition (i.e. Best Value) based on their staff’s judgement or subject matter expert’s judgement. Our partners do this to help you identify companies that will meet your specific buying needs, and do not receive compensation for these designations.