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How Much Does Life Insurance Cost? A Price Guide

Did you know that around 106 million adults do not have life insurance? If you are part of this statistic and are looking to change things around by getting life insurance for yourself, but are wondering “how much does life insurance cost?” you are in the right place. We have put together this short guide to share more about life insurance prices and what you can expect.

Read on to learn more.

Factors That Determine Cost

The truth is that life insurance prices vary based on different factors, the term of the policy you choose, and the type of life insurance you choose. Rates for life insurance all depend on the risk the company is taking on paying out the death benefit if you were to pass away while the policy is in place.

Basically, this means that anything that increases your risk of death will increase your life insurance rates as well. One major factor that affects your rates is your health. If you have any chronic health issues that increases your chances of mortality, then you are going to pay more for life insurance because there is a higher risk that the company will be paying out your benefit.

Keep in mind that there is a guaranteed-issue life policy available for those that have severe health problems. These policies allow a customer to forgo a medical exam.

Another factor that affects policy rates is age. The older a person is, the more the policy tends to be. This is why it is best to buy life insurance when you are younger because you can lock in a cheaper life insurance rate.

Gender is another factor taken into consideration by a life insurance company. Men have a lower life expectancy than women, so they are a higher risk to companies. This is why policies tend to cost more for men than for women.

The type of life insurance you choose will also impact your price. If you were to select a whole life plan, you can expect to pay more because this plan is designed to last your entire life. The company is very likely to pay out your death benefit, so they will charge more to reflect that payout.

A term life insurance tends to be more affordable because you are selecting a set period of time that you are covered. The more years you choose to be covered for, the more you can expect to pay.

Believe it or not, what you do for a living can also impact your policy cost. If your profession is on the dangerous side where you are putting your life at risk every day, then your life insurance will be more than someone that sits at a computer all day.

How Much Does Life Insurance Cost?

As we mentioned above, there are several factors that will affect the exact price you end up paying for your life insurance policy. Here are a few averages you can expect to pay for a $250,000, 20-year term life insurance:

Females

  • Age 25 – $18.59/month
  • Age 30 – $19.79/month
  • Age 35 – $22.95/month
  • Age 40 – $29.63/month
  • Age 45 – $41.75/month
  • Age 50 – $60.68/month

Males

  • Age 25 – $22.67/month
  • Age 30 – $23.49/month
  • Age 35 – $25.72/month
  • Age 40 – $34.74/month
  • Age 45 – $51.42/month
  • Age 50 – $81.23/month

Nonsmokers

  • Age 25 – $31/month
  • Age 30 – $33/month
  • Age 35 – $38/month
  • Age 40 – $50/month
  • Age 45 – $78/month
  • Age 50 – $118/month

Smokers

  • Age 25 – $86/month
  • Age 30 – $92/month
  • Age 35 – $117/month
  • Age 40 – $179/month
  • Age 45 – $277/month
  • Age 50 – $426/month

Like we mentioned, these are just averages, you can compare insurance quotes for your exact age, amount, etc. to get a more exact idea based on your factors. Keep in mind that the cost of life insurance tends to increase after 45.

How to Save Money on Life Insurance

In order to save money in the long run, you should buy your insurance as soon as possible, instead of waiting. The older you get, the more your premiums will be for the same amount of coverage. After some time, you might not even be able to buy life insurance because you are considered too high risk.

Another way to save money is to buy term coverage instead of permanent life insurance. In the future, you can always take out permanent coverage or see if your company allows you to convert your policy to permanent coverage.

See if your employer offers group life insurance. If they do, these will usually save you a nice amount of money. Just remember that if you leave your company or reach an advanced age, your policy may become more expensive or cease (depending on how your employer set up their group policies).

How Much Life Insurance Do You Need?

You will need to take an honest look at your lifestyle, financial situation, goals, and your dependents. For example, if you have several young children that depend on your income, then you need to choose the right amount of coverage to protect your family in case something were to happen to you.

For those that are single and have zero dependents along with a healthy savings account and no debt, they might require a lot less coverage in the event of their death.

Ready to Shop Around for Life Insurance?

Now that we answered the question “how much does life insurance cost?” you can start shopping around for the best policy for your own needs. Hopefully, you are feeling more confident about making an informed decision.

If our blog post helped you out, please continue browsing the rest of this section for insurance tips, business ideas, financial guides, career ideas, etc.

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