Life insurance provides financial assistance to your beneficiaries in the event of your death. It can help secure the future of your children since it can cover their college expenses. The insurance policy also gives you peace of mind since it can shoulder your funeral arrangements and other costs. Hence, your beneficiaries will not be financially burdened by your death.
A lot of people are considering life insurance due to the current health crisis. Thus, it is crucial to talk about some of the factors that can affect your life insurance cost.
The coverage of your life insurance policy is one of the factors that dictate how much premium you need to pay. The coverage amount and the term length have an impact on your life insurance cost.
There are two common types of life insurance: term life insurance and permanent life insurance. Term life insurance has an expiration and will only provide financial protection within a defined period. Meanwhile, permanent life insurance has no expiration and offers protection regardless of the age of your death.
In most cases, term life insurance is a lot cheaper among the two types of life insurance. Permanent life insurance is the more expensive term than term life insurance since it has no expiration and offers cash value as an investment. On average, permanent life insurance is up to 15 times more expensive than term life insurance.
Your life insurance premium is primarily driven by age. The later in life you get life insurance, the higher the premiums you need to pay. It is perceived that younger policyholders will live longer and less likely to die at any given year than older policyholders.
For example, a 25-year-old male with $500,000 coverage will pay a monthly premium of $27.01, while a 60-year-old male with the same coverage will shell out a $262.92 per month premium.
Studies showed that your premium could increase by up to 10% each year when you put off getting life insurance. The best time to get life insurance is when you are young because your premium depends on your age.
Life insurance has become the essential insurance policy amid the pandemic. However, not everyone will pay the same amount of premium. Your life insurance cost will depend on the type of policy you are getting, how old you are, and several other factors. The general rule in life insurance is the sooner you get it, the cheaper your premium is.
At Cornerstone Insurance Agency, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (770) 413-0807. You can also request a free quote by CLICKING HERE.