I just moved for a new job and bought a new house, and I’d like to increase the amount of my life insurance. I have a $500,000 20-year term policy. How much would it cost to boost it to $1 million?
If you’re pretty young and healthy, it costs a lot less than you’d expect. A 30-year-old woman could pay as little as $214 per year for a $500,000 20-year term insurance policy and $354 for $1 million, says Byron Udell, CEO of AccuQuote.com. A healthy 30-year-old man would pay $244 for $500,000 and $421 for $1 million.
The price difference is slightly higher for a healthy 40-year-old. For a woman, a $500,000 20-year term insurance policy would cost $304 per year, and $1 million in coverage could cost $529, according to Udell. A 40-year-old man would pay more: $328 per year for a $500,000 20-year term insurance policy and $626 for $1 million.
Ask your insurer how much it would cost to boost your coverage, and compare the cost with buying a new policy. One advantage of buying a new policy is that you start the 20-year clock ticking again. But if you have health problems, you might get a better deal boosting coverage with your current insurer.
You can get price quotes from many term insurance companies at AccuQuote.com or LifeQuotes.com. If you have any health conditions, it’s usually better to call the Web site or agency rather than just comparing quotes online; giving the agent a heads up about your health condition up front can help him find the insurer that’s most likely to offer you the best rate. For more information, see 4 Ways to Save Money on Life Insurance.
Got a question? Ask Kim at askkim@kiplinger.com.
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