Life Insurance
How Affordable Life Insurance Has Become
Ethos Life · Nov 5, 2018
Life insurance gets a bad rap – and for a long time, it may have deserved much of the disdain it received. Many policies were unnecessarily complicated and prices were – well, high. The life insurance application process was only slightly better than getting a root canal, and it still is that way with some legacy providers. Somewhere along the line, the insurance industry forgot that life insurance is for people, and for families. Fortunately, life insurance is undergoing a renaissance. Technology has certainly helped to bring life insurance into this century, but the big changes come from remembering that the customer is why life insurance exists. Life insurance needs to be easy to understand – and it needs to be affordable enough to fit every budget. These two goals are what drive Ethos.

Life Insurance Is More Affordable Now, Even If You’re In “Average” Health

A 25-year-old male in average health can purchase over $300,000 in coverage for less than a dollar per day. Females, who have longer average life expectancies, can purchase even more coverage for the same low rate. Rates continue to become more affordable if you’re in great or excellent health. It wasn’t long ago that the same amount of coverage might cost two to three times as much. Term life insurance has become so affordable that a 25-year-old couple can purchase nearly $800,000 in coverage that lasts 20 years for less than $2 per day. That’s low enough that most families won’t need to make any changes in the budget to afford coverage.

How Can Life Insurance Rates Be So Low?

Over the past two decades, the cost of life insurance has been coming down steadily. Not everyone was aware that life insurance was becoming more affordable, however. For a long time, rates had been as much as 70% higher – and the lingering stigma of high prices kept many people from buying coverage for themselves and their families. A number of changes have worked together to bring costs down, including healthier living choices, medical advances, and improved technology that helps insurers better understand our health and rate policies more accurately.

Term life insurance simplifies the conversation on life insurance. Many other types of life insurance can be complicated, with some going up in price later in life if they aren’t funded with extra money early in the policy life. This confusing complexity also lingered in the minds of consumers, scaring many away from buying coverage for their families.

With a term life insurance policy, you choose the length of time that you’ll need coverage and you choose the amount of coverage. All that’s left is to name your beneficiaries, after which you can forget everything you learned about life insurance. You’re covered. Go ahead and enjoy life.

The simplicity of term life insurance fits the needs of most households and the way coverage works is similar to how we purchase other services. We buy services for as long as we’ll need them, which may not be forever – and usually isn’t. Term life insurance provides the same freedom we’re accustomed to in our other buying decisions, allowing you to choose a short term, a long term, or a coverage length somewhere in the middle.

The amount of coverage you choose is a factor in your rate but what you’ll find it that the price increase isn’t linear as you increase your coverage amount to meet your needs. Maybe you have a growing family or you just bought a house. Choosing twice as much coverage won’t cost twice as much. You can think of it like a volume discount or a sale where you get the second item at a reduced price. Term life allows you to fine tune your policy to the amount of coverage you’ll need as well as the length of time you need coverage. Now, you just need to figure out what to do with the money you’ll save every month compared to other life insurance policies.

If you’re interested in learning more about life insurance with Ethos, you can get started by filling out a few questions to get a quote.