If you are shopping for life insurance coverage, then you may have decided that a $500,000 term life insurance policy is the most appropriate choice for your family’s needs. This is a large amount of life insurance that can make up for the loss of household income, debts that are left behind such as a mortgage or other loans, as well as future obligations such as a child’s college education costs. Term life insurance is a very popular type of policy because it allows families to purchase a lot of coverage for a very reasonable amount of money. Learn more about how much a $500,000 term life insurance policy will cost you, and compare rates for your particular situation from some of the top carriers.
What Factors Affect Your Rate?
- Your Age. The older you are, the more a life insurance policy will cost. This is pretty standard across all different types of policies. This is because the cost of a life insurance policy is based on a person’s expected years of living. As you get older, it is expected that you have fewer years left to live, so your life insurance would cost more.
- Your Health History. The healthier you are, the less your life insurance will cost. Most companies rate an applicant based on his or her health and there are varying levels of coverage. A person who is in perfect health may qualify for a super preferred rate, while someone with some health problems may qualify for a standard rate. If you have some more serious health issues then some companies offer guaranteed issue life insurance coverage, which has a waiting period of 2 years before the full benefit will be paid out.
- Your Smoking Status. Smokers can pay 2 to 3 times more for the same policy as a non-smoker so it is definitely worth the savings to stop smoking. Most companies require you to be smoke-free for at least 6 months to consider you a non-smoker. If you have no plans to quit smoking, then be sure to compare rates because there are carriers that offer better rates to smokers than other companies.
- The Term You Choose. When choosing a term life insurance policy, you have a few different options depending on your needs. If you have a very short-term need, then you can get a 1, 5, or 10 year term policy. If your needs are long-term, then a 20, 30, or even 40 year term policy may be more appropriate. The longer the term that you choose, the higher the cost.
Term Life Insurance Sample Rates
Here are some sample rates for a $500,000 term life insurance policy with a 20 year term. These example quotes are just an estimate to give you an idea of what you might pay. These rates are based on a healthy, non-smoking person (a preferred plus rate). Your rate may be higher or lower depending on other variables.
30 Year Old Male: $285 per year
30 Year Old Female: $215 per year
40 Year Old Male: $530 per year
40 Year Old Female: $380 per year
50 Year Old Male: $1315 per year
50 Year Old Female: $820 per year
60 Year Old Male: $3315 per year
60 Year Old Female: $2155 per year
Get Started and Compare Rates Today
The first step when shopping for any type of life insurance coverage is to compare rates. Since rates can vary by as much as 70% from one carrier to another, it is important to compare several rates from different companies. You can compare rates from several highly rated carriers in less than a minute.
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