How Much Does It Cost To Replace My Income?

Good question!

The cost to replace your income using life insurance is based on the answer to several questions that fall into 2 categories: “About You and About Your Plan”

About You:

What’s Your Age?

  • The older you are the higher the insurance premium. For insurance purposes, your age is calculated based on your closest birthday within 6-months, for example, let’s assume you are 30 years old and apply for insurance in January 15th. Your next birthday is not until June 15th on which you will turn age 31. For insurance purposes, you are 31 even though you’re still 30 on January 15th when you applied for the insurance. Keep this in mind when making your decision to buy now or later, if you wait too long you could have an insurance birthday and end up paying more than you have to.

How’s Your General Health?

  • Height and Weight
  • Medications
  • Blood Pressure and Test Results
  • Whether or not you smoke

What’s Your Occupation?

  • Road Officer
  • SWAT
  • Detective
  • ATF
  • Border Patrol
  • Air Unit
  • Motor Unit
  • Etc.

Note: Some law enforcement jobs may experience higher premiums due to the increased risk of their job such as pilots.

What Do You Do for Fun?

  • Do you participate in any sanctioned, high risk motor sport racing?
  • Do you fly as pilot?
  • Are you a Base or Bungee Cord Jumper?
  • Are you a Rodeo Rider?
  • You get the idea, do you take abnormal risks?

About Your Plan:

Death Benefit

  • The higher the death benefit the higher the premium

Type of Policy

  • Typically, Term Life is the lowest cost form of life insurance you can buy but the rates vary based on the premium guarantee period. In others words, Term Life may be purchased with a level premium for a certain amount of years, usually 5 to 30 years. The longer the premium is guaranteed, the higher the actual premium becomes. For example, a 20-year level premium Term Life policy costs less than a 30-year level premium Term Life policy.

  • Another consideration is whether or not you wish to have all your premiums refunded back to you after the term period expires. Yes that’s right, a full refund of all premiums paid. This type of policy is called “Return-of-Premium Term Life”, here’s how it works:

Let’s assume Officer Mike purchases a 30-year, Return of Premium Term Life policy with a death benefit of $1,000,000. His monthly premium is $150 per month or $1,800 per year.
Over the 30 year term of the policy Officer Mike paid $54,000 in total premiums for his insurance. Now here’s the cool part, shortly after the policy expired, Officer Mike received a check in the mail from his insurance company for $54,000…Tax-Free!!

While Return of Premium Term Life is a wonderful choice the cost of this type of plan compared to standard, non-refundable Term Life is higher but your net, out of pocket cost at the end of term is Zero!

Get A Quote Now

Give Us 5 Minutes To
Protect Your Family's Future

Get A FREE Quote with no hassle.

Law Enforcement Life is dedicated to serving Law Enforcement officers and their immediate families only.

First Name:
Last Name:

Get Free Insurance Tips.

Not sure what the differences are between Term Life, Return of Premium Life and Universal Life?

Request our free product and consumer guide to learn more about our products and how they can be used for Income Replacement. Benefits >>

Quick Links

Legal Notice

Connect With LE Life

Visit Our Partners Sites: