Making a Plan for Life Insurance Peace of Mind Part 1
written by Credit-HQ ExpertLife insurance is not something we think about a lot. But like other major decision adult life brings along, it’s good to do some detailed planning about how much life insurance you can afford and how much you will need if one of the spouse is taken out of the picture.
A Snapshot of Life Insurance Costs
The table below is a good representation of approximately how much you might expect to pay in premiums for an average life insurance policy for a healthy adult who doesn’t smoke. This chart was based on average adults living in a city that is mid-sized. These prices will change based on where you live and your health circumstances. But there are a good representative sample.
Monthly Premium Amounts for Healthy Non-Smokers
| Age | $500,000 | $750,000 | $1,000,000 | |||
| F | M | F | M | F | M | |
| 30 | $25 | $28 | $37 | $41 | $43 | $52 |
| 35 | $28 | $31 | $41 | $45 | $49 | $57 |
| 40 | $34 | $40 | $49 | $58 | $59 | $73 |
| 45 | $46 | $62 | $68 | $92 | $83 | $115 |
| 50 | $68 | $89 | $100 | $132 | $127 | $172 |
What This Table Really Tells Us.
The figures we see in the table above are for a healthy adult who does not smoke and they will get you a 20 year term life insurance policy at the age shown in the far left hand column. If you are a 40 year old male and you want to buy $750,000 in term insurance, it will cost you $58 a month. You can see that the premiums adjust up as you age. This is the nature of term insurance. It is cheap starting out and then it gets more expensive as your potential for dying gets more likely.
If you want to make at table like this to fit your specific situation, there are sources that can give you that data that will be up to date and useful. Here are some agencies to contact for that information.
- Insure.com – 800-324-6370
- QuickQuote – 800-867-2404
- Insweb – 800-275-8753
It’s a good exercise for you to do your own cost evaluation of where you are in your insurance situation and making a table like this is a good start. Its will be a fast assignment and one that can be an eye opener.
Choosing a Policy: Some Good Questions to Ask
There are 3 basic questions that should be standard in looking at any life insurance policy.
- Will the premiums stay the same over time or go up? What could cause your life insurance rates to go up?
- Is there anything that could cause the policy not to be paid? Is there any exclusion for suicide, a condition you had before taking out the policy or whether you took out the policy with a medical exam?
- How does the policy work with life insurance from your work?
Often employers include life insurance for one year’s salary with your benefits package. Then there is an option to buy more insurance through the employer’s plan at very good rates. You should compare bids from independent life insurance agencies with that insurance. But before you turn down insurance outside of your job, find out if you can take the employer’s insurance with you if you move to a new job, get laid off or the company goes out of business.
Click here to see Part 2: Making a Plan for Life Insurance Peace of Mind Part 2
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.