Preparing for the future is an important step to protect your family.
How much does life insurance cost (and is it worth it)?
If you’re like most people, one of the first questions you have when you start thinking about buying a policy is “how much does life insurance cost?”
After all, if your income is tight, any extra expense can seem like too much to handle. However, a tight budget is actually proof of just how necessary life insurance is. If times are tough now, they will only get harder without the money, childcare, or housework that you contribute to the family.
The ability to care for your loved ones after you’re gone is something no one should take for granted. Luckily, life insurance probably isn’t as expensive as you might think!
How Much Does Life Insurance Cost?
The average cost of life insurance for a 40-year-old purchasing the most common policy type (20-year, $500,000 policy) is around $27 a month. This amounts to less than $7,000 for the entire length of the policy—much less than the $500,000 your beneficiaries would receive.
However, it’s important to note that this is just an average.
If you are older/younger, have certain health conditions, or want a shorter/longer term length, you will be paying a different amount. Furthermore, different life insurance companies calculate their premiums differently, which is why your life insurance quotes may cover a wide range of prices.
The best way to collect life insurance quotes is to discuss your budget, needs, and goals with an independent insurance agent. Because they are not limited to a single insurance company, an independent agent is able to gather multiple quotes from different companies to find a policy that will fit your needs.
And because they’re insurance experts, they can provide much-needed advice on coverages that you may not have been aware of.
How Are Life Insurance Premiums Calculated?
So, why do premiums vary so much?
Calculating life insurance premiums is less technical than calculating premiums for home or auto insurance. As morbid as it sounds, your premiums are primarily based on mortality tables (i.e. life expectancy), but there are multiple factors that companies use to determine this.
- Smoking status
- Medical history (including any pre-existing conditions)
Keep in mind that each life insurance company weighs each of these factors differently, so it benefits you to research all of your options, rather than just going with the company your friends or family use.
Is Life Insurance Worth It?
Buying life insurance shouldn’t just be about how much you’re paying, but what you’re getting from your policy. And life insurance is always worth the value.
When it comes to home or auto coverage, there is no guarantee that you will ever experience a fire, tornado, or other covered loss. But passing away is inevitable.
If you knew that lightning was going to strike your house, you would take precautions to minimize the damage to your home and injury to your family. Why should losing your life be any different?
Most people can get an excellent life insurance policy (yes, even with pre-existing conditions!) at an incredibly affordable price. As it turns out, you can’t afford not to have life insurance.
Life insurance isn’t just affordable, it’s a necessary precaution to protect the family and loved ones you will leave behind. However, the longer you wait to purchase it, the more your life insurance will cost.
For more than 40 years, Harry Levine Insurance has been one of Central Florida’s top independent insurance agencies and we are thrilled to continue our tradition of customized guidance and world-class customer service.
While we work with many types of insurance, life insurance is the only policy that we can confidently recommend to everyone.
If you’re looking for a home, auto, business, or life insurance policy that fits your needs, risk tolerance, and budget, give us a call so we can help take care of your future.