What Does Whole Life Insurance Cost?

In a previous article, we discussed what a whole life insurance is, its benefits and downsides. In today’s article, we will talk about what whole life insurance costs and the factors that affect these costs. Read on to know more.

What Does Whole Life Insurance Cost?

The cost of whole life insurance varies from each company. And there are different factors that affect this cost.

We will discuss more about that later on. Below, you will find the summary of whole life insurance costs for male non-smoker, and for $100,000 coverage with no riders. The specific model below is payable up until the age of 65. It is a rough average and should only be used as a guideline.

We also have a sample computation for females, non-smoker classification with $100,000 in coverage and no riders. This is payable up to the age of 99.

Factors that Affect the Cost of Whole Life Insurance

As we have mentioned above, there are a lot of different factors that affect the cost of whole life insurance. Again, the sample numbers above are just averages. The quotes/rates you end up with may vary.

That said, here are the factors that affects your costs:

• Age – Clearly insurance companies will take your age into consideration. The older you are, the more you are a risk in the eyes of insurance companies. Hence, you need to pay higher premiums. This is why it is ideal to get an insurance policy while you are still young.
• Health status  – Before an insurance company approves your policy, you need to undergo a medical exam to determine your health status. They will look at your health history, any prescriptions you may be taking, diagnoses, and many more. This will help the insurance company determine your level of risk. Again, this is another reason why it is ideal to get insurance at a young age.
• Tobacco use – One of the most important factors that insurance companies look at is your tobacco use. Smokers usually have the most expensive life insurance premiums.
• Lifestyle – Insurance companies will also consider your lifestyle. Premiums tend to be higher if you have any dangerous hobbies such as skydiving, scuba diving, or if you work in a risky environment.
• Height and Weight – Your height and your weight will also be examined to see if you fall into a healthy or risky range.
• Substance abuse – Insurance companies will also take a look to see if you abuse drugs or alcohol.
• Criminal history – Yes, they also look at your criminal history to see if you qualify for poor life insurance classification.
• Family history – As we have mentioned above, medical examiners will take a look at your family health history to see if there are any indications of future risk.
• Riders – Premium riders will affect your insurance cost and add more to your costs for additional coverage.