Alabama Life Insurance

Last Updated on June 1, 2017 by Andrew Lee

Although not everyone has to have life insurance, many people in the United States consider it as one of their most important assets. One of the primary reasons behind this is because of the financial assurance and protection it provides to your family in the event of your passing. This guide will help you understand just how valuable and investment-worthy an Alabama life insurance policy is.

Pre-buying must dos

Before you sign any contract with an insurance provider, make sure you perform these pre-buying steps first.

  1. Determine the type of insurance (term or whole life) that best suits your needs and preferences. Can your current financial status only afford a risk management policy, or one that includes a saving component?
  2. Verify the licensure of the insurers that make it to your final list of potential providers by contacting the Alabama Department of Insurance.
  3. If you are employed, you may already have some level of life coverage as part of your benefits. Review this to see if it makes sense (and if you can afford) to upgrade it.

Your coverage options

The two basic types of life cover you can choose from are the “Term Life Insurance” and “Whole Life Insurance.”

If you are the family’s breadwinner or the primary household earner, you may find the former most applicable. It’ll pay out if you pass away while the contract is still valid. In general, the younger you are, the lower your premiums, although this’ll still depend on your health and lifestyle. It also typically costs less than the whole life plan.

One reason behind the higher cost of whole life insurance (also called permanent life insurance) is its longer list of benefits. Aside from the death benefit it pays out, it also builds cash value. You can then borrow against this “savings” component if you find yourself in need of cash. You can use the money to help pay for your child’s tuition fee, your home mortgage, or other types of important expenses.

How your premiums will look like

It pays to have some prior knowledge of how much you might have to pay towards your insurance before you purchase a policy. This way, you can set realistic expectations once you’re ready to buy. Take a look at these sample estimates.

Estimated Monthly Premiums
Montogomery, AL 36043
Policy: $200K
Duration: 30 Years

Age & Gender Smokers  Non-Smokers
 30 Yr Old Male  $55.65 – $91.53 $19.17 – $45.45
45 Yr Old Male $167.65 – $230.87 $39.36 – $125.94
 30 Yr Old Female $40.42 – $72.88 $16.35 – $35.34
 45 Yr Old Female $117.34 – $176.49 $30.89 – $82.53


Let’s say you want to get a $200,000 value policy that will last for 30 years. One of the first things you’ll notice is that gender has a huge bearing on premiums. Females, since they generally have a longer lifespan, have lower premiums than males. For just a little over $16 a month, women can already become insured with these policy qualifications.

Estimated Monthly Premiums
Montogomery, AL 36043
Policy: $500K
Duration: 20 Years

Age & Gender Smokers  Non-Smokers
 30 Yr Old Male  $72.62 – $133 $20.36 – $58.05
45 Yr Old Male $213.94 – $430.30 $50.06 – $138.95
 30 Yr Old Female $59.50 – $115.40 $17.93 – $44.90
 45 Yr Old Female $154.32 – $296 $39.48 – $116.10


As you can see, as a healthy non-smoker male in his 30s, you can get a 20-year policy in Montgomery, AL for as low as $20.36 to $58.05 a month. However, if you postpone your purchase for 15 years, you can expect it to go up more than double, even if you maintain your smoke-free lifestyle.

Smoking will just make it increase drastically. And this unhealthy habit won’t just affect your life insurance premiums; it will also cause your health coverage expenses to skyrocket.

A great way to trim down insurance costs

Comparing costs is one of the most effective ways to find a policy that meets your needs and budget. You don’t have to sacrifice coverage just to trim down your costs. Of course, when you maintain the best possible health, insurers will regard you as low-risk, and even qualify you for discounts. Always keep in mind that smoking will dramatically increase your premiums, regardless of your age. Besides, it’ll shorten your life span drastically.

So take the time to conduct an in-depth research on what’s available, and if possible, make the investment as soon as you can.

Find the Best Life Insurance

Compare Term & Whole Life Insurance Options:


Alabama Department of Insurance:


Insurance Information Institute