How Much Life Insurance Will Your Premium Dollars Buy?

These are sample rates, they are used for illustration purposes only. Rates could vary on each individual.

$300,000 Face Amount

These are sample rates for a male, non-smoker in good health. Term premiums increase over time; universal and whole life premiums are level. For example, a 25 year old who purchases a $300,000 whole life policy will pay $2303 annually for the life of the policy. If that same policy is purchased at age 45, the annual premium is $5744.

If you have a cash-value policy and plan on borrowing from it, the insurance company may pay you a lower dividend if you take a loan against your cash-value. Discuss with your agent how future borrowing may impact the policy. 

• Do you have enough insurance at work? Don’t count on it. Most companies provide you with a face amount equal to only one times your salary but offer you the option to purchase additional coverage. Determine how much more insurance you need and compare your employer’s rates with the rates offered by a private insurer and/or association--before you purchase more. 
• Why should you spend money on life insurance if your children will get Social Security Survivor Benefits when you die? They will get survivor benefits-- as long as your child is under age 18, or age 19 and is still in high school (age 22 if disabled). However, the benefit amount may not be adequate to support them and fund a college education. 
• How much money will your family need when you die?   Unless you’ve made provisions to have the mortgage paid off, the utilities paid every month, food delivered free to their doorstep and one size fits all clothing that will last until your children are fully grown and out of the house, you should expect your survivors will have an income need of at least 60% of the household income before you died.