The Cost of Life Insurance: What You Need to Know

When it comes to protecting your family's future, life insurance is an important financial safety net. But how much does life insurance cost? The answer depends on a variety of factors, including age, health, lifestyle and the type and amount of coverage you choose.

Factors That Impact Life Insurance Costs

Insurance companies take several factors into account when calculating the cost of life insurance. These include:

  • Age: Generally speaking, younger people tend to pay lower premiums because they are typically healthier and pose less risk.
  • Health: Your overall health can have a major impact on the cost of life insurance. People with serious health issues may pay higher premiums or be denied coverage altogether.
  • Lifestyle: Your lifestyle choices can also affect your life insurance premiums. For example, if you smoke or engage in risky activities such as skydiving or scuba diving, you may pay higher rates.
  • Type of Coverage: The type of coverage you select will also impact the cost of life insurance. Term life insurance is generally less expensive than permanent life insurance.

  • Amount of Coverage: The amount of coverage you select will also affect your premium. The more coverage you buy, the higher your premiums will be.

Average Cost Of Life Insurance

According to data from the American Council Of Life Insurers (ACLI), the average annual premium for a $250,000 20-year term policy for a healthy 30-year-old male is approximately $160 per year. For a healthy 30-year-old female, the average annual premium for a $250,000 20-year term policy is approximately $140 per year. However these are just averages and your actual premium may be higher or lower depending on individual circumstances.

How To Save Money On Life Insurance

If you're looking to save money on life insurance there are several things that can help reduce costs. These include shopping around for quotes from multiple insurers; opting for longer terms; choosing smaller death benefits; and maintaining good health habits.


The cost of life insurance varies depending on many factors such as age, health status and lifestyle choices but it can still be quite affordable overall. To get the best deal possible it's important to compare quotes from different insurers before making any decisions about which policy is right for you.