People insure various things based on the value of the item hence; the higher the value of the item the higher is the coverage amount offered by insurers. While some people insure their expensive car and their homes with its contents, others prefer to insure themselves in order to protect their loved ones in the future. Life insurance is a type of insurance plan which does not guarantee that you will live longer but this insurance plan does guarantee that your family will not have to struggle for money when you are not around after a while.
How Much Does Life Insurance Cost?
- The cost of life insurance for a 30 year old man who wants to insure himself for $500,000 is $30- $35 a month. The cost of life insurance for a 40 year old man who wants to insure himself for the same amount will be slightly higher. However; the cost of life insurance for a 30 year old woman who wants to insure herself for $500,000 is $25-$30 a month.
- If you are a 30 year old man who wants to insure himself for $900,000 then you can expect to pay $6,075 every year towards premiums. However if you are a 30 year old woman who wants to insure herself for $900,000 then you can expect to pay $5,220 to the insurer every year. If you opt for a term cover then you can expect to pay lower premiums every year.
- The figures mentioned here are approximate costs charged by insurers to insure a non smoking adult with no or few pre–existing health conditions.
Why Does Life Insurance Cost so Much?
- Various important factors are taken into consideration by the selected insurer before you are given a quote. For instance, your age, your gender, your health status, your lifestyle and your smoking status are taken into consideration before you get a final quote from the insurer.
- If you are a young man or woman then you will pay lesser for life insurance mainly because you are a low risk customer. If you smoke, drive a fast car, ride a motorbike or have a sedentary lifestyle that causes you to put on weight then you will be charged higher premiums.
How Can I Get Affordable Life Insurance?
- The two ways you can get affordable life insurance is to opt for term life insurance plans and opt for insurance plans from an insurance agent who offers deals and promotions. Term life insurance plans are low cost plans that have a cooling off or waiting period. These plans will pay a lump sum compensation payment when a claim is filed by your beneficiaries and approved by the insurer. Term life insurance plans are available for a fixed number of months or years. Some Australian insurers also offer deals for non smokers and certain types of other buyers.
- In addition, if you compare life insurance plans before purchasing then you can get the best policy in your budget.