Life insurance in Florida provides financial protection for dependents in the event of the policyholder's death. Policyholders pay monthly or yearly premiums to secure a death benefit paid to their named beneficiaries. Coverage depends on the chosen plan, with two main types: permanent and term life insurance. Permanent life insurance offers lifelong coverage and a cash value component that can be used for tax-advantaged retirement planning, while term life insurance covers a limited period and only pays a death benefit.
While you are young and healthy, you can buy basic term life insurance with $250,000 of benefit for less than $20 per month. If you wait to lock in the price while it's cheap, as you age, the same life coverage will start costing you hundreds and later, even thousands per month. So, don’t wait to buy your current or future family’s protection until you can no longer afford it.
Life insurance payouts are generally tax-free, but taxes apply to any received interest. Floridians can purchase multiple policies, and the best option depends on individual needs and budgets. Consulting a Florida-licensed life insurance agent can help compare life insurance quotes and find an affordable policy.
|Most Common Life Insurance Companies in Florida|
|4 Ever Life|
|Americo (United Fidelity Life)|
|Banner Life (Legal General)|
|Columbian Mutual Life|
|Great Western (American Republic)|
|Guardian Life Group|
|Haven Life (Mass Mutual)|
|John Hancock Group|
|Lafayette (Western & Southern Financial Group)|
|Lincoln National Group|
|Madison National Life|
|Minnesota Life (Securian)|
|Mutual of America|
|Mutual of Omaha|
|National Life Group|
|New York Life Group|
|North American Company (Sammons)|
|Northwestern Mutual Group|
|NTA Life (Teachers Only)|
|Pacific Life Group|
|Prestige Insurance Group|
|Prudential of America Group|
|State Farm Group|
|Sterling Investors Life|
|Zurich Insurance Group|
Discuss your life insurance needs with a licensed Florida insurance agent who can help you identify the best insurer to fit those needs.
On average, life insurance in Florida for a healthy 60-year-old costs $230 monthly for a 20-year term life insurance with a death benefit of $250,000. The first question that may come to the mind of a prospective buyer is how much does life insurance cost? Florida life insurance costs vary by age, gender, coverage type or length, insurance company, tobacco usage, health status, pre-existing conditions, claims history, and occupation. For instance, the younger you are, the lower your premiums.
Conversely, the older you get, the higher your premiums. On average female policyholders in Florida pay less for life insurance than permanent insurance. For example, while a healthy 40-year-old female may pay $30 for a 10-year term with a death benefit of $100,000, a healthy 40-year-old male may pay $35 for the same policy.
|Florida Term Life Insurance Average Costs|
|Gender||Age||Policy term||Death benefit||Monthly Premium|
|Female||30 years old||10 years||$250,000||$14 - $18|
|Male||30 years old||10 years||$250,000||$15 - $25|
|Female||60 years old||10 years||$100,000||$60 - $100|
|Male||60 years old||10 years||$100,000||$80 - $130|
|Female||25 years old||20 years||$280,000||$18 - $25|
|Male||25 years old||20 years||$280,000.||$20 - $30|
The average cost of whole life insurance in Florida is as follows:
|Florida Whole Life Insurance Average Costs|
|Male||30||$200 - $230||$400 - $450|
|Female||30||$160 - $200||$300 - $380|
|Male||40||$300 - $360||$530 - $600|
|Female||40||$280 - $330||$500 - $580|
|Male||50||$530 - $560||$850 - $1,000|
|Female||50||$400 - $450||$760 - $900|
The average costs highlighted above are for healthy persons who do not smoke. Persons with preexisting medical conditions, or high-risk hobbies or occupations, tend to pay higher for life insurance. However, they may get discounts if they adopt healthier lifestyles and less risky hobbies and occupations. Life insurance payouts are not taxable in Florida. Consult with a Florida-licensed insurance agent to discuss specifics regarding life insurance prices and how to get cheap life insurance.
Factors that raise the price of life insurance:
Age: The older an individual is at the time of purchasing a life insurance policy, the higher the premium will generally be.
Health conditions: Pre-existing health issues, such as diabetes, high blood pressure, or a history of heart disease or cancer, can lead to higher premiums.
Tobacco use: Smokers or users of tobacco products usually pay higher premiums due to the increased health risks associated with tobacco use.
Occupation: People with high-risk jobs, such as construction workers, firefighters, or pilots, may face higher premiums due to the increased risk of injury or death in these occupations.
Hobbies: Risky hobbies like skydiving, scuba diving, or motor racing can also lead to higher premiums as they increase the likelihood of accidental death or injury.
Family medical history: A family history of certain health conditions, such as heart disease or cancer, can increase premiums as they may indicate a higher likelihood of developing these conditions.
Policy Type: Term life insurance is much less expensive than any of the permanent (cash value) life insurance, but it also lacks in benefits it can provide to the insured during their lifetime.
Factors that lower the price of life insurance:
Good health: Maintaining good overall health, including maintaining a healthy weight, can lead to lower life insurance premiums.
No tobacco use: Non-smokers and non-tobacco users generally pay lower premiums due to a reduced risk of health issues related to tobacco use.
Safe occupation: Individuals with low-risk occupations, such as office workers or teachers, usually enjoy lower life insurance premiums.
Healthy lifestyle: Maintaining a healthy lifestyle, including regular exercise and a balanced diet, can help lower life insurance premiums.
Policy term: Selecting a shorter policy term can result in lower premiums, but it also means that the coverage will end sooner and you will need to shop for another policy at the rates based on your current age and health condition.
Keep in mind that specific factors affecting life insurance costs may vary by the insurance company and the type of policy selected. It is essential to compare multiple quotes and work with a licensed insurance agent to find the best coverage and rates for your individual needs in Florida.
The amount of life insurance you need is the amount that is sufficient to cover your needs. For instance, if you intend to purchase life insurance for your children, spouses, or aged parents who rely on you for financial support, you would need to ensure that the amount of life insurance purchased can cover their needs after your demise. Likewise, for life insurance purchased to settle specific bills, like mortgage, college fees, or other loans, you would need to purchase the exact amount or more. Many Florida life insurance companies recommend that individuals purchase ten times their annual income. For instance, if your annual income is $50,000, you would purchase nothing less than $500,000 as a death benefit in either a term life or a permanent life policy. Ensure to discuss your specific needs with a state-licensed life insurance agent so that they can provide proper guidance.
Use the Florida life insurance policy comparison worksheet to compare quotes.
To get life insurance in Florida, follow these steps:
Consult with a Florida-licensed life insurance agent before purchasing a policy. You can ask about life insurance for seniors or life insurance for children; they can provide all the details you need to find the right policy for you.
Life insurance is not required by law in Florida. However, it may be necessary to get life insurance if you want to access business loans or go into certain business partnerships. The Small Business Administration recommends that a lender requires the business owner receiving a loan to get a standard life insurance policy that names the bank the primary beneficiary or a third party beneficiary. In addition, the insurance coverage amount must not be less than the actual loan balance so that if the business owner becomes ill or dies, the lender will not lose their money.
Term life insurance provides financial protection for a specified period, known as the policy term, which is typically 5 to 30 years, after which it expires. The death benefit attached to this policy would only be paid out if the insured dies within the policy’s term; otherwise, it will be forfeited. However, some life insurance companies may allow the insured to renew the policy or convert to permanent life insurance coverage after it expires. Depending on the life insurance company, the insured may be able to renew their policy without having to repeat a medical exam for requalification. Term life insurance for seniors may be considered a good option for persons over 60 years old because they can choose the specific length of their plan. Individuals can get affordable life insurance rates with term life insurance, compared to whole life insurance and other permanent life insurance plans. This is because term life insurance does not have a cash value component. A major con of term life insurance is that the insured risks losing their policy if they do not die within the policy term, but it is the cheapest way to get life insurance death benefit (if you can qualify).
This type of plan allows the insured to pay a fixed premium for the guaranteed term. It also offers an option for renewal or conversion to a permanent life insurance policy if the insured outlives the designated term.
Benefit: It provides a longer-term coverage plan.
Con: It is more expensive than regular term life insurance plans.
This term life insurance plan will refund all the premiums the insured paid if they outlive the designated term. The life insurance policy will pay out the death benefit to beneficiaries if the insured dies before the policy expires, but if they do not, the insurer will refund the full amount tax-free.
Benefit: Payment is guaranteed whether the plan expires or not. The insured does not risk losing money at the life insurance policy’s expiration.
Con: Return of premium term life insurance plans generally costs 35% higher than other plans.
This plan is renewed annually until a designated age. You can get this plan if you do not have a predictable income, but you need to purchase a plan to stay active until the next year.
Benefit: The premiums are generally inexpensive because the risk of dying within the one-year term is low.
Con: It only provides short-term coverage.
Although term life insurance is cheap, it is best to buy it early enough because it becomes more expensive as you grow older. For example, term life insurance for a healthy 60-year-old will cost more than life insurance for a healthy 20-year-old. Seniors can get term life insurance in Florida, but it will be very expensive. For example, term life insurance for seniors aged 70 or older in Florida could cost as high as $1,000 monthly for a $500,000 coverage, depending on how healthy they are. Generally, the best insurance for seniors above 70 is final expense life insurance because it is typically more affordable.
Florida whole life insurance is a permanent life insurance plan that provides financial protection throughout the insured's lifetime. The premiums paid by the insured do not change, and a death benefit is paid to the policy beneficiaries at the insured's demise, provided the policy was still active when the insured died. In addition to paying a death benefit, whole life insurance also has a cash savings component where interest is earned at a fixed rate. Whole life insurers sometimes offer whole life graded benefit policies to reduce costs for unhealthy individuals.
The common types of whole life insurance:
Participating Whole Life Insurance
A participating policy pays tax-free dividends into the cash value of an insured’s policy after the insurer makes a profit. Generally, the dividends are not fixed because they are only paid from the insurer’s excess investment earnings. Benefits include:
The disadvantage is that insured risk not getting as much as expected to add to their cash value savings.
Non-Participating Whole Life Insurance
Non-participating whole life insurance guarantees low and regular premiums, death benefits, and cash surrender values when an insured buys a policy. However, it does not pay dividends to the insured. It only allows the insured to participate in the company’s profits by buying stocks in the company. Benefits include:
The disadvantage is that non-participating whole life insurance policies do not pay dividends.
Final Expense Insurance
Final expense insurance is typically the last resort coverage that old or unhealthy persons can get at an affordable rate. This type of whole life insurance policy offers a cash value component. It helps senior citizens cover end-of-life expenses like funeral, burial, and medical expenses. Benefits include:
The disadvantage is that final expense life insurance policy has a small death benefit, typically $25,000-$50,000.
Limited Payment Whole Life Insurance
This plan provides life coverage for the insured, with premium payments required only for a set period of years. It requires the insured to pay the full premiums in installments for a fixed number of years, e.g., 10 or 15 years, after which they would not have to pay premiums.
Benefit: The insured enjoys cash value savings and sustained coverage without payment after the set number of years.
Con: The premiums for the fixed number of years are always very expensive compared to level premium plans.
Single Premium Whole Life
Single premium whole life insurance only requires the insured to pay a one-off premium for their life insurance policy.
Benefit: It can be used as an investment because the plan is paid upfront, so the cash value grows faster, is tax-free, and can be borrowed against.
Con: It is very expensive
Indeterminate Premium Whole Life
This plan is flexible because it allows the insured to pay varying amounts determined by the insurance company’s financial performance and actuarial projections.
Benefits: The insured benefits from the insurance company by paying low premiums if the company performs well financially and does not have to pay out huge claims to other policyholders.
Cons: If the insurance company performs poorly financially, the insured will bear part of the loss, as it will significantly impact their premiums. However, the insured’s premiums cannot go higher than the maximum value stated in the policy.
Florida whole life insurance guarantees lifelong coverage as long as the insured regularly pays premiums, while term life insurance is only active for a limited number of years. Also, whole life insurance has a cash value savings component, but term life insurance only pays out a death benefit after the insured dies.
Universal life insurance offers lifelong coverage and cash-value savings. It is typically flexible, which means that after accumulating a lot of money in your cash-value account, you can increase or decrease your death benefit and premium amounts to meet your changing needs. Be aware that altering your premiums may affect the value of the death benefit.
Indexed Universal Life Insurance (IUL)
This policy allows the insured to grow their cash value faster by investing cash in a market index fund. IUL guarantees that you will not lose the market gains of the previous years, even if the market declines. This is why IUL is offered as an alternative to Roth IRA and 401K as an investment vehicle for retirement - which can lose all your life savings - if the Invested Index takes a dive. The minimum guarantee of IUL policies ranges from 0 to 1%, but it mainly varies by company. When getting this policy, working with a financial advisor is best, especially if you do not fully understand the stock market.
Benefit: The insured earns the interest that accrues based on the performance of index funds, like the S&P 500.
Cons: High premiums and additional fees. The policy risks a lapse if its value is insufficient to pay fees.
Variable Universal Life Insurance (VUL)
This policy allows flexibility with cash value invested into money market accounts, indexes, or stocks. The investments can be combined to enable faster growth. However, the amount the insured will receive is typically limited. Benefits include:
Cons of VUL include:
No-Lapse Guaranteed Universal Life Insurance (GUL)
With this policy, the insured is guaranteed to continue to have coverage, even if the cash value drops, as long as they pay the specified amount for maintaining the guarantee. Generally, GUL policies require that the insured selects an end date (e.g., 90, 107, etc.) when the policy is purchased.
Benefit: It is flexible and offers a guaranteed death benefit at the insured’s demise.
Cons: A GUL policy offers little or no cash value.
Generally, working with a financial advisor is best if you want to get universal life insurance because it can get complicated if you handle it alone. Insurance companies determine the eligibility requirements of the universal life policies, but most life insurance companies require applicants to take medical examinations. The major difference between whole life insurance and universal life insurance is that whole life insurance premiums are guaranteed never to rise as long as they do not lapse. Cash value savings are also guaranteed, unlike UL policies, which are flexible and may either rise or fall. UL premiums are generally cheaper than whole life insurance policies.
Florida supplemental life insurance is the additional layer of life coverage you can purchase to bridge the gap between the amount of coverage you need to cover your dependents and the amount of coverage your employer offers. Most times, the group life insurance coverage employers offer is barely enough to meet employees’ needs and cater to their spouses or dependent children at their demise. To supplement their benefits package, employees can also buy term or permanent life insurance on their own or pay an extra premium to their employers to get additional coverage. When deciding how much supplemental life insurance is needed, consider the following:
Group life insurance is mainly purchased by employers or organizations for their employees or members. Group life insurance in Florida does not require filling out a medical questionnaire or taking a medical exam. However, that may be required if the employees or members of the organization want additional coverage.