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Why Life Insurance is Cheaper than you Might Think

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Most people understand the value of a life insurance policy; it helps your family members cover the cost of final expenses and replaces household incomes. What many people don’t know is that the cost of purchasing a life insurance policy is often less expensive than commonly thought. It's likely that you can purchase a life insurance policy for the same amount of money you spend on your drive-thru coffee runs each month.

Ditch the Coffee and Purchase Life Insurance

Research shows that the average American worker spends about $14.40 on coffee a week. That's nearly $750 a year on coffee alone! Conversely, the average cost for a 20-year, $250,000 term life insurance policy for a non-smoking, 30-year-old averages around $150 per year. Yet, many people remain without life insurance because they think they cannot afford the cost, relative to other monthly expenses. In fact, most people think life insurance is three times more expensive than it is.

What Factors Determine the Cost of Life Insurance?

Insurance companies base the rates they quote to you on risk factors. Coincidentally, risk factors vary from company to company.

Essentially, risk factors are things or conditions that threaten your life, which increases the chances of your insurance company paying your premium early, so to speak. Risk factors include:

  • Smoking

  • Age

  • Gender

  • Health

If you work in an industry that historically has an increased risk of life-threatening accidents, this could be considered a risk factor as well.

Fortunately, there are positive ways in which you can affect the cost of your life insurance policy. For instance, purchasing life insurance while you are younger increases your chances of you paying significantly less for your insurance policy.

Additionally, remaining active and up-to-date with your wellness exams helps you avoid health problems such as chronic illnesses that can threaten your life.

There is an estimated $15.3 trillion unmet need for life insurance among Americans because fewer people are purchasing life insurance policies. The lack of life insurance could place a financial strain on surviving family members in the event that they lose you. You don't have to be part of the growing number of uninsured Americans. You can get a quote for a life insurance policy by contacting your independent insurance agent today.

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