Boss Lady

Businesswomen should calculate if their life insurance premiums will hike as they age


No one knows what the future holds in store for us, including the prices you are likely to be paying for the simple things we use every day. Keep in mind, it was only 30 years ago you could pull up to the pumps and fill your car for less than $50. With this in mind, trying to determine what your budget might look like in 10, 20, or even 30 years down the road is almost impossible. However, there is one thing you count on to remain the same, your life insurance premiums.

You can set your monthly premiums

Based on the type of senior life insurance you buy, it is quite possible for you to continue making the exact same monthly premium payment for the duration or term of your policy. The type of insurance policy we are talking about is known as one with “guaranteed level premiums.” Knowing what type of policy to look for, can prove to be of immense value as you search for the best life insurance policy to fit your needs, while at the same time keeping your monthly premium affordable.

What are guaranteed level premiums?

Put simply, once you choose the term of your senior life insurance policy, 10, 15, 20, or 30 years, your monthly premium is set. With these policies, once the end of the term has been reached, the coverage is over unless you decide to renew your policy at a higher rate. This type of policy is preferred as the premiums remain the same from first to last. Not many of us like to have bills that continually go up. In your search for the right insurance coverage, be sure to check to see if your premiums are guaranteed to remain the same or if they are going to increase as you get older.

Choosing your terms

In most cases, life insurance policies with guaranteed level premiums are those with fixed terms. With these policies, as long as you make your monthly premium payments without fail for the entire term, you are covered from the first day of the policy until the last. Is there a good reason to buy a 30-year fixed mortgage or should you always buy one on principle? There are many factors that should be considered before you decide on the term of your senior life insurance.

For example, if you are in your 30’s and have just taken on a 30-year mortgage, a 30-year term policy might be a good choice to ensure your family is protected if you happen to die. But as you get closer to retirement age, a shorter term may be a better choice. There are a number of online insurance premium calculators you can use to better help you make the right decision. Making sure you purchase the right policy at the outset will help you make sure the payments will remain affordable for the duration of the policy.

While we may have no idea what the future holds for us 20 or 30 years down the road, you may be paying $10 for a gallon of milk, $25.00 per gallon to fuel your air car, and $100 per month for your Hulu account, but if you start out with a term life insurance policy now, you can count on your premiums staying the same for the duration of the policy.

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