Although you may get used to seeing advertised rates for life insurance that show monthly premiums “starting at” or “as low as” $9 per month, it is important to understand that these are simply put advertised rates. Just as you may be able to go into the grocery store and get a single can of soda for 75 cents, you would still be paying over $5 if you wanted to walk out with a 24 pack of sodas.
This line of thinking can be followed when you are looking at the advertised rate for a 20 year-old female that is looking to secure a 10 year term life insurance policy with a limit of $100,000 at a monthly premium of $9. The same 10 year policy term for a 50 year-old male, in good health, could easily be twice the rate.
It is also important to keep in mind that the advertised rate for the 20 year-old would generally be that of one in great health and likely rated on the best classification, “Preferred Plus”. For most of us, a lot changes between age 20 and age 50. Whether it be gaining a little bit of weight, having high blood pressure, or high cholesterol, these types of factors need to be taken into consideration when trying to understand what the average cost are that you can expect to pay.
To help get a better understanding of the rates that are available and what the expected rates would be, it is best to look at a few examples of a male rated on “Preferred – Plus”, “Preferred”, “Standard Plus”, and “Standard” rate classifications.
Age 40 – $250,000 in coverage – 15 Year Term
- “Preferred Plus” – $17.50 per month
- “Preferred” – $21.44 per month
- “Standard Plus” – $27.56 per month
- “Standard” – $32.16 per month
Age 50 – $250,000 in coverage – 15 Year Term
- “Preferred Plus” – $37.41 per month
- “Preferred” – $46.16 per month
- “Standard Plus” – $57.53 per month
- “Standard” – $72.84 per month
Age 60 – $250,000 in coverage – 15 Year Term
- “Preferred Plus” – $96.69 per month
- “Preferred” – $118.12 per month
- “Standard Plus” – $150.94 per month
- “Standard” – $182.88 per month
As you can see, the rates will vary significantly between the consumers rated age at the time of the purchase and the rated classification affiliated with the policy. It is also important to keep in mind that the length of policy term play a factor in the age and availability as well. Overall, advertised rated are simply put, not likely.