$500,000 Life Insurance Policy
If you are searching for $500,000 life insurance, you may want to look into getting term life insurance. With whole life insurance, which is permanent, you may end up paying much more. Term life insurance has decreased in premium rates over the past ten years by a third. So, if you are 25 years old, are in good health and have purchased a 20 year term life insurance policy for $470 a year, when you renew your $500,000 life policy at age 45 (and are still healthy) to a 10 year policy, you will be paying about $295 a year.
Term Life Policy Benefits
With the term policy, the cash benefits of the loan will expire at the end of the term if you are still alive. Another option for the above scenario is to add 10 years to your current term coverage for about $15-$20 more a month – which would be $485 to $490. Another benefit about getting $500,000 life policies through term insurance agencies is that you will be paying the same rate throughout the term of your coverage.
On the other hand, with a whole life insurance policy with a $500,000 death benefit will cost as high as $4,505 a year; and this is for the 30 year old healthy individual who would be paying only $355 a year with a 20 year term life policy. Some people find that term life insurance is great for younger people who have yet to build up other assets. Whole life insurance may make more sense for individuals who have a disabled child who may survive them or a large estate that needs tax planning.