Article provided by: DMB Soto Insurance Services
At The Financial Architects, we offer top-notch financial planning in Los Angeles for a reasonable fee. We help our clients save up to 58% on life insurance by assisting them in comparing quotes from the nation’s top insurance providers.
How much coverage should I buy?
As a rule of thumb, the policy amount you buy should be 7 to 10 your salary amount. Another way of calculating your policy amount is to figure out the amount of money you want your beneficiaries to receive in your absence.
When you think of a number for your beneficiaries, make sure to subtract other incomes that will receive from sources like retirement accounts, pensions, social security benefits, etc. In general, term insurances are available from $20,000 up to $10 million. Individuals in their late 30’s and early 40’s purchase a policy for $250,000 to $1 million. Our team of highly astute advisors can help you with smart and affordable financial planning in Los Angeles.
Types of life insurance
Life insurance is two types: term life insurance policy and permanent policy. A term life policy is more affordable, while a permanent policy can be six to ten folds pricier than a term policy. Term insurance offers coverage to your family members in the event of you passing away during the term (which is normally for 25-30 years). In a term policy, you must pay a monthly premium for a set period. If you die with the policy still active, the insurer will pay out a certain amount to your beneficiaries for several years.
On the other hand, whole life insurance pricier offers coverage regardless of when you pass away and does not have an expiration date. It lasts for as long as you pay monthly premiums and has an additional cash value component, allowing you to borrow against the policy.
Cost of life insurance
On average, the cost of monthly premiums for a healthy adult between the ages of 18 and 70 can range from $65 to $70 for a $250,000 policy. The amount you pay for premiums largely depends upon your age, health condition, lifestyle, etc.
Most policies offer riders that you can purchase to cover any unexpected illness, diseases, or other disabilities. Some riders also allow you to include children in the policy, while some may allow you to borrow against the policy.
Factors that affect the cost of insurance
Women, in general, enjoy lower premiums as research reveals that they tend to live longer than men. Also, underwriters take into account your frequency and the amount of alcohol you consume. Those who drink heavily pay more premiums than non-drinkers. Smokers and those with a pre-existing medical condition or a family history of conditions like high blood pressure, cancer, diabetes, pay a higher premium rate.
Get in touch with The Financial Architects for help with financial planning in Los Angeles. We offer assistance with choosing the best life insurance and final expense insurance by bringing quotes to you from the top insurers in the country.