Life Insurance Cost Expert Interview

Tamsen Butler
The cost of life insurance depends on several different factors.
The cost of life insurance depends on several different factors.

How much does life insurance cost? Since the cost of life insurance varies, it's a good idea to know what factors influence the cost of life insurance so you can get the best coverage at the lowest cost possible.

With so many life insurance options available, consumers oftentimes find themselves wondering if they are spending too much money for a policy and additionally if the coverage is sufficient. In this LoveToKnow interview, Kurt Wicks of The Wicks Insurance Agency reveals to readers how much does life insurance cost as well as different ways to save money when purchasing a life insurance policy.

An Interview with Kurt Wicks, of the Wicks Insurance Agency

How much does life insurance cost?

Life insurance, much like homeowners insurance, auto insurance, or health insurance varies immensely. Ranging from less than $100 a month up to hundreds or thousands of dollars a month, the cost of life insurance will depend upon:

  • How much coverage is needed
  • What type of coverage is needed
  • The overall health of the insured

How can people save money on life insurance?

You are what you are, meaning that some circumstances - such as family health history or your age - can't be changed. However, you can improve on your personal habits by maintaining a healthy weight, refraining from smoking and so on. Generally speaking, the healthier you are, the less expensive life insurance will be.

What factors influence the cost of life insurance?

The cost of life insurance is influenced by many circumstances and factors. The most basic factors affecting the cost include:

  • The health of the person to be insured
  • Family history of cancer, stroke, heart disease and other medical conditions
  • Height and weight
  • Age

How much does term life insurance cost?

The cost of term life insurance varies as well, but is generally less expensive than cash value life insurance, for example. This is because with term life insurance, you're only really paying for the death benefits of the policy.

Does cash value life insurance cost more than term insurance?

Generally speaking, cash-value life insurance is more expensive than term insurance. This is because the money put into a cash value policy accumulates over years. That money is then put into an account, yielding interest for the policy holder. This money becomes a reserve for the policy holder, allowing for early retirement, paying off a mortgage or some other major expense.

What questions should an applicant ask when buying life insurance?

I'd recommend asking first and foremost of your broker or agent this question: What company will I be buying this policy from? This should be followed with another question: How is the company rated by Standard & Poor's or Bests? Keep in mind that in a poor economy many companies might be downgraded in their rating, and you'll want to make sure you're purchasing a policy from a stable company.

Equally as important is to learn how reputable your agent is. Ask how long they've been in business and if they can provide you with references.

Why is the cost of life insurance worth it?

Life insurance is the only product that creates cash when needed the most for pennies on the dollar. Such cash needs include funeral expenses, mortgage redemption, education expenses and emergency funds as well as as dependency periods for children and widows or widowers.

About Kurt Wicks

Kurt Wicks is the founder of The Wicks Insurance Agency, an Allstate company located in Manchester, New Hampshire. A graduate of the Rhode Island Business School, Kurt joined Allstate's Management Development Program in 1979 and subsequently served as Sales Manager and New England Regional Sales Training Manager.

Over his 35 year career in the insurance agency, Kurt has been one of the Top Life Insurance Producers for Allstate, and has won numerous company and industry awards.

Contact Kurt

Contact Kurt Wicks to find out more about the cost of life insurance as well as for information on other insurance products available through Allstate. Kurt welcomes questions at kurtwicks@allstate.com or by calling his office at 603-668-7228.

Life Insurance Cost Expert Interview