discover the real cost of term life insurance

Discover the Real Cost of Term Life Insurance

Some may be torn between term and permanent insurance. Both of these life insurance policies have their benefits, but if you want a more affordable option consider the cost of term life insurance. The good thing about it aside from affordability is the fact that one option allows you to get your premium back after paying for a definite period called return of premium. You can still enjoy your money while you are still alive and use it for other purposes like travel, investment, or for medical needs in case of a health condition. 

Different Choices for Term Life Insurance

Fully Underwritten

This type requires a medical examination and an underwriter will review the result as well as other important records and documents you submitted. This will help the insurer to determine the monthly premium you need to pay for the coverage. This is the best choice for people who want the lowest monthly premium. However, insurers are moving away from this type of term life policy at the smaller face amounts and going with the no medical exam for lower face amounts.

Non- Medical Exam Term Life Insurance

This is another choice for affordable insurance, but it only has coverage lower than $300,000, but the amount may vary according to the insurer. You need to wait for a couple of weeks as the insurer needs to review your past medical, pharmacy, and other public information available during underwriting. However, it is slightly expensive compared to the first option as it is riskier for insurers.

Return of Premium (Money Back) Term Life Insurance

It is known as an attractive type of term life insurance because you can acquire all premiums you paid at the end of the term. If you are in good health at the end of the term, you are very fortunate to get a huge amount of money. However, this type is the most expensive of the three choices. 

Average Monthly Premium Cost of Term Life Insurance

The amount that the insured needs to pay depends on several factors like age and health status. Age is a huge factor because the younger you are the lesser the monthly premium and the older you are the riskier you are for most insurers, so they charge you a higher premium. To find the best term life insurance quotes make sure you use a good term life insurance calculator 

Between 20 Years of Age

People who are between 20 to 29 years old have a lower risk of getting sick and die. This is good for many insurance companies so they can offer a lower monthly premium that is just as much a meal from your favorite fast food. 

Between 30 Years of Age

People who are between 30 to 39 years old may need to pay a bit higher compared to people in their 20’s. This is because minor health conditions may arise during this age making it a bit risky for many insurers. The good thing is that the cost of the ’30s is not that high compared to 20’s premium. 

Between 40 Years of Age

The good thing about many insurers is that they do not think of the ’40s as a dreaded age because of the advancement in the medical field, most health conditions are manageable. The monthly premium for people at the age of 40 to 49 is still very affordable. 

Between 50 Years of Age

It is true that once you reach the age of 50, there is a higher chance of costly insurance. However, it is not very costly as you think because many insurers can offer affordable coverage. You can consider both coverages with a medical exam and no medical exam, but the traditional type can save you a lot of around $200–$300 annually. 

60 Years and Above

Once you reach the age of 60 years and older, it is not impossible to still acquire affordable life insurance. However, most insurers will indeed charge more to compensate for the risk involved, but you should not be afraid to look for one. Some may even charge you as low as a $100 monthly premium. 

Other Factors that can Affect Pricing

People with a health condition or history in the family with a specific medical condition must not be afraid to get this type of insurance. Not all insurers are the same; some companies have lenient rules when it comes to health conditions. To help you get through all the process and make it easier for you to get one, you can consider the help of an independent insurance agent. 

You need an experienced agent because they are well versed on the in and out of the underwriting process. Also, they can recommend lenient insurers for you to get affordable insurance coverage.

Effective Ways To Get The Best Term Life Insurance Rates

Stay Away from Riders

Riders are extras offered by insurers this is most of the time causes higher coverage. These add-ons are just marketing strategies to create an expensive premium. These extra features can provide higher commission for most agents, but there are some extra that you might consider getting such as the accelerated benefits (living benefits) and the conversion rider. 

Stay Away from Vices

Smoking is a bad habit and the use of other drugs is very risky for insurers. The truth is that quitting now will not make your premium lower. However, if you are planning to get the best term life insurance rates, then quit for two years and start to apply. 

Consider Lifestyle Changes

If you can improve your health condition by doing some lifestyle changes like taking away bad habits, it is very crucial for affordable coverage. 

Be Smart

Do not be lured by other attractive features and stick to what you need to avoid paying a hefty amount of premium. The commission is what drives many agents to offer a lot of features to make coverage higher. If you are in doubt, always seek the help of an independent agent.

Consider Annual Payment

If you can afford to pay annually, then it can save you a lot of about 10 percent compared to the monthly payment. This is also a great idea to avoid missing monthly payments, especially for busy individuals. 

Life Insurance Policy Stacking

If you acquire the term coverage in your twenties, then you might find yourself in need of more coverage in your 30’s or 40’s. This is because as you grow older there is a higher chance that you incur more liabilities than before. This is the reason why insurance coverage must evolve according to your needs. Stacking policies can give you the coverage you need when you need it the most and can be canceled when the debt goes down.  Totally maintaining coverage when you need it the most for your family.  

Independent Agents Can Offer More

These agents are here to help you get the best term coverage for you. That can offer the security and protection that you need. The truth is that agents working for a particular insurer will only offer what that company sells and try to lure you with hefty offerings. Independent ones are connected with different insurers, so they can aid you to find one that best fits your needs and budget.