Top pick: Sproutt
- Quotes from 40+ top insurers
- Up to $10 million in coverage
- Skip the medical exam
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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.
The premium you’re offered will come down to a range of factors, including your age, health, lifestyle and occupation. However, a $100,000 policy has a relatively low face value, so you could secure coverage for as little as $10.28 a month for a healthy woman in her 20s, and $11.86 for a healthy man of the same age.
*Sample rates averaged from five major insurers in the US: Protective, Prudential, MassMutual and Mutual of Omaha. They’re valid as of January 2021.
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:
Most major insurers offer $100,000 life insurance policies — including Prudential, Guardian and MassMutual. Unless you choose a no-exam policy, you’ll need to go through the underwriting process to find out if you’re eligible for coverage.
To determine this, insurers will look at a range of factors including your age, health, family medical history and income. Young, healthy applicants receive the best rate because their life expectancy is higher — and there’s less chance the insurer will have to pay out your death benefit. Your insurer 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. You can opt for a simplified issue policy, which waives the medical exam and only requires you to fill out a health questionnaire. These policies are ideal for people who have been denied coverage due to pre-existing conditions, and for those who need coverage fast — say, to secure a business loan or fulfill a court order. However, they’re expensive, so you may be better off with a traditionally underwritten policy in some cases.
If you’re looking for a guaranteed issue policy, you most likely won’t be able to get $100,000 in coverage. Most insurers cap their coverage between $2,000 and $25,000.
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.
Plus, 2 you can’t.
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