Average Life Insurance Cost
If you’re shopping for life insurance, you may be asking yourself this question.
There is no one right answer for the average cost of a life insurance policy because the price for life insurance may vary based on your gender, age, type of life insurance, amount of coverage, insurance carrier, and other factors used to determine your rate for coverage.
Obviously, none of us wants to pay more than the average for anything, especially life insurance. But, maybe you don’t have to.
Why, because by comparing pricing on life insurance policies from several of the highest-rated insurance companies you may save up to 70%.
What Is the Lowest Priced Type of Life Insurance?
Term Insurance offers the lowest pricing by far on life insurance plans.
Term Life Insurance provides protection for a specific period of time, usually 5, 10, 15, 20, 25 or 30 years. Term life builds no cash value, it is pure life insurance protection.
You only pay for the life insurance coverage. Term life offers you the maximum amount of insurance at the lowest price.
Save on Life Insurance by Comparing Multiple Quotes
When you combine the low rates on term life insurance with the savings you get by comparing multiple premium quotes, you may save up to hundreds of dollars per year on your life insurance plan.
That’s a good thing, since we could all use a little more money in our pockets these days.
How Is the Average Cost of Life Insurance Determined?
There are several key factors that insurance carriers consider when deciding what they will charge you for your policy.
Common Factors for Rating Your Life Insurance Policy
- Age.
- Gender.
- Health Condition.
- Your Family’s Health History.
- How Long You Need Life Insurance to Last.
- Your Occupation.
- Your Hobbies - Do you have any high-risk hobbies?
- Tobacco Use.
- Are You on Medication?
- Driving Record.
- Lifestyle.
- Type of Life Insurance Policy.
In addition, the rate developed by considering the above factors is used to determine your premium by taking into account the amount of life insurance you need.
The rate is multiplied by the amount of life insurance to determine your premium.
For Example, if you are buying $100,000 with a $5 rate, your premium is $500.
($5 X $100 = $500).
How to Find Your Average Cost:
- Request and compare life insurance pricing from several carriers.
- Add up all of the premiums quoted, and divide that number by the number of companies you receive premium quotes from.
For Example, if you receive 5 quotes at the following prices: $550, 650, 700, 600 and 500.
The Total Premium is $500 + $550 + $600 + $650 + $700 = $3,000
The Average Cost is $3,000 divided by 5 = $600.
How Can You Find the Best Life Insurance Prices?
By comparing life insurance quotes online from top-rated insurers nationwide.
You just fill out a short Quote Request Form, Click on a Button, and you Instantly Receive the Lowest Prices from over 45 leading life insurance companies.
Tips for Comparing Premiums on Life Insurance
- Compare quotes from several different insurers.
- Lock-in rates at least 6 months before your next birthday.
- Compare rates at the next highest $100,000 limit of coverage.
- Compare premium payment options for monthly, quarterly, semi-annual, and annual payments.
- Compare rates for 10, 15, 20, 25 and 30 year terms.
- Consider the financial strength rating of the insurance companies.
How Can I Save Money on My Life Insurance Policy?
There are several ways to save on your cost of life insurance:
- Buy Term life insurance. Whole life insurance costs up to 5-10 times more for the same amount of life insurance compared to the cost of term insurance.
- Compare Pricing from Several Insurance Companies.
- Buy Life Insurance while you are Young. Rates for life insurance increase with age, so you want to lock-in the lowest rate as soon as you can.
- Pay Premiums Annually – Once per year. Insurers charge an additional service fee for the processing of monthly premiums.
- Quit Smoking. Smokers pay up to 5-10 times more for the same amount of life insurance compared to Non-Smokers.
- Lose Weight. People who are overweight or obese are charged a higher rate because they have a greater risk of developing health issues and dying sooner than someone who is not overweight.
- Coverage Amount – Don’t buy more life insurance coverage than you really need.
How Much Life Insurance Do I Need?
To decide how much life insurance is right for you, we recommend you use a life insurance needs calculator that helps you quickly and easily determine your needs based on your specific financial situation and goals for your family’s future.
Compare Life Insurance Premiums
Top Pick – JRC Insurance Group
JRC Insurance Group helps you shop, compare and save on life insurance. Regardless of your age or health background, we'll shop our 40+ insurance companies and find you affordable life insurance you need to protect your family and fit your budget. Compare the best life insurance rates for savings up to 73%. Get Your FREE Quote.
How Much Does Life Insurance Cost?
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Disclosure: Compensated Affiliate