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Term Life Insurance Cost

Term Life Insurance Rates and Options

Many people wonder how much term life insurance costs. As you may know, term life is the most affordable type of life insurance policy available. The reason term life insurance is cheaper is that it provides a death benefit only, and does not include an investment or cash accumulation component like permanent life insurance. For many people this coverage is all they need or want.

To learn more about how to get competitive term life insurance quotes, find an independent agent in the Trusted Choice® network. A local member agent in your area can provide an overview of various term life insurance rates and options and help you make an informed choice that meets your needs.


U.S. Leading Causes of Death for People Aged 45-64, Reported by the CDC 2012

While it might be tough to think about, preparing your family for the loss of income and potential financial hardship they could encounter when you’re gone is a responsible thing to do. Here are some common causes of death for Americans, as reported by the CDC in 2012:

  • Cancer: 32%
  • Heart disease: 21%
  • Injuries: 7%

You cannot prepare for every unforeseen illness or injury. As you begin to consider what kind of life insurance plan you may want to purchase, consider meeting with a local member agent in the Trusted Choice network who can help you review the cost of term life insurance based on your specific goals.


What Factors Affect Term Life Insurance Costs?

Life insurance companies use a variety of factors to calculate your term life insurance costs, including:

  • Your age and gender: The younger you are when you buy your policy, the lower the cost of your term insurance premiums, as you are statistically a lower risk to insure. Women generally pay less for life insurance than men.
  • The state where you reside: There can be regional considerations in your term life insurance costs as well. For example, those in live in the south statistically have a shorter life span than those in other regions of the U.S.
  • The condition of your health: If you are healthy and have no medical conditions, your term life insurance costs will be lower than if you have high blood pressure, diabetes or other conditions. Those with certain risk factors often have a difficult time qualifying unless they work with an independent agent who can shop for a policy for them.
  • Results of your medical exam or medical questionnaire: Life insurance companies typically require a medical exam before you can qualify for a policy. Some companies do offer no-exam life insurance policies. Be prepared to pay a considerably higher term life insurance premium if you choose a no-exam life insurance policy, as the insurance company must take on more risk when they don’t have the medical data to reference.
  • Whether you are a smoker or non-smoker: Smoking is one of the biggest factors in determining your rates, since smokers have great health risks and a lower life expectancy. You can lower your life insurance costs by quitting smoking and remaining a non-smoker. The number of years you must be free of smoking varies by insurance company.
  • Occupation and hobbies: If you have a high risk job or participate in risky hobbies, such as skydiving or motocross riding, you can expect to pay higher term life insurance rates due to your increased risk.
  • Amount of coverage you want: Some people only want to cover end of life costs, while others want to provide for their family's ongoing cost of living in the event of their passing. Whereas one can typically cover funeral costs with a $10,000 to $20,000 policy, a primary income earner with a stay-at-home spouse and three children heading toward their college years has a much greater coverage need. To cover loss of income and living expenses, college tuition, and debt pay-off, you might be looking at a $1,000,000 to $2,000,000 policy. Your term life costs will vary, accordingly.
  • Length of the term: If you want your policy to cover a ten year period, your term insurance premiums will be much lower than if you want a 30-year term.

How Much Does Term Life Insurance Cost?

Each life insurance company uses its own specific criteria and algorithms to give policy holders a health rating. The various criteria combined with the health rating provide the insurance company’s basis for calculating your term life premium rate. Because the rating systems vary, you will get different term life insurance quotes from one company to another.

The following term life insurance rate chart provides example premiums for several age brackets. Keeping certain variables constant, including the coverage amount ($500,000), the term (20 years) and the health rating (Preferred Plus), and changing the other factors allows us to provide sample average term life costs for several different age ranges.

Term Life Insurance Sample Rates by Age

Term Life Insurance Sample Rates by Age

How to Find Competitive Term Life Insurance

Of course you want to get the best coverage and the most affordable term life prices. To get the help you need to review actual term life insurance costs for your age and health profile, contact an independent agent in the Trusted Choice network who specializes in life insurance. These agents have access to several life insurance companies and can help you compare multiple term life insurance rates based on your specific needs.

Find a local Trusted Choice member agent today to get started finding the right coverage to protect your family.

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