Life Insurance Companies – “If I Had a Million Dollars”

It’s an interesting exercise… I was recently asked by a good friend of mine, “how much is a million dollars of life insurance?” There’s a real easy way to compare rates for all the life insurance companies out there, but first, let’s look at some of the factors that impact your checkbook when it comes to buying life insurance.

To start with, the “type” of life insurance you buy will significantly impact cost. Term insurance is the least expensive. If we compare it to transportation, term insurance is like taking the bus. You are paying for nothing more than getting from point A to point B. You can buy term insurance for a period of 1 to 30 years. The longer the term (the further you ride on the bus), the more it will cost. When you get off the bus, your ride is over. At the end of the term, you can say goodbye to term insurance.

The alternative to term insurance is permanent life insurance. If term insurance is like taking the bus, permanent insurance is like buying a car. Like cars, permanent insurance comes in various shapes and sizes. Whole life insurance, universal life insurance, variable life insurance, and variable universal life insurance are the four major types provided by life insurance companies. As with a car, you can own permanent insurance for the rest of your life – assuming you’re a good driver that is!

So, is a Bugatti the smartest way to spend your money? Why not buy a Toyota and invest the rest? “Should I buy term insurance and invest the difference, or buy permanent insurance?” That’s an argument you’ll hear out there for the term vs permanent life insurance dilemma. By the way – the most expensive production car on the market? The Bugatti Veyron which retails for a cool $2.4 million. Wow! The most expensive type of life insurance out there? The insurance you don’t have – at least for your heirs…

So what else impacts the cost of life insurance? If you’re male, you’ll pay more than a female; that’s because the life expectancy of a man is shorter than that of a woman. The longer you are expected to live the cheaper life insurance gets. Therefore, the older you are, the more expensive it gets.

Your health and potentially the health history of your relatives can impact the cost of life insurance. Do you smoke? Heart problems? Diabetes? Cancer? Other health issues? Congratulations! The cost of life insurance keeps rising.

Have you had a DUI in the past few years? Do you fly a plane? Do you scuba dive? Sky dive? All of these can impact the cost of your life insurance. Surprisingly enough, just about anyone is insurable, if they are willing to pay the price!

So, back to the million dollar question: How much is a million dollars of life insurance? For a 40 year old female it could be as little as .76 cents a day. That’s cheaper than a bus ride! To see for yourself, compare rates at LifeInsuranceCompanies.com. Enjoy Life!

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