What Is the Cost of Whole Life Insurance?

Considering purchasing a life insurance policy? Here's what to expect when it comes to the cost of whole life insurance.

Do you wish to secure your family through life insurance?

The current health crisis is boosting the growth of life insurance policies. Sales of life insurance in the first half of 2021 grew by 8% compared to last year.

You may be eager to buy one, but knowing the amount you will pay is crucial. Continue reading below for a quick guide on the cost of whole life insurance.

The Average Cost of Whole Life Insurance

The average annual cost of whole life insurance for a 30-year-old male is $4,308. The rates for women are lower since they often live longer than men. It is usually at $3,802.

If you buy a whole life insurance policy in your 40s, expect to pay at least $6,388 annually. The annual rate for women in their 40s also increases to $5,467.

Compared to term insurance, whole life insurance is more expensive. It has no expiration date. As long as you live and your premiums are up-to-date, the coverage remains.

Whole life insurance is also a cash-value life insurance policy. The premiums fund a cash value component on top of the death benefit.

Primary Factors Affecting Life Insurance Costs

Different factors affect the premiums of whole life insurance policies. Aside from age and gender, your current health condition also matters.

You must go through an underwriting process, including a medical exam. The medical experts will check your cholesterol, blood pressure, and other vital metrics. People with heart problems or diabetes should work on their condition to lower their premiums.

The insurance carrier will also check your medical history. If you smoke, they consider it a red flag. It will increase your chances of paying double the premium amount of a non-smoker.

They will check your lifestyle. If you like extreme sports and other high-risk activities, expect to pay higher premiums.

Tips for First-Time Buyers

Whether you’re buying whole life or term life insurance, assess the status of your finances. Will buying life insurance impact your finances? Ensure you have enough money for retirement and emergency funds.

Determine the amount of coverage you need. It depends on your financial goals.

A wider coverage benefits a large family. If you have heirs, learn about the modified endowment contract through Paradigm Life.

Be truthful in your application. Declare all pre-existing health conditions. After all, the insurance carriers can access your medical records. Lying may lead to rejection.

Look for the best rates available. Never settle for the first insurance company you contact. Compare their rates and the coverage you will get.

Secure Other Aspects of Your Life Today

Understanding the cost of whole life insurance allows you to prepare financially. You can find the best coverage without hurting your finances.

Securing your family’s future is great, but it’s not enough. Improve various aspects of your life to achieve a more holistic experience.

Did this guide help? Consider visiting our website for more.


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About Marc Wallace

I'm never too busy to share my passion. I've created this page to help people learn more about business, finance and real estate. Besides all the serious stuff, I'm also a man that values family and healthy relationships. I hope you find my content insightful.

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