Alaska Life Insurance

Last Updated on September 17, 2020 by Andrew Lee

Find the Best Life Insurance

Compare Term & Whole Life Insurance Options:

Just like most of the other states, Alaska doesn’t require all its residents to purchase life insurance. However, this doesn’t mean you should no longer consider purchasing a policy. Also known as life cover or death cover, this type of insurance delivers several benefits you can’t undermine. With coverage, you can protect your family from the high costs of burial expenses in the event you pass away. And depending on the type of policy you have, your family can get a death benefit, which means that you can still leave them something that will help them financially.

Term vs. Permanent: Which one suits you best?

Life insurance comes in two basic forms: term and whole.

Term life insurance is the cheaper of the two. Your family will receive a death benefit in the event that you pass away during the term of the contract. They can then use this to pay for the high costs associated with burial services.

Whole life insurance, also called permanent life insurance, costs more since it provides more than just a death benefit. It also has an investment component, as it builds cash values that you can take out. And unlike a conventional loan, you don’t have to pay it back; you just have to pay the corresponding interest rate.

In short, the one that suits you best depends on many factors such as your current health and lifestyle, what you want to leave your family with if you pass away, and of course, your budget.

Don’t forget these insurance buying rules

When purchasing life insurance, there are several critical considerations to make.

First off, always remember that how much you’ll pay for depends on whether you take out a term or permanent life insurance. You can have the death benefit payout match your specific coverage requirements, which means you can increase or reduce it.

Also factor in the length of time you want to keep the policy. As the name already suggests, term life insurance has a life span, which can range from 1 to 30 (or more) years. As for permanent life cover, as long as you keep making payments towards your policy, you’ll remain insured.

A look into your possible premiums

Insurance companies charge their policyholder’s different rates based on age, gender, location, as well as health and lifestyle. This said you should compare as many similar offers as you can to find out which providers have offers with prices you can afford. To help you gauge how much consumers typically pay for their cover, take a look at these sample estimates.

Estimated Monthly Premiums
Juneau, AK 99801
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

 

So if you are in good health, you don’t smoke, and you’re a 30-year-old male, you can have a monthly premium in Juneau, AK of less than $20. You’ll also notice that the older male group pays higher premiums, whether they smoke or not.

The table also shows that regardless of smoking habits and age, females have lower premiums. However, their expenses will still go up as they age.

Estimated Monthly Premiums
Juneau, AK 99801
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

Use these techniques to trim your insurance costs

Your life cover doesn’t have to break the bank. A good way to bring down your expenses is to make some lifestyle changes. Aside from helping you have lower premiums, it also helps you improve the overall quality of your life, making it even more enjoyable. Another way to save while maintaining your preferred coverage level is to qualify for money-saving programs, such as the multiple policy discount.

Life insurance delivers numerous benefits not just to you, but your loved ones too. And with the ever-rising costs associated with burial services, it can help your family avoid facing financial difficulties when you pass away.

References:

Alaska Department of Commerce, Community, and Economic Development Division of Insurance – https://www.commerce.alaska.gov/web/ins/Consumers/Life/Considerations.aspx

National Association of Insurance Commissioners

Insurance Information Institute