Colorado Life Insurance

Last Updated on September 17, 2020 by Andrew Lee

As you shop for a Colorado life insurance policy, you’ll encounter numerous terminologies that may confuse you. Entering the market more knowledgeable about this particular product will help you make certain you invest your money in a plan that not only fits your budget but satisfies your needs.

Term vs. Permanent: Which One Suits You Best?

Knowing the primary differences between term and permanent life insurance is an integral part of the policy selection process.

Like in many other places in the country, term policies in The Centennial State serve the single function of paying the death benefit, which your beneficiaries will receive in the form of a lump sum. You get to choose how much to set for the policy limit, and in the event that you pass away, your insurer will pay the same death benefit. For example, if you chose a $500,000 policy value, the death benefit is of the same amount.

As for permanent life insurance (also called whole life insurance), your insurer will pay the same lump-sum death benefit. However, it has the added benefit of a savings component, called “cash value.” Basically, a portion of your premiums will go towards this and will start to accumulate. After a set period of time, you can “borrow” against it, but you don’t have to pay it back, although a one-time charge applies.

Although whole life costs more, its cash value component makes it more attractive for many Coloradoans.

Don’t Forget these Insurance-Buying Rules

Before you get into a contract with an insurance company, make sure you keep these rules in mind:

  1. Take the time to establish your current and future needs and circumstances, and make a choice based on these and not just your budget.
  2. Make certain that you won’t have any issues paying for your premiums. Also, consider the possibility that your premiums might go up in the future.
  3. Don’t sign a contract before you’ve verified the authenticity and licensure of an insurance provider. You can check this with the Colorado Department of Regulatory Agencies.

Following these rules won’t just help you choose the right plan; it’ll also protect you from fraudulent insurers or companies that have a shady reputation.

Analyzing Your Possible Premiums: Factors that Influence Insurance Cost

How much you would have to pay towards your life cover depends on many different factors, including age, gender, location, and of course, health and lifestyle. Take a look at these estimates to have a clearer picture of your possible premiums.

Estimated Monthly Premiums
Denver, CO 80014
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

 

Although these are just projections, one thing remains certain: smokers pay a lot more than those who don’t smoke. One major reason behind this is the fact that smoking is the number one cause of preventable deaths in the United States. It claims the lives of more than 480,000 people every year, the Centers for Disease Control and Prevention reveals. This higher life insurance cost applies to all ages, genders, and ethnicities.

Estimated Monthly Premiums
Denver, CO 80014
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 Tactics to Trim Your Insurance Costs

There are many ways to trim your insurance costs, but the strategy that you should implement as soon as possible is to quit smoking. Putting a stop to your smoking habits is not just an effective way to lower your premiums; it also makes your health and overall life quality better. In fact, you’ll also enjoy lower rates with your health insurance if you make this lifestyle change.

Don’t forget to ask about discounts as well. Many insurance companies in Colorado also offer discounts to non-smokers and multiple policy account holders. Becoming insured at an earlier age also plays a huge role in keeping your policy more affordable.

Find the Best Life Insurance

Compare Term & Whole Life Insurance Options:

References:

https://www.colorado.gov/pacific/dora/node/90931

https://www.colorado.gov/dora

https://www.cdc.gov/tobacco/data_statistics/fact_sheets/health_effects/tobacco_related_mortality/