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Why Should I Buy Term Life Insurance?

December 15, 2021
Our goal is to educate and advise on life insurance options, so you can feel confident in making the right choice, whether that’s through Quotacy or somewhere else. To ensure we provide accurate and trustworthy information, our writers follow strict editorial standards.

Life insurance is a financial safety net for your loved ones. Its purpose is to provide your beneficiaries money if you die unexpectedly. This money can be used any way they wish. The cash is commonly used to help pay for the mortgage, daycare, and a funeral.

» Learn more: What Is Covered by Term Life Insurance?

Term life insurance, specifically, provides coverage at an affordable price. It’s ideal to use as protection when your family is most vulnerable to financial struggle. For example, the years you’re raising children. Or the years you and your spouse are paying off a mortgage.

Consider what happens when a provider dies. A paycheck disappears, perhaps even the family’s health insurance. But bills don’t go anywhere.

Purchase a term life insurance policy as back-up financial protection during the years your paycheck really matters and makes a significant difference to your family’s standard of living.

The Cost of Term Life Insurance

Term life insurance can be customized to fit most budgets. In addition, term life insurance has level premiums. This means that once you purchase your policy, the price you pay is locked in for the entire term. As long as you keep your policy inforce by paying your premiums on time, your premium amount will never increase, even if you are diagnosed with a serious medical condition.

The coverage terms range from 10 to 40 years, depending on the age of insured individual. All term length options are available if you are 45 years old or younger. Once you reach your 46th birthday, this is when the limitations start kicking in.

The longer your term, the higher your monthly premiums. See the table below for a pricing example.

Quotes for Monthly Cost of a $250,000 Term Life Insurance Policy for a Healthy Non-Smoking 35-Year-Old Individual
Term Length Male Female
10-Year $9.56 $8.74
15-Year $10.68 $9.96
20-Year $13.12 $11.87
25-Year $18.30 $15.87
30-Year $20.82 $17.91
35-Year $25.76 $21.63
40-Year $37.30 $28.79

Coverage amounts also vary greatly depending on your needs. The coverage amount is the dollar amount the insurance company would pay out to your beneficiaries if you died during the term.

Coverage can be as low as $100,000 to over tens of millions. Because you lock in your pricing, we recommend buying as much coverage as you can comfortably afford.

The more coverage you purchase, the higher your monthly premiums. See the table below for a pricing example.

Quotes for Monthly Cost of a 30-Year Term Life Insurance
Policy for a Healthy Non-Smoking 35-Year-Old Individual
Coverage/Death Benefit Male Female
$100,000 $13.57 $11.71
$150,000 $17.60 $14.80
$250,000 $20.82 $17.91
$300,000 $23.74 $20.24
$500,000 $34.76 $29.16
$750,000 $49.35 $40.60
$1,000,000 $63.24 $51.19
$1,200,000 $74.64 $60.32
$1,500,000 $91.73 $74.02
$2,000,000 $120.22 $96.85
$5,000,000 $292.73 $233.84

Your age is one of the biggest factors in determining the cost of life insurance. Buy life insurance as soon as you realize you have a need for it.

When you buy term life insurance, you lock in your price for the entirety of the term. Considering the table above, a 35-year-old man can buy a 30-year $500,000 term life insurance policy for under $35 per month. His premiums will never increase during that entire 30-year term.

See what you’d pay for life insurance

Comparison shop prices on custom coverage amounts from the nation’s top carriers with Quotacy.

Finding Affordable Term Life Insurance

The price of a term life insurance policy can vary significantly by insurance company based on your risk factors.

Risk factors are aspects of your unique profile that the insurance company evaluates to determine how much you need to pay for the coverage. Common risk factors include health conditions, such as diabetes, high blood pressure, or anxiety, or lifestyle factors, such as marijuana use, adrenaline-rush hobbies, or a history of bankruptcy.

There are hundreds of insurance companies. And they do not evaluate risk factors the same.

For example, one insurance company may be lenient with depression and another may be very strict. If a person diagnosed with depression buys life insurance through the strict company, they will be paying too much.

Choosing the right insurance company can save you hundreds, if not thousands, of dollars each year. It pays to comparison shop.

But time is also money. Do you want to spend the time applying at a bunch of different insurance companies?

Here at Quotacy, you can comparison shop pricing instantly online before you even complete an application. And, in addition, if you do have any risk factors that may influence which company is best for you, your Quotacy agent will help pair you with the right one.

After you complete the online application, your Quotacy agent reviews it before submitting it to the insurer. If a different insurance company than the one you chose is a better fit, we’ll reach out and let you know. Ultimately, it’s your decision which carrier to apply with.

As a broker, Quotacy’s number one priority is you, the client. Brokers have a fiduciary duty first and foremost to the client, with insurance companies secondary.

We’re here to help you find affordable coverage to protect your family. Start the process by getting a term life insurance quote today.

Note: Life insurance quotes used in this article accurate as of December 14, 2021. These are only estimates and your life insurance costs may be higher or lower.

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