$1,000,000 Term Life Insurance
When you begin to evaluate your life insurance needs, you will soon realize that the amount of money you would need to replace your income is higher than you anticipated. Between the amount of money you need to replace your income, pay off debts and cover your children’s education, a $1,000,000 may be exactly what you need.
Is a million dollars’ worth of life insurance going to cost me a lot of money though?
Term life insurance is very inexpensive today. A young person, say a 38 year old in good health, can buy a $1,000,000 15-year term policy for less than $33 a month.
So if you were to pass away in the next 15 years, your beneficiary (family) would receive a $1,000,000 income tax free check. As long as you make your payments within the grace period, the premiums cannot rise during the term, nor can the insurance company drop you if your health changes. Once your policy is activated, the insurance company is obligated to the policy for the next 15 years, but you can still cancel the policy any time at no cost. Pretty Good Deal!
What Term Should I Choose?
Most companies will allow you to choose either a 10,15,20,25 or 30 year term. Longer terms will result in higher premiums because the insurance company is at a greater risk a claim will be paid. When choosing the best term, it’s important to consider the debts you owe, how long you want to protect your children, when you plan on retiring, and how many years you need to replace your income. The most common term people choose is the 20-year term policy.
Sample Premiums for a $1,000,000 Term Life Insurance Policy:
38-Year Old Male-Excellent Health:
$1,00,000 10-Year Term=$26.97 month with Savings Bank Life Insurance Co of MA
$1,00,000 15-Year Term=$30.45 month with Savings Bank Life Insurance Co of MA
$1,00,000 20-Year Term=$45.24 month with Savings Bank Life Insurance Co of MA
$1,00,000 25-Year Term=$76.56 month with Savings Bank Life Insurance Co of MA
$1,00,000 30-Year Term=$84.39 month with Savings Bank Life Insurance Co of MA
How Can I Get The Best Rate?
The best way to assure you are getting the lowest rate on your life insurance policy is to compare quotes from different companies. You can do this manually by calling around to each insurance company or you can use a quote comparison engine to save you time. You’ll find that rates will vary considerably from company to company for the same policy so shopping around before you buy will save you a lot of money.
Get a quote for a $1,000,000 policy, how much will it cost you: