There is Better Pricing on Life Insurance in 2014
A common mistake people make when shopping for the best deal on life insurance is choosing the incorrect face amount. Many of the top life insurance companies will have a cost-per-thousand price break or “bands” at certain levels. For example, let’s look at 40 year old male at the Preferred Plus rate class with American General Life (AIG):
- $200k 20 year term would be $23.04 a month.
- $250k 20 year term would be $21.29 a month.
As you can see, it is actually CHEAPER in this case to get the $250k vs. $200k! This won’t always be the case, but you can see an example of how it works. Many life insurance companies have their price points set at $100k, $250k, $500k, $750k and $1 mil. However, other companies like ING ReliaStar have an excellent price point or band that starts at $200k. You can use the quote engine on the side of this page to compare the face amounts and costs for you. Also, you can speak with a licensed agent to go over the different costs for your age and situation. If you have any questions please do not hesitate to ask me.
* (Using rates as of October 2012. Your rates and will depend on your evidence of insurability and the insurance company’s underwriting guidelines.)