Life Insurance:
How much does it cost?
You can easily compare prices online at many web sites such as
Insure.com based on your age and health status.
One factor makes a huge difference in the premium you’ll pay is your health.
Smokers may pay as much as 80% more for the same amount of coverage. (But if you
quit and become smoke-free for at least one year, you might get a lower rate
from some companies.) Similarly, those with pre-existing conditions will also
pay higher premiums. But it is possible to get life insurance even if you’re a
cancer survivor. So check each Web site to see how they define terms such as
"preferred" or "standard."
Also women with comparable health and risk factors typically pay
at least 10% less for their policies. That mainly has to do with the fact that
women live longer. There is some good news about life insurance costs. Prices
have been coming down. If you are healthy 30-year-old male, nonsmoker, you could get a $500,000 20-year guaranteed
level term policy for a premium of just $280 annually and about $460 for 30-year
guaranteed level term policy. If you already have a policy, you should check to see what a new policy would cost today. Yes, you
may be a few years older than when you took out that last policy, but, if you’re
still insurable, you could save a bundle. Hint: Keep the old policy a while as
well, and let the coverage overlap because most new policies have a one or two
year “contestable” period.
When comparing quotes for life insurance, make sure that the
coverage you're comparing is similar. And remember, any policy that you buy is
only as good as the company that issues it. Find out what rating the company has
received from major ratings services, such as
A. M. Best or
Standard & Poor's. These companies evaluate an insurer's financial condition
and claims-paying ability. The company giving you a quote should provide you
with this information. You can also contact your state's department of insurance
to find out more about an insurer's record.
Next -->>
Who should actually own the policy?
They
who are of the opinion that Money will do everything,
may very well be
suspected to do everything for Money.
-- George Savile, Complete Works, 1912 --
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