How Much Does Life Insurance Cost?

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Preparing for the future is an important step to protect your family.

How much does life insurance cost (and is it worth it)?


If you’re like most people, one of the first questions you have when you start thinking about buying a policy is “how much does life insurance cost?”

After all, if your income is tight, any extra expense can seem like too much to handle. However, a tight budget is actually proof of just how necessary life insurance is. If times are tough now, they will only get harder without the money, childcare, or housework that you contribute to the family.

The ability to care for your loved ones after you’re gone is something no one should take for granted. Luckily, life insurance coverage probably isn’t as expensive as you might think!


How Much Does Life Insurance Cost?

The average cost of life insurance for a 40-year-old purchasing a $500,000 20-year term life insurance policy is around $27 a month. This amounts to less than $7,000 for the entire length of the policy—much less than the $500,000 in death benefits your beneficiaries would receive.

However, it’s important to note that this is just an average.

If you are older/younger, have certain health conditions, or want a different term length, you will be paying a different amount. Furthermore, different life insurance companies calculate their monthly premiums differently, which is why your life insurance quotes may cover a wide range of prices.

The best way to collect life insurance quotes is to discuss your budget, needs, and goals with an independent insurance agent. Because they are not limited to a single insurance company, an independent agent is able to gather multiple quotes from different companies to find a policy that will fit your needs.

And because they’re insurance experts, they can provide much-needed advice on coverages that you may not have been aware of.

Factors That Affect Your Life Insurance Premium

So, why do monthly premiums vary so much?

Calculating life insurance premiums is less technical than calculating premiums for home or auto insurance. As morbid as it sounds, your premiums are primarily based on mortality tables (i.e. life expectancy), but there are multiple factors that companies use to determine this.

Age: Premiums tend to increase as you age, so it’s usually more affordable to get a policy when you’re younger.
Gender: Women typically have longer life expectancies than men, which can result in lower premiums.
Health: Your medical history can impact your premium rates, with healthier individuals receiving lower rates.
Smoking status: Non-smokers pay significantly lower premiums due to the health risks associated with smoking.
Policy type: The type of life insurance you choose, such as term life or permanent life, will affect the cost of your insurance.
Coverage amount: The more coverage you need, the higher your premium will be.

Keep in mind that each life insurance company weighs each of these factors differently, so it benefits you to research all of your options, rather than just going with the company your friends or family use.

It’s also important to remember that individuals of all ages and health profiles can find life insurance!


Types of Life Insurance Policies

There are multiple types of life insurance, but they tend to fall under three main categories.

Term life insurance provides coverage for a specified length of time (usually 10, 20, or 30 years). Because these policies expire, term life insurance rates are generally the most affordable.

If you want your coverage to last as long as you do, there’s permanent life insurance. Permanent life insurance includes options such as universal life insurance and whole life, and also includes a cash value component.

Finally, there’s group life insurance, which is often provided through your employer and generally doesn’t require a medical exam. However, this coverage will not follow you if you decide to leave your job.

Which Life Insurance Policy Is Best For Me?

The very existence of multiple types of life insurance should be a huge clue that there’s no single policy that’s right for everybody.

Your own budget, lifestyle, risk tolerance, and needs should all be considered when choosing a life insurance policy. The good news is that an independent insurance agency can help with this!

To help you get started, we’ve written guides comparing the three most popular types of life insurance.

Whole Life vs. Term Insurance

Universal Life Insurance vs. Whole Life

Term vs. Universal Life Insurance


How To Save on Life Insurance

Still worried about the cost? There are ways to pay less for life insurance without sacrificing coverage.

First, purchase life insurance as soon as possible. Premium rates for an average term life insurance policy only increase as you age, so the sooner you get coverage, the less you’ll pay each month.

Secondly, consider a term policy. If you only need coverage for a limited amount of time—such as when your children are young—a term policy may be sufficient.

Finally, maintain a healthy lifestyle. Manage any pre-existing health conditions, quit smoking, eat a healthy diet, and exercise regularly to potentially qualify for lower premiums.

Is Life Insurance Worth It?

Buying life insurance shouldn’t just be about how much you’re paying, but what you’re getting from your policy. And life insurance is always worth the value.

When it comes to home or auto coverage, there is no guarantee that you will ever experience a fire, tornado, or other covered loss. But passing away is inevitable.

If you knew that lightning was going to strike your house, you would take precautions to minimize the damage to your home and injury to your family. Why should losing your life be any different?

Most people can get an excellent life insurance policy (yes, even with pre-existing conditions!) at an incredibly affordable price. As it turns out, you can’t afford not to have life insurance.



Life insurance isn’t just affordable, it’s a necessary precaution to protect the family and loved ones you will leave behind. However, the longer you wait to purchase it, the more your life insurance will cost.

For more than 40 years, Harry Levine Insurance has been one of Central Florida’s top independent insurance agencies and we are thrilled to continue our tradition of customized guidance and world-class customer service.

While we work with many types of insurance, life insurance is the only policy that we can confidently recommend to everyone.

If you’re looking for a home, auto, business, or life insurance policy that fits your needs, risk tolerance, and budget, give us a call so we can help take care of your future.

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