The average cost of life insurance is $21 a month. this is based on a $500,000 20-year term policy for a healthy non-smoker between the ages of 26 and 35. We analyzed the data provided by the fee to find the average monthly costs, but your exact monthly costs depend on your age, general health, gender, and even your lifestyle. To narrow down how much you’ll pay, find your age in the table provided.
How much are senior life insurance rates?
Those who buy life insurance at age 80 can pay more than $1,000 a year for a final expense of $10,000 or $20,000 or a guaranteed issue policy. so you will skip the medical exam in exchange for high rates with low coverage.
Most insurers stop offering term life insurance at age 75 or 80, and permanent policies stop offering around age 75. however, each insurer has its own approval guidelines, so you may get approved by one insurer and not another.
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Use this chart to compare quotes online in minutes to get the best coverage possible at the lowest rate.
5 minute clock: the true cost of life insurance
Watch our quick video covering the breakdown of life insurance costs.
what factors affect life insurance rates?
Life insurers assess how risky it is for you to insure and assign you a life insurance rating. Although you can’t control some risk factors, you can take other steps to lower your rate, such as quitting smoking. your insurer will look:
your policy
- type of policy. Because term life insurance provides protection for a limited time, it costs six to 10 times less than permanent policies like whole life, based on our analysis of life insurance rates.
- amount of coverage. This refers to the face value of your policy. a $1 million policy will be more expensive than a $250,000 or $500,000 policy.
- duration of the term. If you choose term life insurance, you’ll pay a higher premium for a longer term, like 30 years.
- horsemen. Most insurers charge a fee to add additional riders to your policy, such as a waiver of premium or an accelerated death benefit.
- age. The older you are, the shorter your life expectancy, which is why insurers reserve their best rates for young applicants.
- gender. women live longer than men, a fact demonstrated by cdc life expectancy estimates. Insurers charge women lower premiums because they are less likely to pay the death benefit.
- smoking status. Since smoking is linked to health problems, smokers pay more for life insurance coverage.
- health. Your insurer will consider pre-existing health conditions such as high cholesterol or blood pressure, weight, and other health indicators when setting your premium.
- family medical history. If you have a family history of health problems like cancer, stroke, or heart disease, your insurer may increase your rates.
- occupation. If your job puts you in dangerous situations (miners, firefighters, exterminators, or roofing contractors), you may pay more than someone with an office job.
- activities. Insurers evaluate your driving record, alcohol and drug use, and hobbies, and award the lowest premiums to the safest applicants.
- Quit smoking. Kicking the habit could cut your premium in half and improve your health.
- Cut down on alcohol. If you enjoy more than one drink a day, you may be able to cut back on alcohol at lower prices.
- Get in shape. Insurers consider weight and exercise habits to be an important part of your risk. a lower bmi generally leads to cheaper rates.
- consider major life changes. see your coverage after changes like becoming a new parent. You can also escalate debt-based policies, such as a 30-year term policy for your mortgage and a 15-year policy to reach retirement.
- Look for discounts. Talk to your insurer about lowering premiums with a joint policy or other savings opportunities.
- income. How would your family manage without your income if you died? Look for life insurance policies with enough coverage to replace your income until debts are paid.
- expenses. If you have a mortgage, car loan, or credit card, estimate your family’s expenses to support your current lifestyle.
- dependents. If your family is financially dependent on you, consider future needs, such as college expenses or long-term care for elderly parents.
- assets. Evaluate your investments, savings, and retirement accounts to see if your family can live on that money.
- end-of-life expenses. The average funeral costs more than $7,000, according to the National Association of Funeral Directors. decide if you have enough cash to help your family cover this expense.
your health and demographics
your lifestyle
how can i lower my life insurance rates?
Your overall medical history may be out of your hands, but you can take steps to potentially lower your premium.
How long will I have to pay the premiums?
If you have a term life policy, you will need to pay premiums for the length of the term to maintain coverage. this could be 1, 5, 10, 15, 20, 25 or 30 years.
with permanent policies like whole life, you will have to pay premiums throughout your life; otherwise, you will lose coverage. but once you’ve built up enough cash value, you can use it to pay your premiums.
How much life insurance do I need?
To figure out how much coverage you need, think about your financial obligations now and in the future, such as:
end result
When you apply for life insurance, your insurer will customize its rates based on your age, gender, medical history, and lifestyle. To make sure you get the best possible premium, compare life insurance companies.
