A $500,000 life insurance policy can help your loved ones by replacing lost income, paying off debts, or assisting with their future. If the unexpected occurs, it can also give you peace of mind knowing they aren’t left with financial burdens.
Exploring $500,000 Life Insurance Options
When looking for a $500,000 life insurance policy, consider those who depend on you financially, such as your spouse, children, and extended family.
If you were to pass away, think about whether they could still afford daily costs and long-term financial obligations, such as:
Outstanding debts or credit cards
Mortgage payments
Other monthly expenses (car, utilities, etc.)
Raising children (college, high school, etc.)
Financial stability
Retirement planning
It may seem easiest to go with a life insurance carrier you’re already familiar with, but it’s important to explore and shop around. You can often find plans with no medical exam needed.
Just like other types of insurance, life insurance rates vary widely by company, so exploring plans from different carriers is the best way to understand the options available to you.
Term Life vs. Whole Life
When looking for a $500k life insurance policy, you have a few coverage options to choose from, including term life and whole life.
Term life insurance is one of the most common and affordable ways to protect your family’s financial security. With term insurance, you can choose your policy length, or term, for as long as you need it. The typical terms are 10, 15, 20, 25, and 30 years.
Many parents choose term insurance to protect their children until they become adults or graduate from college.
Whole life insurance is a type of permanent life insurance that provides lifetime coverage if the premiums are paid on time. Whole life insurance has a savings component called cash value. Policyholders are typically able to borrow funds from this cash value to meet other financial needs.
Whole life insurance and other permanent coverage options can be beneficial if you want lifelong protection for your family and loved ones.
Features | Term Life Insurance | Whole Life Insurance |
Duration | Typically, 10-30 years | Lifetime
|
Death Benefit
| Yes
| Yes
|
Cash Value
| No
| Yes
|
Premiums
| Can increase at end of term length
| Level throughout duration of policy
|
Cost Benefits
| The more affordable option, but with the potential to increase in price at end of term length | Up to 10x more expensive than term, but remains in force for the duration of your lifetime if premiums are paid
|
Is a half-million life insurance policy enough?
A $500,000 life insurance policy can provide a solid financial safety net if you pass away unexpectedly. But is it enough?
A good rule of thumb is to aim for 10 to 15 times your annual income. For instance, if you earn around $50,000 a year, $500,000 may be the perfect amount of life insurance coverage. However, finding that exact number can be tricky. After all, you want to protect your loved ones, but you don’t want to overpay or be overinsured.
It may seem daunting, but we've simplified the process of determining the ideal coverage. Here are a few key considerations:
Existing expenses (utilities, groceries)
Future expenses (car repairs, medical bills)
Current debt (mortgage, credit cards)
Dependent care (spouse, children, aging parents)
Educational expenses (daycare, high school, college)
Future savings (retirement, healthcare)
Final expenses (funeral and burial costs)
Deciding how much coverage you need can be difficult. Luckily, our life insurance calculator can help. By answering a few simple questions, you’ll get a better idea of how much coverage you need and how much it’ll cost.
How much does a $500,000 life insurance policy cost?
When purchasing a $500,000 life insurance policy, cost is key. This is determined during the underwriting process.
Insurance carriers use your application and medical exam to calculate your premium price. Depending on your health status, you might not need to take a medical exam.
Of course, your age and the type of life insurance you’re shopping for also affects the cost. Term life insurance is often the most affordable option. You pay for the policy only for as long as you need it:
$500,000 Average Term Life Policy Prices
Term Length | 35-Year Old Female | 35-Year Old Male |
10-Year | $11.40/month | $13.09/month
|
15-Year | $13.88/month | $15.27/month
|
20-Year | $16.99/month | $19.97/month
|
25-Year | $24.25/month | $28.04/month
|
30-Year | $28.47/month | $33.99/month
|
Table rates are based on 10-year, 15-year, 20-year, 25-year, and 30-year $500,000 term policies for men and women in excellent health from one or more of the trusted companies we represent. Term life insurance rates were pulled 6/2025. Your price could vary depending on your health, issuing company, and other factors. Not available in all states.
Permanent life insurance policies cost more, but they cover you for your entire life and include a cash value component:
$500,000 Average Permanent Life Policy Prices
Term Length | Male | Female |
30-year-old | $156.00/month
| $130.27/month
|
35-year-old
| $180.99/month | $152.14/month
|
40-year-old
| $225.41/month
| $186.89/month
|
45-year-old
| $265.08/month
| $219.00/month
|
50-year-old
| $318.20/month
| $268.06/month
|
55-year-old
| $389.79/month
| $328.23/month
|
Monthly rates are based on a $500,000 whole life insurance no-lapse guarantee coverage for men and women in excellent health from one or more of the trusted insurance carriers we represent. Rates were pulled 2/2025. Prices could vary depending on health, issuing company, and other factors. Not available in all states.
Key Factors Driving Your $500,000 Policy Price
Underwriters consider many details to determine the price of your $500,000 life insurance policy. Let’s walk through the different factors that could affect your cost:
Type of Life Insurance Policy. Term life is the most common and most affordable option. Permanent life costs more but offers various perks for some people.
Amount of Life Insurance Coverage. The longer your term or the higher your coverage, the more you’ll pay in premiums.
Your Age and Gender. The cost of life insurance increases each year you delay buying it. Women usually outlive men, so they often get lower life insurance rates during the underwriting process.
Your Health and Lifestyle. Factors that may affect your premiums include blood pressure, cholesterol, family history of chronic or serious illness, and lifestyle habits such as nicotine use, drug use, extreme sports, or high-risk hobbies.
Taking the Next Steps for Your $500K Policy
Buying $500,000 life insurance is key to protecting your loved ones’ financial future. If you’re new to life insurance or want to upgrade your policy, keep these four tips in mind before moving forward:
1. Understand Why You Need Life Insurance: Life insurance gives you financial security and peace of mind for your loved ones.
2. Determine How Much You Want to Pay: Consider what type of life insurance you need. Think about your budget, the coverage amount, and how long you want the coverage to last. Our life insurance calculator can help figure out how much is right for you.
3. Be Prepared to Answer Personal Health Questions: Provide accurate, honest, and complete details about your medical history, lifestyle, and job during the application process.
4. Shop Around and Compare Life Insurance Rates: Life insurance rates and coverage differ by company. So, check plans from various carriers to understand all your options.
Getting Quotes for $500,000 Life Insurance
When buying a $500,000 life insurance policy, you want good coverage at a fair price. Shopping for life insurance doesn’t have to be as complicated as you might think.
If you need a new term or permanent policy, or want to update your existing coverage, a licensed insurance agent can help. They can also teach you about the value of life insurance and guide you toward the right decision.
One of our experienced SelectQuote agents can help you find the right coverage for your needs and budget—in just minutes.
SelectQuote Makes Buying $500,000 Life Insurance Easy
Finding a $500,000 life insurance policy can take time and feel overwhelming. SelectQuote can make it easy, hassle-free, and our agents work to find a policy for your needs.
Life insurance isn’t one-size-fits-all. Our licensed insurance agents can quickly help you compare coverage and rates from the trusted life insurance companies we partner with. Even if you have health concerns like diabetes or high blood pressure, we can help you find coverage.
We’ll answer your questions about the life insurance application process so you can feel informed and confident moving forward.
