If you’re considering purchasing term life insurance, you might be wondering how much in premium you can expect to pay.
There are a lot of factors that will affect your term life insurance premium and a lot of variability in premiums. So the question, “What can I expect to pay?” doesn’t come with an easy answer.
Factors that Affect Premium
Term life insurance policies come in a variety of benefit amounts and lengths of terms. Unsurprisingly, a longer term with a higher benefit amount will most likely have a higher premium than a shorter term with a lower benefit amount.
Also, an individual’s circumstances will affect their premium amount. Age, sex, health, and habits can all impact a premium amount.1
If you’re considering purchasing term life insurance from different companies, you’ll more than likely come across different premium amounts from each company. Depending on the type of policy and an individual’s age, sex, health, and habits, premiums will vary by company.
Range of Term Life Premium
There is no typical term life premium. Someone who is 25 and in good health who wants a term life insurance policy with a low benefit amount for a 10-year term might have a very low monthly premium of just a few dollars. Conversely, someone who is 55 and in fair health who wants a term life insurance policy with a large benefit amount for 30 years may have a monthly premium of several hundred dollars or more.
It’s important to note that the factors that affect the premium of a term life insurance policy may be different than those that affect the premium of another type of life insurance policy.
If you’re interested in getting a term life insurance policy or have questions about term life insurance premiums, contact a licensed insurance agent.
- Business Insider The Average Life Insurance Rate by Age, Sex, and Coverage Type, 2020
Categories: Life Insurance, Term Life Insurance, Insurance