How much does $100,000 life insurance cost? I get this question often, and my answer is: That depends.
First, the type of coverage you intend to purchase, whether it’s permanent or temporary, will play significantly on your expected costs (hint—term costs less).
Second, the entire risk you pose to the insurance company, such as your age, gender, smoking habits, and health history, to name a few, will additionally impact your prices.
In this post, I will go over the most common $100,000 life insurance types and how much they cost.
How Did You Arrive at That Amount?
$100,000 life insurance coverage isn’t sufficient in most cases, primarily if you just got married, started a family and are looking for income replacement or a mortgage protection solution.
Knowing the reason you need life insurance will help you figure out the amount that fits best for your circumstances. There are many ways of calculating life insurance needs. However, a rule of thumb to follow is to multiply your income by 10.
Here are some questions for you to ponder before settling on the amount:
- What are you trying to protect? (income, mortgage, or burial expenses)
- How long do you need the coverage to last? (temporary or permanent)
- What are your expenses?
- What is your annual income?
- Do you have coverage now?
- Is your current coverage expiring?
- How much can you afford to pay?
The Underwriting Process for $100,000 Life Insurance Policy
Insurance companies are biased; you must be eligible for coverage. Moreover, if you want to get the preferred best rate, you’ll need to present minimal risk to the carrier. They are not bound to accept your application and grant you coverage just because you are willing to pay for it.
The underwriter uses a process called “risk classification evaluation” where the medical exam results, current and past health history, phone interview, along with third-party reports (MIB, MVR, and prescription database) will be used to evaluate your application and to determine your final rates.
There are two types of underwriting methods:
- Fully underwritten: You will undergo an exam which includes urine, blood, and saliva sample. In some cases, or at certain ages, you can also expect an EKG or stress test.
- Simplified issue: There is no exam you need to take as part of the underwriting procedure. However, you will still need to answer health and lifestyle questions. The underwriter will also use reports from third-party sources such as MVR, MIB, and prescription database to evaluate your application for coverage.
What If I’m Not Healthy?
The short answer is you either pay more or be denied coverage. Of course, the type of ailment along with how and how well it’s controlled will play a significant role in deciding your outcome.
By the way, this is precisely the reason you do not want to procrastinate buying life insurance. Getting it while you are young and healthy not only costs less but also guarantees your acceptance.
The Type of $100,000 Policy Matters
Not all policies are created equal, therefore, not all $100,000 coverages cost the same. It’s imperative that you choose the coverage that best represents your goals and needs.
Let’s take a look at a few $100,000 coverage types with sample rates.
$100,000 Term Life Insurance
As the name implies, term life is temporary protection which lasts for a specific length, typically 5–30 years with a 20-year plan to be the most popular one. In essence, you buy “pure protection” without cash accumulation or savings component whole life provides, and consequently, you will pay lower prices.
At the end of the term duration, you can convert it to a permanent policy (typically before the age 70), pay annually, or drop it. Traditional term life requires an applicant to take the exam as part of the underwriting process.
Term Life Insurance Sample Monthly Rates
20-Year Level Term Male
20-Year Level Term Female
$100,000 Term Life Insurance with No-Exam
A no-exam policy will cost you more, and your death benefit amount will be lower than a fully underwritten term life. Some companies offer up to 1-million-dollar coverage, but with most, you will find up to $500,000 in face value.
Carriers limit the face amount since they don’t have a complete picture of your health and can’t see the blood and test results. To mitigate the increased risk, they lower the face amount and charge you more for coverage—you pay for the convenience of not taking the exam.
Prices aren’t as expensive when you are younger than 40; however, if you are frugal, don’t skip the exam.
No-Exam Term Life Insurance Sample Monthly Rates
20-Year No-Exam Male
20-Year Level Term Female
$100,000 Guaranteed Universal Life
For those who are too scared of outliving their term period, guaranteed universal life, or GUL, may save the day. Unlike term life which comes with a specified duration, 10–30 years, GUL provides protection based on age.
The premiums are fixed through your plan because it has a no-lapse clause baked into the policy. This means, as long as you pay the required premium, your policy will not lapse.
For instance, let’s say you are in your thirties, and the maximum term period is 30-years or until 60 years old. If you buy GUL, you can purchase coverage up to age 90, 95, 100, 105, 110, or 121 years old.
Guaranteed Universal Life Insurance Sample Monthly Rates
Guaranteed Universal Life to 100 Male
Guaranteed Universal Life to 100 Female
$100,000 Whole Life Insurance
Whole life insurance is another recognizable plan. As the name implies, whole life lasts your entire lifetime and comes with a cash value element which grows on a tax-deferred basis.
The premiums and death benefit remain fixed throughout your existence. Keep in mind, whole life policies are more expensive than the rivals I mentioned above, and agents are making a killing selling these types of plans to those who don’t necessarily need them. (You wonder why they keep pushing this on you.)
There are a few cases when whole life is necessary. Such circumstances may include tax sheltering and asset protection for wealthy individuals, but for most of us, term life will be the most economical solution for complete peace of mind and minimized costs.
Whole Life Insurance Sample Monthly Rates
Whole Life Male
Whole Life Female
*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of Jun 2019 and are subject to underwriting approval.*
Here you go: $100,000 coverage types and how much they cost.
There are other types of policies you may want to examine further, such as universal life, indexed universal life, or variable universal life. Do your due diligence and make sure $100,000 is sufficient coverage amount as it may be valid today, but in 20 or 30 years with rising costs of inflation, perhaps a different story.
You can go ahead and get instant term life quotes on this page. If you aren’t in good health or would rather speak to a licensed broker, give us a call at 866-326-3053. We will present all your options and make sure you choose the best one.