How much will life insurance cost me?
The first question on everyone's mind when it comes to life insurance is "how much does it cost and can I afford it?".
We get it. Price matters and can certainly dictate whether or not you can afford to purchase life insurance, even when you really need it.
First of all, here's the GREAT news: There is NO CHARGE to apply. When you apply for life insurance, the insurance company absorbs the cost of any underwriting costs, medical exams, etc if they are needed.
As you might imagine though, the problem with answering the question of cost in it's entirety depends on several factors; so it can be difficult to give a direct answer to that question here. Things such as age, sex, health condition, tobacco use, type of insurance (term or permanent/whole life), how much insurance you want, how long do you need it, etc all play a factor in determining the cost.
But we will do our best to give you a good idea of what the cost might be of a term policy with a highly rated company.
Typically, with all things being otherwise equal, life insurance for a male is generally higher than for a female. So what we will do is show you the approximate cost for a male and then for you ladies, you can figure your cost will be slightly lower.
Here are sample quotes from highly rated companies*:
$100,000 30 yr term life insurance
male/excellent health/non-tobacco user
Now, if you're someone age 50-85, you've probably gotten something in the mail like what you see here.
Maybe you're looking for a smaller policy to help pay for your funeral/final expenses, say $5,000-$20,000. But how much does it cost? Once again we will provide you with an idea of how much these plans might cost you.
Here's the nice thing about these Final Expense/Burial plans, as they are often called-there is NO MEDICAL EXAM required. These are whole life insurance plans and your rates will never increase and your coverage will never decrease. Plus, you only need to answer a few health questions to see if you qualify.
Here are sample rates from highly rated companies for a male non-smoker*:
Who Needs It?
If someone will suffer financially when you die, chances are you need life insurance because it provides cash to your family after your death.
This cash, known as the death benefit, replaces your income and can help your family meet many important financial needs like funeral costs, daily living expenses and college funding. What’s more, there is no federal income tax on life insurance benefits.
To help you understand how life insurance might apply to your particular situation, we’ve outlined a number of different scenarios below.
Many people mistakenly believe that they don’t need to think about life insurance until they have children. Not true. What it one of you died tomorrow? Even with your surviving spouse’s income, would that be enough to pay off debts like credit card balances and car loans, let alone cover the monthly rent and utility bills? If you’re planning to have children, you’ll want to buy life insurance now instead of waiting until pregnancy—some companies won’t issue policies to pregnant women.
Most families depend on two incomes to make ends meet. If you died suddenly, could your family continue meet all their financial obligations—from paying rent or the mortgage to daily living expenses? Could your family continue their standard of living on your spouse’s income alone? Would their plans for the future—like college stay intact? Life insurance makes sure that your plans for the future don’t die when you do.
As a single parent, you’re the caregiver, breadwinner, cook, chauffeur and so much more. Yet nearly four in 10 single parents have no life insurance, and many with coverage say they need more than they have. With so much responsibility resting on your shoulders, you need to make doubly sure that you have enough life insurance to safeguard your children’s financial future.
Just because you don’t earn a salary doesn’t mean you don’t make a financial contribution to your family. Childcare, transportation, cleaning cooking, and other household activities are all important tasks, the replacement value of which is often severely underestimated. With life insurance, your family can afford to make the choice that best preserves their quality of life.
Just because your kids are through college and the mortgage is paid off doesn’t necessarily mean that you no longer need life insurance. If you died today, your spouse will still be faced with daily living expenses. Would your financial plan, without life insurance, enable your spouse to maintain the lifestyle you’ve worked so hard to achieve now and into retirement?
Depending on the size of your estate, your heirs could be hit with an estate-tax payment of up to 45% after you die. The proceeds of a life insurance policy are payable immediately, allowing heirs to take care of these taxes, funeral costs and other debts without having to hastily liquidate other assets, often at a fraction of their true value. Life insurance proceeds are also generally income tax free and won’t add to your estate tax liability, if properly structured.
Besides taking care of your family, life insurance can also protect your business. What would happen to your business if you, one of your fellow owners or a key employee died tomorrow? Life insurance can help in a number of ways. For instance, a life insurance policy can be structured to fund a buy-sell agreement. This would ensure that the remaining business owners have the funds to buy the company interests of a deceased owner at a previously agreed upon price. That way, the owners get the business and the family gets the money. To protect a business in case of the death of a key employee, key person insurance, payable to the company, provides the owners with the financial flexibility needed to either hire a replacement or work out an alternative arrangement.
Most single people don’t need life insurance because no one depends on them financially. But there are exceptions. For instance, some single people provide financial support for aging parents or a sibling with special needs. Others may be carrying significant debt that they wouldn’t want to pass on to family members who survive them. Insurability is another reason to consider life insurance when you’re single. If you’re young, healthy, and have a good family health history, your insurability is at its peak and you’ll be rewarded with the best rates on life insurance.
For more information please check the tabs above for the answers to questions you may have and to request a free quote.
*Rates are subject to each company's application questions and/or underwriting guidelines where applicable
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