Arkansas Life Insurance

Last Updated on September 17, 2020 by Andrew Lee

Find the Best Life Insurance

Compare Term & Whole Life Insurance Options:

For a lot of people, life insurance only becomes important when they reach a certain age. This isn’t always the case though, as such policies can serve various beneficial purposes throughout the life of a person. When you purchase an Arkansas life insurance policy, you can use it not just as a risk management tool, but as an investment vehicle too. Although the latter will depend on the type of cover you have, one thing remains certain: it will protect your family from financial difficulties in the event of your passing.

What term life insurance is

With a term insurance plan, you just choose a specific term, which can run anywhere from one to thirty years, pay the premium, and get coverage. It covers you throughout the term, and it pays out upon your death. 

Policies that fall under this category have similar structures; thus, they’re quite easy to understand and compare with each other. And because they don’t come with a cash value component, they cost less than whole life insurance.

How about whole life insurance?

Whole life insurance, also called permanent life cover, offers the same benefit of a death payout. The primary difference is that it builds cash value, which comes from some of the payments you made and accumulates over the term of the policy.  You can borrow against this, so it works something like extra income. You don’t have to return the money, but you do have to pay a one-time charge, which in most cases, is an interest rate based on how much you take out.  

If you want a risk management tool with an investment component, you should consider getting this type of life insurance.

Don’t forget these insurance-buying rules

Whether you opt for a term or whole life policy, you first have to establish your coverage needs prior to making any purchase. This way, you can make certain that the provider you choose can meet your requirements and satisfy your preferences, especially with a cash-value-building plan.

Don’t forget to check the licensure of the insurance company within the state. You can verify this with the Arkansas Insurance Department.

The difference in premiums

Your premiums will depend on many different variables, including your gender, age, location, and most importantly, health and lifestyle. This is why you should take the time to gather quotes since this helps in creating a clearer picture as to how much a policy costs. Take a look at the sample estimates below.

Estimated Monthly Premiums
Little Rock, AR 72002
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

 

As you can see, purchasing a plan with a $200,000 coverage in Little Rock, AR, while you’re still young, will cost you less than $20 a month. And these estimates show that the longer you wait, the higher your premiums will get. They also indicate that increasing the coverage amount costs just a little more, so you might want to pick a greater coverage. There’s also the huge price gap between the premiums of smokers and non-smokers.

Estimated Monthly Premiums
Little Rock, AR 72002
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

Life cover doesn’t have to be very expensive that it will make you decide not to get a policy. There are plenty of things you can do to cut back on costs, one of which is to start with your own health. Making some lifestyle changes that will improve it can mean the difference between a policy that costs only a few hundred dollars a year and one that costs thousands.

Smoking for better health and lower premiums

The estimates are given above already proves that smoking drastically increases premiums. However, you shouldn’t use this as your only reason for quitting. Smoking causes numerous health problems, not to mention over 480,000 deaths in the country every year, the Centers for Disease Control and Prevention reports. This concerning number should already make you want to stop smoking.

Doing so will not just open doors to much more affordable life insurance policies for you; you will also benefit from improved health and overall quality of life.

References:

http://www.insurance.arkansas.gov/index_htm_files/Rule17BG.pdf

http://www.insurance.arkansas.gov/index_htm_files/Rule17BG.pdf