15 2021

What Can You Expect to Pay for Life Insurance?

by admin

Life insurance isn’t something many young people think about having but a good policy can bring you great peace of mind especially if you are married and/or have children. A life insurance policy can protect your family from unexpected costs that are likely to spring up in the event of you passing away. It’s meant to replace your income and allow your beneficiaries to buy them some time to adjust to their new normal while giving them the safety and financial security they need. If you need life insurance in Surrey, click here.

Shopping around for life insurance policies can be confusing and overwhelming if you don’t know what to expect. Read on for some helpful information regarding life insurance policies.

Unlike a car or home insurance, the cost of life insurance is not affected regardless of where you live. However, some factors will contribute to varying costs. Life insurance companies base their prices on the likelihood that they will have to pay out at one time or another. If you are older or have any pre-existing medical conditions or lifestyle habits that are considered to be more ‘risky’, expect to pay more for your life insurance policy.

Your age and lifestyle are the two primary components in determining the cost and coverage of a policy. For example, life insurance for a smoker will cost more than it would for a non-smoker. Sometimes, people are tempted to lie to their insurance provider about their lifestyle to get a cheaper policy. Never do this. If an insurance provider finds out that you lied about anything when you purchased the plan, they will likely deem your policy fraudulent and invalidate your coverage thus leaving your family with nothing.

Life insurance monthly rates vary depending on the company, your policy, and your age and lifestyle, but the average cost for a healthy 30-year-old male is around $22 per month. As you get older, your monthly rate will increase. For this reason, it’s a good idea to purchase life insurance when you are young. Women also typically pay less for life insurance since, statistically, they live longer and life expectancy is one of the factors that insurance companies consider.

There are two different types of life insurance available. The first is whole life insurance. This type of policy covers you for your entire life and even collects value through investments. However, these kinds of policies are quite a bit more expensive than term policies, sometimes even up to 10 times more.

Term life insurance does not collect any value but the premiums are much lower. Term life insurance can be purchased in 10, 20, or 30-year segments. This is an excellent choice for anyone, as circumstances are changing all the time. When the policy expires, you and your broker can re-evaluate your lifestyle and come up with a newer policy better suited to where you are in life.  Life insurance doesn’t need to cost an arm and a leg. If you’re ready to consider what kind of life insurance policy is available to you, contact Prime Insurance for life insurance in Surrey.