A common question we get here at ALLCHOICE Insurance is this: What is the average cost of a life insurance policy?

The simple answer is that there is no average cost of life insurance.  So why is this?

There are a lot of factors that go into figuring out a monthly premium when it comes to life insurance.  The first is choosing what kind of life insurance you want.  You can have whole, universal and term life insurance (the differences of which perhaps we’ll look at in a later article).

The next factors in determining the cost of life insurance is how much coverage you want.  Do you want to cover $200,000?  A million?  More?  Obviously, the more coverage you buy, the more it will cost.

You age and health are also determining factors.  Let’s be blunt: the younger you are, the less likely you are to die, as with age come many more health issues, and the healthier you are, overall, the more likely you are to stay in good health.  And of course smokers will pay more than people who do not.

What do you do for work?  Certain jobs come with more inherent risks.  If you work at an office desk, you’re much less likely to have a mishap than someone like a sky diving instructor or professional skateboarder.

Even where you live can factor into the cost of a life insurance policy, though it doesn’t factor in as much as your age and health.  Mortality tables look at things like how prone your area is to natural disasters like earthquakes, floods and hurricanes.  If your region has a high rate of crime or obesity, you can expect to pay more.

Finally, women tend to live longer than men, so everything else being equal, a female can expect to pay less for life insurance.

And so you can see that with so many different factors being considered when coming up with a life insurance policy, it’s very difficult to say what the average cost of a policy would be.

That said, 83% of Americans don’t have as much life insurance as they think they should, and yet they think it costs three times more than it actually does.  To get a real idea of how much life insurance will cost you, get in touch with an ALLCHOICE agent today.

Recent Posts

Leave a Comment