Lattes and Life Insurance - What is the true cost?

Life Insurance

September is Life Insurance Awareness month. It is a great reminder for all of us to stop and reflect on our own situations. Has anything changed over the year that effects my insurance needs? During the month you may see countless articles and advertisements around the subject of Life Insurance. My favorites are the infographics that give interesting facts. This year I’ve already noticed a few of these centered around one topic – the true cost of life insurance. In particular these two from really stuck in my mind:

  • Those with no life insurance think it’s 3x more expensive than it actually is.
  • One-third of people haven’t bought life insurance because they’re unsure of how much of what type to buy.

First of all, yes, it can be a little tricky to figure out how much insurance you might need, and more so, what health rate class you may qualify for. Both are factors in determining the cost of coverage. I don’t think that’s what the above statements are driving at though. People, for what ever reason, just don’t know how much life insurance coverage really costs. To me, this seems like a poor reason to not own coverage. It is just so important! For the same daily cost as a large latte, you can help secure your family’s financial future. 

Everyone’s situation is different. Age, health, benefit amount, term length, and optional riders all play into the cost of coverage. It’s possible to at least get an idea though, of what it will cost by just looking at a basic quote. For instance, a 50 year old female, in average health, applying for $500,000 of 20 year term insurance. This basic policy would cost around $115 a month ($4 a day).  If you are older, have some health issues, need a higher benefit amount or longer term length than you could expect to pay more than that. If on the other hand, you are younger or healthy, need less coverage or less of a term length than you could expect to pay less.

About the author: Seth Gowdy is the Sales Manager for Pivot Insurance and holds multiple insurance and securities licenses. He has been part of the financial services industry for nearly 20 years. In his free time he enjoys being outdoors fishing, hiking, and geocaching with his wife and two children. Seth most enjoys helping clients with Pivot’s anonymous life insurance quote process and needs calculators. You can reach Seth at 1-800-651-1953 or