November 18, 2008

How much does term life insurance cost?

Out of curiosity I was looking at life insurance prices. Currently right now I pay for supplemental insurance through my employer.

I did a google search for insurance quotes and came up with the site Quick Quote. They give quick quotes on term insurance for a number of providers and they do not require an address or phone number. So I could easily get quotes based on age and basic health details. I don't like to get quotes from a site that won't tell you anything without your phone number and address because if they want that info it means to me that they'll be sending you stuff in the mail or having salespeople call you at home.

Anyway, I did some quotes on Quick Quote and came up with the following prices for one provider. So below are some quotes to give a basic idea of the costs for term insurance.

For a 30 year old male in good health, the annual rates from ING are for the policy amounts of $100k to $1m and for term lengths of 10,20 or 30 years :


10 years20 years30 years
$100k$96 $127 $159
$250k$102.50 $147 $248
$500k$155 $245 $445
$1 M$250 $420 $800


And for a 40 year old male in good health the rates from ING were:


10 years20 years30 years
$100k$109 $160 $231
$250k$127.50 $198 $335
$500k$205 $345 $620
$1 M$330 $610 $1,180

Keep in mind that these are just example quotes from one provider. Your exact age and health condition would impact your rates up or down from these numbers. If you are a smoker then your rates will be significantly higher. A 40 year old smoker would pay $1595 for a 20 year $500k policy compared to $345 for a non-smoker. ING was usually among the cheapest providers quoted but other providers were cheaper for some policies.

I don't know anything about ING insurance or the Quick Quote site. I'm not endorsing either of those services. I'm just using them for convenience to get an idea of rates for term life insurance. If you are interested in term insurance I'd recommend you shop around yourself to find a provider that meets your individual needs for a reasonable price.

2 comments:

  1. On a similar note, getting Term Life Insurance Quotes was an extreme hassle in days gone by. Despite all the comparision tools available to us now we must be vigilant, just because its the cheapest does not always mean it is the best. Take into account companies solvency/customer service record etc

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  2. A number of life insurance companies offer internet users the chance to apply for term life insurance while online. Often there is no medical exam requirement in order to qualify for a policy. Coverage may be offered for a term of 5, 10, 15, 20 or 30 years, although this depends on the age and health of the applicant.

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