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Did you know enrolling in a life insurance policy now can help you save money in the long run? That is because as you age, insurance rates also go up. The purpose of a plan is to provide a lump-sum payment to your family and/or other beneficiaries if you pass away within the term of the policy. However, the insurance premium you pay usually increases as you age due to the increased risk of death, but there are different types of plans available such as term insurance and life insurance.
To help you with the process of choosing a life insurance policy, we reviewed and compared the top life insurance companies based on policy pricing, available options, customer support, financial strength, and overall quality.
With Ladder, you can customize your insurance coverage depending on your unique needs throughout your term. You can remove coverage when necessary and apply to add more. Rates start from $4.95/month based on a 20-year-old female for a 10-year term, preferred plus health class.
Haven Life simplifies the insurance application process to learn about your coverage options. There are two products: Haven Simple and Haven Term. Haven Simple requires no medical exam and has a lower coverage amount, and Haven Term may require a medical exam and has more options for coverage.
The cost of life insurance depends on many factors, including your age, gender, your current state of health, family medical history, if you are a smoker or not, and the amount of coverage you are seeking. For example, younger people are usually charged cheaper premiums because they are less likely to pass away within the term of their policy. Premiums for adults over the age of 50 can be two times more expensive than those who are 45 years old. In general, men who smoke often pay the highest rates since smoking is a risk factor in developing certain types of cancer and other major health problems.
On the other hand, non-smokers often pay the lowest rates. Thus, someone who smokes a pack of cigarettes per day and has been diagnosed with emphysema would pay an average individual life insurance premium nearly two times what you will pay if you are a non-smoker. On the whole, the average annual life insurance rate and average monthly life insurance premium in South Dakota are $603 and $50, respectively.
Life insurance premiums in South Dakota are determined based on these key factors: the individual’s health history, their current state of health, and the demographic they fit into.
An applicant’s age is another important factor as seniors are more likely to pass away sooner than younger people. Other factors include occupation, hobbies, lifestyle, and gender. The insurer uses this information to assess the person’s risk and sets a price accordingly.
Life insurance is offered in two options: a term or a whole life insurance policy. When choosing a plan, consider what fits your needs and budget best. Below is more detail about the types of policies available:
Term life insurance provides coverage for a certain period (term) that is guaranteed by an insurance company. The term can range anywhere from 10-30 years, and as long as premiums are paid, the policy will stay in effect. For example, if you pass away within four years of purchasing the policy, your beneficiaries will receive the full face amount. Premiums for term life insurance can fluctuate as you age because older people are generally more likely to pass away within the term of their policy.
Whole life insurance provides coverage for one’s entire life and the premiums remain the same throughout your policy. Whole life insurance plans are ideal for policyholders seeking guaranteed level premiums, which essentially entails the same premium cost for life regardless of health or age. However, in some cases, the premium cost can increase but that depends on the policyholder’s unique circumstances.
Life insurance covers the repayment of financial obligations (e.g., mortgage), expenses (e.g., medical bills), and also supports loved ones financially who are left behind by the policyholder. In some cases, the policyholder is the main income provider in the household, therefore a death benefit can be helpful for the beneficiaries after the demise of their loved one.
Typically, beneficiaries use the funds for the following:
When choosing a life insurance policy, you should consider your need and the available policies. Once you have shortlisted the policies you are interested in, compare all the available options. To help you finalize your decision, keep the following key aspects in mind:
