Asking how much life insurance cost is like asking a realtor how much a house costs. Could be $30,000 or $30 million it depends on what you want. The factors that an agent or life insurance company would need to begin the quoting process is type of policy, how much face amount, for how long, age, build, state of residence, tobacco use and general health status. From there an agent or broker can get fairly close to a premium quote but understand the underwriters have the final say on your unique premium.
President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
I am going to take a philosophical approach to answering this question. I think it would help you understand the value you are getting for your dollar with this product.
Let’s suppose that you know with absolute certainty you are going to die next Tuesday. No doubt about it. Was definitely going to happen.
Sad to think about, but hey - we are talking about life insurance.
Now let’s suppose that an insurance company is willing to insure you. (Yes, I know it’s crazy, but work with me here.)
And let’s suppose they are willing to offer you a $1 million policy. Would that be enough? OK, let’s say it would be.
How much would you be willing to pay for that $1 million of coverage? You know that the company is going to put out that money. The payout is guaranteed. And you know that the premium is going to be lower than the benefit.
Even if you paid $900,000 for that $1 million dollar policy, you would still get a 10% return on your money. By any standards, that is a good deal.
If you had that money, no doubt you would pay it. And that would be a good deal for three reasons.
One: your beneficiary would be getting money that was needed when they lose you.
Two: there is an ironclad contractual guarantee from a very strong financial institution to give them that money.
Three: the cost would be very reasonable and you would definitely get your dollar’s worth.
All true?
So you would do everything possible to make this deal happen all because you know you are going to die next Tuesday.
The only difference between this hypothetical scenario and real life is that you do not know when you are going to die. It could be tomorrow. It could be next Tuesday. I could be in 20 years. You just don’t know.
Otherwise, all factors remain exactly the same:
You know you are definitely going to die sometime.
You know your beneficiaries will need the money when they lose you.
There is an ironclad contractual guarantee from a very strong financial institution to give them that money.
The cost would be very reasonable and you would definitely get your dollar’s worth.
The moral of the story is that regardless of the cost, life insurance virtually all the time remains a fantastic deal. You just have to be willing to pay for it.
The better question is: what is the value of a good life insurance policy.
Want to keep learning? Read my blog: planrisklive.com
The price of life insurance depends on the age, gender, health, and other risk factors of the person being insured. It also depends on the type of policy (term or permanent), the amount of coverage, and the duration of the coverage. Riders can be added for increased value, but those also add cost to the price of the policy. Therefore, it is impossible to state what a good policy would cost for any given person.
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Let’s suppose that you know with absolute certainty you are going to die next Tuesday. No doubt about it. Was definitely going to happen.
Sad to think about, but hey - we are talking about life insurance.
Now let’s suppose that an insurance company is willing to insure you. (Yes, I know it’s crazy, but work with me here.)
And let’s suppose they are willing to offer you a $1 million policy. Would that be enough? OK, let’s say it would be.
How much would you be willing to pay for that $1 million of coverage? You know that the company is going to put out that money. The payout is guaranteed. And you know that the premium is going to be lower than the benefit.
Even if you paid $900,000 for that $1 million dollar policy, you would still get a 10% return on your money. By any standards, that is a good deal.
If you had that money, no doubt you would pay it. And that would be a good deal for three reasons.
One: your beneficiary would be getting money that was needed when they lose you.
Two: there is an ironclad contractual guarantee from a very strong financial institution to give them that money.
Three: the cost would be very reasonable and you would definitely get your dollar’s worth.
All true?
So you would do everything possible to make this deal happen all because you know you are going to die next Tuesday.
The only difference between this hypothetical scenario and real life is that you do not know when you are going to die. It could be tomorrow. It could be next Tuesday. I could be in 20 years. You just don’t know.
Otherwise, all factors remain exactly the same:
You know you are definitely going to die sometime.
You know your beneficiaries will need the money when they lose you.
There is an ironclad contractual guarantee from a very strong financial institution to give them that money.
The cost would be very reasonable and you would definitely get your dollar’s worth.
The moral of the story is that regardless of the cost, life insurance virtually all the time remains a fantastic deal. You just have to be willing to pay for it.
The better question is: what is the value of a good life insurance policy.
Want to keep learning? Read my blog: planrisklive.com