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What is the average cost of life insurance per month?
While life insurance provides a much-needed financial safety net for your loved ones, you also want to make sure the cost of your policy’s premiums fits within your budget. The average cost of life insurance depends on many factors, including:
- Policy type
- Policy length
- Your age, gender and health history
- The carrier you choose
- Your lifestyle and career
Average Cost of Term Life Insurance
Term life insurance is a common policy type that provides protection for a specific period of time, usually 10, 15, 20, 25 or 30 years. The cost of term life insurance will vary depending on the length of your policy and how much coverage you need as well as other factors, like your age and gender. Generally, term life insurance will be slightly more expensive for men than women, and, like other types of life insurance, will be more expensive the older you are at the time of purchasing it. But overall, term life insurance is one of the most affordable types of coverage. According to Business Insider, the average monthly cost of a $500,000 term life insurance policy is $25.60 for women and $30.42 for men.
Average Cost of Permanent Life Insurance
Permanent life insurance tends to be more expensive than term life insurance, for a couple of reasons. The first is that, unlike term policies, permanent life insurance is designed to last your entire lifetime. Permanent policies also come with a cash value component, which accumulates over time and can be used as a savings or investment tool. The average monthly cost of permanent life insurance will vary based on a variety of factors, including the type of policy you have: whole life, universal or varied life. Let’s look at whole life insurance as an example. The average cost of whole life insurance is $481 per month for women and $571 month month for men. On average, it will cost anywhere from $180-$1,210 per month for young and healthy individuals.
Average Cost of Final Expense Insurance
If traditional term or permanent life insurance don’t meet your needs, you can consider final expense insurance. This type of coverage helps protect your loved ones from the burden of unexpected expenses like funeral costs, outstanding medical bills and any other remaining debts you have when you pass away. On average, premiums for final expense insurance range from $30 to $70 per month. This cost increases to $70 to $120 per month for people over 70 years old who have preexisting health conditions. With the average funeral costing between $7,000 and $10,000, final expense insurance can be a small price to pay to ensure your loved ones have financial security during a difficult time.
Factors That Affect Your Life Insurance Premiums
You may already be familiar with some of the information that insurance carriers use to determine your premiums, like age, medical history and gender. Here are some other factors to keep in mind when applying for life insurance:
- Activities and hobbies: If you participate in high-risk activities or hobbies, like skydiving and rock climbing, carriers may consider you more expensive to insure.
- Lifestyle habits: Habits like drinking or smoking will likely result in you being quoted for higher life insurance rates.
- Career: Just like your hobbies, your occupation can also have an impact on your life insurance policy rates, since working in high-risk careers (like law enforcement or active military service) can lead to more expensive premiums.
Let SelectQuote Help You Find Affordable Life Insurance
Life insurance should offer a safety net for you and your loved ones, not act as a source of stress on your budget. Whether you’re shopping for life insurance for the first time or want to update your existing policy, SelectQuote can help you find affordable coverage. Our licensed insurance agents will search a variety of carriers in just minutes, helping you review your coverage options to find the one that best meets your budget.
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