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Compare $100,000 life insurance policies
Find affordable life insurance coverage to bridge the gap between other savings and retirement accounts
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.
What's in this guide?
How much does a $100,000 life insurance policy cost?
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
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Is a $100,000 life insurance policy right for me?
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:
- You make less than $20,000 a year. The general rule of thumb is to purchase coverage that’s 5 to 10 times your annual salary. If you’re a low-income worker or someone who’s still climbing the career ladder, a $100,000 policy might be appropriate.
- You can’t afford more coverage. Though a $100,000 policy is on the cheaper side for premiums, it’s still a monthly expense that you should be able to comfortably pay.
- $100,000 will cover big expenses after you die. Consider your reasons for taking out a policy. Is it to cover your funeral costs? Pay off remaining mortgage or loan debt? If you’ve done the math and realize that your financial responsibilities add up to over $100,000, you may want to look at higher coverage.
- Your family could afford to replace your income. $100,000 may not leave your family with a lot of money to replace your income; $100,000 is only 2 years’ salary for the average American. If your spouse makes good money or you’re retired, you might not need more than $100,000 in coverage.
- You have other savings or assets. Typically, those who sign up for $100,000 of coverage have healthy savings accounts, no dependents, little debt and few liabilities. For instance, it’s a popular option for seniors who’ve paid off their debt and have assets or money stashed in savings or retirement accounts. Their children are grown and well established in their own careers, and simply want life insurance to cover end-of-life expenses so their families aren’t saddled with that financial burden. They may also want to leave a small inheritance for their grandkids.
- You’re looking for a keyman policy for your company’s executives. It’s also common for business owners to take out $100,000 of coverage for key employees or partners. That way, if those valuable people die, the company won’t be strapped for cash while it finds replacements.
Can I get a $100,000 life insurance policy?
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.
Can I get $100,000 coverage without a medical exam?
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.
- No-exam options are ideal for people who have been denied coverage due to pre-existing conditions.
- Typically, no-exam policies are approved within a week or even on the same day. It’s ideal if you need coverage fast — say, to secure a business loan or fulfill a court order.
- Most guaranteed issue insurers cap their coverage at $250,000, so finding a no-exam policy with $100,000 of coverage is easy to find.
- You can usually get coverage unless you have a serious health condition like AIDS, or a family history of heart disease, diabetes or cancer.
- No-exam policies tend to have higher premiums. Without a medical exam, insurers can’t get a clear picture of your health and family history.
- Insurers will check your pharmacy and Medical Information Bureau records to find any publically available data on your health.
- Insurers also tend to look at your DMV history, so keep in mind that any major driving violations could affect your approval.
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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