How to Calculate Term Life Insurance Premium
How do I calculate my premium for term life insurance?
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You just visit a quote provider, answer some basic questions, and instantly receive the lowest life insurance rate quotes from a network of leading life insurance companies.
What will determine my premium for term life insurance?
When calculating premiums for a term life insurance policy, life insurance carriers consider several risk factors, as well as, the amount of life insurance and duration of your term life policy.
Several risk factors affect your premium, including your age, gender, health, family health history, occupation, hobbies, driving record, height-to-weight ratio, if you smoke or not, lifestyle, credit history, etc.
The amount of your life insurance also affects your premium, as well as, how long your term life insurance policy will last. Most term life plans provide coverage for a period of 10, 15, 20, 25 or 30 years. The longer the term for your life insurance policy the higher your premium.
What is term life insurance coverage?
Term life protection is short-term life insurance for a period of up to 30 years.
Most term life policies provide protection for a period (term) of 10, 15, 20 or 30 years.
Many people buy term life coverage because it offers the most life insurance protection for your money. Term life costs a lot less than permanent life insurance that provides lifetime coverage.
If you pass away during the term of your term policy, the death benefit is paid to your family (beneficiary). If you outlive the duration of your term life insurance policy, your life insurance coverage ends.
Renewable term life insurance allows you to renew your term life policy for another 10 years without any health exam required. But, your rate at renewal will increase based on your age at that time.
Level term life insurance is the most popular type of term life insurance. It has level premiums and coverage for the entire term of your life insurance policy.
Example: $300,000 10 year level term policy with annual premium of $300.
This means you pay $300 each year for 10 years for your $300,00 of level term life insurance coverage. If you die during the 10-year term, your beneficiary receives the $300,000 death benefit.
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