Insurance is more expensive for smokers
For a family – wife and husband, each 35 years old – a $500,000 policy for 30 years will cost $50 to $80 a month, depending on the health condition. Usually, those who want the policy must undergo a medical exam, which is paid for by the insurance company, they are awarded a rating on which the rate is determined. There is a standard rating, which most people get, there is a rating of smokers, it is usually 2-3 times more expensive than the standard.
And sometimes, depending on the insurance company, customers are awarded a rating that gives a discount for good shape and excellent health.
In general, the cost of insurance depends on the amount, on the term for which a person is insured.
Avoid hoarding insurance policies
The second type of insurance in the United States are different types of accumulation policies. They are much more expensive. In fact, the insurance industry has figured out how to make a boring and scary product attractive. It’s a savings policy. The company offers to keep money with it, which it will pay out to your family after your death.
These policies are much more expensive than temporary insurance. For the same money a person could buy, say, $500,000 in long-term insurance, a savings policy will offer him or her $100,000 or $50,000, or even less. That’s not enough money for a family to live on for 10 or 15 years, only enough for a funeral.
The second disadvantage of such an offer is the savings within the policy. They go into the possession of the insurance company, which is never explained to the client. This is called a savings account inside any insurance policy. Insurers always say: you can have access to your money, but they don’t say – that money will be yours. But the point is, having access to your money means you can borrow it at interest. In other words, you can borrow your money from the insurance company, but then pay it back with interest. So keep your money and savings away from insurance companies, only go to them for insurance.
It is because of this type of insurance that many people get confused and think that insurance is expensive and they can’t afford it.
Accumulation policies like Universal Life, Index Universal Life, Variable Universal Life, Flexible Universal Life, and others cost three to four times more than long-term policies, and policies like Whole Life are sometimes 10 to 12 times more expensive.
Don’t rely on employer-sponsored insurance
First, employer-sponsored insurance is often minimal in size. It starts at $10,000 if it’s a small firm, and if the company is larger, then the insurance covers the amount of annual income once. So if you make $70,000 a year, that’s the amount of coverage. One time. But that’s not enough money to replace a family’s income for more than one year.
Second, if you are counting on your employer’s insurance, ask your employer for a certificate and read the terms of coverage. Most of the time, to get it through your employer, you must die while actively employed and actively at work. This includes paid vacation time and time spent commuting to and from work. But if we get a serious illness, such as cancer, and begin treatment, we are no longer actively at work. In this case, we are laid off, because the employer needs to hire another person to take your place.
In large companies, you may be given disability, but even then you are no longer considered an active employee, so your life insurance is canceled. And you can’t get personal insurance because you have to be healthy to get it.
So consider life insurance from your employer as basic, and the main coverage should be through an individual policy, regardless of where you work or if you work at all. Also, insurance through an employer usually increases in value each year, rather than being fixed for the long term.