How much does life insurance cost?

Life insurance can cost anywhere from $14 per month to over $2,000 per month depending on the type of policy and factors like the policyholder’s age, gender, and family history. For example, a young, healthy female will likely pay less for life insurance than an older man with a family history of serious illnesses.

Factors That Affect Life Insurance Costs

• Age
• Gender
• Health history
• Height and weight
• Family health history
• Smoking and nicotine usage
• Abuse of substances or drug usage
• Credit history
• Criminal background
• Driving record

Term life insurance policies are typically the cheapest option since the policies only last for a certain amount of time and the premiums only pay for the death benefit itself. Permanent life insurance policies, on the other hand, usually cost more than term life policies because they are active for the life of the policyholder and the premiums go toward the death benefit as well as a cash value component. Depending on the type of permanent life insurance policy, the interest accrued by the cash value savings account may be enough to outweigh the higher premium expenses.

Now that you have an idea of what can affect the cost of life insurance, check out WalletHub’s guide to the types of life insurance that are available.

The cost of life insurance can vary significantly depending on various factors such as:

1. Age:Generally, the younger you are when you purchase a policy, the lower your premiums are likely to be. Premiums tend to increase as you get older.

2. Health: Your health plays a significant role in determining the cost of life insurance. Insurers often require a medical exam or review your medical history to assess your health risk. Better health usually results in lower premiums, while pre-existing conditions or higher health risks may lead to higher premiums or even denial of coverage.

3. Coverage Amount: The amount of coverage you choose, also known as the death benefit, impacts your premiums. The higher the coverage amount, the higher the premiums.

4. Type of Policy: Whether you choose term life insurance or permanent life insurance affects the cost. Term life insurance typically has lower premiums initially compared to permanent life insurance.

5. Term Length (for term life insurance): The duration of the term affects the cost. Longer terms generally have higher premiums.

6. Riders and Add-Ons: Additional features or riders, such as accelerated death benefit riders or waiver of premium riders, can increase the cost of the policy.

7. Gender: Statistically, women tend to live longer than men, so they may pay lower premiums for the same coverage amount and age.

To provide a rough estimate, term life insurance for a healthy individual in their 30s might cost anywhere from $20 to $50 per month for a $500,000 policy with a 20-year term.

However, premiums can vary widely based on the factors mentioned above. It's best to get quotes from multiple insurance companies or consult with an insurance agent to get an accurate idea of the cost based on your specific circumstances.