Hometowne Insurance

Month: May 2020

How Much Does Life Insurance Cost in Illinois?

“Fun is like life insurance; the older you get, the more it costs,” American cartoonist and humorist Frank “Kin” Hubbard (1868–1930) once wrote.

One recent survey revealed that more than one-third (35%) of respondents did not currently carry life insurance. Further, more than half (53%) of those aged 54 to 72 admitted they do not have a policy because they think that coverage is too expensive.

Mature Couple Meeting with Financial Advisor. They are listening to financial advisor. She is speaking about retirement and insurance options for them. Holding contract in her hands and explaining to clients.

Asked when they should purchase life insurance, more than 37% of all survey respondents (and 47% of the Silent Generation) identified “while you’re young and healthy.”

Our age will often determine how important life insurance seems to us. When we’re young, we might appreciate the wisdom of getting coverage, but we also might feel more room to postpone it. As we age, develop additional responsibilities and become more aware of time, the importance of life insurance can naturally start to rise. We come to recognize how it will help support our loved ones when we no longer can.

When we’re able, investing in life insurance sooner does prove to be more cost effective. For those of us who live or work in Oswego, Plainfield, Naperville, Aurora or Montgomery, we might then ask, “how much does life insurance cost in Illinois?”

The quick answer is that term life insurance will be the most affordable type, making it particularly popular among young adults starting families. With a term policy, you choose how long the policy will be active, typically from one year to 30 years.

Acquiring a policy when younger is desirable because the rate will stay the same throughout the specified term. When the term expires, the new rate will be based on your current age and health. For this reason, if you are 25 years old in good health with a spouse and two children, you would benefit more by locking in a 30-year term at a lower rate than having a 20-year policy that is recalculated when you turn 45.

Similarly, as we’ll see in a moment, if you try to get life insurance at age 50, the premium can be more than triple that of what you would have paid at age 25.

Example Comparisons

To determine how much your life insurance will cost in Illinois, insurers will base your rate mainly on your age, health and gender. Other factors will include weight, occupation, family health history, whether you smoke, the policy length and the amount of coverage.

The following are example rates* for $500,000 in coverage for a 25-year-old male non-smoker in excellent health:

Product Monthly-EFT Quarterly Semi-Annual Annual
10 Years $16.53 $50.35 $98.80 $190.00
15 Years $16.97 $51.68 $101.40 $195.00
20 Years $17.84 $54.33 $106.60 $205.00
30 Years $20.45 $62.28 $122.20 $235.00
To Age 65 $30.02 $91.43 $179.40 $345.00

Let’s compare that with $500,000 for a 50-year-old male non-smoker in excellent health:

Product Monthly-EFT Quarterly Semi-Annual Annual
10 Years $62.64 $190.80 $374.40 $720.00
15 Years $76.56 $233.20 $457.60 $880.00
20 Years $97.88 $298.13 $585.00 $1,125.00
30 Years $183.57 $559.15 $1,097.20 $2,110.00
To Age 65 $76.56 $233.20 $457.60 $880.00

Now $500,000 for a female 25 years, non-smoker, excellent health:

Product Monthly-EFT Quarterly Semi-Annual Annual
10 Years $13.92 $42.40 $83.20 $160.00
15 Years $14.36 $43.73 $85.80 $165.00
20 Years $14.79 $45.05 $88.40 $170.00
30 Years $17.84 $54.33 $106.60 $205.00
To Age 65 $24.80 $75.53 $148.20 $285.00

$500,000 for a female 50 years, non-smoker, excellent health:

Product Monthly-EFT Quarterly Semi-Annual Annual
10 Years $49.59 $151.05 $296.40 $570.00
15 Years $56.55 $172.25 $338.00 $650.00
20 Years $71.34 $217.30 $426.40 $820.00
30 Years $150.51 $458.45 $899.60 $1,730.00
To Age 65 $56.55 $172.25 $338.00 $650.00

Get Started on the Coverage That’s Best for You

Hometowne Insurance Services is a full-service independent agency that provides personal guidance for acquiring the best available term, whole life and universal life insurance for residents of Oswego, Plainfield, Naperville, Aurora and Montgomery.

If you’d like to further discuss how much life insurance costs in Illinois to cover you and your loved ones, simply call us at (630) 554-4040.

*Rates are for example purposes only; actual rates are determined by underwriting procedure that assesses individual variables.