How much would a $500K life insurance policy cost?

I am a healthy 32 year old female.

term, or whole? if term, what length of time? smoker, or non? what's your bmi?

See, too many factors go into it, besides age, health and gender.

Based on the minimum information you given, here's what I could do. With RBC Insurance in Canada (where I work), if you choose Term Insurance, it would be cheap.

A $500,000 Term 10 (Premium stays the same for 10 years, then you renew, drop or convert the Insurance) would cost $25.24/month.

A $500,000 Term 20 (Premium stays the same for 20 years, then you renew, drop or convert the Insurance) would cost $36.76/month.

However, if you choose Permanent Insurance like a $500,000 Universal Life Policy, it would cost more but give you much more value.

By paying $522.35/month as a bare bones minimum, that would mean by age 65, you would have $316,880.08 cash built up in your policy and that money has been growing Tax-Deferred (This means you don't pay any Tax as your money is growing in the policy. Only if you cancel the Insurance would you pay any taxes). You can then take the Insurance policy to a Bank and take out a collateral loan worth 90% of that and use it as Tax-Free Income of $285,192.07 for retirement.

By paying $1,100.00/month as a maximum, that would mean by age 65, you would have $747,554.92 cash built up in your policy and that money has been growing Tax-Deferred (This means you don't pay any Tax as your money is growing in the policy. Only if you cancel the Insurance would you pay any taxes). You can then take the Insurance policy to a Bank and take out a collateral loan worth 90% of that and use it as Tax-Free Income of $672,799.43 for retirement.

It depends on what you want in the end. Both Insurances have their place in this world.
Good luck with your Insurance hunting, and I hope you don't need it. : )

Hey Kerry!

The cost for a $500,000 life insurance policy for you would depend on your answers to several questions including, your health, your family's health history, the type of life insurance, how long you need coverage, your job, your hobbies and whether you smoke and or use any drugs and take any medication, etc.

For someone your age, level term life insurance for 10, 15, 20 or 30 years may be something for you to consider. Level term life insurance is very popular among young people on a budget.

One way to find out instantly what the cost for your life insurance would be is to request a free quote online. Here's how it works: You fill out one form and get up to 12 quotes instantly from top-rated life insurance companies. Since rate smay vary by 50% or more between insurers, it's important to compare several quotes to help find a good rate.

You can request free, no obligation quotes at https://www.efinancial.com/smartquoteefc.aspx?source=389-707

Also, here is a explanation of how term life insurance works:

Term life insurance lasts for a specific number of years, usually 10, 15, 20 or 30 years. The most common terms are 10 years or 20 years.

Term life insurance policies pay the beneficiary the face amount of the life insurance policy if the insured person dies during the term of the policy. For example, a 15-year term life policy with a face amount of $250,000 would pay $250,000 to the beneficiary if the insured died any time during those 15 years.

Usually, term life insurance costs less than permanent life insurance.

At the end of the policy term, the insured is no longer insured, and a death benefit is no longer paid. Some term life insurance policies are renewable, or can be converted to permanent life insurance.

Term Life Insurance Has Three Standard Features:

Level
Usually, the annual premium for the policy paid by the insured stays the same each year. The face amount of the policy also stays the same. Level term life insurance policies can usually last up to 30 years.

Convertible
Before the end of the term for the policy, the life insurance policy owner may be able to convert the term life insurance into a permanent life insurance policy. The owner usually has a specific number of years during the term life insurance policy to convert the policy. The premiums usually increase for the permanent life insurance.

Renewable
Term life insurance policies that are renewable offer the owner the option of renewing the life insurance policy at the end of the policy term, up to a specific age limit (usually age 65 or 70).

For example, a 15 year policy may be renewed for another 15 years. If the policy is renewed, a medical exam may be required. The term life insurance premium will usually increase when the policy is renewed.

I hope that helps! Best of luck to you.

It will cost you at least $14 a month, if I'm rounding, but there are a lot of factors at play and very few people get that rate. These factors include your actual date of birth (not your current age), you family history, and what type of coverage you are looking for.

Find a good, independent agent, preferably locally.

It depends on many factors including the provider, and whether through work or not.

it probably wont be a lot because you are young

The essentail question is what kind of policy? Term is cheapest but provides no cash value. Whole life is more expensive. You can get "instant quotes" online but best bet is to see an independent agent.

Term? Whole life? Paid-up by 65? Any riders? You should call an agent. I recently got a quote for my wife of similar age for a $25K whole life policy w/o riders, paid at 65, and that was $400/yr. For my youngest (4yrs), for a $250K WL it was ~$1000/yr.

$500 k? Sorry. my husband does finances. Good luck.

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