When it comes to life insurance, the most accurate answer is, “it depends.” The good news is that, on average, a policy costs less than you might think. Research conducted by industry trade group LIMRA over the years has found that people, especially younger generations, consistently overestimate how much a policy will cost.
There are many factors that can affect your average price of life insurance , including age, gender and lifestyle. Generally speaking, younger and healthier individuals pay lower premiums because they have longer life expectancies and represent less of a risk to the insurer.
The Bottom Line: Exploring the Average Cost of Life Insurance
Your family’s medical history can also impact your rates. If you have a family history of chronic diseases like heart disease or diabetes, your premiums may be higher. Other factors that determine your rates include your current health and whether you smoke or have a history of smoking. A healthy lifestyle can help you qualify for a more affordable policy, and you can lower your premium by exercising, maintaining a healthy weight, eating well and scheduling routine checkups.
Your occupation and hobbies can also influence your rates. If you work in a dangerous profession, or engage in high-risk activities like skydiving, your premium may be more expensive. Other factors that determine your rate include your policy length and coverage amount, as well as any riders (additional coverage options) you add to your policy. It’s important to request quotes from several providers to compare prices and underwriting guidelines. Then you can determine the best option for your budget and needs.