Is $7,600 a year for term life insurance normal?

Seeking Advice
1

Hey everyone,

I have a question about term life insurance. I vape 2-3 times a day, so my premiums are higher. Other than that, I’m in good shape.

I was recently quoted $7,600 annually ($633/month) for a 30-year $3 million policy. Does that sound normal? I’m seriously considering quitting vaping to reduce the cost. Does anyone know how long it takes before I’d qualify for non-smoker rates after quitting?

2

It typically takes 12 months of being nicotine-free to qualify for non-smoker rates. Make sure you clarify this with the insurance provider, as some may have slightly different requirements.

3

That’s a high death benefit. Do you need $3 million in coverage? Usually, the rule of thumb is 10x your income, but you might be able to lower the amount if your dependents won’t need that much.

4

San said:
That’s a high death benefit. Do you need $3 million in coverage? Usually, the rule of thumb is 10x your income, but you might be able to lower the amount if your dependents won’t need that much.

I was following the 10x rule, but I might lower it. A $2 million policy might make more sense.

5

@Micah
That sounds reasonable. You might also consider splitting the term—like a 10-year $2 million policy and a 20-year $1 million policy. It could save money since you’ll likely need less coverage as your assets grow over time.

6

@San
Good idea. I’ll look into adjusting both the benefit and term length. I’m also wondering if I should work with a different agent. The advertised rate was $170/month, but it jumped to $633 pretty quickly. Could the agent be limited to certain carriers, or is it worth shopping around?