What is the average cost of life insurance in Florida?
It’s no secret that life insurance is a necessary part of financial planning for many people. What may be less well-known, however, is how much the average person pays for life insurance. This article will explore the cost of life insurance in Florida and provide some tips on how to get the best rates. Here, we’ll go over some commonly asked questions regarding life insurance:
What is Life Insurance and Why Do I Need It?
Life insurance is a contract between an insurer and a policyholder in which the insurer agrees to pay a designated beneficiary a sum of money (the death benefit) in the event of the policyholder’s death. The policyholder pays premiums to the insurer, typically on a monthly basis, and as long as those premiums are paid, the policy is in force.
Why Do I Need Life Insurance?
There are many reasons why someone might need life insurance. For example, life insurance can be used to:
- Pay off debts and final expenses
- Replace lost income
- Cover funeral and burial costs
- Fund a child’s education
- Leave a financial legacy
What Are the Three Main Types of Life Insurance?
There are three main types of life insurance policies available: term life, whole life, and universal life.
- Term life insurance is the simplest and most affordable type of life insurance. It provides coverage for a specific period of time (the term) and pays out a death benefit only if the policyholder dies during that time period. Term life insurance is a good option for people who are looking for temporary coverage or who have a limited budget.
- Whole life insurance is a type of permanent life insurance that provides coverage for your entire life. Whole life policies also have an investment component, which grows tax-deferred and can be accessed during your lifetime. Whole life insurance is a good option for people who want lifetime coverage and who are looking for a way to build cash value.
- Universal life insurance is a type of permanent life insurance that provides flexible coverage and can be customized to meet your specific needs. Universal life policies also have an investment component, which grows tax-deferred and can be accessed during your lifetime. Universal life insurance is a good option for people who want lifetime coverage and who are looking for a flexible policy.
How Much Life Insurance Do I Need?
The amount of life insurance you need will depend on your individual circumstances and financial goals. However, a good rule of thumb is to purchase a policy that is worth 5-10 times your annual income.
Life insurance rates in Florida are based on a number of factors, including your age, health, lifestyle, and the type of policy you choose. However, the average cost of life insurance in Florida is $26 per month. This is based on data provided by Quotacy for a 40-year-old buying a 20-year, $500,000 term life policy, which is the most common term length and amount sold.
What is NOT Covered by Life Insurance?
One thing that is not covered by life insurance policies is suicide. If a policyholder takes their own life within the first two years of owning a policy, the death benefit will be voided and the insurer will not pay out. Other things that are not typically covered by life insurance policies include:
- War or acts of terrorism
- Criminal activity
- Self-inflicted injuries
- Alcohol or drug use
If you are looking for coverage for any of these things, you may need to purchase a separate policy or riders that will cover these risks. Riders are add-ons to a life insurance policy that can provide additional coverage for things like accidents, critical illnesses, or long-term care.
How Much Does It Cost to Purchase Life Insurance?
According to data from S&P Global Market Intelligence and Claritas collected in 2019, the average household pays around $990 per year for life insurance in Florida.
This is just the average, so some people pay significantly more or less depending on their individual circumstances. For example, someone who is younger and in good health will usually pay less than someone who is older or has health problems.
The type of life insurance policy you choose also affects how much you pay. Term life insurance rates also tend to be lower than whole life insurance rates. Also, a policy with a death benefit of $500,000 will typically cost more than a policy with a death benefit of $250,000.
How Can I Get the Best Rates on Life Insurance?
There are a few things you can do to get the best rates on life insurance in Florida:
- Shop around and compare quotes from different insurers.
- Consider working with an experienced life insurance broker like Torgersen Causey who can help you navigate your options and what policies best fit your specific needs.
- Choose a policy with a higher death benefit
- Choose a term life policy over a whole life policy
- Keep your credit score high
- Don’t smoke
- Live a healthy lifestyle
How Do I Choose the Right Life Insurance Policy?
Choosing the right life insurance policy for you will depend on your needs and goals. If you are looking for temporary coverage, then term life insurance may be the best option for you. If you are looking for lifetime coverage and an opportunity to build cash value, then whole life or universal life insurance may be the best option for you.
Conclusion
The best way to find out how much life insurance will cost you is to get quotes from different insurers. This can be an overwhelming process for a lot of people. For this reason, we recommend working with a trusted insurance broker such as Torgersen Causey. With over 20 years of experience, our team of insurance experts makes it easy to understand, obtain, and utilize the coverage that fits your specific needs, goals, and budget. Whether you need individual medical coverage, comprehensive plans for over 5,000 employees, or corporate plans to maintain your business in the event of a death or disability, you can trust Torgersen Causey to simplify the complex world of insurance for you. Our combined experience of almost one century is at your service, so you can rest easy knowing you, your employees, and your business are in good hands.
