Life Insurance Cost: When looking for life insurance, people often ask how much it costs. Cost is an important consideration since everyone has a budget they need to work within; however, before you can determine the cost of life insurance you will need to know the type of policy you are looking to buy.
There are many various types of life insurance policies available today and each one varies in price according to your age, health status, coverage is chosen, and smoker status. When considering how much it will cost for whole life insurance or term life insurance there are several factors that go into determining what your final quote will be:
While all these factors play a role in your final premium, not everyone pays the same amount due to discounts that may apply based on personal history or other criteria. Before you apply for life insurance, be sure to do your homework and have a firm idea of how much coverage you need, what type of policy will best meet your needs and how much you can afford.
When trying to determine which is the cheapest way to buy a term or whole life insurance policy it is important to look at both types of policies before making a final decision on which one is right for you. Cost alone should not be the only factor in deciding between term or whole life insurance as they both offer different benefits that may make them more suitable for some people over others. Choosing the lowest cost option isn’t always going to be your highest priority especially if it doesn’t provide the protection and peace of mind you are looking for.
The Cost Of Life Insurance: A Comparison
Before you can determine the cost of life insurance, it is important to understand which factors will go into determining your final quote. Both term life and whole life insurance vary in price depending on what type of policy you are looking to buy, your age, your smoking status, and your health history. One way to determine the cost of life insurance is by comparing a 20-year-old non-smoking male who wants a $500,000 20 year level term policy versus a 30-year-old healthy male who wants a $200,000 whole life policy with both types having no additional riders or add-ons. According to this comparison, a 20-year-old healthy man purchasing a level term policy should expect to pay around $1,760 per year compared to $4,500 for a 30-year-old healthy male looking at whole life insurance.