How much does life insurance cost?

BY MATT RICHARDSON

GETTY IMAGES/ISTOCKPHOTO

Due to the varied coverage amounts - and policy types - that a prospective policyholder can secure, the cost of life insurance varies.

Life insurance can provide financial protection for adults in amounts ranging from tens of thousands of dollars to more than $1 million. Despite the conventional wisdom that life insurance is only helpful for beneficiaries after the policyholder has died, there are policies that the insured can use while they're still alive.

Due to the varied coverage amounts - and policy types - that a prospective policyholder can secure, the cost of life insurance varies dramatically. Accordingly, it helps to be aware of the influencing factors to get the most cost-effective and comprehensive plan possible.

You can get a free life insurance price quote online now by answering a few easy questions. 

How much does life insurance cost?

Life insurance premiums are different for everybody.

According to several life insurance companies, a 40-year-old male can expect to pay $60 monthly for a $500,000 term life insurance policy covering 30 years. The candidate would need to be a non-smoker in excellent health.

Using the same provider, a 40-year-old female can expect to pay $55 monthly for a $500,000 term life insurance policy covering 30 years. The candidate would also need to be a non-smoker in excellent health.

Note that the female candidate will pay less than the male, with all other factors being equal. But, in general, any of the above characteristics could easily cause the quoted premium to rise or drop - or coverage could be denied altogether.

It helps to plug in your information online here so you know exactly what to expect.

Factors that affect life insurance rates

As seen above, there is a range of factors that influence life insurance costs. Any one of them - or a combination of two or more - will dictate your prices. Here are a few essential factors to know:

• Age: A younger applicant is less likely to run into health issues than an older one. Accordingly, the younger you are, the less you'll likely have to pay. As you age, the rate will rise.
• Health: If you're sick, have a current medical condition, or have any pre-existing ones, you may pay more for life insurance than if you were fit with no issues. This is especially true for smokers, as the health issues they are prone to are well-known, making them problematic to insure at a reasonable cost.
• Gender: Statistically, women live longer than men. Since men often (but not always) die at an earlier age than women, they can expect to pay more for coverage.
• Policy type: Not all policies are created equal. Different policies have different costs. Understand the difference between whole and term life insurance. Become acquainted with universal, variable, and no-exam life insurance policies, too. The type you choose (and are eligible for) will influence your rates.

The bottom line

The answer to "how much does life insurance cost" depends on so many factors that it's impossible to give a standard figure - or even a ballpark estimate.

Do your research, understand what factors can help or hurt your rate and start shopping around to find a comprehensive and reasonably-priced policy. Get a free quote online now or use the table below to start comparing your options.