Dear Cheryl&Mack,
My mom had a child rider on me from when I was a kid and told me it is going to expire this year.
I am currently 25 years old, non smoker and just started my first adult job. I have a boyfriend, but I am renting alone right now.
I think it’s a good idea to buy a life insurance policy, but I have no idea what the going rate is these days and because of my lack of knowledge, I’m afraid I will over pay.
Could you run a few quotes for me to help me gage how much I should be paying on life insurance?
Signed,
How much is cheap?
Dear How much is cheap?,
It’s amazing you see the value in getting life insurance while you’re young.
Given your age, non-smoker status, and relatively good health, you should be eligible for competitive rates.
However, the cost of life insurance can vary based on several factors, including:
type of policy
coverage amount
any additional features or riders you may choose.
Since you're just starting your adult job and renting alone, you might want to consider a term life insurance policy, which typically offers affordable premiums for a set period, such as 10, 20, or 30 years.
As an approximate:
Term 20, $500,000 - $20.70/month (taking you to age 45)
Term 30, $250,000 - $17/month. (taking you to age 55)
The other option is to look at a permanent solution. This locks in the premium (the payment) for the rest of your life.
Term 100 - $100,000 - 42/month
Or you consider a permanent option where the policy is paid up in 20 years.
20 pay - $100,000 - 71.64/month
Keep in mind that these are rough guess!estimates, and actual premiums can vary based on individual underwriting factors.
Additionally, since you mentioned your mom had a child rider on you, it might be worth exploring whether you can convert that rider into a new policy without any medical underwriting.
I recommend reaching out and we can do a needs analysis for you so we can help you choose a policy that offers the right balance of coverage and affordability for your needs.
Good Luck!