Life Insurance Premiums vary depending on:
- Age (younger is less expensive)
- Gender (female tends to be less expensive)
- Health (poor health can raise premiums)
- Smoking (smoking increases premiums)
- Family medical history (chronic illness in relatives can raise premiums)
- Lifestyle (risky activities can increase premiums)
- Driving record (good drivers save on premiums)
Various Benefits of Life Insurance
- Payouts are tax-free. Death benefits are paid as a lump sum and are not subject to federal income tax because they are not considered income for beneficiaries.
- Dependents don’t have to worry about living expenses. Most policy calculators recommend a multiple of your gross income equal to seven to 10 years that can cover major expenses like mortgages and college tuition without the surviving spouse or children having to take out loans.
- Final expenses can be covered. Funeral expenses can be significant and can be avoided with a burial policy or with standard term or permanent life policies.
- Policies can supplement retirement savings. Permanent life policies such as whole, universal, and variable life insurance can offer cash value in addition to death benefits, which can augment other savings in retirement.