A Quick Comparison of Premiums
Here is a quick comparison of premiums between term life and whole life and guaranteed permanent universal life. To create these quotes, carefully selected, highly competitive carriers are used. This table below is able to offer some clarity on what to expect from various guaranteed life plans. I offered these options to a real client of mine. See the rounded premiums below.
A Quick Comparison of Life Insurance Premiums
| MALE | AGE: 35 | RISK CLASS: SUPER PREFERRED | NON-SMOKER | |
|---|---|
 | Real-time Life Insurance Rates Face amount: $1000,000 |
| 10 Years Term (convertible to guaranteed universal and whole life) | $19 monthly |
| 20 Years Term (convertible to guaranteed universal and whole life) | $34 monthly |
| 30 Years Term (convertible) | $64 monthly |
| 30 years Refund of Premium Term | $132 monthly |
| Universal Life (pay only till 65) (Lifetime of coverage without cash values) | $583 monthly |
| Whole Life (pay only till 65) (Lifetime of coverage with cash values) | $1,446 monthly |
| Please note: The rates quoted are estimates and are subject to underwriting by the insurance carrier. Rates do not include optional riders. For a no-obligation consultation, call us at 1.866.526.7264. |
When you see an ad on TV promising hundreds of thousands of dollars worth of term life insurance for a ridiculously low price, you need to keep in mind that they are only throwing a bone at you to call them. These ads only promote a 10-year term plan for those in perfect health (super preferred risk class). Obviously, the low premium quoted makes it look like a breeze to buy life insurance. There are a lot of good life insurance advisors out there to serve your best interest. It is important to talk to them in detail before taking a life policy.
BOTTOMLINE
The premium difference is obviously huge. While there is no right or wrong life insurance plan, it is what you need and afford that dictate the kind of life insurance plan you should go for. Life insurance can work as a mortgage protection vehicle, something to protect a loan, or an estate planning tool. Term life insurance plan can hardly take care of the death tax or estate tax issue. To take care of that, you must look into a guaranteed permanent life insurance option as a guaranteed financial legacy. Limited premium or single pay whole life and universal life insurance plans are very useful for those looking into covering estate tax through life insurance.
FOUR BASIC RULES OF LIFE INSURANCE
- Premiums always remain level during the duration of a term in term life plan.
- Universal life and whole life plans are usually custom-designed to suit your needs and affordability.
- All quotes are subject to underwriting, age and state availability.
- Always ask for optional riders that may enhance the value of your life insurance policy.
CONCLUSION
Purchasing life insurance is a major financial decision. Let not a few sleek TV ads or aggressive marketing sway you. A quick comparison of premiums, and what a life insurance plan can or cannot do for you is very important. Talk about your current and future family protection needs to a professional before you buy one. In a remote work environment, always ask for a virtual meeting.
Thank you, Dan. This is very helpful. The comparison table really clarifies. By the way, beautiful photo!
This is exactly what I was looking for.