Cost of Term Life Insurance

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Term life insurance is a type of life insurance that does not build equity or value over time, and because of that, the cost of term life insurance is much cheaper than whole life insurance. That being said, depending on a variety of factors, the cost of term life insurance could vary greatly amongst people.

For example, in some states, the rates are higher than in other states. It’s hard to say why this is, other than the cost of doing business and medical costs in that state. Also, healthier individuals will pay much less for term life insurance than non-healthy people or those that are suffering from a chronic condition. Sadly, many insurance providers won’t even offer coverage to those that are chronically ill, which is unfortunate. Another factor is age – the younger you are, the less you will pay for term life insurance, so the cost of term life insurance for a healthy person in their twenties will be much cheaper than the cost would be for someone in their forties.

Another way to reduce the cost of term life insurance is by avoiding tobacco use. One of the first questions you will answer when getting a term life insurance quote is about your tobacco use. If you have never used tobacco or have been tobacco-free for three years or more, then you will get a much lower rate than someone that uses tobacco or has used it in the past three years. The reasons for this are obvious, as the cost of treating a tobacco user is much greater than the cost of treating a non-tobacco user over the span of their lifetime; at least in most cases.

Depending on the type of term life coverage and the amount of coverage you purchase, the cost of term lives insurance could be anywhere between $100 or less per month, and upwards of several hundred or more. Again, this varies depending on your risk factors, as explained above. The best way to keep your costs low are to buy when you are young and healthy, before you need coverage and keep the same policy in place for as long as you can. This will save you a significant amount of money over time, and will protect you should something unfortunate happen.

Many people buy term life insurance for both themselves and their spouse, which is a smart move, especially if you have a family. In some cases, it might be wise to protect the children with a policy of their own. I know it’s tough to think about, but the cost of a funeral is expensive, and they always seem to come at the most unfortunate time, so it’s better to be covered than not covered. Of course, the cost of term life insurance for a family is more than that of an individual, but that’s the price you pay for being smart and protecting yourself and the ones you love.

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