6. Pricing of Different Terms

 

See below the price difference for the various term lengths for different ages. These costs are for illustrative purposes only. Visit our quotes page to get instant quotes for your age.

 

Showing monthly costs of $500,000 for male and female 30 year olds.

 

Scroll to select a different age: 30

 

The shorter the term length, the lower the cost. You may buy a shorter term than your insurance need, although you would need to renew or get new insurance when your term is up.

 

For those whose risk has not increased, new insurance can easily be applied for. You can estimate how much the new insurance down the road would be by comparing pricing at higher ages (i.e. your age plus 10 or 20 years).

 

Prices May be Adjusted Higher

Life happens, and for many, risk factors related to health, occupation, and hobbies will increase over time. For new insurance down the road, the insurance company may assign a risk rating to your policy, increasing your cost anywhere between 25% and 400%.

 

Compare below multiple shorter terms to one longer term policy. Apply different ratings to future insurance to see the overall impact. We’ve used an average 30-year-old seeking coverage until age 60 as an example.

 

Showing monthly costs of $500,000 for male 30-year-olds with a future rating of 0%.

 

Scroll to select a different rating: 0%

 

Change gender shown: male

 

The 30 year term stays in force all the way until age 60, while the shorter terms end and new coverage is needed. You can see the ratings drastically change the affordability of the options as future insurance can become much more expensive.

 

A rating of just 50% being applied to future insurance makes getting the longer term option overall most affordable.

 

This increase could come from a person’s driving or medical history, physical build, or many other factors. All factors are outlined on an upcoming page. Insurers may even decide to decline offering insurance if an individual’s risk of death is deemed too high.

 

You get to decide now how much risk you want to take on by deciding how long you want to “lock in” your coverage and premiums for.

 

Today, the lowest cost option is 10-year term insurance, no ifs, ands, or buts about it. On the other hand, longer term insurance provides guaranteed coverage for a longer period and will end up costing less down the road.