All Life Insurance Tips - What might I typically pay for whole life insurance?

What might I typically pay for whole life insurance?

Hi! I am going to eventually try to get a life insurance quote, but I don't want to deal with people trying to sell it to me until I know a little more about it. I'm a 25 year old female who exercises at least 4 times / week, I quit smoking a year ago, and I have no major health issues (unless you count depression, which I have not had to deal with in roughly 2 years). I want to try to get a rough estimate of what I MIGHT pay monthly (I know, it's a very rough estimate with so little information, but anything you can give me just for an idea, since I know nothing about life insurance...) Thank you!! I do have a 3 year old son, I'm sorry, I forgot to mention that little fact lol...

Public Comments

you dont need whole life, expensive waste of money. If you have no dependents you dont need any life insurance. A term life policy could be a real inexpensive way to go to get half a million of coverage for a 20 year policy.
Get Your best Quote from www.wealthmaster.in . Its give best deals in All LIC policies. Myself & many of my friends are very satisfied with their services.
Whole life is a big rip off. It just makes insurance companies and agents rich. Take a term policy with level premiums for 30 years. You will get a lot more insurance for your dollar. Life Insurance is NOT an investment. If you want to save money, save somewhere else.
I think it's great that you are taking the initiative. It's great for you and even better for your son. My concern here is two fold. First most companies want you to be smoke free for two years to get non-smoker rates. Just so your know smoker rates are usually around 50% higher than non-smoker rates. Secondly, the bounds with depression shouldn't hurt your rate too much but it might have an affect on your ability to get a waiver of premium rider which I recommend to everybody. It will pay the premium of the policy if you are unable to do to a disability. With a good company it actually does more than pay the premium but that's another conversation. My advice get the rider. I love that you are looking at whole life and I disagree with most people that it's a rip off. If utilized properly it is anything but http://evolutionofwealth.com/2009/08/24/life-insurance-secrets/ You really need a good insurance broker. You need someone that can help you determine what type of insurance is best and also help you get the best rates. You might want to start by looking at term insurance in case you get smoker rates and they go through underwriting as soon as possible for them to change the pricing. A good term policy will be convertible to a permanent policy when you get your non-smoker rates and it works better for you. I hope this helps please let me know if you have any questions.
The premium depends on the amount of coverage you are looking for. Whole life is the way to go if you are looking to build a cash value. If you want cheaper insurance you should look at term life. On the whole life policy you might want to purchase a rider for your son. It usually adds a portion of coverage in the event something happened to him too. Assuming you have good health and you price shop you should be able to get 100,000 for around 85 to 115 dollars per month. Since you haven't used tobacco in over a year you should be able to get into a preferred tier which would put you on the lower end of those rates. If you decide to go the term route you would be looking at 20 to 50 dollars per month. If you can afford the whole life it is the way to go because in 30 years with term you will have nothing but whole life you could have tens of thousands of dollars available to you in cash value.
I think you need to be fully aware on what whole life insurance is. Whole life insurance contains insurance plus savings that are bundle together. Therefore, premiums are typically 2-5 times more expensive than term insurance, which I will explain later. You are covered until about the age of around 100. The savings part of the policy is actually called "cash value." In the first 2 years of the policy, there's no cash value accumulated. So all your premiums you paid are going into the insurance and the agent's commissions. After the first 2 years, you will see some money in the cash value. By the time you reach the age of around 100 (when the policy expires), the cash value will be nearly equal to the coverage. So if you bought $200,000 coverage and you get to live to age 100, the policy expires and you get $200,000. As you can see, you get a low rate of return of 1-3% on your cash value. If someday you wish to take money out of the policy, you will be borrowing the money. That means you have to pay it back with interest. Interest rate being charged on the loan is usually between 5-8%. God forbids something happen to you while there's a loan balance due, this amount plus interest will be deducted from the face amount of the policy. Lets say you took out $2000 and you die the next day. The $2000 plus interest will be deducted from the $200,000 and your beneficiary will receive about $198k. As you can see from the example, while there's still some cash value left in the policy, all the cash value is kept by the insurance company when you die. Do you really want to pay lots of money for 2 products in one and only be able to get one of the benefits at any given moment? A better question is why that only life insurance builds savings and all the other types of insurance such as car insurance don't? If you decide to buy this policy and someday want to cancel it in the future, you may get some cash value back to you. Surrender charges will be applied on the cash value. If you die someday, your beneficiary gets the face amount of the policy, but the insurance company keeps the cash value. The best way to protect your income while also building savings for your future is to buy term insurance and put your money whereever you see fit. I recommend people to open a Roth or Traditional IRA and setup a monthly pre-authorized checking (PAC). That way you pay yourself first every month by having money taking out of your checking and have it automatically deposited into your retirement account. I personally invest $400/month into my Roth IRA into various mutual funds. If you want to know what or how mutual funds work, there's plenty of information online. Anyway, term insurance does not build savings. It offers protection for a limited time at a very low cost. There's many different level term insurance and its best that you sit down with financial advisor who can accurately determine how much coverage you need and for how long do you need life insurance. I personally used Primerica Financial Services and they provided me a free financial needs analysis that gives an in depth detail of my finances and a game plan to help me improve it and reach my goals. I own their 20 year term insurance bought at age 26 with $350k in coverage and pay about $33/month. If this was whole life, I guarantee you it will cost at least $60-$90/month. At the end of the term, you typically have these options available to you. You may choose to cancel it and lose coverage. You may choose to convert it to whole life or universal life. You may be able to exchange it into another term policy. Or you can renew it every 1 to 5 years and pay higher premiums. But you shouldn't worry about what will happen when the term expires since its going to be a very long time until you need to make a decision. If the financial advisor does a good job, he or she may say that you might not need life insurance in 20 or 30 years since you built enough savings to cover you and your family. If you do need life insurance in 20 or 30 years, you probably won't need as much coverage as you do now. I mean, your kids will be adults and hopefully you have very small debts to pay off. If you die during the term, your beneficiary will get the face amount. As with all your savings, hopefully you have designated beneficiary with those accounts. If not, get a Will done (which Primerica can also do through their Prepaid Legal Service). I use their Prepaid Legal and pay $20/month for it. If I ever needed legal assistance, I have access to thousands of lawyers and attorneys across the country. I got my Will done and it didn't cost me anything. If you outlive the term policy and someday you die, your designated beneficiary will get your savings and assets. Hope this education about whole life and term insurance helps. At least you are making an effort to get life insurance. Its good that you are researching about it because most people that own life insurance
If you go to GerberLife site, you can get an immediate quote just by entering your state, age, gender and if you smoke. Term Life Insurance quote http://www.gerberlife.com/gl/view/guide_products/10_20_year/index.jsp Whole Life Insurance quote http://www.gerberlife.com/gl/view/guide_products/whole_life/index.jsp