For some people, a $25,000 to $50,000 in life insurance coverage is the perfect fit, providing just enough coverage for final expenses.
But when you have a family depending on you or a business to protect, you probably need to set your sights on at least six figures of coverage.
Below, you’ll find sample rates for $100,000 life insurance, along with the best companies for this level of coverage and a few tips to help you save.
Sample Quotes for a $100,000 Life Insurance Policy
In this section, we’ll provide you with sample rates for both term and permanent life insurance.
While you aren’t guaranteed to get these exact rates, they should give you an idea of the general cost of coverage.
You’ll notice short term policies are the most affordable, but that doesn’t mean you should automatically opt for the shortest policy you can find.
Applying for a new policy 10 years down the road will lead to far more expensive rates.
Take the time to consider your financial needs and pick the policy length and amount that suits them best.
We’ve broken down the sample rates by duration:
10-Year Term Rates
The rates provided below are for a healthy, non-smoker.
If you’re in great shape, here’s what you can expect to pay for $100k of coverage with a 10-year term policy:
15-Year Term Rates
If the same applicant applied for 15 years of coverage, here are the rates he or she might pay:
20-Year Term Rates
For 20 years of coverage, the fit tobacco-free applicant mentioned above could pay the following:
If you need to make sure your coverage always lives as long as you do, here’s what a permanent policy to age 100 would look like:
To reiterate, the longer the term is, the costlier premiums will be.
When you choose to purchase a permanent policy, the cost of coverage can skyrocket.
So before you jump into a $100,000 life insurance policy for any length of time, you need to make sure it’s the right fit. They can range from going to age 90 all the way up to 121.
With that in mind, let’s look at who should, and shouldn’t, opt for this amount of coverage.
Who Needs $100,000 of Life Insurance Benefits?
Life insurance policies can be as small as a few thousand dollars for final expenses to millions of dollars to leave behind a legacy.
As their financial needs grow beyond funding final expenses, many life insurance applicants turn towards a $100,000 policy.
To decide whether or not it’s the right amount of coverage for you, consider some of the uses for $100,000 of coverage:
- Income replacement: $100,000 could provide temporary relief for the dependents you leave behind. If you and your spouse are nearing retirement, this size policy could provide supplementary income for their later years as well.
- Debt: Though $100,000 might not cover all of your mortgage, it can make a dent. The policy could also be used to pay down private student loans, credit card balances, or any other transferable debts.
- Tuition: You could use a $100,000 life insurance policy to help pay for your child or grandchild’s college education.
- Final expenses: Funerals, medical bills, and other end-of-life expenses add up quickly. A policy of this amount could be more than enough to cover them.
- Loan: A life insurance policy of this amount could be used to secure a loan through a collateral assignment.
- Supplement savings: If you’ve invested wisely over the years and built up a solid savings account, a smaller policy like $100,000 could be an ample addition for retirement.
As you debate the usefulness of a $100,000 policy, do the math.
While a policy of this size can be applied to the expenses above, it realistically won’t cover all of them.
To choose the right amount of coverage, consider how much it would actually take to replace your income and pay off your debts and final expenses, then add in whatever else you want to cover.
Depending on your stage in life, you may find that you actually need more or less coverage than you anticipated.
Who Doesn’t Need $100,000 of Life Insurance Benefits?
Nearly everyone needs life insurance at some point in life; however, you might not necessarily need coverage right now.
A $100,000 term life insurance policy is so affordable, it may be easy to justify purchasing one for your future self regardless of your current needs.
But before you jump into a policy, however affordable it may seem, pause to consider your current financial situation.
If the following considerations apply to you, you may be better off foregoing a $100,000 life insurance purchase for now.
- No dependents: Whether you’re single and childless or your kids are now self-sufficient adults, if people aren’t counting on your income to survive, then you may not need life insurance.
- No debt: If you’re debt-free or at the very least have no debts that could be transferred to your loved ones, you don’t have to worry about protecting them from repayment.
- No legacy: If you aren’t planning to pay for a child’s tuition or leave an inheritance for anyone, life insurance may not be necessary.
- No final expense needs: If the three criteria above fit your situation and you’ve saved enough money to pay for final expenses, there’s no major need to buy life insurance just yet.
Should You Buy Term or Permanent Coverage?
When you purchase a $100,000 life insurance policy, you have a number of products to choose from, but they basically boil down to two types of policies: term and permanent.
Term life insurance comes with level premiums and a guaranteed death benefit, offering protection for a predetermined length of time like 10-, 20-, 0r 30- years.
As you can see from the quotes above, the shorter the term you opt for, the lower the price you pay for coverage.
Term life insurance is advantageous because of its affordability and flexibility, allowing you to mold your coverage to life’s changes.
Permanent life insurance can offer level premiums and a death benefit, but also comes with a cash value component.
And as its name implies, permanent coverage protects you for your whole life.
At the $100,000 level of coverage, you’ll have two permanent policy options:
- Whole: Whole life insurance is as secure as you can get, with premiums, rates, and the death benefit locked in as long as you make payments.
- Universal: With a little less guarantee, you can secure a more affordable and adaptable form of permanent life insurance with a universal policy.
While you may have a hard time finding a lower amount of term life insurance, like $25,000 or $50,000, nearly every major company offers $100,000 policies. And, because it’s more competitive, prices are much better, per thousand.
In general, term life insurance is the most affordable option, especially at this level of coverage. If your financial needs are temporary ones, a simple term life policy is the most sensible choice.
However, if you anticipate your need for coverage will last longer than 30 years, you should be able to find a suitable permanent policy.
Top Companies Who Provide $100,000 Life Insurance Policies
If $100,000 seems like the right policy amount for you, take a look at the companies below.
They’re our top picks for affordable term and universal coverage.
Best Companies for a 10-Year $100,000 Term Policy
If you’re looking for 10 years of coverage, these companies should be on your radar:
Protective is one of the most affordable term life insurance companies overall, but especially for smaller 10-year policies.
They’re also highly reputable, with an “A” level rating from the four premier credit rating agencies.
Protective’s 10-year term policies are simple and competitively priced. You won’t go wrong if you choose this provider.
Banner is another stellar choice for 10-year term life insurance. In fact, it’s one of our top 3 life insurance companies in general.
With an “A+” rating from A.M. Best, you can rest assured you’re working with a reliable provider.
Banner is known for its exceptional underwriting, granting affordable coverage to clients with varying levels of risk.
3. North American
If you’re looking to compare more options, take a look at North American.
The company’s credit ratings are strong, with “A” level ratings across the board.
With North American, you can get no exam coverage and add a number of riders to your policy, molding it to fit your needs.
These advantages may make it the best option for you, depending on your family’s needs.
Best Companies for a 20-Year $100,000 Term Policy
If you’re looking for another decade of coverage, the following life insurance companies are worth your consideration:
Like its 10-year counterpart, Banner Life’s 20-year policy is at the top of its class.
Though you might be less familiar with the brand and company name, it’s a leader in the life insurance industry.
When it comes to price, Banner is hard to beat, especially for a term policy like this one.
If your main goal is getting the most affordable coverage possible, look no further than Banner.
Another repeat company, Protective is a great option for a 20-year term policy as well as a 10-year policy.
Protective deserves a spot on your shortlist based solely on their competitive premiums, but there’s even more to their appeal.
Protective’s policies come with an impressive array of riders, which allow you to customize your policy with additional benefits.
While Foresters is far less familiar than its competitors, it warrants a second look.
The company has “A” ratings, so you can count on them to pay out your policy as promised.
Foresters excels with smaller term life insurance policies, offering highly competitive rates, especially helping older applicants to get fairly priced coverage.
Best Companies for a 30-Year $100,000 Term Policy
If you’re looking for 30 years of term life insurance, check out the companies below:
Once again, Foresters is an ideal choice for $100,000 of coverage.
Their 30-year policies are as competitively priced as their shorter term life insurance options.
Older applicants should absolutely consider Foresters to get the lowest rates as they specialize in this demographic.
Regardless of your age, keep Foresters on your list for this level of coverage.
As always, Banner is among your top choices for term life insurance.
Their 30-year policies are incredibly affordable, whether your health is excellent or it toes the line of sub-standard.
You won’t go wrong taking a few moments to see what Banner has to offer, especially if your priority is saving money on premiums for a 30-year term policy.
We can assure you, Assurity is a company you can depend on for top-notch coverage.
Assurity is another “A” rated provider with a history of success in the life insurance industry.
The company is popular for its smaller term life insurance policies, which are highly affordable.
You can even opt for a return of premium rider, which gives back your premiums if you outlive your coverage.
Best Companies for a $100,000 Universal Policy
If universal coverage is better suited to meet your life insurance needs, here are the top three companies you may want to explore further:
1. Mutual of Omaha
Mutual of Omaha is one of the best in the business, particularly when it comes to universal policies.
The company touts an “A+” from A.M. Best, signifying that you can trust Mutual of Omaha with the all-important purchase of life insurance.
Mutual of Omaha provides you with four different universal policies, each of which is adaptable and affordable.
AIG is another big name in the life insurance industry.
With “A” ratings from all of the major agencies, it’s easy to see why the company is so popular.
Their universal lineup stands out among the crowd, with guaranteed, indexed, and variable universal life insurance products to choose from.
If you want to look beyond Mutual of Omaha, give AIG a look.
Protective isn’t just known for its term life insurance policies.
The reputable company also offers exceptional universal life insurance solutions, adding to its list of advantages.
These policies are as flexible as they come and can be tailored to meet life’s changing circumstances.
They’re also among the most competitively priced universal policies on the market today.
3 Bonus Tips to Lower Your Premiums
Whether you buy $100,000 of life insurance or any other amount, there are a few simple ways to save money on premiums.
Before you apply for life insurance, take a look at the tips below to ensure you get the lowest rates possible.
1. Quit Smoking
Tobacco use flags you as a risky applicant for life insurance companies to ensure.
Smoking a cigar once a year may not impact your rates, but any tobacco use beyond that will.
Kicking smoking to the curb before applying could save you thousands of dollars over the life of your policy.
To be considered a non-smoker and access far more affordable rates, you need to be tobacco-free for at least a year.
2. Get Quotes
When it’s time to go car shopping you don’t blindly purchase a car from the first dealership you come across (hopefully).
Instead, you educate yourself on the type of vehicle you’re looking for, getting quotes and comparing all of your options.
The same should be true when you buy life insurance.
The companies featured above are excellent options for $100,000 of coverage, but it never hurts to explore more companies.
Comparing quotes from a number of life insurance companies is a quick and easy way to find great rates, saving you money down the line.
3. Change Your Payment Schedule
Most people make monthly payments to keep their life insurance policies in force, unaware of the potential savings of a different payment schedule.
While making payments once a month may be more manageable in the moment, it isn’t the most cost-effective.
When you make annual payments as opposed to monthly ones, your life insurance company is likely to give you a discount which amounts to significant savings.
If your budget allows you to make annual payments, it could save you money and simplify the upkeep of your policy.
Final Thoughts On Buying $100,000 of Life Insurance Coverage
If your loved ones would be financially impacted if you passed away today, it’s time to seriously consider life insurance.
Life insurance is a purchase you won’t regret making, especially if you do your homework first.
$100,000 could be a great starting point for securing your family’s financial future.
Once you land on the amount and type of coverage you need, it’s as simple as getting quotes and applying with the company that offers you the best rates and policy features to meet your needs.