Numerous factors determine the cost of life insurance. These include the age of the policyholder, gender, type of policy requested (either term or whole Life), and the health and hobbies of the individual. In addition, the longer you wait to get life insurance, the more costly it will be. This is due to the aging and declining health of the individual. The reason for inquiring into your health and hobbies is that the older you are and the more precarious your activities, the higher the premiums.
To determine the average cost of life insurance, let us look at the premium amount to determine the monthly fee. For example, someone with a life insurance policy covering $250,000 will pay approximately $18 a month. The higher the premium, the higher the cost. A $750,000 premium will cost about $40 a month. If you go as high as $2,000,000, your monthly fee will be a little over $90.
This is based on a twenty-year term. The difference between life insurance depending on gender is approximately $6.00. A male at the age of 25 years old will pay $27.00 for a $500,000 policy. At the same time, a female of the same age will pay roughly $21.00 for the same coverage. If you take a man at the age of 55 with the same $500,000 coverage, he will pay approximately $151 per month.
In comparison, a woman of the same age with the same coverage will pay only $108 a month. The rates go up significantly for a man at the age of 60, with a $2,000,000 plan; $990 per month. At the same time, a woman of the same age and coverage will pay $702.00. The reason for the large gap in fees is because women are considered to live longer than men.
In addition, health plays an essential factor in life insurance costs. Some of these factors are high blood pressure, high cholesterol, diabetes, whether the individual is a smoker or not, HIV or AIDS, chronic illness, hepatitis, and drug use. For those interested in Term Life insurance, with a payout of $500,000, a male, aged 50, who is a non-smoker, will pay on average $118 a month. The same man, with the same age, but he is a smoker, will pay a staggering $420 per month. It is important to remember that Term Life is life insurance that will only payout if the insured dies within the policy term.
If the policy is for twenty years, and the insured dies within that twenty years, the beneficiaries will receive a death benefit. However, if the insured lives past the twenty-year mark, there will likely be no payout. The average cost of Whole Life insurance is more expensive than Term Life because Whole Life is permanent. For example, a man aged 35 years old will pay roughly $240 a month for a $250,000 Whole Life policy. A man aged 60 with the same coverage will spend almost $800 a month for Whole Life. Term Life is less expensive because it is based on a particular term or years. Whole Life is more expensive because it is for your whole life; it is permanent, whereas Term Life is temporary, or for the insurance term.
If you have Term Life, you can expect to pay anywhere from 1 to 30 years, depending on the term. However, if you have Whole Life, you’ll pay the monthly fees for the rest of your life. If you want to find out the average cost of life insurance per month, for Term Life, at a 20-year premium, you’ll conclude that, on average, you’ll pay about $26 per month, with a payout of $500,000. Whole Life Insurance will cost approximately $52 per month. To get a better idea of what you’ll pay per month for Whole Life insurance, let’s break it down to age and gender, with a wide variety of examples.
A man aged 18 will pay about $17 per month for a $500,000 coverage. A woman, 18, will pay about $14 per month for the same policy. Now, let’s jump to age 30. For a man, 30 years of age, with a $500,000 policy of Whole Life insurance, he’ll be paying $213 per month, but a woman who is 30, with the same policy, will pay about $189. Now, let’s go more into the future and see how much Whole Life insurance will cost a man aged 50, with a $500,000 policy, and we come to about $530 a month.
A woman, 50, with the same policy, will pay about $420 a month. And because this is Whole Life insurance, these payments will be for the policy’s life, which is meant to cover the insured for the rest of their lives. A $250,000 Term Life insurance for a 70-year-old man will run you about $300 a month. A 70-year-old woman with $250,000 Term Life insurance will pay about $194 a month.
The difference, as stated before, is because women tend to live longer than men. In addition, men tend to drive more recklessly than women and engage in more risky activities. They also tend to drink more than women—something to remember.
The healthier you are, the lower the monthly costs. So, if a man aged 60 is in good health, exercises regularly, eats a well-balanced diet, doesn’t drink or smoke, his rates will drop. The same thing goes for a woman. We can conclude that Term Life insurance will cost less on average because it is for a shorter time period. Whole Life insurance will cost more because it is for the entire life of the individual.
No one wants to talk about dying, and life insurance brings that subject to the forefront. However, it doesn’t have to be a sad moment because it is an investment and security for those you love. If you keep this in mind, you’ll find that discussing and purchasing a life insurance policy is the best thing you can do for your family.