One of the newest types of life insurance is direct term life insurance. Direct life insurance is one of the most convenient ways to insure yourself or a loved one before an untimely death. Although there are many advantages to direct term life insurance, this type of life insurance policy is not for everyone. Direct term life insurance is also sometimes called DTC life insurance for “direct to consumer”. The key differentiating factor between regular life insurance and DTC is that direct life insurance is sold without an agent or intermediary between the life insurance company and the client. Typically this type of product is purchased online.

What exactly is a direct term life insurance policy? How does direct term life insurance work? What is the difference between direct term and term life insurance? Below, we’re answering every question you might have about direct term life insurance.

Table of Contents:

What Is Term Life Insurance?

To understand direct term life insurance, you must first understand term life insurance. Term life insurance provides the insured with coverage for a fixed amount of time. Typically, the premium is also level for this fixed period. For example, term life policies will provide coverage for between 5 and 40 years depending upon what the applicant chooses. Once your policy time expires and you reach the end of your term, you can either renew your coverage with a rate increase, get coverage somewhere, or let the coverage lapse.

Your term life policy will begin coverage from the day you sign the papers as long as you make a binding payment, and payout if you die within the term limit.  For example, if you have a 25-year term life insurance policy, the day you sign the papers is day one. If you die within those 25 years, your life insurance policy will payout. If you do not die within those 20 years, you’ll need to renew.

It is generally straightforward to understand and the key benefit of term life is that it is extremely affordable. The only coverage is the death benefit, payable after the insured passes.  This compares to permanent forms of life insurance which accrue a cash value over time which can be taken before death. Term life insurance offers variations on a level policy for people with special needs like decreasing, increasing, and graded. Overall, they are all very affordable compared to whole life or universal life and will give you the most bang for your buck. Designed using a framework, you will appreciate direct term life insurance once you understand term life insurance.

What Is Direct Term Life Insurance?

Direct term life insurance is term life insurance you purchase directly from the life insurance company without an agent. Often purchased online, direct term life insurance allows you to buy life insurance without dealing with an agency or other intermediary. There are benefits for some people who already know exactly what they want. It will enable you to go at your own pace and choose your own policy without being bombarded by calls from different companies trying to persuade you to choose them or from people trying to make you buy a policy.

Other Names:

Direct term life insurance will often go by other names in the insurance world. Some of the most common names are direct life insurance, online consumer insurance, direct-to-consumer life insurance, DTC life insurance, and term insurance online.

There are so many names to direct term life insurance; it is essential to understand that you have direct term life insurance if you purchase term life insurance without an agent. With the hustle and bustle of the typical family, buying life insurance directly is a huge convenience.

Advantages of Direct Term Life Insurance

Direct term life insurance is very advantageous. These advantages include convenience, speed, and personalization. Getting direct term life insurance is easy and convenient to get life insurance on your terms.


The first advantage of direct term life insurance is convenience. With the ability to research and purchase term life insurance on your own time, you will not feel pressured to make a rash decision. Instead of loading the kids up to see the agent, you can do it while they nap or play. You can find the right terms that work for you and work directly with the insurance company, cutting out the middle man.


The online application and research process is speedy and straightforward. Quotes for term life insurance are instant when found online. You can quickly mark “get life insurance” off your todo list very effortlessly and rapidly.

To fill in the online application, you answer a few questions on the quote form and the companies that will insure you will come up. Once you decide which company to go through, you will apply online and get approved right away most of the time. The coverage would start that day.


The process is entirely personalized. The questions you answer direct you to what works best for you. It will also allow you to go through the process at your own pace. Most companies have chat features available if you need help applying for direct term life insurance.

Here at, you can enter in your zip code, and you can get started comparing quotes right away. You will not be spammed, and you will have one direct contact to help you choose the best direct term life insurance company for you if you want.

No Medical Exam Policies

One of the most common reasons people get direct term life insurance is because many companies offer this type of insurance without a medical exam. Many companies will ask health-related questions to ensure they are insuring you with the appropriate policy. Still, you won’t have to go to the doctor for a medical exam to become insured. Beware of this type of policy though, it can be more expensive than a traditional policy that requires a medical exam. It is often worth trying to go through the exam to get a better health rating before turning to a no-exam policy, however convenient it may sound to skip the paramedical exam.

Direct Term Life Insurance Companies

Multiple companies stand out when purchasing direct term life insurance. The top five companies are:

  1. Ethos
  2. Bestow
  3. Haven Life
  4. Fabric Life
  5. Ladder Life

These five companies are changing the way life insurance is offered and purchased. They are paving a new path in this ever-developing industry.

Example Direct Term Life Insurance Rates

Here are a few examples of rates for a direct term life insurance policy. This policy is for $250,000. A 23-year-old male who does not use tobacco would pay, on average, $19/month for a 30-year term limit. A 23-year-old female who does not use tobacco would pay, on average, $16/month.

Also, for a $250,000 policy, a 49-year-old male who does not use tobacco would pay an average of $67/month for a direct term life insurance policy last 30 years. A 49-year-old female who does not use tobacco could pay $50/month for a 30-year policy.

The Downside of Direct Term Life

Everything in life has a downside, and even though direct term life is a good product for many it is not always the best option for everyone. Anyone who has researched life insurance quickly learns that it can be fairly complicated. Even a relatively simple product like term life comes in many forms, and even choosing the right coverage length is not so straightforward as it may seem because it can affect the price so significantly. Even though people may feel like life insurance agents are overpaid, a good agent definitely earns their commission by matching the right policy to the right person.

Doing a full financial analysis before buying a life insurance policy is the correct way to fit the policy to the person. This way the client gets exactly the right amount of life insurance, for the right amount of time. This is not a trivial matter. Everyone needs to know that their loved ones have enough life insurance to cover their expenses. You can also save a lot of money by not getting too much coverage. People who buy a direct term life insurance policy may not understand how to get the perfect policy for their financial needs.

Is Direct Term Life Insurance Right for Me?

In the technology-based world we live in today, direct-term life insurance is the right choice for many people. It is appealing because it fits their busy schedule. If you are a person with a busy schedule, direct term life insurance is right for you.

You can shop online for direct term life insurance.  There is no need to make an appointment with a life insurance agent. You can get life insurance quotes quickly and easily. When shopping online, you can do it at any time that fits into your schedule, whether that a Sunday morning, Thursday night, or 2:00 am on a Saturday. If you enjoy shopping online at whatever time is convenient for you, then direct term life insurance is right for you.

When purchasing a direct term life insurance policy, you can get real-time updates of your policy sent right to you instead of waiting for it to go through a middle man. If this appeals to you, then direct term life insurance is right for you.

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