Buying Life Insurance - The High Cost of Waiting

Life Insurance

Have you considered what term life insurance will cost if you wait to apply in 5 years? 10 years? Let’s take a look at a few sample calculations to show the cost of waiting.

  • A 40 year old female purchasing $500,000 of 20 year term life insurance policy at the Preferred Plus rating class could pay as low as $26.60 per month. The same policy purchased at age 45 would be $42.66 and at age 50 the monthly premium would be $57.78.
  • A 60 year old male purchasing $500,000 of 20 year term at the Preferred Plus rating class could pay as low as $218.75 per month. The same policy purchased at age 65 would cost $426.13 per month. That is nearly double the premium!

These samples are based on insurance premiums currently in effect and may be increased or decreased in the future. The policy you purchase would have guaranteed premiums during the initial term period you select; 10 year, 15 year, 20 year, 25 year or 30 year term. As you can see from the above examples, there is a high cost of waiting to buy your life insurance.

Remember, the examples apply to term life insurance and do not address other forms of life insurance. Whole life and universal life generally have premiums higher at older ages, and there could be a much greater cash value in the policies if purchased at younger issue ages. The examples above also assume the same rating class, where in many instances, the older the issue age, the higher the probability you may not qualify for the carrier’s best rating classes. Older people have greater possibility of developing high blood pressure and high cholesterol that increase the chance of developing heart disease. There is also an increase in developing diabetes.

Other considerations to remember include older issue ages have less product offerings available. For instance, a 58 year old person can purchase a 30 year term policy, whereas the product is unavailable for a 59 year old. Certain policy riders become unavailable at older issue ages.

When getting a free quote at Pivot, try changing your year of birth to see the high cost of waiting to buy your life insurance if you procrastinate. Don’t procrastinate; get your life insurance now.

About the author:  Ken Buccico holds a LUTC designation and has been in the life insurance business for 39 years. His wealth of experience empowers clients to make best possible decision regarding a life insurance policy. To explore the best life insurance option, contact Ken at 1-800-651-1953 or KBuccico@Pivot.com.