Many people are well aware that buying life insurance is a good idea, but they never go beyond merely thinking about it. The real reason why they never take the next step might surprise you. They somehow make the assumption that it is simply too expensive for their budget.
In reality, it would probably be very surprising to these same people to discover that life insurance is actually cheaper than they thought. There are different types of life insurance and they come with a wide variety of prices, often being cheaper than most people assume.
Do You Really Know What Life Insurance Costs?
In a survey, people were asked what they thought the price of life insurance would be for a 30-year old to buy a $250,000 policy for a 20-year term policy. After hearing their answers, it was quickly discovered that people only thought they knew. When shown what it would actually cost, as many as 80 percent of those asked thought it would be much higher, and they were pleasantly surprised to learn what it would really cost.
The Real Cost of Life Insurance
You can get a lot of term life insurance for just a little money. A 30-year old who is healthy can get a life insurance policy with $250,000 coverage for a 20-year term for much less than $1,000 per year. In fact, it would cost a mere fraction of that amount – just about $160 per year!
Doing a little math, it can be seen that it comes out to just a little over 40 cents a day; $13 per month. A 40-year old non-smoker can buy a $500,000 20-year policy for about $36 per month.
Taking the first example of 40 cents per day and putting it into a comparison with other daily costs, life insurance is cheap. You cannot even buy a cup of coffee for 40 cents a day! If you are 30 and healthy, you could afford to buy life insurance to protect your financial obligations if you, as the breadwinner, should unexpectedly die.
Health Issues Will Raise the Cost of Life Insurance
The prices above are for people in good health and who are not smokers. If you smoke, or have some health problems, it is going to cost you more – a lot more. On average, smokers will pay twice as much for life insurance while still young, but possibly close to three times as much when they reach 45 or older. This clearly reveals the impact that smoking can have on your wallet – and life!
In some cases, if your health is not good, you may not be able to get life insurance, if a life insurance exam is required. You may be able to get around this, however, if you buy a life insurance policy for $50,000 or less.
Whole Life Will Cost More Because of Savings
While term life insurance is going to cost much less, it does not offer any kind of a savings program. A whole life policy, on the other hand, is not limited to a term, but it will cover your whole life and it also gives you a way to build some money in savings as cash value.
The Costs of Life Insurance Now Costs Less
Many life insurance companies in recent years have lowered their costs. This is due to the fact that people are likely to live longer, so they have longer to pay. You benefit because it means you save on monthly premiums.
The Real Cost of Not Having Life Insurance
The real cost of insurance needs to be seen in light of what happens if you die and don’t have it. It may mean that the life of your spouse and children and drastically changed if you do not have money in savings to keep their lifestyle going.
That is exactly what life insurance is for. Because you may have a lot of medical bills before you die, not only will our family be left with that debt, which could be considerable, but they also will have to come up with money for your funeral and burial. That can be expensive. They also may not be able to keep on living where they live now.
You could quickly discover what it will really cost for you to buy life insurance. An agent at our office will gladly talk to you and help you get covered – and still help you fit your budget.