Jessica Fox Last Updated On: August 23, 2023

Find Affordable Life Insurance in Arizona Today

While the risk of falling into the Grand Canyon may be low (but never zero), life insurance still matters in the great state of Arizona. Arizonans deserve to feel protected, as do their loved ones. 

Life insurance can serve different purposes to different people; some use it as a way to leave their children a nest egg, others to ensure they don’t burden their loved ones with outstanding debt, and others use it as a safety net during the years their loved ones depend on them most. 

Whichever your reason is for considering life insurance, you have options. Before you jump into buying life insurance, do yourself a favor and keep reading to find out everything you should know about getting life insurance in Arizona, from cost to coverage and more.

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Table of Contents

What Life Insurance in Arizona Offers

You have options when it comes to life insurance. There’s no one-size-fits-all policy, because everyone wants and needs different things from their life insurance. Let’s explore some of the most common life insurance options you have to choose from:
  • Term Life Insurance: This is life insurance that lasts for a set term, which usually falls into 10, 20, or 30-year increments. If you pass away during that time, your beneficiaries receive a death benefit for you. If you outlive the term, the policy expires and you and your loved ones don’t receive anything. Some policies offer the option to convert to a whole life policy or to extend the term.
  • Permanent Life Insurance: This is life insurance that lasts your entire life, so no matter how long you live, your loved ones will receive a payout. This type of life insurance also typically comes with a cash value component, meaning part of each premium is invested for you and you can borrow against that cash value later in life. There are a few types of permanent life insurance:
    • Whole Life: This is the most common form of permanent life insurance, with level premiums and a cash value account that grows at a modest rate. 
    • Universal Life: This is similar to whole life, but the cash value account has more flexibility. You can choose how to invest it and eventually you can even change your premiums. The rate of growth for your cash value can be changed by the provider. 
    • Variable Life: You invest in mutual funds and your cash value account can grow faster than in other forms of permanent life insurance. The death benefit can also fluctuate based on market trends, but typically comes with a guaranteed minimum amount. 
  • Burial Insurance: Also commonly referred to as final expense insurance, this is a small policy with low premiums that simply covers your funeral, burial/cremation, or any outstanding medical bills and debts. The beneficiary can choose how to apply the death benefit. 
The good news is that if any of these don’t quite fill all of your life insurance needs, you can customize them with riders. More on that next.

Arizona Life Insurance Riders

Riders are optional add-on coverage that you can add to your insurance plan to feel fully protected. Some of the life insurance riders available in Arizona include:
  • Accidental Death Benefit: If you pass away from an accidental death, your loved ones could receive an additional payment on top of the death benefit. This excludes passing away from any dangerous hobbies like sky-diving or military service. 
  • Disability: If you become disabled for at least six months, you will no longer have to pay for your life insurance premiums but retain the policy. Some policies even will pay out a modest income to you. 
  • Waiver of Premium: Similarly to the disability rider, waiver of premiums allows you to stop paying premiums in certain cases, such as becoming critically ill or injured. The policy would still stay intact, meaning the death benefit would still be paid out.
Riders are completely optional, but they can help you feel more in control and protected from anything that life might throw at you. Keep in mind that any riders will increase the cost of your insurance premiums, so it’s important to weigh the costs versus the benefits before signing on the dotted line.

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The Average Cost of Life Insurance in Arizona

Before you can make any decisions about life insurance policies, you need to know the bottom line: the average cost of life insurance in the Copper State.

Arizona life insurance averages $615 per year, but this is just a guide. The actual rates you’ll pay depend on a number of factors, including:

  • The amount of coverage you have and policy type
  • Your age and gender
  • Your health
  • Your family medical history
  • Your lifestyle
  • Whether or not you smoke
  • Your occupation

Quotes can vary significantly from person to person, because a life insurance quote is entirely customized to you and your unique factors. On top of that, each insurance provider calculates quotes differently, meaning that you could receive three completely different quotes from three different providers.

Use that to your advantage by shopping around for life insurance quotes; never simply accept the first quote you’re offered, as you want to be sure you’re getting the best rate for the best amount of coverage. 

We make it easy on you by giving you access to free quotes here. Shopping around takes time and we’re all about saving you time and money.

How to Find Savings on Life Insurance in Arizona

Life insurance is usually more affordable than people realize, but that doesn’t mean you can’t also find savings on your life insurance rates. Here are some of the top ways to ensure you’re getting the best deal possible on your life insurance:

  • Shop Around: As mentioned, getting multiple quotes is guaranteed to find you some savings.
  • Ask for Discounts: Although life insurance isn’t entitled to the same number of discounts as home or auto insurance, you might be able to find some discounts depending on the provider. This could be for paying your premiums in full annually rather than monthly, for going paperless, for bundling life/auto/home insurance policies with one provider, for belonging to certain groups or organizations, and more.
  • Review Your Coverage: Term life insurance is less expensive than permanent life insurance, so if you just want to cover your income while your children are young or while you have a mortgage, you can save by taking out less coverage. Here’s a guide to figuring out how much coverage you really need.
  • Choose a Medical Exam: Policies that don’t require a medical exam will cost more in premiums, because it’s riskier for the insurer. If you choose a policy with a medical exam and you’re in fair to good health, you can save on your insurance premiums. 

Although it may be tempting to fudge the truth on your life insurance application to get better rates, it’s critical that you’re completely truthful. This is because if you happen to pass away within two years of taking out the life insurance policy, the insurance provider has the right to review the application and see if there was any inaccurate or misleading information. If they find something, they can deny your death benefit payout to your loved ones.

Being honest might cost you a little more in premiums, but it’s cheaper than paying into a policy with no payout in the end.

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Is Life Insurance Taxable in Arizona?

This is an important question, and a key part of estate planning. Many people choose to get life insurance to protect their loved ones in the event of their passing, but don’t realize the full implications of a death benefit.

A much-needed death benefit can quickly evaporate if it becomes taxed. The good news is that in Arizona, the death benefit is not taxable, so your loved ones will receive the full amount. The exception is that if the beneficiary chooses to take the payment in installments rather than one lump sum and the payments receive interest, the interest is taxable.

There are a few other instances when life insurance is taxed, including:

  • A withdrawal or loan against the policy’s cash value 
  • You surrender a life insurance policy for cash
  • The death benefit goes to your estate

It’s worthwhile to note that life insurance premiums are not deductible on your tax return.

Want more estate planning tips? Check out our free retirement guide for key financial advice that will help you plan your next steps.

Explore Arizona Life Insurance Quotes Now

Now that you know all that there is to know about life insurance in AZ, it’s time to find quotes. The fact is that life insurance is always most affordable when you’re young and healthy, so putting off getting life insurance can cost you (more on that here). 

The good news is that getting quotes for Arizona life insurance couldn’t be easier. Most insurance providers offer no-obligation quotes online, or you can contact your insurance agent to explore your options. 

You can make it easier on yourself by getting access to free quotes quickly just by clicking here. No one enjoys thinking about life insurance, so ConsumerCoverage makes the process as painless as possible.

We’ve got you covered.

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