People often overestimate the cost of a life insurance policy. Unfortunately, this leads the person to apply for a life insurance policy with smaller coverage, which is a bad decision.
Well, here in the US, the cost of living a dignified life is getting expensive with each passing year, whereas the income of the average American is more or less stagnant. Therefore, the average American must ensure their loved ones are financially secure. Furthermore, one also has to ensure that their child and their wife will have the financial means needed to lead a comfortable and dignified life if the person reading this post dies prematurely.
The best step forward is to choose a $500,000 life insurance policy.
The reason is simple. A $500,000- life insurance policy will offer enough financial means to one’s family so that expenses like their child’s education or mortgage are covered if the policyholder dies prematurely.
But, can one afford a $500,000 life insurance policy?
Yes, the average American can. This post in the following sections will shed light on the costs associated with a $500,000 life insurance policy, among other factors.
Read on to learn more.
How Much Does A Term Life Insurance Policy For $500,000 Cost?
$500,000 life insurance rates are pretty flexible. The premiums that one would have to bear annually are affordable as well. Leading insurers offer life insurance policies with $500,000 coverage at an average cost of $200 (per year) for ten years! Similarly, one would have to bear an expense of just $275 per year when applying for a $500,000 life insurance policy with a 20-year term.
However, there is a catch!
One can enjoy those mentioned above$500,000 life insurance ratesgiven they don’t smoke or abuse alcohol. But, at the same time, the insurance policy applicant would need to be in their 30s when they apply for the policy.
One Should Get A $500,000 Life Insurance Policy When They Are Young
Another aspect that one needs to keep in mind when applying for a $500,000 life insurance policy is that age matters a lot, especially when one wants to keep the premiums of the policy affordable.
To put things into perspective, if a person in their 40s applies for a $500,000 life insurance policy with a 20-year term, they will end up paying 36% more than the rates for policy applicants in their 30s.
Similarly, if a person in their 60s applies for a $500,000 life insurance policy, the cost of the policy shoots up by more than 740% compared to the cost of a policy meant for a policy applicant who is in their 30s.
Other contributing factors could increase or decrease the cost of a $500,000 life insurance policy. To better understand the clauses, interested individuals should seek assistance from revered life insurance policy consultants.