When making any big life decision, it’s helpful to assess both the costs and the benefits. Life insurance is one of those decisions that can greatly impact you and your loved ones’ lives. Figuring out how much life insurance is and how it can benefit you are the first questions you’ll need to get answered.
In a nutshell, life insurance can help provide financial support to your loved ones after you pass. You pay an insurance company regular premium payments; in exchange, they pay the beneficiary of your choice a large sum of money when you pass.1 Here’s how much life insurance costs, average costs for term and whole life plans, and factors that can affect the cost.
Using our life insurance calculator may help you determine how much life insurance you need and can help you forecast your potential life insurance cost per month, also known as premium payments.
Don’t wait until it’s too late. Help cover yourself and your family with affordable coverage from Aflac.
The average life insurance cost varies greatly depending on the type of plan you own. Term life insurance is a life insurance plan that you pay into for a fixed period of time, like 10, 20, or 30 years. These plans are often less expensive than their alternative. However, your beneficiary only receives the payout (or death benefit) if you pass within the specified term.2
Alternatively, whole life insurance is typically more expensive, but the beneficiary will receive the death benefit regardless of when you pass—hence the name, whole life.3 All of this being said, the average life insurance cost per month is $26.4 Life insurance monthly costs vary greatly depending on what you are looking for in a plan, so we don’t recommend using this number as the ultimate baseline.
Each life insurance company will assess how much of a risk you are based on your lifestyle, and the price of life insurance will reflect this. Since how old you are can help insurance companies better understand the risk, you may want to explore how life insurance rates by age influx.
Term life insurance costs are mainly influenced by the age of the policyholder, their gender, and how long the specified term is. The specific costs depend on the insurance company you choose, but a few factors can help you understand potential term life insurance costs.
In general, term life insurance is more expensive the older you are. Additionally, term life insurance is more expensive for men than women because men tend to have shorter life expectancies.5
On the other hand, term life insurance is less expensive when the term length is shorter. So, a 10-year term life plan would typically be less expensive than a 30-year term life plan. Lastly, the face value, or the amount of money you choose to have paid to your beneficiary, impacts the life insurance cost.6 Typically, you will choose the term length and face value upfront, when your term life insurance plan is being created.
In a whole life insurance plan, the term length is non-existent, so the length of the plan won’t change the cost of this permanent life insurance. However, the same influences of age and gender also apply to whole life insurance costs.
Some whole life insurance plans allow you to decide how you want to pay premiums. You can pay it all upfront, or over 10, 20, or 25 years. The payment structure you choose can impact overall costs and benefits of your life insurance plan.
The whole life insurance plan must be fully paid for in full for the beneficiary to be able to access all the benefits. We recommend chatting with an insurance agent to determine how beneficiaries can complete the plan’s payments if needed. Additionally, the overarching face value of your plan will impact the total life insurance cost.7
Life insurance companies won’t use your ethnicity or religious preference to determine costs. Instead, they only look at factors that impact the risks within your life. Also, credit life insurance is the only life insurance that may need your credit score to determine eligibility and costs.
Depending on your unique needs and goals, Aflac offers both Term and Whole life insurance plans, depending on your unique needs and goals. Speaking to an agent can help clarify what your life insurance costs could be like.
Get a quote today to see how an Aflac life insurance plan could fit into your budget. Understanding potential life insurance monthly costs can help you plan for the future better.
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1 Investopedia - Life Insurance What It Is, How It Works, and How To Buy a Policy. Updated Dec 20, 2022. https://www.investopedia.com/terms/l/lifeinsurance.asp. Accessed Jan 4, 2023.
2 Investopedia - Term Life Insurance What It Is, Different Types, Pros and Cons. Updated Aug 20, 2022. https://www.investopedia.com/terms/t/termlife.asp. Accessed Jan 4, 2023.
3 Investopedia - Whole Life Insurance Definition How It Works, With Examples. Updated Sep 7, 2022. https://www.investopedia.com/terms/w/wholelife.asp. Accessed Jan 4, 2023.
4-5 Nerd Wallet - Average Life Insurance Rates for December 2022 – NerdWallet. Updated Dec 13, 2022. https://www.nerdwallet.com/article/insurance/average-life-insurance-rates. Accessed Jan 4, 2023.
6 Value Penguin - Average Cost of Life Insurance by Age, Term & Coverage. Updated Oct 26, 2022. https://www.valuepenguin.com/average-cost-life-insurance. Accessed Jan 4, 2023.
7-8 Nerd Wallet - The Cost of Whole Life Insurance, and Why It's So High. Updated Aug 15, 2022. https://www.nerdwallet.com/article/insurance/cost-of-whole-life-insurance. Accessed Jan 4, 2023.
Policy Series B60000 (Term and Whole Life) - In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400.
Policy Series Q60000 (Group Whole Life) – In Arkansas, Policy Q60100CAR. In Delaware, Policy Q60200M. In Idaho Policy Q60100CID. In Oklahoma, Policy Q60100COK. In Oregon, Policy Q60100COR. In Texas, Policy Q60100CTX.
Policy Series Q60000 (Group Term Life) – In Delaware, Policies Q60200C, Q60200M. In Arkansas, Idaho, Oklahoma, Oregon, Texas, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C
This is a brief product overview only. Coverage may not be available in all states including but not limited to ID, NJ, NM, NY, or VA. Benefits/premium rates may vary based on plan selected. Optional riders may be available at an additional cost. Policies and riders have limitations and exclusions that may affect benefits payable. For costs and complete details of the coverage, please contact your local Aflac agent.
Aflac insurance coverage is underwritten by Aflac.
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In New York, coverage underwritten by Aflac New York.
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