As I am approaching 23 years of age quickly, I start to think more and more about the future. So, my question towards you is: how much do you pay for life insurance per year? I consider purchasing one myself after I finish paying back all my loans. Please respond only if you have a life insurance.
There are generally two types of life insurance. The first type is life insurance that bundles life insurance and savings together, otherwise known as cash value life insurance. It comes in many different names such as whole life, universal life, or variable life. These types of policies are very expensive. An average 30 year old with $100,000 coverage would pay about $1000/year for it. In a whole life policy, no cash value is accumulated in the first two years. In the third year, the insurance company will put some of your premiums into it and it will get a fix rate of 1% to 4%. The cash value will grow very slowly because of tax laws that prevents cash value from growinng too fast. If you bought $500,000 coverage, it will take until you nearly 100 years old until there is about $500,000 in the cash value.
Well, I want a life insurance which will really work for me hence I am ready to pay around 10K per year. I know it is enough for a effective life insurance.
Life insurance doesn't cost me anything because I don't have life insurance at the moment. I am 27-years old and life insurance isn't a priority at this stage in my life. Life insurance will just cost more money I don't have, it's not worth it.
I suggest everyone to have life insurance when they cross 30 years of age it's better for their savings and also they can use this money for a proper lifestyle or anything else they want. Anyways most of us are paying so much with some tips like being average weight and avoid smoking we can easily decrease the costs of insurance.
The question you are asking is not as simple and as straight forward as you are asking it. Life insurance amounts differs from individual to individual, we all have different profiles. Firstly your age, sex, health conditions, working conditions, living conditions, area you live in, risk factors associated with your lifestyle and all those things play a major role. The only advise I can give you is that you take up one, whilst you are still young yes in your twenties. If you live a healthy life and stay free of harmful substances that might shorten your life span that will greatly improve your premiums and you will get a great deal. Therefore it would not be a fair analysis if I were to give you a specific premium, you need to go and get a quote based on your own individual needs and profile.
