Spending Money on Life Insurance
We know what you’re thinking, why should I spend so much money on life insurance? Well, what if you learned that life insurance is actually quite inexpensive. It can cost as low as $10-$15 a month… which is a lot less than what many of us spend at Starbucks. Young adults, in particular, are misinformed about the affordability of buying a term life insurance policy.
*Have a look at some of the sample rates below:
· 30-year-old male, non-smoker: $160 a year ($13 per month)
· 30-year-old female, non-smoker: $140 a year ($12 per month)
You can view a complete table of term life insurance rates by age here.
Life Happens, a non-profit organization that help Americans with life insurance, disability and long-term care insurance, recently teamed up with life insurance marketing group LIMRA to conduct a study about consumer’s financial awareness and concerns. They found that 8 out of 10 people overestimated the price of a 20-year term life policy. The majority estimated that adults aged 25 and over would pay anywhere from $400-$600 a year for that policy. In reality, their assumptions were way overblown (as *rates above show). The “Insurance Barometer Study” also found that while 3 in 5 adults have some form of insurance, it concluded that an alarming 41% of Americans lack life insurance coverage. Ironically, 84% thought that it was an appropriate investment for others but only 70% thought it was a smart choice for them.
Why Need Life Insurance?
The fact is that life insurance is not really for you; it is meant to benefit others, as a safety net for those who rely on your income and financial support. Your beneficiaries would receive a tax-free cash payment if you die during the term of your policy. Term life has no investment component and only lasts a predetermined length of time, generally 5-30 years. Permanent or cash value life insurance is meant to last your entire lifetime, 100 years+ and will grow in value the longer you keep it. Of course, this kind of coverage is much more expensive than term life.
Lowest Term Life Insurance Rates:
Term life insurance rates are at historic lows because actuarially Americans are living longer and life insurance companies are cashing in on that longevity by spreading the risk among the population. And the younger and healthier those applicants are, the lower the rates will be because, once again, mortality tables prove that statistically speaking this group is at lower risk of dying prematurely.
Want to know how much a term life insurance policy will cost you? Just put in some basic information into our free quite tool and you will receive cheapest life insurance quotes from top life insurance companies in a matter of minutes with no sales pressure.
It’s a numbers game and it pays to be informed. The enlightening revelations from research studies show that consumers have serious misconceptions when it comes to life insurance. True, it’s not a subject people enjoy discussing… certainly not as fun as pricing that cute sports car… but planning for the future while you’re young and in good health could pay off. It’s not a big deal to shop online and get a ballpark price of what a term life policy might cost you. Get the facts, get empowered.