Real Cost of Term Life Insurance

If you are in the market for term life insurance, then the price will undoubtedly be a deciding factor in what type of policy and what term you choose.

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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 considering the cost of term life insurance, you want a more affordable option. The good thing about it, aside from affordability, is that one option allows you to get your premium back after paying for a definite period called a return of premium. You can still enjoy your money while you are still alive and use it for other purposes like travel, investment, or medical needs in case of a health condition. 

Best Term Life Insurance

Fully Underwritten

This type requires a medical examination, and an underwriter will review the result and other vital records and documents you submitted. It will help the insurer to determine the monthly premium you need to pay for the coverage. It 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

It is another choice for affordable insurance, but it only has coverage lower than $300,000, but the amount may vary according to the insurer. It would be best if you waited 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 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 period, you are very fortunate to get a considerable amount of money. However, this type is the most expensive of the three choices. 

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Average Monthly Premium Cost of Term Life Insurance Rates For Seniors

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. It is suitable for many insurance companies to offer a lower monthly premium that is just as much a meal from your favorite fast food. 

Between 30 Years of Age

People between 30 to 39 years old may need to pay a bit higher than people in their 20’s. It 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 the 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 medical field’s advancement; 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 expensive 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 and older, it is impossible to 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 an independent insurance agent. 

It would be best if you had an experienced agent because they are well versed in the in and out of the underwriting process. Also, they can recommend lenient insurers for you to get affordable insurance coverage.

Effective Ways To Lower The Average Life Insurance Cost Per Month

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 a higher commission for most agents. Still, there are some differences 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 hazardous for insurers. The truth is that quitting now will not make your premium lower. However, if you plan to get the best term life insurance rates, then stop 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 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. It 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. As you grow older, there is a higher chance that you incur more liabilities than before. It’s 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. Maintaining coverage when you need it the most for your family. 

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Independent Agents Can Offer More With Term Life Insurance Quotes

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 provide what that company sells and try to lure you with hefty offerings. Independent ones are connected with different insurers, you to find one that best fits your needs and budget. 

Term Life Insurance Calculator

Life Insurance Need Calculator
This calculator will help you to decide how much life insurance you need if your survivors invest the life insurance benefits they receive.

Funeral cost, estate taxes, etc. ($):
Amount needed to pay off non-mortgage debt ($):
Amount needed in emergency fund ($):
Amount needed in college fund ($):
Expected average annual living expenses ($):
Expected spouse's average annual income after taxes ($):
Annual Social Security Benefits ($):
Spouse's current age (#):
Value of current liquid assets ($ total of savings, investments, etc.):
Expected survivor's investment strategy:
Life insurance needs:

When Is The Best Time To Buy Life Insurance?

As your responsibilities grow, it’s essential to have a policy in place so none of the significant life events catch you off guard. For example, you should buy a policy before these happen

  • Becoming pregnant or raising children
  • Getting married
  • Buying property
  • Starting a business

 

How much does life insurance cost?

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About Coach B.

After starting his financial career with Phoenix Home Life Insurance Company back in 1992, Scott decided he wanted to provide people with an easier and more enjoyable way to buy life insurance. That was the start of Coach B. Life Insurance, whose mission is to be transparent, honest, and helpful to customers — without ever bugging or pushing them.

In the years since then, he has worked tirelessly to improve the process of shopping for insurance. His goal is to make sure that everyone who comes to Coach B. — whether they end up buying a policy or not — has the best possible experience.

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