How Much Does It Cost to Get Life Insurance?
How much you pay for life insurance depends on your age, your health, your gender, the level of insurance coverage, the type of life insurance you want and a number of other factors.
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How much life insurance do I need?
Regardless of what type of life insurance you choose, the main goal is to help your loved ones to pay for their immediate financial needs and other costs in the event of death. Some common uses for life insurance are:
Some experts recommend that you multiply your annual salary by 17 to estimate the total amount of life insurance coverage you should buy. For example, if you take home $ 45,000 a year, your policy should cover $ 765,000. The total amount of life insurance you need is also affected if you have children or older parents who are financially dependent on you.
How much does a funeral cost?
The average burial cost in 2014 was $ 7,181. Everything from cremation to funeral plans can lead to potentially high costs and strain on your loved ones, who are left behind after your death.
What type of life insurance should I buy?
Some life insurance policies may include a physical exam or health questionnaire as part of the application process. The younger and healthier you are, the less your policy is likely to cost.
The two most common types of plans are for an unlimited life and a fixed term:
Risk life insurance can cover you for a fixed period, which can be between 5, 10, 20 or 30 years. Risk life insurance offers death benefit and usually costs less than permanent life insurance. Some temporary life insurance policies can be renewed after the end of your term or converted into permanent life insurance policies. Term contracts are generally cheaper than long-term life insurance.
The unlimited life insurance covers you for the rest of your life and collects present values. Types of permanent life insurance include all, universal and variable life.