The Ultimate Guide For A 500k Life Insurance Policy

Personal Blog by Jessica McAfee

The Importance of Life Insurance

I don’t know about you…but I really didn’t hear about life insurance until I was an adult. Now that I’m married and with kids–I sure am glad someone explained what life insurance is to me and just how  important it is to have it. Personally, I believe life insurance is one of the most important coverages you can have.

So, just in case you need to be caught up to speed like I did…here is my take on how important it is to find an affordable 500k life insurance policy.

To sum it up, life insurance is a financial safety net for your loved ones, or business. Life brings unexpected moments, and in the tragic event of a death a life insurance policy will pay your loved ones or beneficiary a large sum of money to help replace income loss.  

Term life insurance is the most common type of coverage because it is most affordable. There are other policies called Permanent or Universal/Whole Life Insurance that have more options and flexibility but they can be costly.

I think we can all think of someone or who passed away unexpectedly. Possibly a terrible accident or terminal diagnosis…it often makes me wonder if they had a life insurance policy for their family. How terrible to be left with no financial support.

Let’s get into more details on how life insurance can help protect what you love most.

What Is a 500k Life Insurance Policy?

When you are looking for life insurance, ask yourself a few questions:

  1. How much coverage do I need?
  2. How long do I need coverage/protection?

We typically recommend you take your yearly income and multiply it by 10-30x. For example, if you make 100K a year, you would want a 1-3 million dollar policy. It might seem extreme, but in today’s world things are expensive and money can go quickly. Think about your mortgage, debts, college funding, bills.

Next, you want to decide how long you will need coverage for. If you are newly married with a family, what age will you be when the kids are financially secure and your mortgage and debts are paid? If you’re in your 30’s you are probably looking at coverage for 20-30 years. We would say a 20 year term or 30 year term policy.

This means that if you purchase a 3 million policy with a 30 year term. You start to pay premiums/payments each year until that 30 years is up. If there is a death during this term period, then the life insurance company will pay your beneficiary 3 million dollars.  

Remember to keep up with these payments. If you miss payments you risk your policy lapsing and losing coverage. At the end of that term, the contract is done. You can decide then if you need to purchase a new short-term policy or if you have enough money in savings/investments to cover your family and estate.

Pros and Cons of No Medical Exam Life Insurance

In the process of purchasing a life insurance policy, sometimes clients ask, “ do I have to have a medical exam?”

Sometimes, yes–but nowadays, life insurance companies are straying from these exams. If you see a physician regularly with regular blood work, say on a yearly basis, then you probably won’t need a medical exam. If you are  healthy and only see the doctor when sick, you may be asked by the life insurance company to have an in-home medical exam for a baseline on record.

You may be worried that a medical exam is going to be risky, so let me put you at ease. Clients worry that when the examiner arrives nerves will make their blood pressure go sky high. Don’t worry, these medical examiners are trained to wait until your blood pressure is relaxed. Take your regular medications, get a good night’s sleep the night before…and above all, don’t worry. We are here to help navigate you through the process.

Of course, it’s easier if you don’t need to have an exam–but most of the time you can get a better policy and policy rate by doing it!

How to Determine the Coverage Amount You Need

As we discussed earlier, you can do some quick math and multiply your yearly income by 10-30x. If you want a more specific number, you can visit our free calculator which prompts you to consider each pertinent expense and to factor in all your income/investments.

We know that everyone has a different budget. Sometimes you set out for a specific policy coverage amount or  term limit, BUT after you look at the monthly or yearly premiums it just isn’t in your budget. At Arlington Greene, we understand. Thankfully there are lots of variables we can adjust. You can always lower your coverage amount to save money. Another option is to change the term length. There’s always something we can adjust to help fit your specific needs and budget. Last of all, remember: some coverage is better than none!  

Tips for Finding An Affordable 500k Life Insurance Policy

You may have heard how important it is to go with an A+ rated life insurance company. But, what does that even mean?

Each life insurance company goes through a rating system to determine its financial security. This matters because during strenuous times, you want to make sure a company will be able to pay the coverage amount you agreed on. At Arlington Greene Agency you can rest assured because we only work with those A+ rated companies.

At Arlington Greene, we shop around through all the top rated companies to find the best policy and rates for you. One of the advantages of going through a brokerage like us is we know all the ends and outs of each life insurance company. 

Did you know that if you have a family history of cancer or heart disease, one company may charge you more for that same policy than another?  

See, each company has a different risk rating system. They employ underwriters who review your medical history, family history, and determine how many premiums you’ll need to pay for their coverage. Arlington Greene knows which companies will offer you better rates over the other based on your situation. 

It’s hard to know all these little details with insurance, but that’s why it’s so easy to use an agency like ours. Plus, you don’t pay us anything for helping! Our commission comes directly from the life insurance company after your policy is in place.

Comparing Different Insurance Providers

Maybe a friend of yours has mentioned, “You have to use XYZ company for life insurance, they have the best rating”. 

But, how do you know know which life insurance companies are the best?

The answer: you don’t.  

The life insurance companies we have relationships with have been in business for decades. Every year they go through a process to determine their financial security rating. We only offer to work with companies that have the best ratings.Some of these include; Prudential, Mutual of Omaha, Protective, TransAmerica, SBLI, Lincoln Financial Group, Pacific Life, Legal and General and many more!

Five Things That Affect Life Insurance Premiums

Choose a 500k Life Insurance Policy with Arlington Greene Today!

A 500K life insurance policy with no medical exam  is often more affordable than you may realize. A healthy 30 year old female, who doesn’t smoke can get a 1 million dollar policy for a 20 year term for $24/month or $288/year. Not bad, right? You want to be sure you have coverage until your children are financially on their own and your debts/mortgage are paid off.  

At Arlington Greene, we help you shop all the top-rated life insurance companies, so you get the best policy and rates.  You are never alone, and you’ll love working with us.

At Arlington Greene, we can help you decide what works best. Feel free to ask your insurance agent for more information and policies. We prefer to review all the options possible, and never pressure you into one policy over the other. If you have any questions about purchasing life insurance policies, please reach out and we will be happy to help!

Coming to a decision about life insurance can be so much to consider. With so many different policies, it can be hard to determine what you need all on your own. At Arlington Greene, we have experts in the life insurance field who are ready to help. Arlington Greene offers all the same policies that you would find going directly through a specific insurance company. We can also help you find the right coverage at the best rates by comparing all side-by-side. Our team can help you decide on whatever plan is best for your situation. We can curate a plan just for you—guiding your family into securing your financial future!

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