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What is the Average Life Insurance Cost Per Month

February 02, 202412 min read

What is the typical monthly cost of life insurance? Obviously, that depends on the level of protection you choose.

Depending on your age, health, and the level of coverage, the typical cost of life insurance can change.

Don’t get me wrong, I’m all for safety when it comes to our health, so if you can afford it, I’d recommend looking into getting some protection!

Will Life Insurance Rates Go Down in 2024

The majority of Americans are aware that life insurance can safeguard their family’s financial security, but many still choose not to purchase it.

According to the AIG Life Insurance Intelligence Study, just 19% of respondents were satisfied with the level of coverage offered by their current plan, while 51% of respondents either didn’t know if they had a policy or had none at all.

It’s crucial to purchase a life insurance policy when you’re young and healthy to ensure that you obtain the greatest price. This is because to the fact that your premiums will be at their lowest while you are younger than ever, which means they will never again be as high as they are now.

Even if it means ageing or developing health issues, doing this now is still preferable to waiting because prices will only increase as time passes.

You require insurance. There are options available for you to learn about so that the best choice can be made, whether you are purchasing your first insurance or updating an old one.

Moreover, you can encounter Return of Premium ROP alternatives, although these truly offer no benefit because they will cost you nearly twice as much. Above all, your money will be worth less by the time you are able to recover ALL of your premium and once you account for inflation.

The difference should ideally be invested by you alone.

What Goes into a Life Insurance Quote

To obtain rates, you can go to each insurance provider separately. Alternatively, you might select the best insurance for your needs using brokers or marketplaces and submit an application straight now!

The majority of individuals go through this process, however it is inconvenient and takes a lot of time. In specific situations, our simplified issue policies allow you to call us if you need life insurance fast and without a lot of difficulty.

Compare Average Life Insurance Rates

It’s crucial to contrast the various coverage kinds by comparing life insurance quotes.

While term life insurance can be less expensive than whole life and offers easily adjustable coverage based on your life events, we’ll concentrate on it for the time being.

Let’s examine term insurance premiums for three different policy tiers:

  • $250,000

  • $500,000

  • $10 million

In order to better understand what you can anticipate when purchasing insurance, we’ll evaluate these increments over various term durations (10 years, 20 years, and 30 years) based on ages 25/35/45/55 & 65.

How Do You Read a Term Life Insurance Quote

Period of 10 years Weekly Premium Term Monthly Premium for 20 Years Term Monthly Premium for 30 Years

In comparison to women, men pay more for life insurance. The premium disparity widens as you get older, but they are both much more expensive if you buy insurance later in life or for a longer period of time.

This is due to the fact that as you age, your health becomes considerably less predictable and varies from person to person. As a result, before providing candidates with estimates, businesses need more information about the applicants.

Anybody at any age should consider purchasing life insurance. Without the necessary safeguards in place, anything might happen at any time and could be very expensive.

What Factors Impact Life Insurance Premiums

Age and gender are just two of the many variables that affect life insurance prices. There are others as well.

Health Class

When it comes to insurance prices, there are numerous influencing factors. You may have somewhat unimportant health issues, such as well-managed hypertension, which just slightly raises your monthly premium.

Rates increase as a result of more severe illnesses like diabetes or heart disease as well as one-time incidents like overcoming cancer!

Your application might be examined specifically for risk factors if you’ve ever experienced particular health problems. Also, you could be required to get a medical examination.

When it comes to these disorders, one aspect that will determine whether there are any dangers associated with insuring you or not is how recently they occurred.

For instance, a cancer diagnosis from ten years ago has less of an impact on premiums than a recent diagnosis, and other health-related characteristics like height/weight (as determined by BMI) and the drugs we’re taking also matter.

Family History

Do not be deterred from purchasing life insurance because of a family history of serious illnesses! It’s crucial to have the financial security that comes with having an active coverage because everyone’s health fluctuates as they age.

Your premiums may change if one or more close relatives have any severe illnesses before turning 60 (such as cancer, heart disease, or diabetes).

Don’t give up, though; most insurers are worried about these kinds of illnesses because they could worsen over time and start to interfere with everyday activities earlier than anticipated. Not all firms will consider these illnesses similarly when determining insurance rates.

Smoking or Other Tobacco Use

Smoking significantly raises the cost of life insurance.

For instance, the following chart compares the costs of $500,000 term insurance contracts for 20 years for smokers and nonsmokers of the same sex from various companies:

Smokers pay more for life insurance than non-smokers do, and as they age, the rates rise even more. If a man starts smoking at age 25, his insurance premium will be three times more than someone who doesn’t!

As he reaches 35 years old, it practically doubles and then progressively increases over the ensuing years.

For the same amount of life insurance coverage, smokers spend more than $750 more year, but they still get to pay less each month.

They feel as though they are getting away with something, despite the fact that this will be their undoing when premiums rise once more and they start to regret smoking.

Most life insurance providers see occasional smokers, cigar smokers, chewers of tobacco, and users of e-cigarettes in the same way as regular smokers.

The Centers for Disease Control (CDC) found that smoking cigarettes or vaping considerably reduces life expectancy and increases the risk of cardiovascular disease by up to four times the average amount.

  • A stroke is caused by coronary heart disease at a rate that is 2x to 4x higher than that of non-smokers.

  • Lung cancer has a 25X greater likelihood of forming in males than in women, despite the fact that women are likewise at higher risk than women in the absence of any occurrences and yet have a chance to do so…

  • A dangerous respiratory disorder that causes shortness of breath is 12–13 times more likely to be contracted if you have chronic obstructive lung diseases, such as COPD.

Lifestyle Behavior

Lifestyle Habits Despite people’s best efforts to hide them, it’s likely that they may come up in a criminal history check or blood test.

Also, having DUIs or DWIs, being arrested for excessive alcohol consumption, or both all point to excessive consumption that will not only cause an early mortality but also higher insurance premiums.

Livelihood or Occupation

The most dangerous jobs in the US are roofers, loggers, fishers and trappers, pilots and flight engineers (not including helicopters). These 10 occupational groupings had significantly higher fatal injury rates than the national average, according to data gathered by the Bureau of Labor Statistics for the years 2008 to 2012.

There are numerous professions with a high chance of fatality. If you fall within one of these occupational categories, your life insurance premium will be raised to account for the higher risks that come with your line of work.

What are Risk Factors that Affect your Life Insurance Premiums

Need to lower your life insurance costs? Steer clear of these risky hobbies. Skydiving and other high-risk pursuits could result in you paying more for insurance than someone who engages in less risky activities. Deep-sea diving, backcountry skiing, rock climbing, and many more are more instances.

You will pay a higher premium if you have repeated moving violations or one or more accidents that were your fault, particularly if your record includes any DUI/DWI offences.

Life insurance companies are more likely to charge higher rates of mortality if you have bad credit. This can be the outcome of your behaviour and health being affected by financial stress.

Your premium may be affected by your criminal history. When considering whether an incident will have an impact on rates, the age and kind of the incident are important considerations.

For instance, a conviction from 25 years ago might not matter at all, yet one from 5 years ago might be quite important to insurance companies now when they determine your premiums!

How Does Risk Factors Impact Whole Life Insurance

Term life and whole life insurance have various features.

  • The only form of insurance that offers permanent protection is whole life. It will remain in effect for your entire lifetime as long as you pay your premiums on time, barring non-payment or an act that nullifies its contract.

  • A fantastic method to invest in something with value and potential growth is through whole life insurance. You can invest a portion of your premium into the cash value, which earns interest over time, rather than paying premiums. Then, if necessary, you may withdraw funds from this account without incurring early withdrawal fees through loans or policy dividends.

  • Payment terms for life insurance premiums include annually, quarterly, and monthly. A term insurance policy adjusts if it is renewed after it has expired, but if you pay the premium annually, it will remain the same for the rest of your life.

  • Whole life insurance premiums can be 10 to 15 times more expensive than those for term. According to our analysis, the amount that each premium contributes to your cash worth varies between the two premiums.

Examples of full life insurance quotes from for a male and female at various ages are provided below. The second quote illustrates how it fluctuates with age depending on your gender. The first quote is based on an average policy amount.

As you can see, women typically pay less than males when their insurance policies are initially of equal value because they live longer and eventually require more coverage (the younger person pays lower premiums).

Agents frequently tout whole life insurance’s cash value component as a method to earn interest that is guaranteed. The cash value should be viewed as an additional benefit and the death benefit as the primary consideration.

Especially in the first few years after purchasing the insurance, a portion of your premium is going towards commissions and fees.

Moreover, you should read our essay on One Premium Whole Life.

How Does Risk Factors Impact Whole Life Insurance

Make sure to include all of your health-related information to get the most accurate life insurance quote. Together with information about employment and smoking habits, this also includes information about hobbies and family background.

Finding the finest life insurance provider is important in my opinion because I know some people who have experienced a wide range of health issues and activities.

Certain businesses are renowned for being accommodating to the unique demands of their customers; if a client is over 50, they even offer specially designed plans!

You may find term life insurance to be a more cost-effective solution if you have young children.

For instance, it’s useful if your budget isn’t as big but you have young children at home and require more coverage.

Since there are no additional benefits like cash value accumulation or death benefit protection in addition to what one would have to pay out of pocket if something happened while covered by this type of policy, term life insurance enables consumers to purchase coverage they might not have been able to afford otherwise. It also has lower premiums than whole or universal policies.

You must pick a life insurance plan and pay the initial premium installment in full. After you’ve done that, your policy will take effect as of the application date, subject to the insurer’s approval.

Finding The Best Life Insurance Policy For You

Depending on your needs, life insurance is a useful financial tool that you can put to a variety of uses.

Term life insurance often costs the least because it only provides coverage for a predetermined period of time and lacks extra features like adjustable premiums or cash value accumulations. Some types of life insurance are more expensive than others.

However, if a person wants more options with their plan, such as investing their own money rather than paying monthly fees through policy premiums or securing new loans against increased cash values in permanent plans, they may prefer other policies over term.

Call us to compare insurance quotes for various types to get the most coverage for the cheapest price.


Everyone understands the value of having life insurance, but how much does it actually cost? This question’s resolution could surprise you.

The cost of life insurance can seem excessively high to many people who are living on limited incomes or attempting to save money each month.

But, there are options available that can enable you to meet all of your needs without going over your monthly budget.

Call our staff at 855-468-8900 if you’d like more details about what kind of insurance makes the most sense for your financial situation.

Our experts will have a one-on-one conversation with you to develop a thorough plan that is specifically designed for you, and we make a commitment to never apply pressure.

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