How Much Does a $100,000 Life Insurance Policy Cost?

The cost of a $100,000 life insurance policy could range from $8/month to well over $100/month. If you are looking to find out exactly how much a $100,000 life insurance policy costs the exact answer will depend upon your age, your health, and what type of insurance you would like to buy.

In general, the cheapest option is going to be term life insurance and the most expensive option will be whole life insurance. To get a more complete explanation of the three main types of life insurance click here.

It seems that many people avoid buying a life insurance policy because they are concerned about the cost. As mentioned above, you can easily purchase a term life insurance policy for a few bucks a month. And many policies can now be purchased without any need for a medical exam. Here’s a bit more about how no exam life insurance works.

Which Is Better…Term or Whole Life Insurance?

The simple answer here depends almost entirely on your budget and where you are in your life at this moment. Not where you are located geographically but what stage of life you are living currently.

Are you a young parent with young children? Are you a middle-aged parent with teenagers? Or maybe you are an empty-nester with no children at home?

First, we would encourage you to make sure that you buy life insurance. There is no right or wrong answer as to which type of life insurance is better if you have none. Your family needs to be protected from losing your income and your presence with some sort of life insurance policy.

If you are young, the sole breadwinner in your home, have a non-working spouse, with small children, and a modest income, buy term insurance. Do not wait, do it today. As stated earlier, a $100,000 life insurance policy (term insurance specifically) could cost you less than $10 per month. Even if it costs twice that, it is a small price to pay for peace-of-mind.

On the other hand, maybe you are middle-aged and have achieved a bit more financial success in your chosen career. You will have more options that are prudent for consideration. Many people find that using some sort of whole life insurance or indexed universal life insurance provides a more well-rounded type of coverage with a savings component that has significant tax advantages.

Or maybe you are at the stage of life where your children have spread their wings and flown away from the nest. If so, you may have no immediate need to replace income if you pass away as you probably have substantial savings and investments. At least that is the hope, right?

In that case, perhaps a whole life insurance policy of at least $100,000 could be used to pay final expenses, settle any outstanding debts, and leave some sort of legacy to your family. The possibilities here are only limited by your imagination.

Is 100k Enough Life Insurance Coverage?

The answer to this question largely depends upon your purpose for the policy and your budget. Over the years, working with thousands of people to figure out their life insurance need we have seen many people believe that $100,000 simply isn’t enough death benefit. And in many cases, those people are correct. That is not a lot of money if you are looking to replace your income over a long period.

But please add this to your thought process. Would your beneficiary be better off with the 100k in death benefit that is paid after you die?

Yes, it may not be enough to replace your income for even one year but I’m guessing that it would have some positive impact on their life. In over three decades of selling life insurance, we have never met anyone who was angry about getting any amount from the proceeds of a life insurance death benefit payout.

If the $22/month (for example) it costs you to purchase a $100,000 policy is affordable and that’s all you can afford, buy the policy. It may not be all that you would like to purchase now but you always have the ability to add more later assuming your financial situation improves and your health allows you to qualify. Some life insurance is always better than no coverage at all.

At What Age Should You Buy Life Insurance?

You should buy life insurance at whatever you are right now. There really isn’t much other option. But the coverage you need will not get any cheaper as you age and you run the risk that you have something negatively impact your health. Both your age and your health affect the price of your life insurance policy.

If you are looking for a definitive answer, the best time to buy a policy is probably when you are in your early to mid-20s. Of course, that’s not a hard and fast rule but generally, you are earning a decent income by that point.

That means you are able to qualify for at least $100,000 in coverage and you have the ability to easily make the premium payments each month. Even if you do not think you need it yet, it is a good time to get it. As the old saying goes in the life insurance industry, “you’ll never be any younger or healthier than you are today”.

Wrapping It Up

Buying $100,000 in life insurance coverage can cost as little as $10/month or as much as $1,000/month depending on your age and health. That is certainly a wide range to be sure. But the most important take away is that you should purchase whatever is affordable for you at this time in your life.

You can apply and purchase a term life insurance policy today in less than 30 minutes. There are also some insurance companies that make it simple to apply, get approved, and pay your premium for whole life and universal life insurance completely online. If you need help determining the right fit for you, please use our contact form to reach out.

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