How Much Does Life Insurance Cost?

This is Part 3 of our series on Life Insurance. Check out the other two:
Part 1: Do I Need Life Insurance?
Part 2: How To Choose Life Insurance: Term Vs. Permanent

Wouldn’t it be nice if there were an easy answer to the question: How much does life insurance cost? 

Unfortunately, we can’t just give you an exact figure. There are just too many variables that affect the cost of life insurance, including age, gender, health, and the amount and type of insurance you’re looking for. Take a look at these factors to get an idea of where you stand. And remember, you can always give us a call for an exact quote!

1 • Your Age And Health

Two of the key factors in determining the cost of life insurance are age and health. The younger and healthier you are, the less you will need to pay. 

This is because insurers base rates on how soon they expect to have to pay your claim. For example, a 50-year-old man might pay $930 a year for a life insurance policy while a 60-year-old man might pay $2,545 a year for the same policy.

2 • Your Gender And Lifestyle

Two other factors affecting the cost of life insurance are gender and lifestyle. 

Statistically, women live longer than men, so insurers often charge lower rates to women. 

Avid adventurers, like people who sky dive or fly in airplanes frequently, will tend to pay more than those without these occupations or hobbies. 

Smokers also pay more than non-smokers, although the definition of what counts as being a “smoker” varies among companies.

3 • The Type Of Life Insurance You Choose

Another factor affecting rates is insurance type. The two main kinds of life insurance are term life insurance and permanent life insurance. Term life insurance is significantly less expensive, because term policies have no cash value and expire after a set number of years.

4 • The Amount Of Life Insurance You Want

Naturally, the higher the amount of insurance coverage you want, the higher the premium. For example, a 40-year-old man might pay $2,260 annually for a $2 million term policy, but only $1,160 annually for a $1 million term policy.

As with any big financial decision, it’s very important to shop around! Comparison shopping often will yield the best information about the price range for your situation based upon your gender, health, lifestyle and insurance type. However, when choosing an insurance company, consider more than just cost. You want a reputable company with a good financial strength rating from services like Moody’s and Standard and Poor’s.

If all of this sounds overwhelming, don’t worry! Navigating all your life insurance options can be confusing, not to mention a hassle, so please don’t hesitate to reach out to us. 

Parkwood Insurance has access to a wide range of life insurance companies. We’re expert at identifying your specific needs, surveying the marketplace for you, and finding you the best possible life insurance policy at the best price.

Share on facebook
Share on twitter
Share on linkedin

More To Explore:

How Much Does Life Insurance Cost?

There are just too many variables that affect the cost of life insurance, including age, gender, health, and the amount and type of insurance you’re looking for. Take a look at these factors to get an idea of where you stand.

How To Choose Life Insurance

Term? Permanent? Whole life? Variable? We explain the differences and the pros and cons of each.