How Much Does Life Insurance Cost?
You probably have a nagging feeling in the back of your mind that you need life insurance, and you are wondering
“how much does life insurance cost?” The answer to that question depends on YOU- your age, your health, your
smoking status, and more.
The premium for life insurance coverage will vary from person to person (and also from company to company, but
we’ll get into that later). This article will give you some insight into what life insurance companies look at when
determining what premium you pay for your life insurance policy.
Amount and Type of Insurance
This is pretty
straightforward. Whole life insurance costs more than term life (for the same face amount). With term life, the
longer the term, the higher the premium. For example, a 20 year term will have a higher premium than a 10 year
Life insurance costs more as you get older. A healthy 25 year
old man will pay much less for life insurance than that same healthy man at 35 years old. It’s important to get
life insurance as young as you can to lock in a good rate for a long term policy or a permanent policy. You may
also want to consider return of premium term life insurance.
Life insurance rates for females are generally lower than for males. The ultimate double standard? Not really. This
is because the life expectancy for women is longer.
Your Tobacco Use
If you are a smoker, then you will generally pay more for your life insurance than a non-smoker. There are
instances where you can get standard non-smoking rates- if you are a social smoker or if you occasionally smoke
cigars or a pipe. This also depends on what insurance company you choose because rates for smokers vary greatly
from one company to another.
Your Health History
A life insurance company will want to know all about your health history. This includes any history of high blood
pressure, cholesterol, cancer, stroke, heart disease, heart attack, sleep apnea, and more. Your health history will
determine your rate classification.
Your Family’s Health History
Most companies will want to know if your parents or siblings have had a history of heart disease or cancer. This is
due to possible genetic factors.
Every life insurance company has their own underwriting requirements for height and weight. If you fall within the
weight requirements for Preferred, then your rate will be lower than a Standard weight class. If you are obese,
then your options for life insurance decrease, but there are still companies that will insure you.
If you’ve had a DUI or speeding tickets, then your life insurance rates will be higher. Many insurance companies
will scrutinize your driving history for the last 5 years, possibly longer.
Occupation and Activities
If your occupation is considered
dangerous or risky (pilot, ) or if you participate in hazardous activities, such as parachuting, rock climbing,
scuba diving, etc. you can expect to pay higher rates.
The Insurance Company You Choose
Did you know that the price of insurance can vary greatly from one insurance company to another? For example, a 45
year old male smoker with some high blood pressure will pay about $1850 per year for $250,000 of 30 year level term
with Company A, but Company B will charge him $3900 per year. That’s almost double!
How Much Will Your Life Insurance Cost?
The first step to determine how much your life insurance coverage will cost is to shop around. It definitely
pays to shop around and work with an experienced agent who deals with multiple life insurance companies. Get a
free no obligation quote today and compare multiple quotes from the nation's highest
rated carriers. Remember that all life insurance carriers have different rates, so it pays to compare.