The question of how much does life insurance cost is not an easy one to answer. That’s because the real answer is “it depends”.
It depends on things like your age, what kind of policy you get, how much the policy is worth and more.
That said, in this article we’re going to give you some average costs of what different life insurance policies cost. This will at least give you a basic idea of what different types of life insurance policies should cost.
Average Cost of Term Life Insurance
Term life insurance policies are the most common type of life insurance and also one of the cheapest. We’re looking at averages here and these numbers are for a 20 year policy that would pay out $500,000.
For a healthy, non smoker the monthly cost for a policy can range from around $25 for a 25 year old up to $473 for a 65 year old. A 65 year old smoker can expect an average premium of around $1650!
Average Cost of Whole Life Insurance
Whole life insurance is another popular choice. They are more expensive than term life policies. However, depending on your needs, the added costs may be worth it for you and your family situation.
For a 25 year old, the average monthly premium for a $500,000 whole life policy is around $330. For a 65 year old, the same policy will cost around $2000 per month.
Average Cost of Universal Life Insurance
This is the last option we’ll look at in this article. Universal life is another popular option.
For a 25 year old, a $500,000 Universal life policy will average around $250 a month. If you’re 65, that $500,000 policy will be in the $1500 a month range.
It’s Important to Shop Around
Rates for life insurance policies vary widely. As we mentioned at the beginning of this article there are a number of factors that go into how much the policy you want will cost.
And a big factor is the insurance company you choose. Rates for a similar policy can be very different so it’s important to shop around. But, keep in mind, the policy with the lowest rate might not necessarily be the best option for you. The reputation of the insurance company and the specific details of the policy may make it more than worth paying a little more for the best policy for you and your family.