What is the Average Life Insurance Cost Per Month
Posted in Affordable Life Insurance last updated on July 18, 2022Read What Our Clients Say About Us
What is the average life insurance cost per month? Well, that depends on how much coverage you want.
The average life insurance costs can vary depending on your age, health, and amount of coverage.
Don’t get me wrong, I’m all for being safe when it comes to our health so I would suggest looking into getting some protection if you can afford it!
Article Navigation
- Will Life Insurance Rates Go Down in 2022
- What Goes into a Life Insurance Quote
- Compare Average Life Insurance Rates
- Term Life Insurance Quotes for Males
- Term Life Insurance Quotes for Females
- How Do You Read a Term Life Insurance Quote
- What Factors Impact Life Insurance Premiums
- What are Risk Factors that Affect your Life Insurance Premiums
- How Does Risk Factors Impact Whole Life Insurance
- How Does Risk Factors Impact Whole Life Insurance
- Finding The Best Life Insurance Policy For You
Will Life Insurance Rates Go Down in 2022
Although most Americans acknowledge that life insurance can protect their family’s financial stability, many still go without it.
The AIG Life Insurance IQ Study reported that 51% of respondents either didn’t know if they had a policy or did not have one at all and only 19% said they were happy with the coverage amount provided by their current plan.
To make sure that you get the best deal on life insurance, it’s important to buy a policy while you’re young and healthy. This is because your premiums will be lowest when you are younger than ever before meaning they could never again reach their current value.
Even if this means having health problems or getting older, now is still better than later as prices only go up with time.
You have insurance needs. Whether you are getting your first policy or updating an existing one, there are choices available for you to learn about so that the best option can be chosen.
In addition, you may come across Return Of Premium ROP options, this really has no gain as it will cost you about double in price. Above all, by the time you are able to get back ALL your premium and once you factor in inflation, your money will be values less.
It’s best to invest the difference on your own.
What Goes into a Life Insurance Quote
You can visit each individual insurance company to get quotes. Or, you could use brokers or marketplaces to find the right policy for your situation and apply within minutes!
Most people go through this process but it takes up a lot of time and is not that convenient. You can call us if you need life insurance quickly without all the hassle in some cases with our simplified issue policies.
Compare Average Life Insurance Rates
By comparing life insurance quotes, it’s important to compare the different policy types.
For now, we’ll focus on term life insurance because it can be less expensive than whole life and has easily adjustable coverage based on your events in life.
Let’s look at premiums for term policies in three policy increments:
- $250,000
- $500,000
- $1 million
We’ll also compare these increments across different terms lengths (10 years, 20 years, and 30) based on ages 25/35/45/55 & 65 to get a better idea of what you can expect when buying insurance.
Term Life Insurance Quotes for Males
| Age | Death Benefit | 10-year Term Monthly Premium | 20-year Term Monthly Premium | 30-year Term Monthly Premium |
| 25 | $250,000 | $9.75 | $12.26 | $17.72 |
| 25 | $500,000 | $13.64 | $19.11 | $28.68 |
| 25 | $1 million | $20.04 | $30.59 | $48.25 |
| 35 | $250,000 | $9.77 | $13.45 | $21.09 |
| 35 | $500,000 | $14.06 | $21.24 | $35.24 |
| 35 | $1 million | $21.92 | $33.99 | $64.51 |
| 45 | $250,000 | $16.81 | $26.42 | $42.88 |
| 45 | $500,000 | $27.62 | $46.44 | $79.38 |
| 45 | $1 million | $46.81 | $87.87 | $151.21 |
| 55 | $250,000 | $37.48 | $61.26 | $120.71 |
| 55 | $500,000 | $67.57 | $114.74 | $232.23 |
| 55 | $1 million | $123.24 | $221.61 | $457.05 |
| 65 | $250,000 | $101.76 | $199.16 | Custom Quote Only* |
| 65 | $500,000 | $191.29 | $385.08 | Custom Quote Only* |
| 65 | $1 million | $362.69 | $743.72 | Custom Quote Only* |
Customized life insurance policies are available to age 95 for a 30-year term. A full underwriting is required, but the payout will be guaranteed if you die within that time frame.
Term Life Insurance Quotes for Females
| Age | Death Benefit | 10-year Term Monthly Premium | 20-year Term Monthly Premium | 30-year Term Monthly Premium |
| 25 | $250,000 | $8.61 | $10.79 | $14.68 |
| 25 | $500,000 | $11.22 | $15.72 | $22.73 |
| 25 | $1 million | $15.81 | $23.05 | $37.82 |
| 35 | $250,000 | $8.92 | $11.94 | $18.28 |
| 35 | $500,000 | $11.96 | $17.87 | $29.69 |
| 35 | $1 million | $18.92 | $29.91 | $52.15 |
| 45 | $250,000 | $15.15 | $21.33 | $33.51 |
| 45 | $500,000 | $24.22 | $37.41 | $61.32 |
| 45 | $1 million | $38.24 | $67.91 | $116.36 |
| 55 | $250,000 | $28.21 | $45.38 | $91.54 |
| 55 | $500,000 | $50.05 | $84.39 | $176.50 |
| 55 | $1 million | $90.94 | $158.86 | $330.74 |
| 65 | $250,000 | $64.97 | $134.30 | Custom Quote Only* |
| 65 | $500,000 | $122.14 | $257.70 | Custom Quote Only* |
| 65 | $1 million | $223.86 | $485.77 | Custom Quote Only* |
How Do You Read a Term Life Insurance Quote
Men pay more for life insurance than women do. The premium gap widens with age, but they are both significantly higher when purchased later in life or if you have a longer policy term.
This is because your health becomes much less predictable at older ages and it’s different from person to person so companies need additional information about the applicants before giving them quotes.
Life insurance is a great idea for people of any age. You never know what’s going to happen, and it could be very costly without the proper protection in place.
What Factors Impact Life Insurance Premiums
There are many different factors that go into determining life insurance premiums, and age and gender aren’t the only ones.
Health Class
There are a lot of variables when it comes to insurance premiums. You can have relatively minor health conditions, like well-controlled hypertension which results in only a slight increase in your monthly premium.
More serious health conditions, like diabetes or heart disease, and one-time events such as battling cancer cause rates to go up!
For those of you who have had certain health issues in the past, your application may be reviewed on an individual basis for risk factors. You might also be asked to undergo a medical exam as well.
When it comes to these conditions- how long ago they occurred is one factor that will determine if there are any risks involved with insuring you or not.
For example, cancer 10 years ago has less influence over premiums than recent diagnosis does and other such health-related factors like weight/height (measured by BMI) and what medications we’re taking into account play their part too!
Family History
Don’t let a family history of major illnesses scare you away from life insurance! Everyone experiences health changes as they age, and it’s important to have the financial security that comes with having an active policy.
If one or more immediate relatives suffered any severe conditions before reaching 60 years old (like cancer, heart disease, diabetes), then this may affect your premiums.
But don’t give up hope just yet – most insurers are concerned about these types of diseases because they could deteriorate over time and interfere with daily activities sooner than expected; not all companies will treat them equally when pricing policies.
Smoking or Other Tobacco Use
Being a smoker has an enormous impact on life insurance premiums.
For instance, in our comparison between nonsmokers and smokers of the same sex with $500,000 term policies across multiple companies for 20 years each one is shown below:
| Age at Policy Purchase | Male Nonsmoker | Male Smoker | Female Nonsmoker | Female Smoker |
| 25 | $19.11 | $53.33 | $15.72 | $34.58 |
| 35 | $21.24 | $84.14 | $17.87 | $68.33 |
| 45 | $46.44 | $205.27 | $37.41 | $150.44 |
| 55 | $114.74 | $471.74 | $84.39 | $333.19 |
| 65 | $385.08 | $1131.34 | $257.70 | $844.89 |
Smokers pay more for their life insurance than non-smokers, and the premiums become even higher as smokers get older. Let’s say a man smokes at age 25; his premium will be three times that of someone who doesn’t smoke!
It’s nearly four times greater when he is 35 years old, then continues to rise steadily with each additional year.
Although smokers pay more than $750 per year for the same amount of life insurance coverage, they still enjoy the privilege of paying less each month.
This makes them feel like they are getting away with something even though it will be their downfall in years to come when premiums increase again and make them regretful about smoking.
Most Life insurance companies consider occasional smoking, cigar-smoking, tobacco chewing, and use of e-cigarettes in the same light as regular cigarette smokers.
According to research by the Centers for Disease Control (CDC), life expectancy is significantly reduced when people smoke cigarettes or vapes which increases their risk up to 4 times normal levels with cardiovascular disease like
- Coronary heart disease leading 2x – 4 x
- Increase in stroke at 3x higher rate than non-smokers.
- Lung cancer has 25X more chance developing into men’s health conditions while women are also equally elevated risks compared with no incidents whatsoever but even lower chances yet it still exists that can develop…
- Chronic obstructive pulmonary diseases such as COPD increasing 12X – 13 X likelihood of contracting a serious respiratory condition that causes shortness of breath.
Lifestyle Behavior
Despite people trying to conceal their alcohol and drug habits, the chances of them showing up in a criminal background check or blood test are high.
Additionally, having DUIs/DWIs as well as getting put behind bars for drinking too much alcohol all point towards excessive consumption that will not only lead to earlier death but higher insurance premiums as well.
Livelihood or Occupation
The most hazardous occupations in the United States are logging, fishing and trapping, aircraft pilots/flight engineers (excluding helicopters), roofers. According to data collected by the Bureau of Labor Statistics for 2008-2012, these 10 occupation groups have fatal injury rates significantly higher than average.
There are many occupations that have a high risk of death. If you fit into one of these occupational classifications, your life insurance premium will be adjusted to reflect the increased risks associated with your occupation or profession.
What are Risk Factors that Affect your Life Insurance Premiums
Want to save on your life insurance? Avoid these high-risk activities. High-risk hobbies, like skydiving and racing of any type, could make you pay more for a policy than someone with less risky pastimes. Other examples include deep-sea diving, backcountry skiing, and rock climbing–and many others!
Having multiple moving violations or having one or more at-fault accidents will result in you paying a higher premium, especially if your record includes any DUI/DWI.
If you have poor credit, life insurance companies are more likely to charge higher rates of mortality. This could be the result of financial stress impacting your behavior and health.
Your criminal record can impact your premium. The age and nature of the incident are significant factors in determining whether or not it will have an effect on premiums.
For example, a 25-year-old conviction might have no impact at all while one from five years ago could be quite relevant to insurance companies today when they calculate rates for you!
How Does Risk Factors Impact Whole Life Insurance
Whole life insurance and term life have different features.
- Whole life is the only type of insurance where you get permanent coverage. As long as you keep up with your premiums, it will be in force for your entire lifetime except when there’s non-payment or an act that voids its contract.
- Whole life insurance is a great way to invest in something that has value and can grow. Instead of paying premiums, you pay part of your premium into the cash value which accumulates interest over time. You are then able to withdraw from this account through loans or policy dividends if needed without any penalties for early withdrawal.
- Life insurance premiums can be paid annually, quarterly, or monthly. If you pay the premium yearly then it will stay that same for your whole life while a term policy adjusts if renewed after expiry.
- The cost of whole life insurance can be 10 to 15 times higher than that for term. The difference between the two premiums is how much each goes into your cash value, according to research by us.
The quotes below are samples of whole life insurance rates from PinnacleQuote for a male and female at different ages. The first quote is based on an average policy amount, the second one shows how it varies with age depending on your gender.
As you can see, women tend to pay less than men when their policies start out equal in value because they live longer so need more coverage over time (the younger person pays lower premiums).
Whole Life Insurance Monthly Rates
| Gender/Age | $250,000 | $500,000 | $1,000,000 |
| Male Age 30 | $258.63 | $510.66 | $1,014.72 |
| Female Age 30 | $227.07 | $447.54 | $888.47 |
| Male Age 40 | $374.10 | $741.60 | $1,476.59 |
| Female Age 40 | $324.60 | $642.60 | $1,278.60 |
| Male Age 50 | $567.39 | $1,128.19 | $2,249.77 |
| Female Age 50 | $483.52 | $960.43 | $1,914.27 |
Agents often promote the cash value feature of whole life insurance as a way to earn guaranteed interest. It’s best to look at it from a death benefit perspective and treat the cash value as an added perk.
Some of your premium is going towards commissions and fees — especially in the first few years of policy acquisition.
Also, you might want to check out our article on Single Premium Whole Life.
How Does Risk Factors Impact Whole Life Insurance
To get the most accurate life insurance quote, be sure to provide all of your health information. This includes details about hobbies and family history in addition to occupation and smoking status.
I know some people who have had a lot of different health conditions and activities, so I think you should find the best company to insure your life.
Some companies are known for being flexible with their clients’ special needs – they even provide tailored policies if someone is over 50!
Term life insurance is a more affordable option that can help you with young children.
For example, it’s helpful when your budget may not be as high but the need for coverage is higher due to having little ones at home.
Term life insurance lets consumers buy coverage they might otherwise have been unable to afford and has lower premiums than whole or universal policies since there are no additional benefits attached such as cash value accumulation or death benefit protection in addition to what one would pay out of pocket if something happened while under this type of policy.
You need to choose a life insurance policy and then pay the first premium installment upfront. Once you’ve done that, your policy will go into effect as of the date of application but is subject to approval by the insurer.
Finding The Best Life Insurance Policy For You
Life insurance is a valuable financial tool that you can use for different purposes depending on your needs.
Some types of life insurance are more expensive than others, but term life tends to be the cheapest because it only covers an agreed amount of time and doesn’t have additional features like flexible premiums or cash value accumulations.
However, some people prefer other policies over term if they want extra options with their plan, such as investing money themselves instead of paying monthly fees through policy premiums or securing new loans against accumulated cash values in permanent plans.
Get the most coverage at the lowest cost by shopping around call us for comparing premiums for different types of insurance.
Conclusion
We all know the importance of life insurance, but how much is it costing us? The answer to this question may be surprising.
Life insurance isn’t cheap and for many people who are on a fixed income or trying to save money each month, that can seem like too steep an expense.
Still, there are options out there that could help you get everything you need without breaking your budget every month.
If you would like more information about what type of coverage makes sense given your financial situation, please call our team at 855-380-3300
Our experts will talk with you one-on-one in order to come up with a comprehensive plan tailored just for you—and we promise not to use any pressure tactics!
