The Basics of Getting a $500,000 Term Life Insurance Policy

There’s no better time than the present to secure your family’s financial future. Getting a $500,000 term life insurance policy is a great solution for many people, as it is enough to provide your family with the means to maintain their standard of living for at least several years after you’re gone.

You can start comparing quotes at any time by using our online quote form on this page, but in the meantime, keep reading to learn more about getting the best rates for a $500,000 policy.

Qualifying for Term Life Insurance

Being in decent health is very important when it comes to qualifying for term life insurance, but your income and financial situation are very important as well. Use the following as a guide for what requirements you need to meet to qualify for a $500,000 policy:

  • Under Age 40 – 25 Times Annual Income. So, you would need to earn at least $20,000 annually to qualify for a $500,000 policy.

  • Age 41-50 – 20 Times Annual Income – You would need to earn $25,000 a year.

  • Age 51-55 – 15 Times Annual Income – You would need to earn $33,333 a year.

  • Age 56-65 – 10 Times Annual Income – You would need to earn $50,000 a year.

  • Age 66-70 – 5 Times Annual Income – You would need to earn $100,000 a year.

If you are 71 and older, your eligibility will be based largely on your general financial situation. If you are able to afford paying the monthly/annual rates, you shouldn’t have much trouble qualifying.

Best Companies for a $500,000 Policy

There are actually a lot of great life insurance companies that offer $500,000 policies (this is a common life insurance amount though there are many people who need less or prefer to have more such as a million dollar life insurance policy), but we’ll just go over a few of the more notable ones here. Each of these companies has received an A+ (Superior) ratings with A.M. Best.

SBLI – This company typically offers some of the lowest rates for $500,000 policies, and $500,000 is the maximum for applicants aged 70-74 (unlike some other companies that have lower maximums or won’t approve this age group at all). SBLI offers both guaranteed premium term life insurance and yearly renewable term life insurance.

Protective Life – Costs for $500,000 policies also tend to run on the lower side with Protective Life, and you have the option of keeping your premiums the same at the end of your term while still having coverage.

Banner Life – Open for business since 1949, this company also offers lower rates, with a few different options for conversion to permanent coverage at the end of the term.

Rate Examples for $500,000 Term Life Insurance

Now that we’ve covered the basics, let’s look at a couple examples of rates for $500,000 policies.

Let’s say Janine is a 35-year-old nonsmoker who is in great health and qualifies for Preferred Plus rates. For a $500,000 policy with a 20-year term, she is offered the following rates:

SBLI: $20 a month

Protective Life: $20 a month

Banner Life: $23 a month

Now let’s look at Mike, a 40-year-old nonsmoker who is looking for a $500,000 for 30 years. His rates are going to be higher than Janine’s due to his age, gender and desired term length, but seeing as a lot of companies would charge rates closer to $100 a month, the following are still pretty low:

SBLI: $54 a month

Banner Life: $55 a month

Protective Life: $55 a month

Now, if you are a smoker or have certain health conditions, your rates are going to go up. However, nothing is more expensive than the financial burden placed on family members when someone passes away without life insurance. A $500,000 life insurance policy is a very worthwhile thing to have.

Ready to secure your family’s financial future? Use the quote comparison tool on this page to start looking at rates today. You can also fill out our online contact form, and we’ll get back to you as soon as possible.