Factors That Affect Your Life Insurance Costs Age: Overall, life insurance rates increase as you age. Health profile: Do you have any chronic conditions? Do you smoke? Gender: Women live longer, statistically, and typically pay lower life insurance costs. Occupation: Receptionist? Machine operator? Sky diving instructor? Yes, it matters. Exams: “No exam” life insurance quotes are available, but are typically more expensive.
To look at some average life insurance rates, we will review several scenarios. Why? Because the average cost of life insurance for a 30 year old male who smokes is very different from the average cost for a 30 year old female with a clean bill of health. To illustrate the range of costs associated with life insurance, the following section will give some hypothetical scenarios for you to think about before you buy a plan.
The Average Cost of Whole Life Insurance The following average costs were calculated using the following assumptions: The individuals are a healthy weight and do not live a hazardous lifestyle. They want $500,000 worth of life insurance. They want monthly “level pay” (same payments for the duration of the policy). The average costs will differ when any of the variables change. For example, a 35 year old female nonsmoker would pay an average of $731.
57 if she wanted 1,000,000 worth of whole life insurance or about $188.36 for $250,000 worth of whole life insurance. The Average Cost of Term Life Insurance The following average costs were calculated using these assumptions: The individuals are a healthy weight and do not live a hazardous lifestyle. They want $500,000 worth of life insurance. They want to pay monthly for a 20-year term policy. Again, the average costs will differ when any of these variables change.
For example, a 35 year-old female nonsmoker would pay an average of $61 per month for $1,000,000 worth of life insurance with a 20-year term, and $23.90 per month for $250,000 worth of life insurance with a 20-year term. Does Life Insurance Cost More in Certain Regions of the U.S.? There can be some differences in your life insurance costs, depending upon your state and region. Life insurance companies use “mortality tables” to help predict the benefits they are likely to pay in a given year.
Why? Because the amount they collect in premiums must be less than what they pay out in benefits, and these actuarial tables ensure that they will not end up in a deficit. Some factors that may be taken into account to calculate your life insurance costs in your region include: Whether there is a high rate of obesity in your state or region If the area experiences a high rate of deadly natural disasters, such as earthquakes If the region is prone to certain diseases, such as black lung disease typical in miners If the state or region has a high mortality rate due to crime How many policies have been written in that area Even with these factors taken into consideration, rates do not typically vary significantly from region to region.
For example, if you live in an area prone to earthquakes and high crime, your life insurance rates will be affected more by your age and personal health profile than where you choose to live. How to Lower Your Life Insurance Costs Because health and lifestyle play a key role in determining your life insurance rates, the key things you can do to lower your payments have to do with improving your health and reducing your risk of chronic conditions like diabetes or cancer.
Being a non-smoker is perhaps the most critical choice you can make to reduce your life insurance rates, but there are many more things you can do as well. For example: Maintain a healthy weight to reduce the risk of obesity and related chronic conditions.Get a body mass index (BMI) check done If you have a high BMI, work with a health professional to lose excess weight Maintain your heart health to reduce the risk of hypertension, heart attack and stroke.
Get an annual physical Regularly check your blood pressure, cholesterol, and triglyceride levels Work with a health professional to improve your numbers, if needed Reduce stress, improve your diet and increase exercise Manage your blood sugar to reduce the risk of diabetes.Request a blood sugar test Obtain a diet and exercise plan to help manage blood sugar levels In addition to assessing your overall health, most life insurance companies will also review your risk of death from a high risk sport or work related accident.
For this reason, your career choices and the activities you choose to do for fun can also impact your life insurance rates. If you work at a desk job, versus a career as a skydiving instructor, under-water welder or a rodeo clown, you will find that more insurance companies will be willing to insure you at a more affordable rate. To get more information on life insurance rates, find an independent agent in the Trusted Choice network today.
An agent right in your area can help you evaluate your life insurance options and costs based on your unique circumstances.See Also: Bad Credit Motorcycle Financing
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An oil adjust is something that every automobile owner should offer with at a person time or yet another. It could be a program occasion, however, you could profit from being aware of some specifics and heritage driving motor oil as well as the internal combustion engine for which it absolutely was designed.
Umbrella Insurance Cost vs. Benefit You may want to set up a “cost-benefit analysis” as you start to compare umbrella insurance policies. Here is some data to help you get started: 13% of personal injury liability awards and settlements are $1 million or more An estimated 1 in 5 people with considerable wealth do not have umbrella coverage An average cost of about $380 per year can provide $1 to $2 million of protection As you can see, there are several ways that an umbrella policy can help protect you for a relatively low cost.
Factors Affecting Umbrella Insurance Cost So, you’ve decided that spending extra money for excess liability coverage is a worthwhile investment to protect what you’ve earned. There are a number of factors that may affect your umbrella insurance costs, including: Your net worth: Basic umbrella insurance policies begin at $1 million. Ideally, your policy should be equal to or greater than your net worth.
If you need to determine the amount of assets you have, consult a lawyer or financial advisor. Your location: Insurance rates vary considerably by state. The cost of umbrella insurance in Louisiana may not be the same price for the same coverage in California. Your credit history: If your credit history is less than stellar, your umbrella insurance cost may not be as low as you’d like. Normal liability policies examine your credit history to determine how risky you are to insure.
If you’ve improved your credit score after buying your umbrella policy, be sure to speak with your agent about reducing your insurance costs. Driving records in your household: Because your umbrella policy costs are based on everyone in your family, your family’s record of driving infractions, speeding tickets and accidents may affect your umbrella insurance costs. A teenager in your household: If you have one or more teens that drive, you’re already aware of how teens affect your auto insurance rates.
Umbrella insurance costs will be similarly affected. But because teens are more prone to accidents, now is a perfect time to purchase additional liability coverage. Your risk profile: Do you own a dog? Is there a trampoline, swimming pool or zip line in your backyard? Do you frequently throw parties? Do you own a boat, personal watercraft or high-powered vehicles, such as a snowmobile or ATV? Discuss what kind of things put you at risk with your independent agent.
Insurance company you choose: If you don’t compare policies, you may end up paying too much for coverage. Combining your policies with one insurer can earn you a significant discount. How to Calculate the Cost of Umbrella Insurance The cost of umbrella insurance can range from $200 per year on the low end to over $1,000 for a high limit, such as $10 million worth of umbrella liability coverage. How can you determine your costs? The first step is to assess your net worth.
Determine the value of your assets, including liquid assets, investments, retirement funds, properties and annual income. You may need to consult an investment advisor or attorney. Next, review both your risks and whether you may be a “target” for liability lawsuits. If you are a high profile person or have considerable assets that an attorney will find inviting when defending a client, you want to factor this into your costs.
Finally, choose an amount of coverage that can protect you from potential lawsuits that could threaten your savings and standard of living. By many recommendations, the coverage amount should be at least equal to your net worth, but that may just be a starting point for you. A report by ACE Private Risk Services, for example, pointed out that judgments in severe cases have run $14 million to $49 million.
The ACE report provides these typical annual costs: $383 for $1 million in coverage for a household with one home, two cars and two drivers $474 for $2 million in coverage for the same household $608 for $5 million in coverage for the same household $999 for $10 million in coverage for the same household $1,578 for $10 million in coverage if the household also has 2 more homes, 2 more cars, a boat under 26 feet, and a driver who is under 25 Working with an independent insurance agent can help you get the information you need to determine the right amount of coverage for your family.
Additionally, your local agent can help you compare multiple quotes and look for discounts on your policy. Finding the Best Umbrella Insurance Value Buying umbrella insurance is a balancing act – you must find the amount of coverage that can secure your assets at a cost that makes sense for you. Umbrella insurance can protect your life savings, but finding the best policy at the best price for your needs and budget can be a challenge because no two insurance companies are alike.
Working with an independent agent in the Trusted Choice network can make your search much easier. Local member agents have access to quotes and policy options from multiple insurance companies and can help you find an affordable umbrella insurance policy that will help cover your risks. Contact a local member agent today for personalized assistance.