Learn how much a $ 500,000 life insurance policy will cost and ask these questions to determine if it is the right coverage for you.
Although we would never call you average, we thought you might want to know that according to a study from Georgetown University, the average American without a high school diploma earns nearly $ 1 million in their lifetime. As you would probably guess, they earn more with additional training. All of this is to say that while half a million dollars may sound like a lot – and it is – it is a less impressive figure when you consider it during your lifetime.
Which takes us to life insurance. When buying life insurance, you need to be careful about choosing an insurance policy that covers more than the end-of-life expenses (like funeral and burial). You also need to consider decades of expenses when reviewing life insurance quotes, in case you should pass away suddenly. These expenses can include things like mortgages, childcare, medical expenses and of course training needs that will pay off for your loved ones through your death benefit.
But how much does $ 500,000 in insurance coverage cost? And does a $ 500,000 life insurance policy cover enough? As we often say, life insurance is one of those things where more is not necessarily better. That is why we have compiled this guide with tips to determine how much coverage is right for you. And if it turns out that a life insurance policy of $ 500,000 makes sense, we will also inform you about how you can purchase insurance and what you may need to consider for your financial protection. Let's get to that, shall we?
In this article:
How much life insurance do I need?
Before I go into the price, it's worth asking who actually needs $ 500,000 insurance to cover their financial obligations. A common rule of thumb is to have a coverage that is 5 to 10 times your annual salary. It would suggest that a $ 500,000 policy might be right for someone earning between $ 50,000 and $ 100,000 a year. The reason for the wide range is that your exact maintenance needs depend on the age and quantity of your relatives, as well as other factors, such as what debts you have and your partner's income. You will be able to review these factors further with your insurance provider.
Nevertheless, the rule of thumb for many people is a useful starting point. If you are the type who likes that your life insurance needs a little more personal for you (most people do) you can also use an online life insurance calculator. It calculates your face amount and your length needs based on your family structure and financial situation.
What does a $ 500,000 life insurance policy cost?
Most things worth $ 500,000 cost $ 500,000, but that's not the case with lifetime insurance. What does a policy of $ 500,000 cost? There are two definitive answers to the question: The first is: "It depends, but it's easy to find out." And the second is: "much smaller than you probably think."
The easiest way to get an idea of how much a $ 500,000 life insurance policy will cost is to use a free online quote tool. With the help of a quote tool, you can see that a healthy 35-year-old woman can buy a 20-year-old Haven Term insurance for about $ 20 per month.
The price you pay for life insurance is affected by several different factors. , some of them you can not control (like your age), and others you can not. Three key factors are your age, your health and the length of the period.
The younger you are, the less you pay for life insurance, which is a strong argument for getting it sooner, rather than later. The price of a policy increases as you get older as your age increases and logically your health decreases. For example, a man in excellent health who is looking for a $ 500,000 20-year policy:
- If he is 35, he pays about $ 23 a month
- If he is 45, he pays about $ 56 in month  Health
The conclusion is … the better your health, the less you pay. Take the example of a 35-year-old woman looking for a $ 500,000 20-year policy:
- With excellent health, she pays about $ 20 a month
- With average health, she pays about $ 44 a month
Smoking will also negatively affect your life insurance level. If the same woman smokes:
- With good health she pays about $ 78 per month
- With average health she pays close to $ 105 a month
The longer you want coverage for, the more your life insurance quote will be. A 35 year old man in excellent health looking for $ 500,000 coverage will pay:
- Approximately $ 16 per month for a ten year period
- Approximately $ 17 per month for a 15 year period
- Approximately $ 23 per month for a 20-year period (a popular time period for our customers from the mid-thirties to the early forties)
- About $ 41 per month for a 30-year period
So that means you should get a ten-year period instead of a 20 annual policy and save some money? Almost certainly not. The length of your term of office should be based on how long your relatives will need life insurance coverage. If you have young children and want to make sure that they are taken care of financially if you die unexpectedly, it may mean that you need a longer term than if you only have a few long-term debts that you expect to pay over the next ten years.
In addition, this is when the discussion of the concept versus the whole life insurance is considered. Permanent policies (such as whole and universal life) offer lifelong coverage as well as a cash value component that can grow over time. However, these policies can be costly compared to futures policies.
A 30-year-old woman in excellent health would pay about $ 30 a month for a 30-year-old Haven Term policy. A life insurance policy of $ 500,000 for the same woman would be approximately $ 411 per month [Source: State Farm]. Below you will find our lifetime chart for life insurance.
Quotation for a life insurance policy of $ 500,000
|Age||Gender||Health||Face amount||Measure length||Premium||19659043] 30||Male||Excellent  $ 500,000||30||$ 36.26|
|30||Female||Excellent||$ 500,000||30||30.23 $||35||Male||Excellent||$ 500,000||20||$ 23.34|
|35||Female||Excellent||$ 500,000||20||20.32 dollars|
|40||19659038] Male||Excellent||$ 500,000||15||$ 22.91|
|40||Female||Excellent||$ 500,000||15||$ 22.48|
|Source: Haven Life Insurance Agency (Haven Life) quote for Haven Term policy|
How do I buy $ 500,000 insurance?
As with all insurance coverage, the process of getting $ 500,000 life insurance starts with getting a quote and then filling out an application, both of which can be done online with future-oriented life insurance agencies like Haven Life.
Just know that you will probably pay less for an insurance that is medically insured, which means that the insurer will look at factors such as your lifestyle, health and medical history to determine eligibility and pricing. For many people, medically insured insurance is cheaper because pricing is based on your health and other known factors so the insurer takes less risk from the lack of unknowns. For this type of policy, you usually need to take a medical examination to complete the coverage, but there are some situations where you may qualify for a shopping experience without a medical examination. Once an application has been submitted, you know if a medical examination is needed or not. [Please keep in mind that payment of a policy’s benefits may depend on the truthfulness of answers provided in the application.]
If you need to do a medical examination to complete your life insurance fee and coverage, it takes about 20 minutes and can be scheduled at a time and place of your choice. The insurer can also offer your temporary life insurance coverage to protect you financially while you wait to complete your degree and make a final decision.
Both my husband and I got life from Haven life. We recently had a girl and we wanted to make sure she was financially protected should anything happen to us. He got his first then I got mine after seeing how fast and easy the process was. We are both healthy adults in the late 20's so it was pretty simple and easy to get approved. The price is fair. Term life provides peace of mind for trajedy as we continue to build our wealth. We plan to be self-assured when our time expires. I would recommend this company.
Anything to acquire the mood that my family is taking care of because of something I did in a very short time was well worth it. From answering the pre-qualification questions online to going to the medical examination in town, I have had to work with a team of really nice professionals.
Was pretty easy to fill out, but the online form disappeared in the middle so I had to start over. I called with a question regarding another question with the form and it was resolved quickly.
Wow! I have life insurance and it only took 15 minutes! The process was simple, fast and painless. Now it's my type of life insurance! #GoHavenLife … it's (almost) like my birthday!
The Haven Life company offers a great price and a very easy to use process with an easy website to access. This is one of the best sites to use. I highly recommend this company.
Is my life insurance coverage reliable?
If you have spent some time buying a life insurance product, you know that you have many options when choosing your life insurance company. . One way to limit these options is to consult ratings from third-party agencies. These agencies analyze the financial strength of an insurance company and their ability to meet their contractual obligations to pay out insurance – and they do so independently so that you can trust their assessments. You can usually find a life insurance company rating on its website; You can also check out life insurance reviews from customers.
Finding the right coverage for you.
Although $ 500,000 sounds like a lot of money, you may well find that you need so much. We find that the average life insurance that a Haven Life customer buys is about 20 years and $ 600,000. The price of insurance will vary depending on your individual circumstances, but it is easy to find out that number, and one of the best things about life insurance is that you do not get what you pay for – you get more through peace
About Louis Wilson
Louis Wilson is a freelance author whose work has appeared in a wide range of publications, both online and in print. He often writes about travel, sports, popular culture, men's fashion and grooming and more. He lives in Austin, Texas, where he has developed an unlimited passion for breakfast tacos, with his wife and two children.
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Haven Life is a customer-centric life insurance agency supported and wholly owned by the Massachusetts Mutual Life Insurance Company (MassMutual). We believe that navigating life insurance decisions, your personal finances and your general well-being can be refreshingly easy. ). We believe that navigating life insurance decisions, your personal finances and your general well-being can be refreshingly easy.
Our content is created for educational purposes only. Haven Life does not support the companies, products, services or strategies discussed here, but we hope they can make your life a little less difficult if they suit your situation.
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Haven Term is a term Life Insurance Policy (DTC and ICC17DTC in certain states, including NC) issued by the Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001 and offered exclusively through Haven Life Insurance Agency, LLC. In NY, Haven Term is DTC-NY 1017. In CA, Haven Term is DTC-CA 042017. Haven Term Simplified is a Simplified Life Insurance Issue (ICC19PCM-SI 0819 in certain states, including NC) issued by C.M. Life Insurance Companies, Enfield, CT 06082. Numbers and functions for insurance forms and riders may vary by state and may not be available in all states. Our California license number is OK71922 and in Arkansas 100139527.
MassMutual is ranked by A.M. Best company as A ++ (Superior; top category 15). The rating is from Aril 1, 2020 and may change. MassMutual has received different ratings from other rating companies.
Haven Life Plus (Plus) is the marketing name of the Plus Driver, which is part of the Haven Term Policy and offers access to additional services and benefits at no cost or at a discount. The driver is not available in all states and is subject to change at any time. Neither Haven Life nor MassMutual are responsible for the provision of the benefits and services made available under Plus Rider, which are provided by third party providers (partners). For more information about Haven Life Plus, visit: https://havenlife.com/plus.html  Read our details