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[VIDEO] How is My Life Insurance Rate Figured Out?

Insurance in center with business, life, family, car, travel, money pointing center

By Byron Udell | July 3, 2018

Simply listing a rate chart would seem like the easiest thing to do, but life insurance rate calculation is a little more complicated than just your health, age, and sex.  Believe it or not, insurance providers look at things like smoking, skydiving, and family history when it comes to your life insurance rate.

The good news is, all insurance companies are different and each of them has their niche when it comes to different factors, such as health and lifestyle. That’s why using a multiple company brokerage firm can help get you the best life insurance rate.

Nifty Life Insurance Coverage Calculator

Our Life Insurance Calculator can help you get a rough idea of how much coverage you’ll need to make sure your family is okay financially when you die.

  • Annual income before tax: $

    Annual income is an important factor in determining your needs, but it’s not the only one. When you die, your life insurance is like your final paycheck.

  • % of income needed by dependents:  %

    Because you’ll be gone, presumably they won’t need as much as you’re currently earning.  Typically, 80% of your current income is a good place to start.

  • Your Age: years

    The younger you are, the more years of your income your family stands to lose when you die.

  • Number of years benefits are needed:  

    If you died tomorrow, how many years of income do you want to provide for your family?

  • Annual inflation rate (estimate):  %

    Because of inflation, in order to maintain your family’s current standard of living, you’ll need to plan for increases in their annual income to keep pace.  Historically, inflation has averaged between 2% and 4%.

  • Annual interest rate (estimate):  %

    This is an assumption as to how much you believe your spouse will be able to earn on the death benefit proceeds. We have found that most surviving spouses are usually very conservative in how they invest the death benefit. The most common thing we see is that the money gets deposited into a bank account. You know your spouse better than anyone. Pick a number that you feel your spouse will be able to comfortably earn on the proceeds.

  • Based on the information you provided, you need about

    of life insurance to replace your income for the next years.

Get a FREE Life Insurance Quote

Call 800-442-9899 today and we’ll help you figure out what kind of policy makes the most sense for you or just click the “Get Started” button below and get a free life insurance quote.

We only work with highly rated insurance companies – brand names you trust. You may be able to save money without sacrificing quality and strength.