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Best Life Insurance in South Dakota of 2022

Amanda Hester

Did you know enrolling in a life insurance policy now can help you save money in the long run? That is because as you age, insurance rates also go up. The purpose of a plan is to provide a lump-sum payment to your family and/or other beneficiaries if you pass away within the term of the policy. However, the insurance premium you pay usually increases as you age due to the increased risk of death, but there are different types of plans available such as term insurance and life insurance.

To help you with the process of choosing a life insurance policy, we reviewed and compared the top life insurance companies based on policy pricing, available options, customer support, financial strength, and overall quality.

Customizable life insurance policy

$2,500,000

Coverage Up To

Not Required

Medical Exam

Overview

When you apply online, you can obtain instant coverage that starts from $9 per month. Medical exams are not required and policies are flexible according to your needs.

What we like

  • Personalized life insurance policies
  • Completely online experience
  • Adjust your coverage as your life changes
  • Track outstanding debts and reduce premiums as needed

What we don't

  • Issue age of 18 to 45 only
  • Serious pre-existing health conditions not covered

Quick application process

$2,000,000

Coverage Up To

Not Required

Medical Exam

Overview

At Ethos, your journey to life insurance just got easier. Offering a simple and convenient process, applicants can access plenty of terms and coverage plans.

What we like

  • 100% online and hassle-free application process
  • Budget-friendly plans
  • No cancellation fees

What we don't

  • Term coverage available for over the age of 65

Affordable life Insurance coverage

$8,000,000

Coverage Up To

No (up to $3M)

Medical Exam

Overview

With Ladder, you can customize your insurance coverage depending on your unique needs throughout your term. You can remove coverage when necessary and apply to add more. Rates start from $4.95/month based on a 20-year-old female for a 10-year term, preferred plus health class.

What we like

  • Flexibility to adjust coverage throughout the term
  • Quick and simple coverage you can manage online
  • No medical exam required for coverage up to $3M

What we don't

  • No riders are availabe
  • Coverage ends at 70 years of age

Complete your application online

$3,000,000

Coverage Up To

May Need

Medical Exam

Overview

Haven Life simplifies the insurance application process to learn about your coverage options. There are two products: Haven Simple and Haven Term. Haven Simple requires no medical exam and has a lower coverage amount, and Haven Term may require a medical exam and has more options for coverage.

What we like

  • Healthy individuals will get cheaper premiums
  • 100% online application - no need to talk to an agent
  • Wide range of coverage options
  • Haven Term has various riders
  • No medical exam for Haven Simple

What we don't

  • Only offers term life insurance
  • Only selected regions are eligible for riders

Designed for young families

$5,000,000

Coverage Up To

May Need

Medical Exam

Overview

Fabric understands that your family is extremely important, so it provides life insurance that will give the necessary financial security to your loved ones if you happen to pass on. In addition, Fabric offers its services online, and It is accredited by the Better Business Bureau with a grade of A+. The company offers accelerated underwriting for applicants who qualify, so you can be approved in minutes without a medical exam.

What we like

  • Healthy individuals with young families get better premiums
  • Convenience of applying and purchasing online
  • Creating free wills
  • 1% death benefit donated to charity (no extra cost)
  • 30-day grace period if payment fails

What we don't

  • Limited term length of 30 years
  • Not available in every state

No medical exam required

$1,500,000

Coverage Up To

Not Required

Medical Exam

Overview

Bestow determines the monthly premium for individuals based on how long a term they are looking for, their current health, and various other factors. You can receive a quote and determine the amount of coverage you are eligible for in minutes with no medical exam - you'll save yourself the hassle of going to appointments.

What we like

  • No medical exam
  • Individuals who do not smoke get better premiums
  • Flexible policy terms with coverage
  • Simple and straightforward application process

What we don't

  • No coverage for people over the age of 60
  • Only term life insurance is offered

What is the cost of life insurance in South Dakota?

The cost of life insurance depends on many factors, including your age, gender, your current state of health, family medical history, if you are a smoker or not, and the amount of coverage you are seeking. For example, younger people are usually charged cheaper premiums because they are less likely to pass away within the term of their policy. Premiums for adults over the age of 50 can be two times more expensive than those who are 45 years old. In general, men who smoke often pay the highest rates since smoking is a risk factor in developing certain types of cancer and other major health problems.

On the other hand, non-smokers often pay the lowest rates. Thus, someone who smokes a pack of cigarettes per day and has been diagnosed with emphysema would pay an average individual life insurance premium nearly two times what you will pay if you are a non-smoker. On the whole, the average annual life insurance rate and average monthly life insurance premium in South Dakota are $603 and $50, respectively.

How are life insurance rates determined in South Dakota?

Life insurance premiums in South Dakota are determined based on these key factors: the individual’s health history, their current state of health, and the demographic they fit into.

An applicant’s age is another important factor as seniors are more likely to pass away sooner than younger people. Other factors include occupation, hobbies, lifestyle, and gender. The insurer uses this information to assess the person’s risk and sets a price accordingly.

Difference between term and whole life insurance in South Dakota 

Life insurance is offered in two options: a term or a whole life insurance policy. When choosing a plan, consider what fits your needs and budget best. Below is more detail about the types of policies available:

Term Life Insurance 

Term life insurance provides coverage for a certain period (term) that is guaranteed by an insurance company. The term can range anywhere from 10-30 years, and as long as premiums are paid, the policy will stay in effect. For example, if you pass away within four years of purchasing the policy, your beneficiaries will receive the full face amount. Premiums for term life insurance can fluctuate as you age because older people are generally more likely to pass away within the term of their policy.

Whole Life Insurance 

Whole life insurance provides coverage for one’s entire life and the premiums remain the same throughout your policy. Whole life insurance plans are ideal for policyholders seeking guaranteed level premiums, which essentially entails the same premium cost for life regardless of health or age. However, in some cases, the premium cost can increase but that depends on the policyholder’s unique circumstances.

What does life insurance cover in South Dakota?

Life insurance covers the repayment of financial obligations (e.g., mortgage), expenses (e.g., medical bills), and also supports loved ones financially who are left behind by the policyholder. In some cases, the policyholder is the main income provider in the household, therefore a death benefit can be helpful for the beneficiaries after the demise of their loved one.

Typically, beneficiaries use the funds for the following:

  • Paying off debts
  • End of life and funeral expenses
  • Financial support to family members
  • Mortgage and loan repayment
  • Education expenses
  • An emergency fund

How to choose the best life insurance plan in South Dakota 

When choosing a life insurance policy, you should consider your need and the available policies. Once you have shortlisted the policies you are interested in, compare all the available options. To help you finalize your decision, keep the following key aspects in mind:

  •  Type of coverage: The type of life insurance policy you want to buy should be following the financial security you want to gain. For instance, if you are buying a life insurance policy for your children, term plans will be the best option because it is easy to renew them when required. However, if you are buying life insurance policies for yourself or your spouse; whole life insurance would be a preferred option. This is because during the tenure of such policies, you receive payments that you can use for any purpose.
  • Gender: Life insurance companies tend to charge women lower premiums than men because women have a comparatively lower life expectancy. However, the difference in premium rates is not very much. Therefore, if you are a woman and if you can afford a higher premium, then you should go for it because your beneficiaries will be paid a sum of money posthumously.
  •  Family medical history: The family medical history of a person is also considered while a life insurance plan is being selected. If your family members have a medical history indicating high chances of you developing certain diseases, then the premiums will likely be higher as well.
  • Your health choices: Your smoking habit can affect life insurance premiums. For instance, if you smoke cigarettes or consume excessive alcohol then the chances of your policy being rejected are higher. Additionally, a high premium will be charged for covering such a person because life insurance companies consider these habits to be risky to public health.