Life insurance is a smart, stable investment for your family’s future. But it’s important to know how much it costs to make important financial decisions.
How Life Insurance Costs are Determined
Life insurance costs are not one-size-fits-all. When you purchase a policy, many factors are in play to determine how much you pay month-to-month. This is called your premium. When talking about the cost of life insurance it’s referring to this fee.
The policy you choose, how much coverage you receive from it, and many personal factors all account for your premium. Location and the provider you choose are also factors that are easily overlooked. So, above all, compare providers and their options in your area before settling for a premium. For help finding the best cost, call Better Insurance Management.
Life Insurance Cost By Policy and Coverage
The four most common types of life insurance include:
- Whole life
- Universal life
- Term life
- Final expense
Each of these policies have their own price points, some with multiple types of policies to choose from within them.
Whole life insurance is a very traditional option. You purchase a policy, and you’re covered as long as you make your premium payments.
Universal life is similar to whole life, but with more options for investment and opportunities for big returns. Depending on the type of policy you choose, it will likely have higher premiums than whole life, as well as some fees. But, its still a great option for many people.
Term life is likely the lowest cost life insurance option. You purchase coverage for a set term of 10 to 30 years, then renew your coverage once that’s finished.
Final expense can cost more than other options, but it is by far the easiest policy you can qualify for.
The amount of coverage you purchase is also a huge factor. A $1 million whole life policy costs more than a $300,000 policy. It’s important to balance the coverage you need with the premium that fits into your current budget.
Life Insurance Cost By Personal Factors
Age, gender, and sometimes lifestyle also affect your costs. The older you are, the “riskier” you are to insure, therefore the higher your premium. Males also have higher average premiums than females because they have shorter average lifespans. Smoking, and occasionally dangerous professions or hobbies like logging or skydiving, can also affect your premium.
Get Your Best Estimate with BIM
We know all of the ins-and-outs to determine your ideal cost and find the life insurance policy that works for you. Call Better Insurance Management at (732) 458-5000.
