As soon as you start a family a lot of thoughts will go through your mind. You may feel the need for life insurance to ensure a financial supply to your family when you will not be there. Nowadays life insurance is becoming essential for everyone because of several reasons. However, a lot of peoples are still distracted from the life insurances as they have no idea about the life insurance cost and other regulations of life insurance.
There are many misconceptions about the life insurance and even the insurance agents sometimes give wrong information. As a result, most of the customers feel overwhelmed and end up without buying the insurance. However, if you are going to buy life insurance then take some moments to read the article to get the actual information for opening a life insurance.
How much is Life Insurance
The first and foremost thing you will need to know is before applying for a life insurance is the price. It’s a little bit complex to determine how much life insurance will cost. The cost of the life insurance varies from person to person based on some factors. The most critical factor that defines the life insurance prices is the age of the person. After the period, the health of the individuals is another important consideration for life insurance prices. If you smoke and have a bad height and weight ratio, then you will need to pay more for a life insurance.
The cost of the life insurance also depends on the insurance type. There are three types of life insurances, and they are term life, whole life, and universal life insurance. The full life insurance cost much when compared to the term universal life and term life insurance. The cost also depends on your location, gender, job, and family history and some other factors that affect people’s lifespan
If your location has higher obesity rate amongst the people than your insurance cost will go up. Besides, genders also do matter for the life insurance as the life exceptions difference between the male and the female. If you have any health issues such as diabetes, high blood pressure and other diseases than the price of the life insurance will increase for you.
The easiest way to calculate of calculating the cost of the life insurance is using an online calculator. They will give you fairly efficient information about your life insurance price. You will need to provide age, salary, height, weight, family, etc. information for this process.
Average Life Insurance Cost
The average life insurance cost varies mostly on the insurance type. As the example, a term insurance cost for a 10-year will cost you around $560 per year and around $1550 for 10 years for a $250,000 quote. However, the term insurance cost price will vary significantly on the age of the individuals. Besides, the cost also depends on the term duration. You have to pay a less amount for a more significant term and the lower term will have to pay a larger amount.
The whole insurance mostly varies on the age. The insurance cost is very cheaper but when you get older the cost increases. As an example, the average price of whole life insurance is around $218 in the age of 35 for a woman for a $250,000 quote. The price becomes three times higher around $700 at the age of 60. The insurance price increase when the age is high requires the death benefits mostly.
The universal life insurance is a little bit different than the other variation of insurance. The universal insurance works as a term life insurance and also a saving component. Basically, the insurances will cost you higher than the whole life and term life insurances. 35 years old will need to pay $215 yearly for a $250,000 universal life insurance estimate when 60 years need to pay around $1000 annually.
If you are going to buy a life insurance, then the above rate will help you to decide easily based on your choice and availability. However, remember that the average costs mentioned above are not 100% accurate as the life insurance rate varies based on different factors.
Average per month cost
The average cost of the insurance depends on the quote size. If you go for a bigger quote size, then you will simply need to pay much per month. As we have mentioned earlier that the life insurance price depends on the circumstances of the individuals along with the other factors, it is quite impossible to determine the efficient cost. The typical life insurance rates of 35 years non-smoker female are around $25 every month for a $500,000 life insurance estimate on 20 years term. On the other hand, a 35 years male need to pay will need to pay $32 per month for a same sized quote for the same quote duration.
For a $250,000 quotes, a 35-year-old male needs to pay around $19 per year when the same aged woman needs to pay around $16 per month. Besides, a 45 years old healthy male need to pay around $28 per month when a healthy non-smoking female need to pay around $23 per year. The typical life insurance rates also vary from country to country. The above-mentioned rates are for the USA and other countries of the same standard. The may differ when compared to the other nations.
From the above discussion, we can say that the life insurance cost is not something that is constant for everyone. It doesn’t matter which life insurance you choose, the price you will need to pay a good amount of money for the life insurance. However, you can decrease the cost of the life insurance by changing your lifestyle easily. You will need to give up all the bad habits such as smoking and drinking for it. On the other hand, you will need to maintain a healthy weight to make sure that your life insurance prices don’t rise.