The premiums that Life Insurance have depend on a number of factors.
Age
Smoking or not
Ht/Wt
Medical History -
Medications
Driving Record
Hobbies which are risky like sky diving, hang gliding, racing, diving, etc.
The Insurance Company
Type of Insurance such as term or permanent
Last, amount of the death benefit you are looking for!
If you are younger, are healthy with a clean background, and looking for something under $500k, and looking for term insurance, your rates will actually be pretty low. Always shop around to find a company that favors your history, the type of insurance you are looking for and the premiums as each company is a bit different.
Actually, life insurance rates are currently at a 40 year low due to the rise in mortality. However, life insurance premiums are very subjective. There are many factors to consider when pricing a policy. Factors such as age, build, occupation, life style, health conditions, and even where you live are all considered by an underwriter in determining a life insurance price. I recommend contacting an experienced independent broker who can shop many carriers to find the right product at the right price for your unique situation.
When you consider that you are purchasing a policy that has the potential of paying out hundreds of thousands of dollars after you paid in only a few months' premium, it might affect how you look at the cost of life insurance. Many people could not save up in a lifetime what they are able to leave their loved ones through life insurance.
President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
Let me ask you this: expensive compared to what?
A Maserati is expensive compared to a Honda.
A 50 room mansion is expensive compared to a studio apartment.
The cost of hiring a chief executive officer for your company is expensive compared to the cost of hiring a file clerk.
I think you have to look at what you’re getting for your dollar.
And what your other options might be.
Let’s suppose you go through prequalification. Then underwriting. Then you get approved. Then you get your policy and pay for it. You submit one monthly premium payment. And then tragically, you die.
Your beneficiary will then get the full benefit. Within a week or so.
You may have paid only a few hundred dollars, but the benefit could be in the millions.
You may paid only a few thousand dollars, but the benefit could be in the tens of millions.
That is a pretty good deal.
Let’s suppose your premium was $500 a month, and your benefit was $5 million. That could happen, depending on age and other underwriting factors.
If you decided to not purchase life insurance, how much money would you have to invest, at what interest rate, over what period of time, to accumulate $5 million?
The fact of the matter is that for the vast majority of people, they would end up spending much more money on that investment than they would on life insurance.
So the real question is why is self-insurance so expensive? How can buying a life insurance policy be so much cheaper than trying to fund your financial security out of your own resources?
And don’t forget the big game-changing factor: we never know when our time will come. Don’t assume time will be on your side so you could eventually collect the money to self-insure.
.JPG){kind=avatar}
Age
Smoking or not
Ht/Wt
Medical History -
Medications
Driving Record
Hobbies which are risky like sky diving, hang gliding, racing, diving, etc.
The Insurance Company
Type of Insurance such as term or permanent
Last, amount of the death benefit you are looking for!
If you are younger, are healthy with a clean background, and looking for something under $500k, and looking for term insurance, your rates will actually be pretty low. Always shop around to find a company that favors your history, the type of insurance you are looking for and the premiums as each company is a bit different.
A Maserati is expensive compared to a Honda.
A 50 room mansion is expensive compared to a studio apartment.
The cost of hiring a chief executive officer for your company is expensive compared to the cost of hiring a file clerk.
I think you have to look at what you’re getting for your dollar.
And what your other options might be.
Let’s suppose you go through prequalification. Then underwriting. Then you get approved. Then you get your policy and pay for it. You submit one monthly premium payment. And then tragically, you die.
Your beneficiary will then get the full benefit. Within a week or so.
You may have paid only a few hundred dollars, but the benefit could be in the millions.
You may paid only a few thousand dollars, but the benefit could be in the tens of millions.
That is a pretty good deal.
Let’s suppose your premium was $500 a month, and your benefit was $5 million. That could happen, depending on age and other underwriting factors.
If you decided to not purchase life insurance, how much money would you have to invest, at what interest rate, over what period of time, to accumulate $5 million?
The fact of the matter is that for the vast majority of people, they would end up spending much more money on that investment than they would on life insurance.
So the real question is why is self-insurance so expensive? How can buying a life insurance policy be so much cheaper than trying to fund your financial security out of your own resources?
And don’t forget the big game-changing factor: we never know when our time will come. Don’t assume time will be on your side so you could eventually collect the money to self-insure.