Life insurance can cost anywhere from $14 per month to over $2,000 per month depending on the type of policy and factors like the policyholder’s age, gender, and family history. For example, a young, healthy female will likely pay less for life insurance than an older man with a family history of serious illnesses.
Factors That Affect Life Insurance Costs
Height and weight
Family health history
Smoking and nicotine usage
Abuse of substances or drug usage
Term life insurance policies are typically the cheapest option since the policies only last for a certain amount of time and the premiums only pay for the death benefit itself. Permanent life insurance policies, on the other hand, usually cost more than term life policies because they are active for the life of the policyholder and the premiums go toward the death benefit as well as a cash value component. Depending on the type of permanent life insurance policy, the interest accrued by the cash value savings account may be enough to outweigh the higher premium expenses.
If you have a permanent life insurance policy that builds cash value inside the policy from which you can take a loan, you can contact your life insurance agent or carrier to request how much money is available from the cash value of your policy to be taken as a loan.… read full answer
You may also want to ask about the rate of interest that will be charged and when the interest payments are due.
Once the required paperwork is completed and received by the insurance company you may receive a loan from your life insurance policy in as little as 1-2 weeks.
A quote from an insurance general agent I work with, "Investments make lousy insurance: insurance makes a lousy investment". Well said!
Insurance is designed to protect against an unexpected occurance. Investments are designed to build wealth. While insurance may protect the process of accumulating wealth by replacing for example, a car after an accident or a job ending disability. it is not the way to provide you with funds to retire on. Insurance may provide funds for your families benefit if something tragic happens to you before you can amass capital to pay for education or pay off a mortgage. If you examine a whole life insurance policy, you'll find the return on investment to be far below the average return on any of the major market indices over a five or ten year period of tiime. Granted the market was down 10% this week, but that has happened many times in the past and will happen again in your lifetime. I saw an interesting graphic this morning regarding periods of time after a sell off like this weeks that showed the time to recoup market losses after a week such as this. The periods varied, but they all were relatively short.… read full answer
The best method to have funds when you're older is to learn as much as you can about investing, set up a game plan, review it often, modifiy it as necessary and stick with it. Buy enough iinsurance to cover unforseen emergencies and then, go enjoy life!
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