The insurance provider promises to cover certain expenses and losses in exchange for a monthly premium payment. The contract covers a specific period of time and the rates are locked in during the life of the contract.
At the end of the contract, the policyholder may renew the policy and enter into a new contract or simply allow the policy to expire. If you renew the policy, the monthly premium payment will be updated and locked in for the life of the new contract.
Many term life policies can be written to automatically renew with adjustments in premium payments while the amount of coverage remains the same. These plans are usually the most affordable of the different types of life insurance policies.
Life insurance is the best purchase you can make for the financial protection of your family. You’ll sleep better knowing that no matter what happens, your family will be taken care of.
Getting Life Insurance
If you have never bought life insurance before, the process can be confusing, frustrating, and sometimes ever daunting. Don’t worry, buying a life insurance policy is much easier than it sounds. The first thing you have to do is decide which type of policy you want. There are several types: term, whole life, and no exam. Each of these has different advantages and disadvantages.
A term policy is the cheapest of the options, but is only effective for a certain time period. After that time is up, the policy is no longer in force. It’s pretty much like an expiration date.
After you decide which type of policy you’re going to get, you’ll need to calculate how large of a policy you are going to purchase. There is no “magic number” for life insurance plans, but there are a few things to consider.
The first is how much debt would you leave behind if something tragic were to happen? Do you have a mortgage payment? Student loans? Will your kids have student loans? All of your unpaid expenses can add up and leave your loved ones with more debt than you would have realized. Make sure your insurance policy will at least cover all of your final expenses.
The other factor to consider is your annual salary. One of the main purposes of these plans is to replace lost income if you were to pass away. The more people relying on your income, the larger policy you’ll need to purchase. While there are differing opinions, most financial experts agree that ten times your annual salary is a good target.
How Much Does a $500,000 Term Life Policy Cost?
Term life insurance premiums are based on the length of the term and the health and age of the person covered by the policy. While term life insurance becomes more expensive with age, it still remains a viable and one of the cheapest forms of insurance even for the elderly.
Even as you age, the premiums remain relatively low. If you’re still at a younger age, it could be wise to purchase a longer policy so you lock in those lower rates for a longer time before you have to renew your policy and have the premiums recalculated. Even purchasing life insurance at 50 is cheaper than waiting another 10 years.
$500,000 Term Life Rates Men
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$500,000 Term Life Rates Women
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Term life insurance policies are good for people that don’t have a lot of money to invest and need a way to protect their families from the financial burdens of a funeral and loss of income due to a sudden death.
Health and Age Considerations
Insurance providers that issue life insurance policies will review your medical history for serious medical conditions and might require a medical examination if a condition is questionable.
With a medical exam, the insurance company will send a paramedic to your house to take simple vital signs and basic health information. The medical exam will consist of getting your weight, taking a blood sample, urine sample, and blood pressure, and answering questions about your health and family health history, such as if your family has a history of diabetes.
The insurance company then analyzes any medical condition to determine its possible influence on your death.
If you have a medical condition that seriously impacts your health and is potentially shortening your life expectancy, your policy application might be denied or higher premiums may be required.
This is typically referred to as high-risk life insurance.
If you’re considered “high-risk,” you need to find a company offering cheaper high-risk coverage. Being listed as a “smoker” on your life insurance policy will double or triple your monthly premiums, regardless if you’re in perfect physical health. You can also see here for one of these types of high-risk conditions.
If you have a condition that can be controlled by treatments or medication and is not potentially shortening your life expectancy, your policy should be accepted and there should be no huge impact on your premium payments. If you want to get the lowest rates, it’s important that you focus on your health.
On that note, consider losing weight, lowering blood pressure, lowering cholesterol, etc. The medical exam determines the premiums and chances of being accepted. A healthy diet and regular exercise can work wonders for your body, energy levels, and even your wallet.
The more excess weight you carry, the higher the risk you’ll pose to the insurance company. Losing the extra weight will put extra money in your wallet. It’s a win-win scenario.
The key is being up front with your agent and letting them know everything about your health. Just because you don’t disclose it up front, doesn’t mean the life insurance company won’t find out about it. Every one of the top 10 life insurance companies will find out a condition and will adjust your quotes accordingly.
Do I Really Need a $500,000 Policy?
Everyone has different needs, but a term life insurance policy with enough coverage to cover the funeral, pay off debt and have enough left over to live on for a while is always a good idea. It’s especially a good idea if you have children.
If you’re wondering how much to buy, please use our free term life insurance calculator to see the amount your family deserves. Don’t buy ANY plan before you do some number crunching. All you have to do is add your debts and your salary together.
Another way to save money on your $500,000 life insurance company is to shop around with different companies. If you already have different insurance policies, you can save money by bundling your policies with one company. However, don’t automatically go with the company you are already using.
Because every company is different, they all have different ratings and will look at your application through different eyes. You could end up with drastically different rates from one company versus another. If you want to make sure you get the most insurance for your money, get quotes from several different companies before you pick one of them.
A good $500,000 dollar term life policy will provide the security your family needs as it adjusts to the loss of a loved one and learns to make it without your income.
Why You Need Life Insurance
After you use the calculator you may realize that you actually need a bigger policy. A lot of applicants are surprised at just how large of a policy they should purchase. Before you ever purchase a plan though, you should realize the importance of one of these policies.
Your debt is going straight to your family if you die. There is no way around this fact. Do you want to leave that kind of inheritance?
These policies give your family members the resources they need to pay off any debt you would leave behind. They won’t have to worry about covering those expenses. They won’t have to worry about finding money to pay off your credit card bills or have to force themselves back to work because of finances.
Every year there are countless families suffering from the loss of a family member. While going through all of their sufferings, they find themselves under a mountain of debt they have no way to pay for. Don’t let your family become one of these stories.
Getting life insurance coverage is extremely important, but you want to get the best rates available for your age. Having life insurance coverage shouldn’t cost a fortune every month. When you’re shopping around for a $500,000 policy, you’ll notice the premiums are affordable, but some are cheaper than others.
Fill out the quote form and the best rates from the highest rated companies will come to you. We will provide you with quotes matching your specific situation and preferences.
Not only can we give you the best rates, but we can also answer any questions you have about life insurance. Understanding all of the rules, policy types, and terms can be quite confusing. We understand, and we are here to help.