$500,000 Life Insurance Policy: When it comes to life insurance rates, one of the most frequent questions we are asked is, “What Does a $500,000 Life Insurance Policy Cost?”
What Does a $500,000 Life Insurance Policy Cost?
Using our quote engine, it’s simple to figure out the price of a life insurance policy worth $500,000. Within seconds, you’ll be able to contrast rates from the country’s best companies.
Search for a quote (above if on mobile) and experience it yourself. Be mindful that your rate class will influence the final price. If you aren’t sure of your life insurance health class, we’d be happy to provide you customized quotes.
Sample $500,000 Life Insurance Rates
Here are sample term life insurance rates for 3 age groups. All rates were based off of Preferred Plus health class and non smoker status.
|Age||Sex||10 Year Term||Company 1||Company 2|
|30||Male||$500,000 Benefit||Protective. $13.76 per month.||AIG. $14.19 per month.|
|40||Male||$500,000 Benefit||Protective. $18.06 per month.||Mutual of Omaha. $18.99 per month.|
|50||Male||$500,000 Benefit||Protective. $41.71 per month.||John Hancock. $42.48 per month.|
|30||Female||$500,000 Benefit||Protective. $12.04 per month.||Banner. $13.12 per month.|
|40||Female||$500,000 Benefit||Protective. $16.34 per month.||Mutual of Omaha. $17.24 per month.|
|50||Female||$500,000 Benefit||Protective. $35.26 per month.||John Hancock. $35.31 per month.|
$500000 Life Insurance Policy
For most people, the choice to purchase a life insurance policy is contingent on how much money they have to spend on coverage. Although the modern economy has tightened up many people’s budgets, there are several economical options for life insurance out there.
Who Needs a $500,000 Life Insurance Policy?
If you’re just beginning to learn about life insurance, one of the initial steps to take is to establish how much life insurance you require. This differs for everyone. You need to make sure that you purchase enough coverage to meet your goals.
One method is to assess your existing requirements. You can then figure out what your financial obligations may be in the future. Review what your needs will be 10 to 25 years down the road. After doing this, perhaps a $500,000 life insurance policy is ideal.
Several areas to keep in mind when purchasing life insurance are:
• Have your final expenses covered, such as funeral and burial costs.
• Revenue substitution.
• Have all your upcoming and existing financial debts paid.
• Have your mortgage covered.
• Have your kids’ college education paid for.
• Business insurance like key man insurance, buy/sell agreements, or to have a sole proprietorship covered.
• Donate to charity.
• Estate taxes for those who earn high incomes.
• Offer a financial legacy.
Now that you’ve reviewed these areas, is a $500,000 policy enough? Perhaps it won’t provide your family enough coverage. Learn about other coverage amounts such as $750,000 life insurance or even $2 million dollar life insurance.
Get Instant Life Insurance Quotes
To figure out what you would need to pay for a $500,000 coverage policy, use our quote engine on the side of the page (or top if on mobile). Within seconds, you can contrast rates for a life insurance policy worth $500,000 from the country’s top life insurance companies.
Qualify and Apply for $500,000 Life Insurance
You’ll still need to apply for the quote and go through the underwriting process. You’ll also need to qualify for your rate class. For example, if you get Preferred Plus or Preferred Best quotes, you’ll need to qualify for those. You will need to complete the underwriting process and take a paramedical exam. Taking a medical exam is usually the most cost effective method of securing coverage.
However, there are many No Exam life insurance companies available that provide a no medical exam life insurance option.
Now is a great time to buy the life insurance coverage you require. The instant quotes you receive on our website contain both exam options and life insurance without a medical exam. Be sure to look carefully at the descriptions and see if it states “No Exam” or “Express”.
$500,000 No Exam Life Insurance
If you require life insurance coverage but hate the idea of a medical exam, you’re in luck.
Perhaps you are squeamish when it comes to blood tests, don’t have the time for blood work, or have concerns about a preexisting health condition? An exam isn’t necessary thanks to no-exam life insurance. Read our post, no exam life insurance reviews and learn everything you need to know about no exam companies and options.
That said, no-exam life insurance is typically a little more expensive when compared to fully underwritten policies. No medical life insurance usually comes with restrictions on maximum benefit amounts. Most companies max out at $500,000.
Let’s go over the advantages and disadvantages of purchasing a no-exam life insurance policy as well as the various life insurance types.
Types of No Medical Exam Life Insurance
Guaranteed Issue Life Insurance.
Guaranteed Issue life insurance is a kind of policy that is guaranteed coverage. A GI policy is one where health questions or an exam are not required.
There is usually a $25,000 maximum death benefit for Guaranteed Issue policies. These policies usually have are “Graded” meaning the carrier won’t pay the complete death benefit for the initial 24 to 36 months. The Graded benefit duration is dependent on the company.
For example, if the GI graded benefit was 2 years and you passed away within 24 months, your beneficiaries will obtain the premium amount you paid in addition to interest of approximately 10%. The interest amount varies from each company. This is not the preferred option, but often the one used by those who can’t get conventional fully underwritten or Simplified Issue policy approval.
This kind of policy must never be the first choice. Learn more about one of the top companies who provide policies for guaranteed issue life insurance.
Simplified Issue Life Insurance.
With Simplified Issue life insurance, the carrier will inquire about your health. Coverage is not guaranteed.
Their questions will differ from company to company and be based on the amount you’re purchasing. A medical exam is not necessary, but they can look into your Motor Vehicle Records, Pharmaceutical Database, and Medical Information Bureau. With some life insurance companies, you may have to partake in an interview over the phone as part of their no exam procedure.
There is usually a $500,000 maximum amount that you can purchase with No Exam life insurance. However, there have been a few life insurance companies who have offered up to $1 million life insurance.
$500,000 Whole Life Insurance
A $500,000 whole life insurance policy offers permanent insurance coverage to protect you for the rest of your life.
This is a key aspect for people who desire peace of mind in the long run. Whole life insurance offers a guaranteed death benefit, a guaranteed level premium, and guaranteed cash values. Dividends are also an advantage of whole life insurance, as they are a method for the business to share growth with policyholders.
What is the Cost of a $500,000 Whole Life Insurance Policy?
Please use our instant Whole Life Insurance quoter below.
The rates that come up are immediate, but lower rates are possible. Unfortunately, not all life insurance companies provide rates online. Life Insurance Blog will be able to run customized quotes for you from over 40 top rated companies.
Additionally, your rate might be lower or higher based on your health, whether or not you smoked in your lifetime, and what company you select. These immediate rates reveal the premium for a level pay policy, where premiums are paid throughout your lifetime.
Purchasing a policy worth $500,000 doesn’t have to be expensive.
There are numerous methods of making your policy more economical. One of them is to concentrate on your health and put an end to any existing bad habits.
You can also shop quotes around and we’ll help you with the entire process.
If you currently have different insurance policies, money can be saved by packaging your policies with a single company. Just don’t use the company you’re currently using by default.
We’ll shop for you from over 40 top carriers. Remember, Life Insurance Blog is independent. That means we work for you and not the insurance companies.
We research which companies will provide you the best rate based on your health, lifestyle and needs. Each company looks at you differently and that means you may pay more if you apply with the wrong company. This means you may end up with substantially different rates from each company. To ensure that you get optimal insurance for your dollar, get multiple quotes from a variety of life insurance companies prior to choosing one of them.
Thank you for reading our post, $500,000 Life Insurance Policy. Please leave a comment or question below.
Please visit our article, Life Insurance Payout Amount if you’re looking to learn about other benefit amounts such as $750,000 or $1 Million dollar life insurance.