The Life Insurance Cost Myth
A big reason for this is people have often been approached by an agent who was trying to sell them permanent life insurance. These costs are very different.
While permanent life insurance can be a great thing for many people, it is often out of reach financially. Rarely will an agent show term insurance options to a prospective client because there is a limited commission and a certain amount of industry ego regarding the ability to sell a client permanent insurance as opposed to term.
Those of you who have been following me know I like to say, “it’s the industry’s fault.”
Let’s take a look at a few scenarios to break down the expense myth. I’ll quote the top three carriers (in terms of price) for 30 and 35 year old men and women for 20 year policies at $250,000 of coverage. Premiums quoted are per year (and looking at these numbers, a monthly payment would be next to nothing).
AGE 30, 20 YEAR TERM INSURANCE:
- Banner Life = $155
- Protective Life = $160
- ING = $160
- Banner Life = $143
- Protective Life = $145
- ING = $151
AGE 35, 20 YEAR TERM INSURANCE:
- Banner Life = $165
- Protective Life = $170
- Nationwide = $173
- Protective Life = $150
- Hartford = $160
- Nationwide = $160
I’ve chosen 20 year policies as the example, as they are most common. 10 year policies will be a bit cheaper and 30 year policies a bit more expensive. The most important point here is that if you have unfunded liabilities you get SOMETHING in place. You can always add or subtract from your coverage as your circumstances change throughout life.
We’ve got this easy little quoting tool on our Get a Quote page if you want to run numbers with your own information.
**Please note: these quotes assume the client(s) are located in California and are underwritten as Best Preferred class available.