If you are shopping for life insurance, it is important to know the ins and outs of the policy before you make an investment. A $500,000 term life insurance policy is designed to provide the face amount of $500,000 of protection in the event of your death while the policy is active. The term, which is the number of years that the policy remains active, will keep the premiums level for a specified period of time. Policy owners, who are the individuals responsible for paying the premiums, have the option to choose from a variety of terms from a renewable one-year term, to as much as a 30 year term.

When you are comparing all of the different life insurance plans that are available, you need to consider more than just the life insurance benefit you will need. After settling on the fact that you need $500,000 in coverage to repay your mortgage, payoff your debts, and replace your income for a specified number of years, you will need to sit down and settle on which term is right for you.

Everyone’s needs are unique. Some individuals only need short-term coverage to protect themselves while they are overseas. Other individuals are looking for long-term coverage that will stay active until their homes are paid off or their children become adults. You must sit down, develop a plan, and then choose a term length that fits into the plan.

As you are budgeting for your life insurance policy, you need to keep in mind that the rates can be affected by the amount of coverage you choose and also by the length of term you choose. Typically speaking, longer terms carry higher premiums because the premiums stay fixed for a longer period of time. Shorter terms may cost less short-term, but for those who need coverage for 5 or 10 years, the premiums can quickly grow as you become older and re-qualify for insurance when your short-term plans expire. This is why finding a nice balance is important.

Terms You Can Choose From:

• 5-Year
• 10-Year
• 20-Year
• 30-Year
• Return of Premium Term to 100

How Much Can You Expect to Spend on a $500,000 Term Life Insurance Policy?

When you are in the process of finding the right $500,000 life insurance policy, knowing how much you can expect to pay for your insurance is extremely important. After all, you want an adequate level of protection but you also want to purchase a policy that you can afford to pay for. Insurance companies release the average rates for term life insurance policies to assist you in the application process. It is important to keep in mind that the following average rates are for applicants who do not smoke and are classified as a preferred health risk:

Sample Pricing for $500,000 of coverage- based on 50 year old healthy male from PA.

• $500K life insurance for 10 years = $650.00
• $500K life insurance for 15 years = $875.00
• $500K life insurance for 20 years = $1,110.00
• $500K life insurance for 25 years = $1,655.00
• $500k life insurance for 30 years = $1,930.00

A number of different factors can play a role in either raising or lowering your premiums. If you have pre-existing medical conditions, high blood pressure, you are a smoker, you have a dangerous occupation, or you participate in hazardous activities, your rates may be higher. Your driving record and the health of close family members may also affect your premiums.

Term life insurance rates are lower than permanent life insurance rates because the policy does not stay active for a lifetime. While the coverage is only temporary, the wide options for terms that are available are suitable for people in a variety of different situations. If you do find that you need permanent life insurance, you should review your options and price the cost of whole life or universal life. It is a wise idea to compare the difference in premiums between the two types of life insurance and to consider buying a $500,000 term life insurance policy and a smaller permanent plan when necessary.

What Happens If You Have Health Conditions?

Insurance underwriters will review your life insurance application, your medical records, and the results of your lab tests taken with the application to determine if you would be qualify for high risk life insurance. If you have minor health issues, like high blood pressure, you may be approved for insurance as long as the condition is controlled. If you have had a heart attack, a stroke, or you have been diagnosed as diabetic, the carrier can deny your application or table rate the policy by charging higher premiums. This is why you should review the underwriting requirements of each company before you submit your application.

Comparing Rates to Find the Right $500,000 Life Insurance Policy

You should always shop rates and review requirements before you submit your life insurance application. If you take time to compare the rates available with various companies, you can save money off of your premiums each month. Take time to get a free, no obligation quote and get the rates from several companies by filling out a single form.