In this article, you’ll see how much a $100,000 whole life insurance policy costs.
You’ll also clearly understand how whole life works, the various ways to qualify, and which factors influence the price.
Topics Covered in this article
How Does Whole Life Insurance Work?
Whole life insurance is a type of permanent coverage that lasts forever.
No matter your age, the policy will remain in force indefinitely as long as you reliably make all your payments.
Whole life comes with iron-clad guarantees.
The policy premiums cannot increase, and the coverage cannot decrease.
There’s also a cash value component that accrues over time. You can withdraw the cash value if you please.
As with any life insurance, the policy will ultimately pay out a tax-free check for $100,000 (or however much coverage you buy) to your loved ones.
There’s never any tax due on a life insurance payout, nor are the restrictions on how the money is spent.
With $100K in coverage, you’ll have more than enough to cover the cost of a funeral.
How Much Does A $100,000 Whole Life Insurance Policy Cost?
A $100,000 whole life policy will probably cost between $100-$1000 monthly depending on various factors such as your age.
Life insurance pricing is based on your actual age, gender, lifestyle, health, tobacco usage, and coverage amount.
Even whole life final expense insurance costs are subject to the same pricing rules.
Below is a whole life insurance rates chart that depicts sample rates for a $100K whole life policy.
|30-39||$66 - $93||$77 - $108||$93 - $133||$105 - $151|
|40-49||$97 - $146||$113 - $171||$139 - $207||$158 - $238|
|50-59||$158 - $224||$179 - $263||$216 - $309||$248 - $362|
|60-69||$231 - $351||$268 - $408||$319 - $488||$371 - $563|
|70-79||$372 - $609||$432 - $942||$515 - $842||$591 - $942|
|80-85||$638 - $1188||$743 - $1334||$882 - $1313||$986 - $1485|
Factors That Influence The Cost Of A $100,000 Whole Life Plan
First, it’s helpful to remember that every life insurance company has different underwriting and pricing.
That said, insurers use specific variables to determine each applicant’s net cost.
Below are the factors used to calculate the actual rate you’ll pay for a policy.
Females always pay about 30% less for life insurance products because they live longer than men.
So if you’re male, expect to pay higher rates than females.
The one exception to this rule is for the state of Montana. They have a law prohibiting life insurers from pricing males and females differently.
Sadly, life insurance companies in Montana simply charge females whatever they charge men. So, in effect, all the Montana state law did was raise prices for women.
The older you are, the higher your rates will be.
That’s why buying funeral life insurance or any other type is always a good idea when you’re younger.
For example, one of the main reasons people buy children’s life insurance is to lock in super low rates.
In short, specific health issues that are high risk can increase the cost (not always), but many do not.
For example, minor issues such as high blood pressure or cholesterol are relatively benign.
Insurers rarely charge higher premiums for those types of conditions.
However, if you have insulin diabetes or COPD, you’ll likely pay a higher rate because those are higher-risk conditions.
Also, every life insurance company will accept and reject different health conditions.
One of the keys to finding the best rate is by identifying which company is most accepting of all your health conditions.
You should work with a broker who can compare multiple insurance companies on your behalf. That way, they can determine which insurer is most friendly to your health conditions.
On average, people who consume tobacco products (cigarettes, chew, cigars, snuff) don’t live as long as those who don’t.
For that reason, expect higher premiums (about 50%-100% higher) if you’re a tobacco user.
Also, if you stop using tobacco, you’ll have to wait until it has been at least 12 months before you’re eligible for non-tobacco pricing.
The more coverage you buy, the higher you’re quote will be.
Also, prices for life insurance are proportional.
For example, a $25,000 whole life policy is 1/4th the cost of a $100,000 whole life policy.
A $50,000 whole life plan is ½ the cost, and 10,000 would be 1/10th the price of $100K.
Application Options (Underwriting Processes)
There are three underwriting options for a $100,000 whole life insurance policy.
Which method you choose will determine how long it takes for your application to be approved. It also influences the price you pay.
For example, if you take a medical exam, you’ll likely have a lower price (per thousand of coverage). The reason is that the life insurance provider knows more about your health with a medical exam. That additional data translates to lower risk on their end.
When the insurer takes on less risk, the insurance cost will also be less.
A no medical exam policy is often called “simplified issue” or “non-med.”
As the name implies, you don’t have to meet with a nurse to give a blood and urine sample.
The application only requires that you answer questions about your health history.
Additionally, the insurance company will electronically review your driving record and medication history.
These types of applications generally render an approval or decline within 15 minutes to a few business days.
Unlike senior burial insurance, a fully underwritten application does require you to undergo a medical exam.
You’ll meet with a nurse who will collect a blood and urine sample. They will also measure your height, weight, and blood pressure.
Additionally, the insurer will order copies of all your medical records.
Once they have all this data, they will determine if you’re approved and what the final price will be.
On average, fully underwritten applications can take up to three months to be approved or declined.
No question, fully underwritten applications can take a long time to complete.
The wait can be worth it because it usually results in a lower price on your coverage.
No health questions (guaranteed issue)
A guaranteed issue life insurance policy does not require you to answer health questions or take an exam.
Simply put, they guarantee your approval.
Many final expense policies are guaranteed issue.
While guaranteed approval may sound wonderful, there are drawbacks.
Primarily, the waiting period is the biggest downfall.
Life policies with no health questions all have a two-year waiting period.
If you die during the waiting period, the insurer will only refund your premiums plus a small amount of interest.
Other than the waiting period, the other downside to these policies is the cost.
Since the insurer knows nothing about your health, they absorb a high amount of risk. Because of the higher risk, the insurance is much more expensive.
In the end, the convenience of guaranteed issue is attractive. But it comes at the cost of higher prices and the waiting period.
Lastly, if you want $100,000 in whole life insurance, you’ll need to buy multiple guaranteed issue policies to get to that total.
That’s because guaranteed issue companies cap their coverage at $25,000.
For example, AAA and USAA offer only $25K in guaranteed acceptance coverage.
To get to $50K in total coverage, you’d have to buy $25K from AAA and then $25K from USAA.
So for $100,000, you would have to buy four guaranteed issue plans.
Limited Pay Whole Life Options
One of the unique options with whole life insurance is the ability to buy a policy that becomes “paid-up” after a specific period.
After you’ve made the payments for the required period, the policy lasts forever and no longer requires any additional premium.
The typical paid-up options are:
- 7 Pay
- 10 Pay
- 20 Pay
- Paid up at age 65
- Paid up at age 80
Your age will heavily influence what paid-up options are available to you (if any at all).
For example, if you’re 80 or older, you can get whole life insurance. But no insurer will offer a paid-up policy because you’re too old.
It’s worth noting, too, that not all insurers offer paid-up whole life policies.
The most important thing to understand about paid-up plans is the higher cost.
Because the insurer only collects premiums for a specified period, they have to charge a higher rate.
Below is a table that illustrates the monthly cost of a 20-pay $100,000 whole life policy.
|30-39||$111 - $150||$128 - $170||$150 - $201||$166 - $222|
|40-49||$156 - $213||$177 - $241||$208 - $282||$230 - $312|
|50-59||$220 - $291||$249 - $329||$290 - $375||$321 - $424|
|60-65||$299 - $342||$333 - $373||$381 - $436||$433 - $503|
How Choice Mutual Can Help
Choice Mutual is an independent broker that partners with over 15 life insurance companies.
We work with multiple carriers to shop the market for each client.
We aim to match you with whichever will offer you the best price.
The best part is that working with us is completely free. And your insurance doesn’t cost more because you bought your policy through a broker.
One of our friendly agents will answer all your questions and recommend the best policy.
We’re never pushy. We allow everyone to buy (or not) on their schedule.
Call us at 1-800-644-2926, and we’ll help you find the best $100,000 whole life policy (or any amount for that matter).