How much does life insurance cost?

The average monthly cost of life insurance is $26. This is based on Quotacy statistics for a 40-year-old purchasing a 20-year term life insurance, the most frequent term length offered. However, life insurance premiums can vary greatly between applicants, insurers, and policy types.

How are life insurance prices determined?

Because life insurance premiums are largely based on life expectancy, numerous factors influence rates, including gender, age, health, and smoking status.

In general, the healthier you are, the lower your insurance prices. Applicants are often classified by insurers using terminology like as super preferred preferred, and standard, with super preferred being the healthiest group. The rates are then calculated by insurers depending on your risk class.

Your prices are also affected by the type of life insurance you select:

Term life insurance is the least cost because it is just for a certain number of years and provides just insurance.

Permanent life insurance covers you for the rest of your life and includes an investing component that may be utilized later in life. Because of this additional cash component, permanent insurance cost far more than term life plans.

MORE: Understanding the Differences Between Term and Whole Life Insurance

Based on national statistics, our life insurance cost calculator will help you estimate how much a term life policy would cost. Contact an independent financial counselor for permanent plans such as whole life insurance.

Your age might also have a substantial impact on premium costs. Because you are more likely to die young as you become older, life insurers consider you as a higher risk. That is why it is best to purchase life insurance as soon as possible; the longer you wait, the higher your premiums will be based purely on age.

There are also price disparities based on gender, however these are frequently a reflection of age. Women nearly usually pay less than males of the same age and health since they have longer life expectancies. Life expectancy in the United States is 81.2 years for women and 76.2 years for men, according to the Centers for Disease Control and Prevention.

It is always more expensive to put off purchasing a policy. Consider a 30-year-old who waits to purchase a policy:

• A 20-year, $500,000 term life insurance coverage will cost around $100 extra per year after the age of 40.

• Annual premiums for a $500,000 term life policy with a 20-year term will more than treble by the age of 50.