Estate Planning Life Insurance: Buyer’s Guide (Companies + Rates)
Estate planning life insurance offers a stable investment that individuals can use to diversify their portfolios. The best type of life insurance for estate planning comes down to personal choice and comparison shopping. Some popular company choices may include Northwestern Mutual, Guardian, MassMutual, and more.
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Written by
Sara Routhier
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Reviewed by
Leslie Kasperowicz
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UPDATED: Jun 30, 2021
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider. Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.
- Estate planning life insurance can be beneficial to diversify your portfolio with a stable investment
- Life insurance skips probate if you have your beneficiaries listed correctly, and it can offer tax benefits
- The cost of life insurance will depend on many factors, including the type of life insurance you choose
Estate planning life insurance policies can be term life insurance, whole life insurance, or another type of policy that helps support your heirs after you pass away.
While estate planning involves other components, life insurance has its benefits. What role does life insurance play in estate planning? Basically, it provides a stable death benefit that isn’t subject to market fluctuations that can be quickly given to your heirs to pay off estate debts.
Read now to learn more about estate planning life insurance and use our free insurance quote comparison tool to compare life insurance rates from companies in your area. Enter your ZIP code above to get started.
Table of Contents
Is life insurance good for estate planning?
While estate planning includes a lot of different components, life insurance can provide some benefits to the process and help diversify your portfolio. Life insurance is a fairly stable investment depending on the type of life insurance you purchase, and it will provide a set death benefit that doesn’t change as long as you pay your premiums.
If you have your beneficiaries listed properly on your life insurance, it can skip probate, which means your family can receive the benefits quickly.
Life insurance policies can also offer tax benefits. Some have tax-deferred growth opportunities. If they’re structured the right way upon your death, your beneficiaries can receive the benefits without having to pay taxes.
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How much does estate planning life insurance cost?
The best type of life insurance for estate planning depends on your specific situation, budget, and your desire for growth potential. Let’s look at some average rates for the main types of life insurance to get an idea of what you might pay for estate planning life insurance.
First is term life insurance:
| Policyholder Age | Rates for Male with $100,000 Coverage | Rates for Female with $100,000 Coverage | Rates for Male with $250,000 Coverage | Rates for Female with $250,000 Coverage | Rates for Male with $500,000 Coverage | Rates for Female with $500,000 Coverage |
|---|---|---|---|---|---|---|
| 25 | $14.53 | $12.70 | $23.27 | $18.72 | $34.79 | $27.39 |
| 30 | $14.96 | $13.22 | $24.59 | $20.44 | $37.39 | $29.59 |
| 35 | $17.57 | $15.40 | $26.09 | $22.19 | $40.04 | $32.19 |
| 40 | $21.40 | $18.62 | $33.72 | $28.49 | $54.79 | $45.69 |
| 45 | $26.54 | $22.97 | $45.47 | $37.42 | $79.19 | $66.14 |
| 50 | $36.02 | $29.32 | $69.59 | $54.59 | $126.14 | $96.99 |
| 55 | $50.98 | $38.11 | $105.72 | $78.97 | $203.14 | $143.99 |
| 60 | $84.91 | $60.20 | $183.79 | $131.17 | $355.39 | $248.84 |
| 65 | $144.51 | $97.44 | $323.42 | $220.99 | $625.09 | $432.84 |
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Next is whole life insurance:
| Coverage Amount | 30-Year-Old Male Average Annual Rates | 30-Year-Old Female Average Annual Rates |
|---|---|---|
| $100,000 Policy | $98.47 | $87.78 |
| $250,000 Policy | $223.76 | $197.78 |
| $500,000 Policy | $438.82 | $387.30 |
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If you are relying on solely a life insurance policy for your heirs, then your costs will stop there. However, if you use a trust or choose to create a will (which is recommended), then you will also have to consider the cost of hiring an attorney.
Where can I find affordable estate planning life insurance?
Your estate planning life insurance company will depend on which type of life insurance you’re considering, your location, and how much you want to spend. Each company has different product offerings.
Read our Northwestern Mutual, Guardian, and MassMutual life insurance reviews to learn more about what life insurance companies are offering in terms of estate planning life insurance policies.
If you’re ready to buy estate planning life insurance, enter your ZIP code below to receive free estate planning life insurance quotes from local companies near you.