Liberty Mutual is one of the long property and casualty insurers in the United States. In addition to auto, home, and business insurance policies, Liberty Mutual also offers several types of life insurance coverage. When considering life insurance, one of the first questions that comes to mind is – how much does it cost? The cost of Liberty Mutual life insurance depends on several key factors.
Your Age and Health
Your age and health status are two pivotal factors that affect Liberty Mutual life insurance rates. In general, the younger and healthier you are, the less your coverage will cost. Life insurance prices are based on actuarial risk tables and probabilities. The older you get, and the more medical conditions you develop, the higher probability there is that the insurer will have to pay out a death benefit. Therefore, older applicants and those with chronic illnesses will be charged higher premiums.
Type of Life Insurance
There are several varieties of life insurance, including term life, whole life, universal life, and variable life insurance. Term life is the most affordable option providing temporary death benefit coverage. Whole and universal life policies accumulate cash value, have investment components, and cost significantly more. The type of life insurance you choose with Liberty Mutual also impacts the price. Term life always costs the least out of pocket on a month-to-month basis.
Amount of Coverage
The death benefit amount (face value) you want covered also affects the cost of life insurance. $100,000 in term life coverage costs less than $500,000 worth of coverage for the exact same applicant. As you increase the death benefit, the insurance company increases the premium they charge to offset the larger payout they may someday owe. Therefore when say “how much is Liberty Mutual life insurance?” also consider the total coverage amount you realistically need.
Extra Riders and Benefits
Riders and benefits that customize or enhance a life insurance policy also make it more expensive. Some additional insurance riders that result in pricier premiums include: waiver of premium for disability, accelerated death benefits for critical/terminal illness, and guaranteed insurability options. If you select any riders when applying for coverage from Liberty Mutual, expect to pay a higher rate than the base policy alone would cost.
Length of Policy Term
If you choose term life insurance from Liberty Mutual, the term length also impacts pricing. Short term policies with lengths of 10, 15, 20, or 25 years traditionally have lower premiums than longer 30 year terms. The longer the insurance company guarantees the rate, the pricier the policy is upfront. However, longer terms may save money in the long run if you keep the policy for multiple decades.
Payment Method and Frequency
How you pay life insurance premiums and the frequency of payments affects costs too. Paying annually results in slightly lower prices compared to monthly bank drafts. But most policyholders choose the convenience of monthly payments distributed automatically from their checking account. Paying semi-annually or quarterly may also save a small percentage over monthly debits.
Discounts Can Reduce Costs
The good news is that Liberty Mutual offers many ways to qualify for discounts and save money on life insurance. Bundling your life policy with other lines of insurance like home or auto qualifies you for a multi-policy discount of up to 12% according to Liberty Mutual. Paying your bill on time can earn you a discount. Checking rates online instead of over the phone can also result in cost savings. If you have certain safety devices installed in your vehicle or home, you may also get a lower life insurance quote.
Obtaining a Free Quote
When say “how much is Liberty Mutual life insurance?”, the best way to find out is to obtain a personalized quote. The company allows you to get a quick quote online or over the phone in minutes with basic details about yourself. However, you’ll need to complete an application to receive the most accurate price tailored to your situation. Liberty Mutual’s team can walk you through the simple application process quickly.
Contact an Independent Agent
While Liberty Mutual has its own captive agents, you can also contact an independent insurance broker. Independent brokers have access to life insurance policies from dozens of highly-rated companies. An independent agent can shop your information around and compare quotes to find you the most affordable option. An independent broker is not locked into any one company’s rates or products.
Average Cost of Liberty Mutual Life Insurance
According to the American Council of Life Insurers trade organization, the average annual premium for an individual life insurance policy in the U.S. is approximately $2,000 per year. Term life specifically averages around $150 to $200 per year for every $100,000 worth of coverage at Liberty Mutual. So if you wanted a 20 year term life policy with a $500,000 death benefit when you are 40 years old and in good health, you may pay around $1,000 per year, or about $83 per month. Whole life insurance averages $50 to $100 per month for every $100,000 in coverage. Final prices depend on your age, health, lifestyle, family history and other personalized attributes.
What Life Insurance is Right for You?
Choosing the ideal life insurance policy depends on your budget, goals, age, marital status, health, lifestyle, career, and family responsibilities. Here are some common scenarios with tailored life insurance solutions:
- Young single adults may only need smaller term policies to cover student loan debts and final expenses.
- New parents dependant on both incomes need enough term life insurance to replace salaries and fund college savings if tragedy occurred.
- Mid-career families close to paying off mortgages may select permanent whole life policies with conservativecash value accumulation.
- Business partners often take out substantial “key person” coverage to protect company finances if an owner passes away suddenly.
- Retirees can utilize life insurance in estate planning to pay estate taxes and leave an inheritance with less taxation.
Speak with a licensed agent to analyze your specific situation and pinpoint how much insurance fits into your financial picture affordably.
The Cost of Waiting Too Long
One mistake that consumers often make is putting off life insurance since premiums seem less urgent than other bills. However, costs to secure coverage increase dramatically every year you age. A healthy 30 year old may lock in very low premiums that stay level for the entire policy period. But waiting until your 50’s or 60’s can mean paying multiplies more for the same benefits. In fact, in your 60’s and beyond traditional life insurance may not even be an option anymore due to old age and health declination. Don’t make the common mistake of waiting too long only to be shocked at how expensive insurance becomes later on.
Liberty Mutual Life Insurance Reviews
Liberty Mutual currently holds an “A” financial strength rating from A.M. Best Company acknowledging their stability and ability to pay out future claims. They have paid dividends to eligible participating whole life policyholders consistently for over 100 years. Online customer ratings average around 3 out of 5 stars. Positive reviews praise Liberty Mutual’s strong financial position, helpful agents, and claims satisfaction. Negative critiques mostly center around high pricing after initial term periods expire. When shopping various companies, pay close attention to changes in renewal premiums over time.
So “how much is Liberty Mutual life insurance?” Different prices range from $150-$250 annually for every $100,000 in term life death benefits. Permanent protection such as whole life averages $50 to $100 per month for every $100,000 you want covered. However, your personalized quote will depend on age, health, lifestyle, policy customization, discounts and more factors. The most accurate way to find affordable life insurance rates is to get quotes from highly-rated insurers like Liberty Mutual and independent agents too. Compare all options side-by-side while you are still young and healthy enough to lock in low premiums for the long run.