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How Much Is A Life Insurance Per Month?
The first thing that always crosses your mind when a sales agent talks about life insurance is, “How much will it cost ?” It would be scary and a bit unlikely for any person to budget on some investment he can’t consume. The death benefits are given to the beneficiaries, which through time, the relationship between the insured person and his beneficiaries may change.
The cost of your life insurance is unique to your situation largely depending on certain factors that may affect its cost, such as your age, gender, the outcome of your medical exam, your occupation, your lifestyle, and your health profile. To ask your agent of a fully customized plan to meet your needs would be a good idea considering some factors you may have that highly affects its premium rate.
It is a challenge to calculate your type of life insurance. To look at some insurance rates online for relative cost comparison is the most logical thing to do, but to really ask an agent how much it would cost is the most direct, straightforward way to know it.
Ask yourself a few questions before you try to get a quote
1. Do you smoke?
2. Are you overweight?
3. Do you have a hazardous job?
4. Do you have a high risk lifestyle?
The average cost of a life insurance differs with these variables. A smoker may pay three times more than a nonsmoker. A person with a chronic disease or disorder may either not get accepted or has to pay a higher monthly premium because of the risk.
Other factors you need to ask are
1. The average
cost of life insurance in your region or state
2. Find out if there is a high rate of obesity in your area
3. Find out if there are frequent events happening in your area related to deadly natural disasters, such as earthquakes or typhoons
4. Find out if there is a high crime rate
5. Find out if there were many policies underwritten in your area
Sample computation of a life insurance
How do you calculate your monthly life insurance premium? The best way is to find a life insurance calculator online. Most insurance websites have this as their main feature already. To save time, you may want to take the calculator first before calling your agent. Let us start calculating your life insurance. It is expressed as rate per thousand. For example, you need to identify the amount you want to get insured first. Then you calculate your rate using this formula
Benefit Volume * Rate/$1,000= Monthly Premium
Let us say you want a monthly premium based on twice your annual earnings. If you earn $40,000 and the rate is $0.13 per $1,000 of coverage, then the calculation would be
($40,000 x 2) x $0.13/ $1,000 = $10.40
Determining how much you are going to pay for your life insurance depends on many factors and you need to determine those factors first before you start calculating your monthly premium. You can figure out your goals in getting the life insurance and how many people are depending on your monthly income. Examples of simple goals are simply covering the debt and funeral cost or providing a regular income for your wife, partner, including the education of your children. Goals can be as follows
* Annual income
Which term is right for you?