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Life Insurance

How much does life insurance cost?

The cost varies based on your unique situation. The biggest factors that can affect your
premium include:
• Your coverage amount and term length: Less coverage and shorter term lengths cost less.
• Your age: Younger people typically have lower rates.
• Your health status: Healthier people typically have lower rates.
• Your tobacco use: Non-smokers typically have lower rates.

A 10-year term life insurance policy with a death benefit of $1,000,000 for a non-smoker at age 25 is $58/mo and at age 45 it is $135/mo.

What's the difference between term and whole life insurance?

Term life insurance uses premiums to cover you for the determined “term” of the policy. Coverage expires if there is no claim within that time frame. Term life can be a good match for someone seeking affordable coverage to replace lost income over a critical period, such as while raising children or paying off a mortgage.

Whole life insurance lasts your entire life if premiums remain current. Whole-life policies also have the potential to accrue cash value, depending on the policy. For these reasons, whole life insurance premiums are typically higher than term premiums for the same coverage amount.

What if I already have life insurance through my employer?

Employer-sponsored policies typically offer coverage that is about 1-2X your annual salary, which is a fraction of what most families need. And if you leave your job, that coverage usually ends. A common rule of thumb is to have 10X your salary in life insurance protection, which is why many people buy individual term policies to supplement their coverage through work.

How much life insurance do I need?

A common and easy way to come up with a coverage estimate is to multiply your annual income by 10. Another way is to calculate your long-term financial obligations and then subtract your assets. The remainder is the gap that life insurance needs to fill.

What does life insurance cover?

Your life insurance can help cover some of life’s biggest expenses if you pass away while the policy is in force. For instance, policy proceeds are often used for mortgage payments, debts, tuition, and everyday expenses. Ultimately, it’s up to your beneficiaries to decide how to use the payout. Proceeds are paid in a lump sum and are generally tax-free.

Life insurance premiums typically begin to rise as individuals approach their late 50s or early 60s, and this upward trend may persist with advancing age. However, the age at which premiums increase can vary significantly due to several factors. These factors encompass the type of policy, the insurance provider, and the policyholder’s health and lifestyle. While certain insurers might initiate premium hikes as early as age 40, others may delay this adjustment until the policyholder reaches their 70s.

Life Insurance Awareness Month

By Cresley Pierce | Sep 25, 2023 | 0 Comments | 2 min read

While it's encouraging that three out of four Americans have some form of life insurance, 30% rely solely on group life policies, which may not adequately cover their needs in times of uncertainty.

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By using an agent to purchase insurance, the policyholder receives more personal service. An agent with whom there is direct contact can be vital when purchasing a product and absolutely necessary when filing a claim. A local, independent agent is able to deliver quality insurance with competitive pricing and local personalized service.

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