Life Insurance: The Real Cost

Part III in a new series explaining the Life Insurance process.
Life Insurance: The Real Cost | CM Connect Blog

Life Insurance: The Real Cost

Now that you’ve had a chance to read the first two blogs in our “How Does Life Insurance Work?” series, it’s time to talk about cost

If you haven’t had a chance to read them yet, here is Part 1: The Needs Analysis and Part 2: Your Coverage Options.

When talking about the real cost of life insurance, money can play a huge factor in someone’s decision to get life insurance coverage. 

This is actually very interesting when you think about it because the main reason we get life insurance is so that our loved ones aren't left with their own financial burden. 

Plus, we guarantee it costs less than you think.

Here are our Top 3 things to consider when investing in Life Insurance.


Life Insurance:  The Real Cost

FILL THE GAP FIRST

As life changes, so should your life insurance. You are allowed to change and adjust this coverage as your life evolves.

Make sure to talk to a specialist to determine exactly where you have gaps in your coverage, and which type of insurance will fit your specific needs the best.

Disability

For example, you may want to start with Disability coverage so that if you were to get hurt at work and your income suddenly disappeared due to that, you would still have a way to pay your bills. 

Critical Illness

Or, you could start with Critical Illness coverage that would provide a lump sum of money should you get unexpectedly sick and need to take time off work for treatment, medical expenses or doctor appointments and travel.

This could also allow your spouse or loved one to accompany you on overnight trips or while going through treatment without any financial strain. 

Life Insurance

Then there is of course, Life Insurance which will provide a lump sum amount of your choosing to the ones you leave behind.

This money can be used for anything - funeral expenses, paying off the mortgage, student loans, pet care, time off work to grieve, or whatever you (or they) decide.

Of course, you can have a combination of these as well.



Life Insurance:  The Real Cost

FACTORS THAT AFFECT RATES

What affects life insurance rates the most? You guessed it - age and health. 

It’s true what they say - get life insurance while you’re young so it’s cheap. This doesn’t mean life insurance will be expensive just because you're older. It simply means it will cost less when you are younger. 

The application process begins with a questionnaire, similar to what you would see when you visit a new doctor or health care provider. 

Do you have any existing conditions? Is there a history of any conditions in your family? What is your weight and height? Are you a smoker?

If you have any concerns about not qualifying (as many people do, including Crystal the first time she applied in her 20’s), we can always do a preliminary application first. 

This way they will tell us what your chances are of qualifying which often results in some much needed reassurance! 

Do not stress about qualifying for life insurance. There is no test that will say you passed or you failed! They simply need to know where you are at in your current stage of life and health in order to determine proper coverage and rates

Life insurance is approved over 90% of the time. 

If for some reason you are denied coverage, let’s talk about it! There are often things we can figure out together to help you reapply. Most often, this is due to lifestyle changes such as quitting smoking or seeing a doctor about your blood pressure (which you should probably do anyway). 


Life Insurance:  The Real Cost

THE REAL COST    

Okay, here it is… the real cost of life insurance. 

These are REAL LIFE examples of what our clients are paying right now for life insurance coverage on a 20-year term (read more about term vs permanent here).

Age 25 35 45
Gender Female Female Female
Smoker? No No No
Coverage $125,000 $250,000 $500,000
Monthly Cost $11.81 $15.98 $55.35


Age 25 35 45
Gender Male Male Male
Smoker? N N N
Coverage $125,000 $250,000 $500,000
Monthly Cost $13.61 $20.48 $77.40


Consider how much you might spend each month at the local coffee shop, on one order from Skip the Dishes, on a single case of beer, that new pair of shoes, or an extra toy for your pet. 

Consider want vs need. 
Consider how the cost of your passing will affect those around you.  

What is their financial freedom worth to you?



Have more questions? Give us a call at 403.526.1345 or book an appointment here


Life Insurance:  The Real Cost