One of the most common questions people have when it comes time to pick a life insurance policy, is “what is the average cost of life insurance?” In some ways, it is a very non-linear question along the lines of “how long is a piece of string?” as there are an almost infinite amount of variables that control the ultimate price.
That being said, trying to figure out what life insurance would cost you in particular, is a bit easier since you yourself know exactly the type of information that will determine the price. Average term life insurance rates vary greatly and are affected by all of the normal things you would expect them to be affected by, such as as age, health and lifestyle choices.
For example, if a person were trying to figure out their average cost of life insurance per month, it would be a much different process than trying to determine the average cost of life insurance for seniors.
Without being overly grim, from the insurance company’s point of view, they will likely have to make a payout on senior’s life insurance policy, long before a younger, healthy person’s life insurance policy. For that reason, seniors often end up paying significantly more, as they probably won’t make as many payment towards their policy before the insurance company needs to make a payout.
Whether you are looking for a $100,000 insurance policy or a million dollar life insurance policy, it is our pleasure to help you make the best decision for you and your family.
What things affect the average cost of life insurance the most?
There are several different things that affect the price you will be quoted for life insurance. Some of these things are easier to change than others, while some are completely impossible to change. As was stated above, the three biggest things affecting your rates will be age, health and lifestyle choices.
Let’s take a look at each of these three things individually:
Age - This is a big one, and unfortunately for your life insurance policy, it is one that you can’t change no matter how much you might want to. Younger people are going to categorized differently than seniors, due to the level of risk (or relative lack thereof with young people). You can bet that the older you are, the more the insurance companies are going to see you as a risk and will create a life insurance plan for you accordingly.
Health - Your current health condition affects your cost of life insurance greatly, and while some things you can change to lower your rates (and improve your health too!), others you can’t. For example, applicants with serious, preexisting medical conditions will end up paying more for their life insurance policy, as the risk involved for the insurance company is much greater. On the other hand, people who are obese or have treatable, short-term medical conditions can see great reductions in their cost of life insurance, simply by taking care of said medical conditions and becoming healthy before applying for life insurance. As an added benefit, they will feel better for doing so too.
Lifestyle Choices - This is another big one, but the good news is, most of these are all up to you whether or not they need to be taken into consideration for your life insurance plan. Smokers are a great example. People who smoke will be seen as a greater risk by the insurance companies due to the harmful effects of smoking. Quitting smoking before applying for your life insurance may be a great way to reduce costs, although it still might end up being more expensive than a lifelong non-smoker. Same goes for other vices like alcohol. While your insurance company won’t ever tell you that you should never have a drink, if you have an apparent problem with alcohol you will surely see elevated costs in your life insurance plan.
How to turn your lifestyle into an actual quote
Unfortunately, there is no way to determine the average cost of life insurance without knowing the details explained above.
However, using an instant quote tool (like the one we provide here) can provide you a quote with seconds of roughly how much life insurance is going to cost you. This option works great for people who don’t have any major, outstanding health issues.
If your health condition is a bit more complex, we can still help you find a solution that works for you. It just requires a brief phone interview to assess your health issues. Since each life insurance company looks at your health situation in a different way, we can take the information and recommend a company that should be the cheapest option for your situation.
So if you've been thinking of getting life insurance, but been turned off by not getting a direct answer about the average cost of life insurance - stop that way of thinking!
It only takes a few minutes to find out how much life insurance will cost for YOU, so there’s no reason to wait any longer. Tomorrow is promised to no one, so protect your family today.