How Much Will Life Insurance Cost?

By Jeff Rose on 24 July 2013 (Updated 8 July 2014) 0 comments

Surprisingly, the number one reason people don't get life insurance is because they think it costs too much.

Now, I'm here to tell you it does not cost as much as you think. In fact, if you're in your mid 20s and you're seeking $250,000 of life insurance coverage, you can expect to pay about $15 a month. So if you have come to the realization that you need life insurance to take care of your family, I hope that $15 a month is not too much to make sure that they are taken care of.

The Two Key Factors Are Your Age and the Amount of Coverage

Now that you realize that life insurance is cheap when you are in your 20s, you're probably wondering what other factors determine how much life insurance costs. The initial factors that determine how much your life insurance costs is your age and how much life insurance are you seeking. Do you need $250,000 of coverage on up to $2 million of life insurance coverage? How long do you need that life insurance for? Is it 10 years, 20 years, or 30 years?

If you're older, you need a lot of insurance, and you need it for a long time, you can expect to pay a lot more than someone who's younger, who doesn't need as much, and needs it for a shorter time. But what other things do you need to know?

Health Is Another Important Factor

The other biggest determining factor on the cost of your life insurance policy is your health. How healthy are you? Are you taking care of yourself? Do you have any health conditions that can affect how much your life insurance policy is going to cost you? We run into people all the time that have high cholesterol, diabetes, they're overweight, they smoke, they have too many speeding tickets. Their parents could have some other pre-existing condition. Believe it or not, all of these factors will determine how much your life insurance policy costs.

Who Can Help You Understand All These Factors and Find the Right Insurer?

So if you have one of these conditions, you're probably wondering how to find out how much it's going to cost you. An independent life insurance agent who can get to know your situation, who is going to ask you the right questions will know the best life insurance company to approach.

Believe it or not, there are certain carriers — let's say you have diabetes, for example — some carriers will have more favorable rates versus others that could either deny you altogether or make you pay more than you should. An independent life insurance agent who works with dozens of different carriers can match you with the right insurer and the right policy to make sure that you're not paying too much for your life insurance policy.

If you want a quick snapshot of how much a life insurance policy will cost you, use our free quote engine. You could have a quote in less than one minute, and you'll get a sense of how much life insurance is going to cost.

Jeff Rose is a Certified Financial Planner specializing in life insurance. His blog is Good Financial Cents.

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