Why Should You Buy Life Insurance?

Here are some basic reasons to consider:

  • Your loved ones have security. No matter what happens, your family has financial peace of mind when you have life insurance.
  • You reduce stress and anxiety. Obviously, this is something you’ve been considering for a while now. Many of our customers tell us that a weight has been lifted once they have life insurance.
  • You avoid probate. Your beneficiaries receive death benefits within weeks at the most, and often within days.
  • You avoid taxes. A relatively small investment can pay off immensely for your beneficiaries. Life insurance is one of the very best ways to transfer wealth
  • You lock in guaranteed coverage. Once the application is approved, your premium and death benefit stay the same. That means you don’t have to do anything else until your policy’s end date.
  • You have benefits while you’re alive. If something happens and you’re told you have a year or less left to live, various types of living benefits can allow you access a portion of your payout to spend as you wish.
See which life insurance provider is best for you by answering 3 simple questions.

How Does Term Life Insurance Work?

Term life insurance is pretty simple. You choose how much coverage you want, and how long you want the coverage for (known as the term). If the insured passes away during the chosen term, the beneficiaries will receive the death benefit.

During the term, the cost (known as the premium) will never increase and the term will never decrease. Furthermore, the policy will never be canceled, even if your health changes or you develop serious health conditions. The only time the insurer will cancel your policy is if you miss payments.


Choosing The Right Coverage

Simple calculation: annual income x 15

Coverage wise, a simple calculation is to multiply your annual income times 15. For example, if you make $50,000 a year, $750,000 of coverage is a good rule of thumb.

Above all: choose a comfortable budget

But, you shouldn’t have to struggle to make life insurance policy payments. We firmly believe that a $50,000 policy you can easily afford is better than a $750,000 policy that may lapse because you missed payments. So, be sure to compare rates for multiple coverage amounts. Make sure you can afford the policy you get.


Choosing The Policy Term

The policy term is the duration of how long the contract between you and the insurer will last. Most insurance companies offer 5, 10, 15, 20, 25, and 30-year policies. Some even offer 40-year policies.

The maximum term period that will be available to you depends on your age. Most likely, you won’t be able to get coverage beyond age 90 with a term policy.

Keep in mind that you can always cancel your term life insurance policy if you no longer need it.

We believe that it’s better to opt for a 20-year term to be on the safe side. While it costs slightly more than a 10-year term policy, you will save a lot of money compared to getting a 10-year term, and then getting another 10-year term policy once the first policy ends.


How Much Does Term Life Insurance Cost?

Probably less than you think. Term life insurance is one of the most affordable types of life insurance. In fact, according to our recent study, over half of those asked think the cost of a term life insurance policy is 3x or more than its actual cost.

Average term life insurance rates by age

These rates are calculated for a 20-year term policy.

Age & Gender$50,000$250,000$500,000$1,000,000
25 – Male$8.61$12.35$19.11$31.16
25 – Female$7.83$10.89$15.72$23.47
35 – Male$9.48$13.38$21.28$35.06
35 – Female$8.66$12.12$17.87$29.91
45 – Male$15.27$26.31$46.27$88.85
45 – Female$12.83$21.22$37.20$69.10
55 – Male$31.97$64.81$119.13$227.85
55 – Female$24.71$48.87$88.73$166.17
65 – Male$81.61$201.35$387.35$748.10
65 – Female$63.12$142.47$264.22$508.99

*The prices above are sample prices calculated for non-smokers based in Arizona in excellent health.