Just like anything else we buy, people shopping for life insurance often want to know what the average prices are for policies. While it would be nice to be able to find the average term life insurance rates or permanent policy rates just by visiting a website or making a phone call, unfortunately it’s just not that easy.
No matter which life insurance policy you’re interested in buying, the price you will pay will depend on several different factors. Firstly, the type of life insurance policy you buy will mean that one is more or less expensive than the other. Take permanent versus term life insurance policies, for instance: many people have turned to buying term life in recent years because it’s less expensive than permanent, which requires a person to pay for premiums for the duration of their life.
Then, a person’s health and age will be factored into the rate equation as well. If you are young and relatively healthy, for instance, you will pay less for life insurance than a person who is over 50, has an existing health condition or who smokes. Unless you pay extra to buy a policy that doesn’t require a medical exam, your examination results will also influence the price you will end up paying for coverage. Those with habits deemed risky by insurance companies, such as smoking, could actually wind up paying double the amount that a non-smoker would for the same policy.
Lastly, average term life insurance rates are almost impossible to predict because people will buy different amounts of coverage. With term life, you typically have the option to buy a policy with a term anywhere from 5 to 30 years. Obviously, the bigger the term and coverage the more expensive your policy will be.
Although it’s virtually impossible to give an average for life insurance rates, there’s no reason you should pay more than you need to for adequate coverage. If you don’t have the time nor the desire to shop around for rates on your own, contact a licensed insurance agent who will request rates from top providers on your behalf.
See the average cost of life insurance for yourself with our comparative rater...