Our top pick: LadderLife™ Life Insurance
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A $100,000 life insurance policy is popular among those who have healthy savings and retirement accounts and want to use life insurance to supplement that. When you die, your policy kicks in to help your family maintain the lifestyle they’ve grown accustomed to. It’s also common for business owners taking out key employee insurance and those who are hoping to secure a loan.
Life insurance is personalized to the individual. The rate you’re offered is based on gender, age, health, lifestyle, occupation and hobbies, as well as the length of your policy. Younger, healthier applicants score the best life insurance rates, so apply as soon as you can to lock in the lowest premium.
A $100,000 policy is an affordable range for most, with rates starting at $8 to $10 a month for healthy people in their 30s, though that number goes up to $18 to 25 a month for smokers.
*Based on sample rates from Policygenius, December 2019
To figure out if $100,000 is the right amount of coverage for you, think about your income, financial obligations and why you’re getting life insurance. This type of policy might be right for you if:
To determine if you’re eligible for a $100,000 policy, underwriters will look at your age, health and income.
When it comes to life insurance, young, healthy applicants are in the best position. This is because insurance companies use your age, health and family history to calculate your risk of dying during the term. The lower that risk, the less chance the insurer will have to pay out your death benefit.
Your life insurance provider will also assess your income. The reason is simple: you’ll need to be able to afford to pay your premiums, and for a $100,000 policy, the requirements aren’t too steep. In most cases, you’ll just need to prove that you’re earning $10,000 a year or more.
Yes, simplified issue or guaranteed issue life insurance policies waive the medical exam in your approval process, but there are some drawbacks. Insurers will still pull public records to find any details they can about your health, and premiums are often more expensive.
Once you’ve decided you need life insurance, the next step is working out how much coverage to buy. Think about your financial obligations now and in the future, and why you’re buying your policy. If you’re simply purchasing life insurance to boost your business or help your family tie up loose ends, or your financial responsibilities come to $100,000, you may be the right candidate.
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